DUBAI, United Arab Emirates /PRNewswire/ Mitra Ferdows, an investor and mentor in different startups, believes insurance (InsurTech) and financial (Fintech) startups have a bright future that could overhaul the age-old industries.
Mitra Ferdows, a graduate of Business Management from the United States' Loyola Marymount University and an economic expert who has worked with various startups as a consultant and investor for years, explained the future of FinTech and InsureTech in a training seminar in Dubai, UAE.
"FinTech and InsurTech mean using innovative technologies to change or ameliorate and optimize processes in the current insurance and financial industry so that it would be possible to activate new business models by boosting productivity," said Mitra Ferdows about the Fintech and InsurTech industries.
"The phrase InsurTech is comprised of two words: insurance and technology. Likewise, Fintech comes from 'financial' and 'technology,'" she said.
Mitra Ferdows also weighed in on the necessity of utilizing new technologies in the insurance industry.
"Insurance is an age-old and well-established industry whose structure has remained stable in society in the past 100 years and whose business models have changed very slowly," she said.
"However, new requirements in the 21st century such as the need to care about customers and facilitate sale processes as well as the necessity of more transparency and competition online has prompted many of old companies offering insurance services to consider changing their business models or becoming more active online," Mitra Ferdows added.
"In other words, insurance services cannot simply be offered via agencies and online sales, and it is required that these companies also offer services associated with technology," she noted.
"Moreover, the competitive atmosphere has led to the formation of startups which themselves are not necessarily the companies that sell insurance services; rather, they offer services to facilitate sales or improve the services offered by insurance companies or simply to contribute to competition and transparency on the market," Mitra Ferdows said.
Mitra Ferdows Describes Effect of Covid-19 Pandemic on InsurTech Industry
"The global InsurTech market was at $7 billion in 2019, and it is expected to target a robust growth rate from 2020 to 2025, which is very great and considerable for an emerging industry," Ferdows, Mitra said.
"This very significant growth has prompted insurance firms across the world to start considering changing their business models so that they wouldn't fall behind when competing with startups. Furthermore, we are seeing investors putting huge amounts into startups in this domain," she said.
As for investment in insurance startups, Ferdows believes the pace of investment is staggeringly high and will soon lead to the creation of unicorns or companies worth billions of dollars.
"The volume of investment on InsurTech startups amounted to about $1 billion in 2014 and increased to more than $4 billion by 2018, but with the outbreak of the corona pandemic worldwide in late 2019, this figure increased to an unprecedented growth of $7 billion and in 2020, which shows investors' great interest in this industry," she said.
"Like it or not, business models in the insurance industry are undergoing fundamental changes due to startups, a development which will change the nature of this industry in ten years," Mitra Ferdows concluded in this seminar.
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SOURCE Mitra Ferdows
© Press Release 2020
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