29 7. What next for InsurTech? The outlook for InsurTech startups is bright. Not every new venture will succeed Data-driven innovation will continue to increase but in a sector that is hungry for innovation – and increasingly willing to look At their heart insurers are data companies and we therefore expect to see a beyond its boundaries for new ideas and solutions – the best startups have every continued interest and investment in data focused startups and continued chance of commercial success, whether in collaboration with incumbents or on a investment in data analytics. Some 50% of partners surveyed say they are already standalone basis. working with data analytics providers in their business-as-usual activities, while i. The short-term outlook for InsurTech the other 50% are either in development or looking to develop relationships. Innovation becomes BAU beyond the innovation team to the This investment will further enhance underwriting and claims. Some 83% of business units partners agree that data analytics will be transformative in these areas. Innovation teams have shown success, but in less mature environments Innovation will grow in commercial and speciality lines these teams can struggle to gain buy-in from other parts of the organization, To date, most innovation has been centered on personal lines of insurance, hampering efforts to encourage change at a business unit level. particularly around customer engagement and the front end. But as insurers are As maturity of innovation teams grow, they will continue to establish better able to exploit data, they will be able to innovate further into commercial relationships with business units, who will take a more proactive approach when and speciality lines, moving towards prevention and mitigation rather than risk it comes to going to the innovation team with problem statements they wish to transfer. find new solutions to. This culture change does not, however, happen without As part of this trend, we expect to see greater innovation within broker concerted effort. distribution. Customers will expect an omni-channel experience. Clients will One other question for insurers to address in this area is the role of the C-suite. value advice on risk from their brokers ahead of access to insurance. At very few organizations is the head of innovation currently a board-level role. ii. The longer-term outlook for InsurTech “InsurTech” will cease to be a relevant term We expect to see the language around innovation in insurance change. As a focus on technology and innovation becomes an everyday and essential part of operating a competitive insurance business, the idea of standalone InsurTechs will become as outdated as the concept of having a separate digital strategy for the company. Instead, InsurTech will become an innovation ecosystem in and around insurance, with insurers working with a range of partners from within the industry and beyond.