In the last report on Insurtech, the consulting company PwC highlights four steps insurance companies can take to make the most of the InsurTech revolution:
- Exploration: savvy incumbents are already monitoring new trends and innovations and establishing a presence in innovation hotspots such as Silicon Valley, Singapore and London;
- Strategic partnerships: partnerships with start-up companies and building pilot solutions will become increasingly popular amongst insurers who wish to see first-hand what creativity can offer them;
- Venture fund for investments in InsurTech start-ups: start-up incubators and strategic acquisitions are efficient ways for insurers to address specific problems, which otherwise would take far longer to tackle;
- New product development: by listening to and interacting with start-ups, incumbent insurance companies will discover current and emerging risks and coverage needs – they should focus on adapting and refining their product portfolios in response.
“Only by acting today and embracing both the challenges and opportunities presented by InsurTech will the industry be ready to tackle tomorrow’s challenges. Those who are savvy enough to address the ongoing disruption sooner rather than later will reap the benefits and emerge as market leaders.”
Threats and opportunities:
- Pressure on margins (73%) and loss of market share (69%) are highlighted by insurance executives as the top threats InsurTech poses to the industry;
- Cost reduction (81%) and differentiation (65%) are highlighted by insurers as the most significant potential gains from InsurTech;
- Incumbent insurers see IT security as the biggest barrier to working alongside start-up companies.
Read the full report at: