Executive summary Insurance technology (InsurTech) is a burgeoning phenomenon They do so in a number of ways: by designing new products that has the potential to help the insurance industry reconnect that meet changing customer needs, by establishing greater lev- with its customers following a period of increasing alienation els of transparency, by helping to tackle some of society’s biggest and disengagement. Not only does InsurTech offer the insur- problems, and by enabling customers to head off problems, as ance industry huge commercial potential, it can also help insur- well as being there to fall back on when disaster strikes. ers reaffirm their purpose in society - to protect and support Looking beyond the front office, InsurTech start-ups also de- policyholders. liver new forms of data and risk insight to improve underwrit- That is imperative. Trust is, or should be, the cornerstone of ing accuracy and loss prediction. They offer established insur- insurance. Yet the industry is facing a crisis of consumer con- ers products that generate greater operational efficiencies, not fidence, with PwC research suggesting just 27% of consumers only lowering costs, but also enabling insurers to better and trust their insurance providers whilst less than half would turn more profitably serve their customers. to them for advice. Whilst some insurers are fearful of rising competition, PwC InsurTech start-ups have the potential to help insurance and Startupbootcamp consider InsurTech start-ups to be im- improve its relevancy to customers and rebuild trust. Whilst portant players in a broader ecosystem that includes corpo- consumers have a need for insurance, most don’t recognise rates, venture capital investors, accelerators, consultants and this need as a reason to buy. New entrants can not only pro- others. Some new players pose a threat to established insur- vide insurers with a profitable way to turn this customer need ers, but the majority are enablers, rather than disruptors – that into demand, but can also serve to re-engage customers and is, they will complement incumbents’ offerings rather than re- demonstrate that insurance serves a valuable purpose. place them. 03