InsurTech caught on the radar: hype of next frontier?
CURRENT STATE OF INSURTECH
InsurTech – the term that captures the many and various facets of new uses of digital technology in the insurance industry – has been attracting a great deal of interest from founders, investors, and incumbents. In line with this, investments in InsurTechs have increased significantly. A good chunk of this investment
is coming from insurers and reinsurers. This underlines the industry’s strong belief in
the necessity of change and the increasing relevance of new technologies to become more customer-centric, cost efficient, and even to re-invent the business of covering risk with new business models.
Not surprisingly, InsurTech has become a hot topic amongst venture capital investors. A number of major deals have hit the headlines over the past two years, including the
$930 million investment in China based Zhong An, the $500 million raised by the digital
HR platform Zenefits, and the $400 million investment in Oscar, a New York based healthcare insurance startup. The total number of InsurTech investments is still on the rise.
Surprisingly, this surge of interest has taken place in something of an analytical void. Though there have been many InsurTech-related articles and a number of studies, none of these have really asked the fundamental questions and provided meaningful guidance. What has been missing is an unbiased, well-structured, and in-depth analysis of the InsurTech landscape
In short, a report which identifies the different
existing business models and provides guidance by assessing InsurTech activities and projects which represent the next frontier in the insurance universe.
Oliver Wyman and Policen Direkt’s global InsurTech Radar attempts to fill this gap by bringing onto the radar the previously unseen. Based on our global InsurTech database and our joint industry experience, we have developed a practical and consistent framework combined with a strong assessment logic, which not only reports about the status quo but analyzes the drivers behind the phenomenon in order to make forward-looking statements.