The number of technology start-ups in the insurance industry has more than doubled globally during the last three years, according to Gartner. And while two-thirds of the InsurTech start-ups founded in the last three years are headquartered in the US, Asian countries such as Singapore and China (mainly the cities of Hong Kong and Shanghai) have begun to promote the development of a local InsurTech ecosystem.
Given their talent and technology, Asian InsurTech start-ups are in a better position than before to launch their own products and platforms. But like their global counterparts, disrupting a marketplace has not been easy. These newcomers have had to overcome costs of developing their value proposition, get to grips with regulation, and gain the requisite customer base to succeed.
Acquiring new technologies through M&A
Globally, almost two-thirds of the world’s 25 largest insurance companies have invested in InsurTech, and, by 2018, the “majority of insurers” will do so, said Gartner.
About half of the insurers surveyed by Willis Towers Watson expect to acquire new technologies through merger and acquisition activity in the next three years. Many Asian insurers are also looking to partner and collaborate with these innovators.
Set to create waves in Asia
As incumbent insurers and InsurTech startups in Asia inch closer to inking mutually beneficial agreements or partnerships, the stage is set for its innovation to create waves in the Asian insurance industry.
Against this backdrop, Asia Insurance Review will be hosting the inaugural Asia InsurTech Summit on 26-27 April 2017 to bring InsurTech start-ups, insurers and investors together to highlight the latest trends and innovations, identify the gaps and share value propositions, and to shape the future of innovative collaboration for the industry.