15 June 2016
Reporter: Becky Butcher

Insurers still fear business loss from financial tech

Almost half of insurers fear that up to 20 percent of their business could be lost to standalone financial technology companies within the next five years, according to a new PwC report.

The report, Opportunities Await: How InsurTech is Reshaping Insurance, also found that annual investments in insurance technology start-ups have increased five-fold over the past three years, with cumulative funding reaching $3.4 billion since 2010.

It was also noted that 68 percent of insurance companies say they have taken steps to address the challenges and opportunities presented by financial technology companies.

Stephen O’Hearn, global insurance leader at PwC, commented: “Insurers need to encourage a culture of innovation and creativity within their organisations to ensure that the progress being made is not squandered.”

“There is a risk of missing an opportunity to deliver customers a similar experience to one they already receive from retail and technology companies. One size simply does not fit all in insurance anymore and, by working alongside insurtech companies, companies can begin to reposition themselves at the cutting edge of customer interaction.”

PwC highlighted four steps that insurance companies can take to make the most of insurance technology companies. These include exploration, strategic partnerships, insurance technology involvement and new product development.

More technology news
The latest news from Captive Insurance Times
Join Our Newsletter

Sign up today and never
miss the latest news or an issue again

Subscribe now
Insurers are increasingly concerned about “silent cyber” exposure, a recent Willis Re poll revealed.
Aon launches captive feasibility app
09 August 2017 | Illinois | Reporter: Becky Butcher
Aon has developed an app, Aon Captivate, for clients to assess whether a captive is the right solution for them through a full feasibility study
Bespoke Software launches inTell Captive
28 March 2017 | Hamilton | Reporter: Mark Dugdale
Bermuda-based Bespoke Software has launched the new business intelligence software solution to help captive managers leverage their data
Aon and SS&C launch ILS platform
23 February 2017 | Pembroke | Reporter: Becky Butcher
Aon Insurance Managers and SS&C Technologies have launched a joint platform intended to simplify insurance linked-securities (ILS) management...
QBE launches new cyber risk solution
17 February 2017 | New York | Reporter: Becky Butcher
QBE North America has launched a new solution to help protect against the increasing threat of cyber intrusions
Aon introduces new cyber captive programme
24 Janaury 2017 | London | Reporter: Becky Butcher
Aon Global Risk Consulting has launched a new cyber captive programme to help clients identify, assess and quantify their cyber exposures...
Health insurance data breach affects many in Delaware
16 January 2017 | Delaware | Reporter: Becky Butcher
A health insurance data breach has affected approximately 19,000 people with employer-paid plans in Delaware, according to the Delaware Department of Insurance...