Ready for Take Off:
How InsurTechs are Poised to Transform Insurance
My time at Startupbootcamp InsurTech, where I was fortunate enough to be seconded for six months, was one of the best of my career. My time was spent working with the startups, the accelerator program itself, the partners and then bringing all of this learning back to PwC. It exposed me to some wonderful minds and characters with whom I hope I’ll stay in touch for many years to come.
And it is precisely these minds and characters and the collaborative ecosystem that they have formed that had me convinced InsurTech was going to make a very big splash indeed. And my final task of the secondment has only left me further convinced of this.
And that final task was to put together this year’s InsurTech trend report which has been something of a labour of love for the past few months. Having analyzed the data from over 600 startup applications and spoken to some of the most knowledgable people in the world of InsurTech it seems clear to me that InsurTech is ready for take off.
The report’s key findings include:
- A second wave of InsurTech startups is emerging, tackling more complex and wide-ranging problems that are more closely aligned to insurers’ needs;
- Insurers have recognized that collaboration is the best way to release value, both in terms of growing revenue and reducing costs. In 2016, just 28% of insurers were exploring partnerships to leverage InsurTech, but in 2017 45% are directly engaging in such partnerships;
- Collaboration is not a smooth process, but both sides – startups and insurers – are learning quickly;
- Startups are using emerging technologies more regularly with artificial intelligence as a focus;
- InsurTech is still not attracting the diverse talent it needs. Just one in six (16%) of the individuals driving the startups applying to Startupbootcamp InsurTech in 2017 were women;
- Collaboration could become disruption, if insurers or startups struggle to deliver value and lose patience within the window of opportunity.