Note from the CEO: Oh boy, a story entitled “7 flavors of fintech insurance (insurtech)”. A variety of tastes and in the…….insurance industry?? What’s up with this? Well, insurtech is alive and well and innovating rapidly……..for insurance. Overlooked sector but lots going on.
CB insights states that VC investments in insurance technology is going gangbusters and has quadrupled in the last few years. New firms, such as Oscar, has kind of led the way but now all the big insurance companies have formed their own in-house venture firms to catch up to the many ways ‘insurtech’ can modernize (cost saving, claim processing, etc) their business. Here in this article are several ways that this new technology is “blossoming”. This is one very hot sector that doesn’t get a lot of attention since insurance and sexiness are like kinda not linked with our brain thoughts. Should be.
“Successful insurtech companies tap into the key challenges insurers are facing.
According to CB Insights, VC investments in insurance fintech (insurtech, or insurance tech) firms quadrupled compared to 2014. NYC health insurance startup Oscar became the poster child for customer engagement, the proof that insurance can be made sexy. AXA launched AXA Strategic Ventures, a €200m corporate venture arm for emerging strategic innovations relevant to insurance, as did Allianz, MetLife and PingAn (among others).
Mark Wilson, Aviva CEO, said ‘the industry is in the stone age’ and started hiring staff from Google and Amazon to update Aviva’s technology, Startupbootcamp announced its first insurance accelerator program in London, backed by Allianz, Admiral and Lloyds. In our view, 2015 was just the start. We expect insurtech to really take off in 2016 and see four key challenges that insurance carriers are facing. Each challenge drives a sense of urgency at insurance firms to accelerate digital transformation, and each invites new entrants to move into the insurance space.”