Asia: InsurTech investments surging strong
Source: Asia Insurance Review | Mar 2018
InsurTech funding in 2017 rose 36% from the year before to reach US$2.3 billion, according to the latest data published by Willis Towers Watson.
4Q2017 saw near record level with InsurTech funding volume totalling $697 million, representing a 123% increase from $312 million in 3Q2017.
In 4Q2017, back-end administration and processing applications emerged as a major area of focus for investment.
Meanwhile, P&C funding volume increased 175% from 3Q2017, and 187% year-on-year. In its analysis, Willis Towers Watson Securities’ CEO Rafal Walkiewicz said: “Incumbents sent a clear message to potential disruptive outsiders: by investing heavily in start-ups and technology, (re)insurance companies appear to have assumed a semblance of control over the InsurTech revolution. During the year, conversations about disruption of the existing value chain evolved towards an efficiency-driven search for incremental innovation.
“However, technology revolutions rarely result in redistribution of power among incumbents. It can be argued that incumbents’ collective response to InsurTech hype has diminished their ability to recognise true disruption.”
To provide the Asian perspective of the evolving dynamics in InsurTech, Asia Insurance Review will be organising the “Asia InsurTech Summit 2018” from 23-24 April 2018 in Singapore. As insurers race to get ahead in the tech and digital journey, this summit will provide a timely stock-take on where the market stands.