Re/insurers boost insurtech investments
Re/insurers are increasing their investments in the startup insurtech community and expanding their focus to invest in a broad range of technologies with potential applications to their core businesses, according to the fourth Quarterly InsurTech Briefing from Willis Towers Watson.
The report notes that 35 private technology investments by re/insurers in the fourth quarter of 2017 and 120 private technology investments by reinsurers in 2017 are the highest totals recorded in any quarter and year to date, respectively. Further, 65 percent of incumbent insurtech investments to date have been in businesses focused on enabling the value chain, as re/insurers have attempted to enhance the efficiency of product delivery, underwriting, claims and other administrative functions.
Insurtech funding of $697 in the fourth quarter rounded off 2017 at a total of $2.3 billion, a 36 percent increase from $1.7 billion recorded in 2016 and the second highest total for any year to date.
“Incumbents sent a clear message to potential disruptive outsiders: by investing heavily in startups and technology, re/insurance companies appear to have assumed a semblance of control over the insurtech revolution,” said Rafal Walkiewicz, CEO of Willis Towers Watson Securities. “During the year, conversations about disruption of the existing value chain evolved towards an efficiency-driven search for incremental innovation. However, technology revolutions rarely result in redistribution of power among incumbents. It can be argued that incumbents’ collective response to insurtech hype has diminished their ability to recognize true disruption.”
Join us at Intelligent Automation in Insurance - London 2018. Book by Feb 28th and you could save £300.
More of today's news
Allianz acquires renewal portfolio from Liberty Mutual US
RenRe falls to loss, claims improvements in renewals
London Market simplifies claims handling
Volante unveils Nordic-focused MGA with QBE hire
XL Catlin taps Everest National exec for US excess casualty
AmTrust partners with Israeli tech startups
