III. Start-ups and corporate collaboration Incumbent insurers recognise InsurTech start-ups are bringing change to their industry. PwC research shows 90% of executives at established companies believe at least part of their business is at risk from the challengers. However, fewer than half the insurers in our research are taking action to counter the threat, or to exploit InsurTech opportunities. Just 43% say they have put FinTech at the heart of their corporate strategies; only 28% are exploring partnerships with start-ups; and only 14% are investing in or supporting incubators. This is to risk missing an opportunity – and countering a threat - and those incumbents not engaging with InsurTechs may come to regret it. “The biggest risk we can take at the moment is not taking any risk,” argues Martin Pluschke of ERGO. Moreover, as those insurers that have chosen to collaborate with start-ups are discovering, there are a multitude of options. The approach (or approaches) that an insurer takes to co-operate with InsurTech players will depend on its strategy, ambitions and appetite for risk, but the options include: Partnerships There is much to be said for insurance companies partnering with InsurTech start-ups that align to their corporate strategy. This will require proactivity, suggests Graham Jackson of PwC. “Insurers have to engage with the InsurTech ecosystem, but if an industry player is waiting for an interesting start-up to approach them, it will be disappointed,” he warns. “Those insurers that proactively engage with start-ups are best placed to spot the winning ideas, the winning teams and forge the winning alliances and relationships.” Partnerships are mutually beneficial, but work best when each side plays to its strengths: large corporates bring attributes such as their data, their underwriting expertise, their credibility and their global capabilities – as well as the ability to help In- surTech start-ups to scale. 27