A number of key findings are highlighted in this report:
1. The majority of insurtech startups are concentrating on distribution rather than the whole value chain. Is this just due to regulatory requirements dissuading them or is it where the real value lies?
2. Reinsurers are making a major play in insurtech. This is probably to secure distribution control.
3. At $2.3bn, the investment for 2017 in insurtech funding is not a long way from what the major (re)insurers are investing in their internal IT.
It makes for interesting reading! What do others think about the reasons behind these trends?
“The sobering of insurtech” was how brokerage giant Willis Towers Watson described last year’s trend involving incumbents worldwide, as 2017 saw record investment into start-ups and technology not only from financial investors but also from insurance firms and reinsurers. Produced by Willis Towers Watson Securities and Willis Re, in collaboration with CB Insights, the latest Quarterly InsurTech Briefing reported that 35 private technology investments by (re)insurers in the fourth quarter and 120 for the whole of 2017 were the highest totals recorded in any quarter and year to date, respectively.