November 2016 has been an eventful month for Insurtech players. This is a selection of the best news and articles trending in the industry today.
Who-Is-Who Of Singapore Insurance-Tech
2016 has seen an explosion of interest in Insurance-Tech (InsurTech) globally and its not showing any sign of slowing down, unlike its much better known FinTech cousin. The world is waking up to the epic opportunity that tech is holding for insurance. Reducing various frictions that have built up in insurance is just the start. Singapore is no exception and is in-fact quickly becoming a hotbed of InsurTech in Asia. Read more on Fintech News Singapore.
American And European InsurTech Startups Will Flood Asia In 2017
Asia will be the key pillar in the upcoming revolution of insurance and in all likelihood will become the hottest market for insurance technology (InsurTech) globally. Its no longer just a pipe dream as this time all the stars are aligning for it. Take the sheer population size and rapidly emerging tech-savvy middle class, together with low effectiveness of traditional insurance distribution. Combine it with a destabilizing wave of political populism, making its rounds across much of the developed world and you’ve got most of the ingredients for a region that will take on a leading global role for InsurTech. Read more on Forbes.
From 14th to 16th November, insurers, innovators, tech providers and investors in Europe gathered at Insurtech Rising, the largest InsurTech showcase event in London. The event brought together over 400 key players to watch more than 50 InsurTech demos, discussing disruptions and innovative solutions.
InsurTech Rising: Surviving in a disruptive world
The first InsurTech Rising event kicked off in London this morning with a well-received strategy keynote, Responding to disruption – threats and opportunities, presented by Costas Markides, Professor in strategic leadership at the London Business School… Read more on KNect 365
A lookback at Insurance Rising 2016 (video)
More than 120 insurance executives, 50 investors, and 50 start-ups came together in London for 3 days of insights, networking and demos InsurTech Rising 2016.
Watch on Fintech Futures
For more coverage, click here.
Blockchain technology, a distributed ledger that offers an unprecedentedly secure environment for real-time and open-access data sharing, has significantly transformed the landscape of fintech.
Likewise, it is expected to solve many problems the insurance industry faces such as high administration and claim processing costs and the lack of transparency in peer-to-peer (P2P) insurance.
Blockchain: the industry’s next big concern, or a red herring?
Blockchain is one of the few existing so-called insurtech technologies with the potential to completely transform the very nature of insurance – but only if it is embraced by insurers and they use it correctly… Read more on Intelligent Insurer.
Blockchain: An insurance focus
Imagine an insurance industry without paperwork, a system where some claims are verified and handled almost instantly, and applications/renewals are approved nearly as fast. Imagine being able to minimize fraudulent claims or loss adjustment expenses with a massive, decentralized database that leverages real-time data sources of almost unimaginable size… Read more on Milliman.
Chinese E-Insurance Company, Partners With Ethereum for Blockchain Insurance Platform
Zhong An, China’s first online insurance company, has established Zhong An Technology to conduct research and development on artificial intelligence, Blockchain and cloud computing. Their focus is on implementing Blockchains into their online insurance platform and to be an innovator in the healthcare and finance sectors. Read more on The Coin Telegraph.
One subject that has been under debate this month is the collaboration of corporations and startups in the insurance industry. Should the big corporations run their own innovation centres or shake hands with agile and flexible startups? What will their relationship develop in the long run? No matter what the future holds, it seems that fintech start-ups and financial institutions in Asia are increasingly coming to the realization that they benefit more from collaborating, rather than competing as of now.
Incumbents, Insurtechs Must Collaborate
Against that backdrop, major corporations around the world are increasingly waking up to the fact that startups are becoming the key source of innovation for them. There’s even a new acronym for it: CSE (Corporate Startup Engagement). Call it what you may: it’s delivering rapid iterative customer-centric R&D to quite a few of the largest global players. According to an INSEAD report, “262 of the world’s 500 largest corporations are actively partnering with startup companies.” Read more on Insurance Thought Leadership.
Insurers are struggling with digital innovation
Nearly all global insurers in a recent FIS survey claim they’re struggling to incorporate digital innovation into their business. This is despite the fact that the vast majority of respondents agree that if they fail to innovate, they could lose market share to new entrants. Reinsurers seem to have more confidence in their innovation efforts, however, compared with their direct counterparts. Read more on Business Insider.
Fintech, insurtech and Asian institutions – a match made in heaven?
A game designer, hipster and digital nomad meet in a boardroom. No – this is not a joke. Insurers are increasingly bringing customer experience focused talent from startups and major tech giants in to work in their newly established digital and innovation functions. In essence, they are building pockets of inspiration into a heritage structure. It’s a two way street – many insurtechs are founded by industry veterans that have left their safe, well-paying jobs and are looking to introduce a breath of fresh air into the industry. Read more on Insurance Business Online.
A quick recap of what defines insurtech together with frequently asked questions, and a recent market drivers and forecast of insurtech may give you some new insights into the field.
Breaking down ‘Insurtech’: A useful Q&A
Going straight to the point: 1) what does ‘Insurtech’ stand for? Well, the term is a combination of the words ‘insurance’ and ‘technology’ and it serves to encapsulate the new startups and technologies that are bringing innovation to the insurance industry. But wait a second, 2) isn’t this part of the wider Fintech ecosystem? Read more on Kantox.
Insurtech – Market Drivers and Forecast From Technavio
Technavio analysts forecast the global insurtech market to grow at a CAGR of more than 10% during the forecast period, according to their latest report. To calculate the market size, the report has considered the investments made in insurtech platforms in the Americas, APAC, and EMEA.
Technavio analysts highlight the following three factors that are contributing to the growth of the global insurtech market:
- Growth of Internet-based business ecosystem
- Rationalization of transaction process
- Increased need for customer satisfaction
Read more on Business Wire.