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The real estate industry has always lacked long term vision and as environment related pressures mount on the sector, scurrying investors are finding out that real estate is insufficiently prepared for climate change risks.
What's This Insurance Bit?
Real estate is tangible and thus, easily insurable. For example, if extreme weather events sink a sea facing office block of a city one month each year, landlords would want to be compensated for that loss.
While that example is just an outlier, the risks faced by real estate from expanding green regulation has pushed its focus on products that combine insurtech (the use of technology innovations designed to squeeze out savings and efficiency from the current insurance industry model) and proptech.
Insurance Proptech's For Real
And here are three top examples.
Jones: used by JLL, the “friction-free compliance platform” gives users an understanding of their properties’ exposure to liabilities and tools to manage them
Obie: claiming to “reinvent the insurance process”, Obie is a US brokerage that offers instant property insurance quotes.
Just Following The Money
Increasing regulations around sustainability are a driving force in the insurtech market especially as the sector's 'net zero by 2050' commitment isn't an easy one.
As staying on top of a rapidly expanding regulatory environment becomes a global priority, investors from around the world are piling into funds, created to invest in this facet of proptech.
Increasing regulations around sustainability are a driving force in the insurtech market especially as the sector's 'net zero by 2050' commitment isn't an easy one.
As staying on top of a rapidly expanding regulatory environment becomes a global priority, investors from around the world are piling into funds, created to invest in this facet of proptech.
The next frontier, is always where the money is.