Investment - Articles - Investment in InsurTech surges to USD 985m

 Global investment in InsurTech in the second quarter of 2017 surpassed that in the previous three quarters combined, according to a new report from PwC.

 Investment in InsurTech by global insurers, reinsurers and Venture Capital firms surged by 247% to $985million, compared to Q2 2016 ($398million). The first three months of 2017 saw $283million of InsurTech funding.

 PwC predicts the rate of funding and investment will continue at a similar level and the report highlights an uptick in interest in InsurTech from the reinsurance industry as sentiment turns from fear to bullishness, and from scepticism to collaboration.


 Figure 1: Global InsurTech quarterly Financing Source; PwC Corporate Finance LLC, InsurTech Insights, July 2017

 Note: 1Funding in Q2’15 includes a $931m capital raise by ZhongAn Insurance, a Shanghai-based internet insurance company

 While concern about disruption and loss of market share undoubtedly remains, reinsurers have noticed that a new wave of startups are focused less on disrupting the entire industry and more on redesigning specific areas of the value chain. This offers an opportunity for reinsurers to work alongside these innovators. The report notes that reinsurers have begun to realise how exploring new technologies and talent groups can help them play a leading role in transforming their industry.

 In this new world, collaboration is key. And, although 82% of reinsurance companies say they plan to partner with InsurTechs, some hesitation undoubtedly remains. PwC argues that the reinsurance industry has fostered a successful culture of stability, self-reliance and gradual change but for innovation, this can be an impediment.

 The report states that now is the time for all insurers and reinsurers to work with innovators to modernise the industry.

 Commenting, Patrick Maeder, EMEA insurance consulting leader at PwC, said: “A change has happened in insurance and it’s hugely encouraging to see both insurers and reinsurers increasingly view InsurTech as an enabler rather than a competitor. This uptick in enthusiasm is vital to ensure the industry engages with innovators to help shape its own success. Neither party can survive this wave of disruption on its own and a collaboration between experienced industry players and new ideas and technology will result in new products, reduced costs and more engaged customers.”

 “InsurTech innovators have rapidly established themselves as the backbone of innovation in this industry but reinsurers should not be overly concerned about startups directly disrupting their product offerings. They should instead focus on what makes their business unique and where they see future growth coming from. Reinsurers then need to find the best way of directly working with this new wealth of tech-savvy talent to place themselves at the heart of what will undoubtedly be a transformation for their business and the wider industry.”

Back to Index

Similar News to this Story

Shareholders challenge value of high risk acquisition deals
According to Willis Towers Watson’s latest Quarterly Deal Performance Monitor (QDPM) global M&A market performance was flat in the first quarter of 20
Virgin Money and Aberdeen Standard agree joint venture
The proposed joint venture will combine Virgin Money’s brand and retail distribution expertise with Aberdeen Standard Investment’s (ASI) strength in a
Bulk annuities has scope to use more market capacity
In 2017, the bulk annuity market took over £10bn of bulk annuity business from pension schemes for the fourth consecutive year, but did not see a new

Site Search

Exact   Any  

Latest Actuarial Jobs

Actuarial Login

 Jobseeker    Client
Reminder Logon

APA Sponsors

Actuarial Jobs & News Feeds

Jobs RSS News RSS


Be the first to contribute to our definitive actuarial reference forum. Built by actuaries for actuaries.