Insurance incumbents not embracing innovation, report says

life/risk life insurance Ernst & Young andrew parton innovation insurtech

22 May 2018
| By Nicholas Grove |
image
image
expand image

Insurance industry incumbents are not embracing start-up innovation fast enough, according to a new report from Ernst & Young Australia.

The report, “Insurtech: Enabler or disruptor?” was produced by EY in collaboration with insurtech Australia and examined the country’s emerging insurtech ecosystem for the first time.

It found that even though the average age of an insurtech company in Australia is only three years, 83 per cent are already operating in New Zealand or other overseas markets.

“The insurance industry value chain is undergoing a period of profound change, driven by evolving customer expectations, emerging technologies and sustained pressure on margins,” said Andrew Parton, a partner at Ernst & Young Australia.

"In this environment, Australian insurers have a significant opportunity to embrace the benefits of insurtech to deliver better customer experience and greater value.

“However, in order to fully realise the benefits, there will need to be increased collaboration between incumbents and new entrants.”

This was a view echoed by the insurtechs themselves, with 65 per cent of insurtech organisations surveyed saying they were enablers of the insurance value chain and 25 per cent saying they complemented the existing value chain.

Only 10 per cent of insurtech respondents saw themselves as disrupting and challenging the status quo, the report said.

Read more about:

AUTHOR

Recommended for you

sub-bgsidebar subscription

Never miss the latest news and developments in wealth management industry

MARKET INSIGHTS

Interesting. Would be good to know the details of the StrategyOne deal....

4 days ago

It’s astonishing to see the FAAA now pushing for more advisers by courting "career changers" and international recruits,...

3 weeks 2 days ago

increased professionalism within the industry - shouldn't that say, FAR register almost halving in the last 24 months he...

4 weeks 1 day ago

Insignia Financial has made four appointments, including three who have joined from TAL, to lead strategy and innovation in its retirement solutions for the MLC brand....

2 weeks 3 days ago

A former Brisbane financial adviser has been charged with 26 counts of dishonest conduct regarding a failure to disclose he would receive substantial commission payments ...

2 days 22 hours ago

Pinnacle Investment Management has announced it will acquire strategic interests in two international fund managers for $142 million....

2 days 1 hour ago