March 22, 2018 by Staff
The report—Fearless Innovation: Insurtech as the Catalyst for Change within Insurance—states that the number of Insurtech deals surged by 39% last year, while the total value of deals increased by 32% to US$2.3 billion.
“The Insurtech industry’s rapid growth reflects investors’ response to consumer appetite for change in an industry sitting on trapped value,” Roy Jubraj, Accenture’s UK and Ireland Insurance Strategy and Innovation lead, said in a news release.
Property and casualty was the most popular insurance segment for Insurtech investments in 2017, accounting for 42%. Personal lines made up 68% of P&C investments, with commercial lines making up 26%. Mixed applications accounted for 6%.
Accenture says Europe is emerging as a key Insurtech hub, with the number of deals climbing by 118%—accounting for one-third of total deals around the world—and the value surging by 385% to US$679 million. Despite the threat of Brexit, the report states that the UK continues to grow as Europe’s Insurtech capital.
However, the Insurtech segment is still seeing significant growth in North America, leading the world in both the total value and number of deals. Altogether, the deals accounted for US$124 last year, making up 46% of the total.
Jubraj says while the numbers are positive, insurers still need to recognize that these investments alone cannot deliver levels of change needed for both insurers and consumers alike. “The key is having an enterprise-wide innovation strategy that transforms the core business and enables the company to drive growth.”
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This story was originally published by Canadian Insurance Top Broker.