The "new frontier"
21 Mar 2017
Innovators and investors are shifting focus from banking to insurance, according to the International Association of Insurance Supervisors (IAIS).
In a new report on insurtech, it says as banking becomes more competitive, insurance is seen as the “new frontier”.
“The level of investment in technology within the insurance sector has historically lagged behind the banking sector,” it says.
“However, as the banking sector matures, innovators are seeking to disrupt other financial services – insurance is viewed by many as the next great opportunity for investment.”
The IAIS warns the growth of insurtech is inevitable, and implications for established insurers could be significant.
“These start-ups are targeting all areas of the insurance value chain – from marketing and distribution through to underwriting and pricing of risks, and ultimately to settlement of claims,” it says.
“In most cases individual start-ups are focusing on improving specific aspects of the value chain and collaborating with incumbents, but there have also been limited examples where start-ups are looking at ways to remove the need for an insurer – using peer-to-peer type business models.”