There was a 248 percent increase in Insurtech funding volume to reach $985 million during the second quarter of 2017, driven by a record number of transactions, as well as several large investments in capital intensive carrier start-ups globally.
That is according to research, produced by Willis Towers Watson Securities and Willis Re in collaboration with CB Insights, which outlines how the use of technology, developed internally by incumbents and accessed through partnerships with InsurTech start-ups, can revolutionize claims management.
Rafal Walkiewicz, CEO of Willis Towers Watson Securities, said: “The claims management conversation with a client provides the greatest insight and opportunity to improve risk mitigation, making it increasingly core to the evolving, consumer focused, insurance value chain. We believe claims management could assume additional prominence at the expense of other functions including distribution, underwriting and capital management. Effectively harnessing this conversation through technology, whether developed internally or through partnerships or acquisition, will be a key source of differentiation for incumbents going forward.”
Andrew Newman, president and global head of casualty at Willis Re, added: “The $985 million that was invested in InsurTech in the second quarter of 2017 serves as another indication that change is coming to the industry. Whether disruption beckons or opportunity unfolds is primarily a matter of perception relative to each company’s position in the insurance value chain. It is not the technology that is disruptive, but the degree to which a competitor can successfully wield that technology compared to another.”
Willis Towers Watson Securities, Willis Re, Insurtech, Insurance, Technology, Rafal Walkiewicz, Andrew Newman, Global