04 The opportunity exists to improve insurance for the greater rather than to steal their business. This is not to say insurers good while innovating for commercial gain, but this will require can afford to dismiss InsurTechs who are increasingly taking effective collaboration amongst all players across the InsurTech margins from elements of the value chain. ecosystem. From our positions at the heart of the InsurTech ecosystem, in this paper we look at how that ecosystem has The majority of InsurTech start-ups are innovating in custom- developed so far, the key trends now shaping the InsurTech er-facing areas. New entrants providing customer-facing tools environment, and how existing insurers and start-ups can work and technologies which improve customer experience and together, overcoming key challenges and grasping emerging engagement represent the biggest share of start-up activity. opportunities. There are currently fewer start-ups focused on delivering back office efficiency and core insurance processes. Our key findings include: Many insurers see InsurTech’s huge potential for transform- Whilst InsurTech is rapidly growing, it has not yet reached ing the back office. Two-thirds of insurers point to the poten- the large scale of the FinTech industry. InsurTech activity, in- tial impact of InsurTechs’ innovations in data and analytics. cluding investment, has spiked rapidly upwards over the past More than half point to new approaches to underwriting risk year, though the FinTech phenomenon continues to attract and predicting loss. greater attention. Leveraging emerging technologies is one way in which In- InsurTechs are more likely to operate as enablers than dis- surTechs innovate, but not the only way. Whilst many start- ruptors. The majority of InsurTech start-ups are focused on ups are using an emerging technology to have an impact in the activities that will help incumbent insurers to do a better job, market, for the majority, their power and potential for disrup-