Strategy Note /
Global

Emerging market insurtechs: Key performance indicators and value propositions

  • Insurtechs account for just 6% of the emerging markets fintech ecosystem but are expected to see healthy growth

  • Insurtech key performance indicators: Transaction value, product and service innovation, and gross margin

  • Value propositions: Seamless execution, user-friendly platforms, and responsiveness to customers’ needs

Emerging market insurtechs: Key performance indicators and value propositions
Rahul Shah
Rahul Shah

Head of Corporate & Thematic Research

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Tellimer Research
22 December 2022
Published byTellimer Research

In this report, part of our Ultimate Guides series, we focus on the KPIs being targeted by insurtechs in emerging markets and the key values these firms deliver to their customers

Key performance indicators

The key performance indicators (KPIs) most targeted by insurtech firms in emerging markets are transaction value, product and service innovation, and gross margin. Moreover, insurtech firms tend to focus more on financial performance KPIs than EM fintechs specialising in other products

In our previous survey, market share, customer satisfaction and workforce satisfaction topped insurtechs’ targeted KPIs. While insurtech firms are still keen on lifting market share via transaction value, their emphasis on building customer satisfaction to gain loyalty has lessened.

The top 3 KPI’s for insurance fintechs:

Transaction value

This is the KPI most frequently targeted by insurtechs and is also one of the metrics commonly used by investors to assess the fintech sector. Firms actively targeting transaction value growth include Compareha (Egypt) and Pier (Brazil).

Product and service innovation

Product and service innovation enables insurtechs to reach their customers more cheaply and effectively. It also helps these firms to be more relevant to their customers, for example by offering them greater convenience or protection better suited to their needs. Firms citing these innovations as key to their success include PolicyBazaar (India) and Zhongan Insurance (China).

Gross margin

A high gross profit margin can indicate strong customer demand and increases the opportunity to turn a profit if overheads are controlled. For this reason, investors also tend to pay close attention to this metric. Insurtechs focusing on their gross margin include SaveKubwa (Kenya) and Zenda.la (Mexico).

EM insurtechs: targeted KPIs

Key values

The top values provided by insurtechs are seamless execution, user-friendly platforms, and responsiveness to customers’ needs. Indeed, insurtechs are much more focused on delivering user-friendly platforms than their fintech peers.

The importance of being customer-centric has declined by around 40% since our 2020 survey. In contrast, speed has gained substantially in importance.

The top 3 key values for insurtechs:

Seamless execution

Users increasingly demand that insurtech-operated platforms and mobile applications should not have delays or interruptions. Firms that cite seamless execution as their key value include SaveKubwa (Kenya) and Curacel (Nigeria).

User-friendly platform

User-friendly platforms help insurtechs to generate more traffic and to inspire more confidence in their services, resulting in greater transaction volume. Firms highlighting user-friendly platforms as a key value include Zhongan Insurance (China) and Naked Insurance (South Africa).

Responsiveness to customer needs

Many incumbent firms are failing to address customers’ specific needs (due to difficulties in tailoring products/services), which is creating opportunities for insurtechs like PolicyBazaar (India) and Tameeni (Saudi Arabia).

EM insurtechs: key values

Our Ultimate Guide to Insurance-focused Fintechs gives a more comprehensive overview of the sector and can be accessed here.