Venturing and InsurTech
Editorial by Hugh Terry
This month’s issue of InsurTech Insights gets to the heart of how InsurTech’s are being supported and financed to develop and test their business models.
We have two excellent featured articles from Murray Raisbeck and Ram Menon from KPMG and Rick Huckstep from The Digital Insurer.
Murray and Ram take a broad look at the development of InsurTech over the last couple of years. As well as identifying the sectors of interest for InsurTech, they also identify the explosive growth in corporate venturing in the industry and predict further growth in both partnerships as well as M&A activity as insurers align these InsurTech investments with their broader growth and transformation strategies.
In his contribution this month, Rick has conducted a virtual roundtable with a number of the leading InsurTech commentators and practitioners who focus on the funding of InsurTech. His article asks the panel 3 questions:
- Corporate VCs (insurers) vs institutional investors – what are the pros and cons?
- What is the best way to pick InsurTech winners?
- What is going to be the impact of InsurTech on the insurance industry?
The panel provides a diverse mix of views that nicely reflect the competitive and differentiated offerings that are being made available to InsurTech firms.
I particularly liked Sabine VanderLinden’s take on the increasing role reinsurers are taking with InsurTechs and how this is creating new opportunities that can be deployed more quickly on a global scale. It truly demonstrates the case of the start-ups collaborating with the giants in the industry in search of business models of mutual interest. This is strong, if not quite conclusive evidence that the industry can flex to take on board these new business models and operational tools as they emerge.
What is also clear is that InsurTech, whilst a category in its own right, has enormous areas of overlap with FinTech, HealthTech and the “cross industry” Tech such as analytics, machine learning and AI. Industry convergence remains a key theme in the future of insurance.
Do browse the other links which contain a wealth of useful information and insights.
Finally do sign up for our webinar on Venturing on 19th July. Participants are being finalised, but it is going to be popular!
InsurTechTop9 Virtual Roundtable –Three questions every start-up wants to ask a VC - By Rick Huckstep
Picking an InsurTech winner is easy with the benefit of hindsight. But in practice, it is anything but! And when an investor’s money is at stake, picking a winner becomes all that much harder. For this month’s InsurTech Insights, Rick Huckstep talks with fellow investors from the InsurTechTop9 Club about picking winners and the emergence of the insurance Corporate VC.
KPMG Perspective - Investing in the future: Venture capital funding in Insurtech - By Murray Raisbeck & Ram Menon
Venture Capital (VC) investors across the world see exciting potential in Insurtech. Insurance is an industry ripe for disruption, with increasing industry challenges combined with insurers looking for ways to transform their age-old operating models ridden with legacy IT systems and processes.