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Snapshot: A Quick Look at the Insurance Industry in Belgium

4 minutes, 33 seconds read

The market for insurance in Belgium has been stable for over a decade. Unless Insurers adopt new strategies and embrace external partnerships, organic growth seems next to impossible. 

While insurers in other parts of the world are leveraging technology for better customer acquisition, Belgian Insurers struggle with stringent customer data protection laws.

This is the time for major business alignments to keep up with the changing customer expectations. For instance, the brokerage system dominates nearly 60% of non-life insurance distribution in Belgium. Unfortunately, 31% of the brokers have a negative attitude towards digitization and InsurTech, mainly because of the lack of awareness about the subject.

With current business models, there’s negligible hope that Belgian Insurers will remain competitive. Let’s look at the key drivers of ‘change’.

Challenges-and-opportunities-of-insurance-in-Belgium

The ‘Change’ Drivers for Insurance in Belgium

The threat to lose customers for being slow in a fast-moving age is imposing some serious pressure on Insurers in Belgium. The change in customer expectations and lifestyle will drive the transformation of the Belgium Insurance Industry. The other factors that will impact the insurance include- economy, technology, life expectancy, climate change, and competition.

Digital and Mobile Adoption

The Deloitte Global Mobile Consumer Survey 2018 reveals— 84% of Belgians own at least one mobile device. This indicates a growing preference for digital, self-service platforms, and ease of access irrespective of location. Insurers are, thus, compelled to look beyond agent-driven pitches. 

For example, Trov— an American technology company provides ‘on-demand’ insurance for individuals’ properties for short durations. Customers only need to register their properties, activate insurance for a desired duration, and pay a daily premium. 

Now that over 60% of non-life insurance products are distributed by brokers, this is also the time to train and equip brokers with handy apps.

Economical Changes

The world is rapidly moving towards a sharing economy, which involves short-term P2P (Peer-to-peer) transactions for shared use of products and services. The societal shift towards the open data economy fueled the open banking trend. Recently, insurers are following the trend as open insurance. 

“..The economy has been moving beyond narrowly defined industries built around large, vertically integrated, and mainly “self-contained” corporations. New means of creating value have been developing everywhere in the form of ever-denser and richer networks of connection, collaboration, and interdependence…” (Business ecosystems come of age. Kelly, E., 1 April 2015, p. 4.)

Belgium is set to witness the following major economic shifts-

  1. Mobility – Belgians demonstrate an inclination toward multimodal mobility solutions. For example, Antwerp-based Olympus Mobility- an app for cars & bike pooling and parking services is set to expand its services in more Belgian cities.
  1. IoT – Lifestyle and product preferences are changing with connected devices. With new customer expectations, insurance needs and opportunities are also growing. For example, Phil at Home by AG Insurance is a compound product with services in the field of prevention, protection, and assistance for elderlies.

Adoption of Technologies across Industries

Digital has put customers in the center. While other industries stay ahead with technological adoption, Insurers need to invest in innovative products that cover emerging risks. For example, Spotify’s personalized recommendations and Apple’s assistant – Siri are setting a benchmark for customizing the products at an individual level. “Yet what has become the new normal for those companies, remains a challenge for insurers,” says Dirk Vanderschrick, CEO, Belfius.

The Insurance industry in Belgium is yet to adopt biometrics, recommender systems, sentiment detection, and natural language generation. Currently, 60% of Belgian Insurers use text analysis; 40% use chatbots and object detection; 20% exercise automated decision making and pattern detection; according to Monitor Deloitte’s One Minute Survey, Artificial Intelligence (May 2018).

Apart from AI-enabled tools, the Belgium Insurance sector will soon adopt blockchain, Automation, Analytics, XaaS, and IoT. 

Related articles – 5 AI trends reshaping the Insurance sector , How does XaaS help your business, Blockchain in Insurance

Competition

Today, business models have a shorter life cycle because of digital disruption. The competition for incumbents is fierce-  with 4 bEUR potential investment in InsurTech in Belgium. 

Many have thought of phygital experience as progressive- where paper and paperless processes coexist. However, in the long term, their existence is questionable. For example, Lemonade is racing the core insurance with paperless and personalized insurance packages delivered to the customer in just 90 seconds!

In line with the fact that customers want a solution to their problems – the one who provides the most appropriate solution in the easiest way possible, wins.

Regulatory Changes

Compulsory health and car insurance policies had a great impact on sales volume. Apart from being an entry barrier for small players, the existing regulations no more align with climate changes, longevity, and technological disruptions.

The Belgian Government is set to launch Payment Service Directive 2 (PSD2) by 2024 and IFRS 17 (International Financial Reporting Standard) by 2021. Nearly 70% of Insurers believe PSD2 will have a positive impact in the insurance value chain.

‘Beyond’ Insurance is the Future

According to Insurance Experts from Deloitte, non-core insurance products and services drive 10-30% of the revenue. Therefore, complementary services or value-added services can bring a greater competitive advantage to the insurers. 

For example, the US-based Oscar Health Insurance encourages a healthy lifestyle by financially rewarding its customers. It tracks footsteps, eating habits, workouts, etc. on its app through wearables. It further supports customers with doctoral advice and scheduling appointments. These value-added services, along with traditional health insurance is a win for customer loyalty. 

We’re an InsurTech100 company championing back and front-office automation solutions along with interactive applications for the new-age digital insurer. Drop us a line at hello@mantralabsglobal.com to know more.

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What If the Sun Took a Day Off?

