by: Grow VC Group
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What is Insurance Technology (InsurTech) all about? It’s a sub-sector of Fintech that is growing fast and vigorously, with annual investments that increased fivefold in the past three years, totaling $3.4bn of funding poured into the sector since 2010. Insurance behemoths are paying attention like never before. 

PwC just published a new report on fintech, showing that about 90% of the insurers surveyed are fearing the loss of business to startups, with about 70% of insurance companies that said to have already taken action to face the new challenges and opportunities presented by fintech. 

While the insurtech industry is still in its infancy, there are already a number of companies that have partnered with global leading insurance companies and raised several millions in funding from top venture capital firms. “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. […] InsurTech will be a game changer for those who choose to embrace it.” said Stephen O’Hearn, global insurance leader at PwC.

Lemonade, an insurtech startup backed by Sequoia Capital and with Warren Buffett and Berkshire Hathaway as one of the reinsurance partners, was the first  to launch as an online peer-to-peer insurance carrier, but there are now a good number of companies that joined the market, including Guevara,  Uvamo and Friendsurance, that are basically acting as brokers with the objective to cut down insurance fees for consumers by pooling policyholders together online in small groups.

Pressure on margins and loss of market share seem to be top concerns that insurance executives think the fintech wave could bring, while they see cost reduction and differentiation as possible positive outcomes. As Jonathan Howe, UK insurance leader at PwC, said, “the differences between startups and incumbents should be embraced as both are vital to the future of the industry. ” We can’t agree more with his statement. It’s always more clear that there is no sector in the financial industry, even the most stagnant, that will remain the same, with huge opportunities in sight for those ready to take advantage of them.

Read the whole article on Crowd Valley News.

InsuTech


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Grow VC Group The Grow VC Group is the world leading, global pioneer of securities crowd funding, peer to peer marketplaces, new investment models and global business development. Established in 2009, the Group has developed new investment models on six continents and continues to innovate the global market.

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This entry was posted on Thursday, June 23rd, 2016 at 11:00 am and is filed under Business Updates. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.