Competition from insurtech to increase
Tuesday, 10 16 2018, Category: Technology, Country: World
A report by leading think tank the Geneva Association suggests the current symbiosis between insurtech startups and re/insurers is likely to shift, as an increasingly digitised business landscape looks set to blur the line for traditional players.
Insurance startups and other market entrants have not had a major disruptive impact on the insurance industry so far, states the report.
Instead, they have played a complementary role, as re/insurers themselves are making strategic investments in startups, allowing them to have a stake in these developments while at the same time providing the capital for such enterprises to develop their own business.
However, the GA states that, as established technology companies such as Google or Amazon expand their footprint by exploiting increasing returns to scale, network effects and feedback loops through machine learning, an increasing number of sectors are being reorganised.