Global start-ups to improve the insurance industry: InsureTech and PwC reports

A new report from InsureTech and PwC claims that more than a third (35 percent) of insuretech start-ups are focusing on ways to improve customer relationships.

Insurance companies are improving due to an influx of new technology and are focusing on how new insuretech products can redefine their customer relationships.

The report, which is based on more than 1,300 start-ups worldwide, claims that 75 percent of professional insurers believe the biggest impact to the industry will be achieved from creating new products in order to focus on the changing needs of the customer. Incumbents see these new products as an opportunity to redefine customer interaction.

Accelerators, such as Startupbootcamp InsureTech, aim to show how incumbents and start-ups can work together to take advantage of the other’s diverse variety of talents and break down disconnect in the priorities and approaches.

The report also claims that the majority of new players consider themselves as enablers, rather than disruptors and not to replace existing insurance companies. By focusing on what insurers consider to be the main challenge for the insurance industry they will provide customers with the most suitable product and insurtech start-ups can work with incumbents to effect a smoother change.

The report claims that a smaller number of insurtech companies are focusing on helping insurers cut costs and improve efficiencies throughout the use of data analytics and streamlining the back office.

“If insurtech start-ups and incumbent companies can successfully work together to build new and relevant insurance products whilst cutting their operating costs and passing some of these savings on to the customer, it is not just an opportunity to increase profitability, it is a real chance for insurers to build and retain trusted relationships with customers,” said Jonathan Howe, UK insurance leader at PwC.

“This is developing into a real opportunity for the industry to change its somewhat tumultuous reputation with its customers and continue to tackle some of society’s biggest problems.

“The industry is moving towards a role in which it helps customers prevent loss or damage, not just reimburse them after an event. By embracing new technology and ways of thinking, the insurance industry can underline its role as a trusted partner to both consumers and businesses.”