The blooming insurtech sector has been valued at $US1.69 billion ($2.19 billion) and three-quarters of global insurers say they believe their sector has failed to show leadership in digital innovation, according to a survey by advisory group Willis Towers Watson. "The tools emerging are often so far removed from insurers' previous experience that external innovation models are likely to be the only way of expanding digital capabilities," Nicholas Chen, head of digital solutions at Willis Towers Watson in Asia Pacific, said. "This is expected to lead to a wave of new M&A activity in the years to come." While setting up a hub in Singapore does entail some tax benefits, it is the relatively forward-thinking nature of the regulatory regime that may be of interest to the fintech community, Ms Batch says. "They've put us in touch with one or two companies that are looking for insurance partners to build out new products, so we already we feel like we're hitting the ground running a little bit," she said. "They play a central role in connecting us with universities and technology companies, and support the development and the embracing of those people coming to Singapore to collaborate." James Orchard, executive general manager of innovation for IAG, agrees and says MAS also has a "favourable regulatory agenda" and plays an important networking role for companies. Just this month, MAS published a consultation paper proposing a simplified regulatory framework for venture capital funds to complement its "regulatory sandbox". Sopnendu Mohanty, chief fintech officer for MAS, says the Firemark Labs launch "presents an exciting platform for both the insurance and innovation community to come together and co-create innovative insurtech solutions across retail and reinsurance applications for the region, and will further bolster Singapore's development as the global insurance hub". While Australia has also been casting itself as hub for start-ups, recently broadening the scope of its own "regulatory sandbox" regime, Ms Batch says more work can be done on encouraging entrepreneurship throughout the country. "We are going directly to universities on our own, so it's not as much incentivisation, but creating opportunities to collaborate on ideas," she said. "That would be a great thing to see emerge in the Australian economy." It is understood IAG's Firemark Labs is in early stage discussions with two Asian start-ups, supported by its venture capital fund.
Australian insurer IAG has become the nation 's first company to launch an insurtech hub in Singapore , where it hopes to take advantage of the country 's " favourable regulatory environment " . The move follows IAG 's launch of a $ m ( £ ##3 ##m ) venture capital fund to invest in start - ups . The hub , called Firemark Singapore , is an incubator for start - ups and research and technology providers creating customer - focused products and services . The insurtech sector is worth around AUD2.19bn , nevertheless about 75 % of global insurers say there has been a lack of digital innovation . The Monetary Authority of Singapore , with which it already has a relationship , recently announced proposals for simplifying regulation for venture capital funds .