Half of insurers are concerned they could lose a fifth of their business to fintech companies in the next five years. New research by Jonathan Howe shows these fears are driven by a fivefold increase in insurtech startup investments in the past three years. Jonathan Howe said that while companies are looking to cut costs, customers are seeking personalised insurance products. Insurtech companies are capitalising on this, through not being hindered by legacy systems in the way that incumbent competitors are. Jonathan Howe UK insurance leader, PwC, stated that the differences between incumbents and start-ups are both vital to the success of the industry and should be embraced. He added that combining long-term experience with start-up creativity could result in innovative products.
Half of insurers are concerned they could lose a fifth of their business to fintech companies in the next five years. New research by PwC shows these fears are driven by a fivefold increase in insurtech startup investments in the past three years. PwC said that while companies are looking to cut costs, customers are seeking personalised insurance products. Insurtech companies are capitalising on this, through not being hindered by legacy systems in the way that incumbent competitors are. PwC UK insurance leader, Jonathan Howe, stated that the differences between incumbents and start-ups are both vital to the success of the industry and should be embraced. He added that combining long-term experience with start-up creativity could result in innovative products.