How InsurTech is Moving Beyond Insurance
My secondment from PwC to Startupbootcamp InsurTech has been an incredible six months. My time was spent working with the start-ups, the accelerator program itself, the partners and then bringing all of this learning back to PwC. It has exposed me to brilliant people doing the most innovative things within (and beyond) the insurance industry.
If I wasn’t convinced of the importance that InsurTech has to play within the insurance industry before, I most certainly am now. This feeling has been further solidified when completing my final task at Startupbootcamp InsurTech.
And that final task was to put together this year’s InsurTech trend report- something I have had a love-hate relationship with over the past few months. Analysing data from over 1000 startups and talking to some of the most knowledgable people in the world of InsurTech, it is clear to me that InsurTech will play a more important role within the industry in the years to come.
The report’s key findings include:
- Collaboration with startups from adjacent industries – such as agriculture, aircraft manufacturing, health, cyber-security, maritime and general transport – gives insurers the opportunity to access new revenue streams, for example to invest more energy in preventing damages happening before a claim needs to be made. 80% of SBC partners surveyed believe the future of insurance is prevention.
- Startups can provide access to new data sources or offer new ways to drive value from data: Artificial Intelligence is the primary technology for 41% of SBC applicants. With powerful algorithms, they have the potential to give insurers insights from their vast amounts of data. The clear challenge is how to integrate with the insurers’ existing technology. Rather than attempt to build cumbersome links with old systems, some insurers are taking the approach of setting up completely new technology infrastructure which will allow for easy integration of third party plug ins.
- Insurers and startups are increasingly looking at new products: 84% of surveyed SBC partners said that they are interested in finding an innovative solution in cyber, and 80% are interested in business models linked to trends attached to the sharing economy.
- Innovation has moved beyond just watch and learn, Insurers are now exploring how to scale proof of concepts into their broader businesses.
- Gender diversity is improving – but still has a long way to go – 23% of applications to Startupbootcamp this year had female founders and co-founders. However, application data shows that men are still five times more likely to hold a Chief Technology Officer position, whilst women are twice as likely to be Chief Marketing Officers.
- Disruption is still coming: although startups are increasingly looking to partner rather than disrupt, threats will come from tech giants, telecoms and other industries. Beyond these threats, startups have the potential to scale and collaborate to own the entire value chain – first moving reinsurers are already in pool position to provide the capacity.
Read the full report here.