Foreign InsurTech firms are entering Australia, and now account for 30% of the 2019 eco-system according to a new report produced by Ernst & Young, Australia, in collaboration with Insurtech Australia.
Based on an online survey run in February and March of InsurTechs, insurers, brokers and other providers operating in Australia, findings of this year’s report – which is the second to date – show a sector that is growing at pace, maturing and becoming more financially stable, with 71% of InsurTech businesses now either post-revenue or post-profit (compared to just 50% in 2018).
Mr Andrew Parton, partner, EY Australia, said, “Australia’s InsurTechs are playing an increasingly important role in the future of incumbent insurers, especially in the health and life insurance markets. In the last year, we’ve seen collaboration between incumbents and InsurTech – one of the major impediments last year – increase significantly, with a 75% increase in active partnerships.”
“While the majority (72%) of InsurTechs are now collaborating with incumbent insurers, it’s now about making that collaboration more impactful. The research found that only 18% of InsurTechs believe incumbents are currently doing enough to collaborate with them in order to truly drive industry innovation,” Mr Parton said.
“Our research shows that, while insurers understand the potential of InsurTech innovation, uptake remains inhibited by operational constraints, legacy systems, technological readiness, compliance issues and concerns of privacy and security.”
Insurtech Australia is a national, not-for-profit organisation, run for the benefit of our members and partners across all corners of Australia. A