Insurtechs open up analytics, AI and IoT for carrier partners
Although global investments in insurtech increased to $1.7 billion in 2016 – doubling over the past two years – traditional insurers still lag behind their banking peers for collaborating with such startups to mutually beneficial ends.
That’s according to new research from Accenture, titled “The Rise of InsurTechs.” However, the brief suggests that insurers are starting to increase their investments in insurtech startups.
There are a few areas where insurers can use the startup community to their advantage, according to Accenture: analytics, artificial intelligence (AI) and the internet of things (IoT), In each, Accenture reports a rapid acceleration in startup investments over the past 12 months. The trio collectively accounted about 70 percent of the total value invested. Investment by insurance companies specificially in startups relating to those technologies tripled year over year.
Insurtech partnerships and investments vary according to line of business. Two-thirds of 2016 insurtech deals went to startups focusing on non-life sectors, with 30% of startups targeting multi-line sectors and just seven percent on life. In addition, 38% of insurers partner with startups or universities on digital initiatives, while 14% run in-house innovation labs or incubators, Accenture found.