Opportunities await: How InsurTech is reshaping insurance

Jun 2016

Insurance companies are very much aware of the FinTech revolution: 74% of respondents see FinTech innovations as a challenge for their industry. There is good reason to believe that insurance is indeed heading down the path of disruptive innovation, whether it is the effect of an external factor, such as the rise of the sharing economy, or the ability to improve operations using artificial intelligence (AI).

However, despite these emerging trends, a disconnect exists between the amount of disruption perceived and insurers’ willingness to invest to defend against and/or take advantage of the innovation: 43% of the industry players claim they have FinTech at the heart of their corporate strategies, but only 28% explore partnerships with FinTech companies and even less than 14% actively participate in ventures and/or incubator programs.

The data from our Global FinTech survey conducted earlier this year, overlaid with insights from our FS, FinTech and insurance subject matter experts across PwC supports the following key findings: 

  • Nine in ten insurers fear losing part of their business to FinTechs
  • Margin pressure and loss of market share are top FinTech related threats
  • Innovation drivers: new customer needs and deeper risk insights
  • Little responsiveness to emerging innovation waves – insurers focus on commonly adopted trends
  • Insurers are closing existing gaps around customer centricity and digital channels
  • Three in four industry players (74%) acknowledge ongoing disruption; most are dealing with FinTechs at different levels
  • Cooperation with FinTechs is key to connect management cultures and bridge gaps over regulatory and IT concerns
     

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Rick Barto
Partner
Tel: +[852] 2289 2477
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