The InsurTech revolution is upon us. In 2015 InsurTech start-up funding reached more than $2.5 billion, evidence that investors have recognised the massive opportunity in insurance, an industry typically associated with being slow to innovate.
Our research indicates that this innovation wave will bring widespread disruption extending across the entire insurance value chain. Key trends that we see emerging are:
- Digitisation is now a reality, with the internet-of-things and advanced analytics surpassing the hype stage.
- Innovation is extending beyond just the latest ‘widget’ to include entirely new insurance models and solution bundling.
- A new breed of service provider is emerging which is challenging traditional players.
- There is no shortage of opportunity for providers, but it will require them to reassess their operational efficiencies and structures.
- The leaders in InsurTech will be determined by those able to adapt to customer needs, address existing gaps and deliver real value.