Reconnecting insurers with their customers whilst simultaneously boosting the bottom line
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Insurance technology (InsurTech) is a burgeoning phenomenon that has the potential to help the insurance industry reconnect with its customers following a period of increasing alienation and disengagement. Not only does InsurTech offer the insurance industry huge commercial potential, it can also help insurers reaffirm their purpose in society - to protect and support policyholders.
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Whilst some insurers are fearful of rising competition, PwC and Startupbootcamp consider InsurTech start-ups to be important players in a broader ecosystem that includes corporates, venture capital investors, accelerators, consultants and others. Some new players pose a threat to established insurers, but the majority are enablers, rather than disruptors – that is, they will complement incumbents’ offerings rather than replace them.
The opportunity exists to improve insurance for the greater good while innovating for commercial gain, but this will require effective collaboration amongst all players across the InsurTech ecosystem.
From our unique positions at the heart of the InsurTech ecosystem we have analysed over 1,300 Startupbootcamp insurance focused start-ups to explore how that ecosystem has developed so far, the key trends now shaping the InsurTech environment, and how existing insurers and start-ups can work together, overcoming key challenges and grasping emerging opportunities. You can find out more in our latest PwC and Startupbootcamp InsurTech report "InsurTech: A force for good."
PwC Inusurance FinTech Global Report, 2016
InsurTech activity, including investment, has spiked rapidly upwards over the past year, though the FinTech phenomenon continues to attract greater attention.
The majority of InsurTech start-ups are focused on activities that will help incumbent insurers to do a better job, rather than to steal their business, though there will be some disruption.
New entrants providing customer-facing tools and technologies which improve customer experience and engagement represent the biggest share of start-up activity. There are currently fewer start-ups focused on delivering back office efficiency and core insurance processes.
Two-thirds of insurers point to the potential impact of InsurTechs’ innovations in data and analytics. More than half point to new approaches to underwriting risk and predicting loss.
Given the enabling role InsurTech firms can now play, as well as the challenges facing the established insurance sector and the barriers to entry for new businesses seeking to act alone, collaboration for mutual benefit – and the benefit of the customer – must be the goal of insurers and InsurTechs alike.
UK Insurance Leader
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