May 23, 2025
Frustratie of innovatie?
Insurtechs are playing an increasingly important role in driving innovation in the insurance sector.
In VVP, the platform for financial advisors, our CEO Jack Vos delved into the drivers of insurtechs with international examples such as Asurion, bolttech, wefox, Oscar Health, and Lemonade.
The next edition will feature more about Dutch insurtechs you can collaborate with as an advisor.
Let's be honest: how often do we find ourselves asking, ‘Why on earth are we doing it this way?’ The power of “first principles thinking” lies exactly in that – breaking assumptions and going back to the essentials. Insurtechs have fully embraced this approach. By throwing existing assumptions overboard and starting anew based on customer needs, they are turning the insurance sector upside down. They are showing that insurance can be faster, simpler, and fairer. In this series on insurtechs, discover how they challenge the status quo with first principles – and what you can learn from it.
The philosophical roots of first principles
The idea of first principles is ancient and rooted in Aristotle's philosophy. He saw it as a way to reduce any problem to its foundation. In his view, you needed to shed assumptions and rebuild from the core. Later, scientists like Isaac Newton applied this principle to formulate the laws of nature. They began with the question: what do we know absolutely for certain? What can we build from there?
This mindset is what led Elon Musk to say, “Rockets are expensive? Let’s figure out why.” He broke the problem into its core components, analyzed the costs, and found ways to drastically lower them. The result? SpaceX, which builds rockets at a fraction of the cost of traditional players. This thinking isn't reserved just for space pioneers. In your role as an advisor, you can also harness the power of first principles. Ask yourself: what do my clients really want? What can be simpler, faster, more efficient?

“I think it’s possible for ordinary people to choose to be extraordinary.”
– Elon Musk
Insurtechs: frustration as fuel for innovation
Frustration often drives change, and that's exactly how many insurtechs were born. The traditional insurance world was long known for slow processes, opaque terms, and high costs. Customers often felt lost in the complex jungle of policies and claims. This created space for tech-driven startups to step in and show that things can be different.
Compare it with Uber: born out of annoyance with unreliable taxis, it created a platform that offered simplicity and speed. Insurtechs are doing the same in the insurance sector. They combine technology with a customer-centric approach. Daniel Schreiber, CEO and co-founder of Lemonade, one of the most well-known insurtechs, put it this way: “Our mission is to replace a centuries-old industry with something built on empathy, technology, and a deep sense of purpose.”
The insurtech wave in numbers and technology
The market for insurtechs is booming, with hundreds of insurtechs worldwide focusing on diverse specializations, from healthcare and damage prevention to AI-driven risk analysis. According to FinTech Global, the global insurtech market reached a size of $26 billion in 2024 and is expected to grow to about $496 billion by 2033, equating to a compound annual growth rate of 38%.
This growth is primarily driven by innovations in artificial intelligence (AI), machine learning (ML), cybersecurity, and an increasing emphasis on Environmental, Social, and Governance (ESG) practices.
Events such as ITC DIA Europe, held annually in Amsterdam, provide a stage for these innovators. With more than 100 participating insurtechs, it’s the place where insurers, advisors, and tech companies come together to discuss and shape the future of insurance. During this trade fair, the latest technologies are presented, from blockchain solutions to AI-based customer interaction platforms.
The business intelligence company CB Insights publishes a list each year of the most promising insurtechs*. It's likely that some of these insurtech companies, apps, platforms, marketplaces, and tools will also become active in the Netherlands.
Disruptive initiatives threaten the status quo and are often viewed with skepticism, as are insurtechs. Many insurtechs focus initially on growth and market share, often at the expense of immediate profitability. This raises questions among traditional insurers, who can quite comfortably achieve stable margins.
Moreover, the market impact of insurtechs might be limited. In percentage terms of market share, that's certainly true; many insurers have existed for a hundred years or more, insurtechs for only a few years. However, insurtechs use highly scalable technology and business models and can grow exponentially.
That's why insurers realize they mustn't miss the boat. Now they are not just investing in insurtechs but simply acquiring these startups or collaborating intensively with them. Like Allianz: they work with Lemonade to optimize their own processes. Or Nationale Nederlanden, which introduced the British insurtech Laka for bike insurance in the Netherlands.
The Dutch Association of Insurers actively encourages collaboration between insurers and insurtechs through the open Platform InsurTech. The Association – as well as many international insurers – have a structural partnership with Plug and Play InsurTech, the insurtech innovation platform from Silicon Valley/Munich.
