The level of investment in InsurTech is a clear indication that the aptly named "sleepy corner of the market" is stirring with opportunity, innovation and a necessity to change.
This level of backing by the market super-forces coupled with pressures from across the insurance value chain is creating the perfect environment for disruption and the digitisation of Insurance.
As this article highlights there are few indications that this momentum and investment is likely to slow in the coming years.
It is an exciting time to be working with technology in this sector where things like predictive analytics, machine learning, robotics, image recognition, virtual reality and the Internet of Things (to name but a few of the latest hot topics) present prospective benefits of better understanding risk, optimising service delivery, improving customer engagement throughout the insurance lifecycle and enabling increased flexibility in products & sevices.
Given the starting point for many insurers and brokers the journey of change could be long and disruptive. The greatest beneficiaries will be those that find the right blend of investing in updating their back office performance through replacing legacy systems and increasing automation; with exploring the art of the possible through IoT and web-presence to create new and dynamic products and services - which will ultimately differentiate their business from the pack.
Being an active part of an industry that is going through such transformation is exactly the reason why I chose to work in this sector. More so with the formation of the Charles Taylor InsureTech business I hope to be both embracing this change across our group, as well as enabling this change for our clients in the insurance market too!
Investment in insurance tech start-ups more than tripled last year as a previously sleepy corner of the market begins to draw a surge of interest. While areas of fintech such as payments have boomed in recent years, so-called insurtech has been slower to develop. That all changed last year, thanks to some of the world’s biggest insurers. Investments in insurtech rose from $800m in 2014 to more than $2.6bn in 2015, according to data from Accenture, the management consultancy. While much of the money has come from traditional sources such as venture capital and private equity groups, established insurance companies have also been big investors.