Developing InsurTech market not looking to disrupt incumbent insurers

23 Nov 2016

The cost of going alone is so great that the majority of start-ups are looking to partner up with larger companies, as they look to enable not disrupt.

It is mutually beneficial, as it often allows the start-ups to offer insurance policies or insurance-based products, while giving the insurer the opportunity to test new lines or ideas without any risk in the development process. This has marked the emerging InsurTech market out to be a very different proposition to the FinTech maket, which has directly challenged the leading banks.

 

A new report from Timetric’s Insurance Intelligence Center (IIC) investigates these key trends, among others, in the InsurTech Start-up Landscape report. The report gives a detailed overview of the market, while providing exclusive first-hand research from industry insiders.

 

 

Non-life leads the way, all sectors to be influenced by start-ups and innovation

 

The non-life lines – mainly health and motor- have offered the softest entry point for start-ups, with the use of data and technology already established in the form of telematics in motor and wearables in health.  The life market is certainly much harder to break into and is generally less welcoming to innovation, but emerging trends, such as peer-to-peer lending and technologies, like blockchain, will undoubtedly modernize and diversify the sector.

 

Ever-increasing access to, and use of, data creates opportunity and risk for start-ups

 

Data is very much the driving force behind the InsurTech boom - tailoring policies for individuals, reducing claims and better assessing risk are all key benefits - however the cost and risk of storing and securing personal data is another challenge facing start-ups. Start-ups are almost always small, stretched teams, on similarly small and stretched budgets, so the need to protect against a cyber-attack which would likely do irreparable damage to their brand is another use of time and expertise.

 

Investment in start-ups increasing rapidly

 

Investment in insurance start-ups has jumped from USD$800 million in 2014 to USD$2.6 billion in 2015 as innovation in insurance has finally taken off. While it remains a long way behind FinTech by any measure, the interest is now very clear to see – with substantial deals with global start-ups such as Oscar, Lemonade and Zhong An receiving substantial amounts of funding over the past two years.

 

 

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About this report

 

This information is taken from the Timetric report: ‘The Insurance Start-up Landscape

 

For more information on this and related reports, please visit www.timetricreports.com/search/insurance/

 

About the Insurance Intelligence Center

 

The Insurance Intelligence Center is a single-source solution for all your market, company and regulatory information needs. Our platform offers comprehensive historical and forecast data for each market, and contextualizes this data in individual market reports.

 

We provide rankings of the top players in over 100 markets, and support these rankings with company profiles covering daily news & deals information, financial statements and SWOT analyses.

 

The platform’s continuously-updated regulatory information allows you support underwriting and compliance decisions in established and new markets.

 

For more information and updates, please visit www.insurance-ic.com

 

 

About Timetric

 

Timetric is a leading provider of online data, analysis and advisory services on key financial and industry sectors. It provides integrated information services covering risk assessments, forecasts, industry analysis, market intelligence, news and commentary.

 

For more information and updates, please visit www.timetric.com.

 

 

For media enquiries

Please contact Frixos Melas at the Timetric press office at press@uk.timetric.com or call +44 (0) 20 3096 5769. Enquiries relating to obtaining this report should be directed to reports@timetric.com or call +44 (0) 20 3096 5763.



Source: Company Press Release