SBI and Wefox unleash new Asian insurtech
Called SBI Wefox Asia, it will be based in Tokyo and fuelled by Wefox’s artificial intelligence (AI) and big data. The new entity will search for action in the insurance sales and consultation business.
In the meantime, Wefox, which is a subsidiary of Zurich-based FinanceAPP, has received an undisclosed investment from SBI Investment.
SBI explains that Wefox’s platform contains various functions that use AI, big data analytics and cloud computing, for the use of customers, insurance brokers and insurance companies.
Over in Europe, the platform is used by more than 1,000 insurance brokers in Germany, Switzerland and Austria – with more than 250,000 policyholders.
The company will sign an exclusive business alliance agreement for development in East and Southeast Asia with Wefox in Germany, and initially localise the Wefox platform.
According to SBI, Japan’s insurance market is the world’s third-largest with four out of five citizens subscribing to life insurance policies.
Interestingly, SBI notes that this market is “assumed to be under an over-insured situation led by ‘advantageous selection’ [a reference to theoretical and empirical research], where consumers with relatively lower risks tend to be more likely to purchase insurance policies from their cautiousness”.
It seems SBI Wefox Asia will use its tech-powered approach to provide solutions to “such social issues and construct new insurance distribution models”.
SBI Wefox Asia will have capital of JPY 150 million ($1.4 million) and SBI Group is listed as owning 100% of the shares.