Insurtech is continuing to strongly influence the direction of the insurance industry, according to a report. It also reveals how necessary it is for insurers to collaborate with technology firms who, while being innovative, also understand the culture and values of traditional insurers.
Accenture’s The Rise of InsurTech discusses the growth and value of deals in the insurance technology space in 2016 and examines the relationships between traditional insurers and insurtech providers.
A key finding is that almost half of all investments in insurtech were for the development of artificial intelligence (AI) and the internet of things (IoT). The number of deals for both areas rose by 79 per cent in 2016 – in 2015 they attracted a mere 10 per cent of money invested.
Insurers view AI and the IoT as ways to personalise their offerings, improve the customer experience, and gather more meaningful data – with insurtech providers facilitating the digital transformation. A whopping 86 per cent of those polled believe they must innovate immediately to remain competitive, and must do this by collaborating with technology partners.