4 OUR KEY FINDINGS INCLUDE: A second wave of InsurTechs is emerging, tackling more complex Start-ups are more widely adopting emerging technologies with and wide-ranging problems that are more closely aligned to insurers’ Artificial Intelligence (AI) as a particular focus. 53% of applicants needs. Notably, we are seeing more InsurTechs targeting the mid and to this year’s Startupbootcamp InsurTech program use an emerging back office rather than customer facing distribution. Most interest- technology as their primary technology, compared to 40% last year. ingly, we have seen a fourfold increase in the proportion of start-ups Insurers need to be aware of these technologies and their potential that are focussing on exploring new approaches to underwriting risk impact. AI in particular has the potential to deliver large value in in- and predicting loss. surance. Insurers have recognised that collaboration is the best way to InsurTech is still not attracting diverse talent. Disappointingly just release value, both in terms of growing revenue and reducing costs, one in six of the individuals driving the start-ups that applied to Start- from InsurTech. PwC research has indicated that in 2016, just 28% of upbootcamp InsurTech this year are women. Whilst this compares insurers were exploring partnerships as a way to leverage InsurTech, favourably to other published figures on senior diversity in insurance but in 2017 45% are directly engaging in such partnerships. and the FinTech world more broadly, there is clearly still much to be done to improve the gender balance in Insurtech. Collaboration is still not a smooth process but insurers and start- ups are learning quickly. Only 17% of insurers believe they are good Collaboration could become disruption. The window of opportuni- at co-creating with start-ups according to PwC research, and start-ups ty will close if insurers or start-ups struggle to deliver value and lose find the process of engaging with insurers time consuming and often patience. Other organisations, including new entrants from beyond frustrating. But progress towards new models of agile collaboration the insurance sector, are waiting in the wings. is now accelerating. 04