13 3. InsurTech enables insurers to create new propositions beyond insurance The past three years has seen a marked decrease in startups focused on superficial customer interaction on top of an existing product or service. Instead, many startups are now looking to reinvent the customer proposition, with 31% Startupbootcamp of applications focused on developing new offerings and meeting new customer applications: a continued needs. focus on new customer The influx of startups from beyond the insurance sector is an important part offerings of the picture. These firms potentially offer insurers a means with which to offer a broader range of solutions and to target new customers – and ultimately, therefore, to drive premium income higher. 50% Partnerships with cyber-security startups offers the opportunity to 44% earn new premiums 40% 39% The issue of cyber-security is one good example. The World Economic Forum’s 36% 31% 2018 Global Risks Reports identifies cyber attacks as top-five risk in 23 of the 35 30% 27% OECD member countries, with estimates that the total economic cost of cyber 24% crime globally will hit $2 trillion in 2019. Insurers at the forefront of combatting 21% 20% 20% 19% and mitigating this threat will earn a share of an increasingly valuable market. 16% 17% Until now, however, many insurers have struggled to develop a strong proposition 10% 5% in this market. With little historic data available on a relatively new threat, they have found it difficult to price the risk. The market remains underserved: a PwC 0% survey last year found that just 14% of small businesses have cyber insurance. New data and New offerings, Interactions, Operational data insight new customer relationships enhancement In this year’s Startupbootcamp, 6% of applicants are in the area of cyber risk, needs and trust offering incumbent insurance industry partners a possible option for getting to grips with the market. Although this is not a high number, this has shown significant growth from year one of Startupbootcamp. 2016 2017 2018