34 Conclusion The InsurTech sector can be transformational for the wider insurance industry and we are only just beginning to see the potential applications of new ideas, technologies and processes. Some of the examples detailed in this paper give a flavour of where the future lies, but there are many more to come. Incumbent insurers should welcome these new entrants with open arms. For one thing, as we have seen, they represent an opportunity for all insurance businesses to reconnect with customers who have become disengaged, either directly, or via others in the sector. New entrants can help insurers serve existing customers better and reach new customers for the first time. Nor does the promise of the start-ups end there: they will also enable insurers to operate more effectively and efficiently throughout the back office. Indeed, so much of what start-ups currently offer is enabling rather than disruptive. As InsurTech develops and matures there will no doubt be more start-ups that aspire to take market share from insurers, and incumbents will need to respond to these. But for now, the bigger challenge will be to respond to the opportunity start-ups offer. There will be roadblocks along the way. Not least, the regulatory landscape is complex and while some regulators are doing their best not to impede innovation – the sandbox initiative of the UK’s Financial Conduct Authority is a good example – others are less encouraging. New rules such as the General Data Protection Regulation will only add to the complexity. Nevertheless, insurers must look beyond these hurdles to the promise of improved commercial performance and greater customer engagement. To secure this potential, they will need to embrace the collaborative ecosystem that is now developing, working alongside InsurTechs and other stakeholders for the good of all – new entrants, incumbents and customers alike.