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Ever wondered what life would be like if the Sun took a day off? Picture waking up to an Earth shrouded in darkness, where temperatures drop dramatically within hours, plunging the planet into an icy chill. Plants, deprived of sunlight, would halt photosynthesis, leading to a food production crisis. Our reliance on renewable energy would face a sudden halt, causing widespread blackouts and chaos in cities across the globe.

A day without the Sun would throw our world into chaos! Luckily, that’s never going to happen (at least in our lifetime!). But this thought experiment underscores the Sun’s critical role in our lives and highlights why harnessing solar energy is so vital. While we’re increasingly turning to solar power, we are still missing out on capturing a massive amount of solar energy that falls on Earth every single day.

How Much Solar Energy Are We Missing Out On?

Every day, the Earth receives about 173,000 terawatts of solar energy from the Sun—more than 10,000 times the world’s total daily energy consumption. Despite this abundance, we only capture a tiny fraction of this energy. In 2023, solar energy accounted for just 4.5% of global electricity generation—a huge opportunity waiting to be tapped.

If we could capture just a small percentage of the Sun’s energy, we could power the entire world many times over. The total solar energy that hits the Earth in just one hour could meet the world’s energy needs for a full year. Yet, due to limitations in solar panel deployment, technology efficiency, and energy storage, the vast majority of solar energy goes unused each day.

As we improve solar technology and infrastructure, capturing more of this energy becomes not just a possibility but a necessity for a sustainable future. Let’s dive into how cutting-edge technology is making solar energy more accessible and efficient, helping to turn this untapped potential into real, usable power.

How Tech Makes Solar Adoption Easier

Customer-centric technology is revolutionizing the way we adopt solar energy. Imagine an app that allows you to simply point your smartphone at your house to estimate how many solar panels you need, their ideal placement, and the energy they can generate.

Here are the key benefits of this innovative approach:

  • Precision: By capturing images of your property through satellite, the app calculates the optimal placement of solar panels for maximum energy production. Studies have shown that precise placement can increase efficiency by up to 20%.
  • Customer Engagement: Users receive real-time insights into their energy production, helping them understand their solar power system better, whether they’re using Tesla solar panels, solar power generators, or even solar attic fans to optimize home energy usage
  • Seamless Experience: With user-friendly interfaces, consumers can easily monitor their solar systems remotely and receive updates on their energy output. This accessibility is crucial for encouraging the wider adoption of solar technologies.

The Tech-Driven Shift Toward Sustainability

As solar technology evolves, so do the solar panels themselves. Innovations like Tesla solar roof systems, flexible solar plates, and bifacial panels are redefining what’s possible in renewable energy. Even smaller systems—such as portable solar generators and solar air conditioners—empower homeowners to harness solar power efficiently.

Photovoltaic (PV)  panels, the cornerstone of solar energy, have seen incredible advancements, now boasting efficiencies of up to 22%. This means fewer panels are needed to produce more energy, making solar energy more effective for a wide range of applications, from solar shingles to off-grid systems.

Moreover, the push towards cradle-to-cradle sustainability is reshaping the industry. New solar panels are being designed with recyclability in mind, reducing their environmental footprint. Innovations in recycling technology now recover up to 95% of materials from end-of-life panels, ensuring that even the oldest solar systems contribute to a greener future.

While solar technology continues to advance, solar panels themselves are becoming more efficient and environmentally sustainable. Innovations such as systems, flexible solar plates, and bifacial solar panels are pushing the boundaries of what’s possible in renewable energy. Even smaller systems like portable solar generators and solar air conditioners are empowering homeowners to tap into the power of the Sun efficiently and sustainably.  Photovoltaic (PV) panels, the cornerstone of solar energy – now boast efficiencies of up to 22%​. This means a smaller array of solar panels for home or commercial use can generate more electricity. This makes solar energy systems more appealing and effective for various applications, from solar roof shingles to off-grid solar systems.

Moreover, the move toward cradle-to-cradle sustainability—where solar panels are built from materials that can be easily recycled—has gained traction. This reduces the environmental footprint even further. Innovations in recycling can recover up to 95% of materials from end-of-life panels, According to PV Cycle​, with room for improvement in recycling.

Making Solar Affordable and Accessible

Historically, one of the biggest barriers to solar adoption has been the cost. But things are changing fast. Innovations in financing models, such as Power Purchase Agreements (PPAs) and solar loans, have significantly reduced the financial burden of installing solar systems. According to the Solar Energy Industries Association (SEIA), the average cost of solar installation has dropped by over 70% in the last decade.

Couple that with federal and state incentives like the Investment Tax Credit (ITC), which provides a 30% tax credit on solar installations, and solar energy is more affordable than ever. Net metering programs, which allow homeowners to sell excess energy back to the grid, further enhance savings, making solar not only accessible but also financially rewarding.

Conclusion

The future of solar energy goes far beyond rooftop panels—it’s about making the entire solar experience intuitive, accessible, and sustainable. With smart apps and tech-driven tools, consumers can now manage their solar energy systems with just a few taps on their phones, making the shift to green energy simpler and more engaging.

At Mantra Labs, we’re at the forefront of this solar revolution. We’ve helped some of the world’s largest solar providers develop cutting-edge, customer-friendly solutions. Our mobile apps allow users to estimate solar panel needs, monitor system performance, and even track their environmental impact—all from the convenience of their smartphone.

Together, with innovative tech and a commitment to sustainability, we’re building a future where solar energy isn’t just an option—it’s the smarter, more accessible, and greener solution for everyone.

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