The message is clear: insurtechs are no longer outsiders but core players in the industry.
Are Insurtechs just small startups?
Asurion is the world’s largest technology care company and helps more than 300 million customers to make the most of their devices, ranging from phones and laptops to household appliances. With 24/7 service and a network of over 730 repair stores, Asurion offers quick and affordable repairs, often within 45 minutes, making it a leader in technology insurance and customer focus.
Wefox started in Germany in 2014 and is an ecosystem that connects insurers, advisors, and customers to streamline processes and make cooperation more efficient. It has over 3 million customers in Europe and was valued at 4.5 billion euros in 2022. The company, which has, among others, acquired TAF in the Netherlands, is now undergoing major restructuring to manage rapid growth.
Lemonade was one of the first to turn the traditional insurance model upside down. With an AI-driven platform, customers can take out a policy or file a claim within minutes. The company has more than 1.6 million customers and is known for its unique profit model: a portion of the premium income is donated to charities. Transparency is central, and when combined with the desire to make a positive impact, it particularly appeals to younger generations.
Root Insurance uses technology to analyze driving behavior via an app. This enables them to tailor premiums based on how safely someone drives. No standard rates anymore, but personalized premiums based on behavior. Root now has more than 2 million customers and is active in various states across the U.S. This model is not only fairer but also a strong motivator for safer driving behavior.
Oscar Health focuses on healthcare by providing customers with direct access to doctors via a user-friendly platform. The company now serves over 1 million members and scores an impressive customer satisfaction rate of 97%. No waiting for long times or dealing with insurance paperwork, but fast, personal care.
By comparison: Nationale Nederlanden serves 6 million customers in the Netherlands, Allianz Benelux serves 2 million customers.
Bolttech – The best-scaled insurtech in the world
Bolttech is one of the most remarkable insurtechs today. This Singapore-based company raised over $100 million in December 2024, valuing it at $2.1 billion.
What makes Bolttech so special? Firstly, it's their broad focus on ecosystems. With more than 800 distribution partners and 200 insurance companies in over 30 countries, it is one of the largest insurtech platforms worldwide. This ecosystem enables partners to quickly access a wide range of solutions, including device protection, life insurance, and property insurance.
Bolttech makes extensive use of technologies like artificial intelligence (AI) and machine learning (ML) to speed up processes such as underwriting, but also enables personalized insurance solutions. IoT integrations play a crucial role in damage prevention and real-time monitoring.
One of their most striking products is device protection, which insures smartphones, laptops, and other devices against damage. Thanks to collaborations with major telecom companies, customers can take out insurance right upon purchase, ensuring a seamless experience.
What is also inspiring is the accessibility and inclusivity Bolttech pursues. By partnering with local distributors, it reaches millions of customers globally, regardless of location or income. The scale and diversity of their offerings – ranging from traditional insurance to innovative solutions like on-demand and cyber insurance – make Bolttech a true pioneer.
What you can learn from insurtechs
Insurtechs have proven that the insurance sector can be simpler, fairer, and more customer-oriented. By thinking from first principles and smartly leveraging technology, they have raised the bar for the entire industry. But this also presents opportunities for you as an advisor. By learning from their approach and collaborating with these innovators, you can serve your clients better and position yourself as a modern, future-oriented professional. Here are a few insights:
Embrace Technology: Insurtechs show how technology can simplify processes and enhance customer experience. Actively seek out technology that makes your life easier and improves customer experience.
Be Transparent: Customers appreciate simplicity and honesty. Take a cue from insurtechs and ensure your advice is clear and understandable.
Offer Preventive Solutions: Help clients not only with insurance but also with ways to prevent damage. This adds direct value and strengthens your position as a trusted advisor.
Focus on Niche Markets: Insurtechs often target specific audiences, such as taxi drivers, small business owners, or micro-insurances. By sharpening your focus, you can stand out in a competitive market.
Collaborate with Insurtechs: Do not see insurtechs as competitors, but as partners. Collaboration can give you access to innovative products and services that benefit your customers.
In an upcoming article, I will cover some compelling examples of insurtechs and how they offer insurance products innovatively to show that the future of insurance is already possible.
Jack Vos, a former intermediary, founded the insurtech Onesurance.ai in 2022, providing scalable AI solutions for insurers and intermediaries to improve customer service.