Insurtechs open up an­a­lyt­ics, AI and IoT for car­rier part­ners

Digital Insurance - - BY THE NUMBERS -

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.

Source: Ac­cen­ture

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