InsurTechNZ and EY NZ collaborated in late 2018 to write the InsurTech Landscape report “InsurTech emerging at pace” which was released at the breakfast launch hosted at EY’s Auckland offices last week.
The report was a comprehensive stock take and analysis of the Insurtech eco-system, open to those who consider themselves InsurTechs. Most respondents were New Zealand InsurTechs, technology vendors plus other industry participants.
For an industry facing very significant challenges, with more pressure on margins and new marketing entrants using better platforms, the report noted that innovation was taking place against a back drop of increasing disintermediation and declining consumer trust and confidence, with the latter probably the highest priority.
At a high level these are the core findings:
- The InsurTech landscape is emerging at pace
- The majority of InsurTechs are focused on adding value to the customer
- The InsurTech sector is leveraging technology to build international and scalable business
- There is a need for greater collaboration between incumbents and InsurTechs
Of particular interest is that during 2017-18 we had 17 new InsurTechs enter the market with core focus areas on; Customer engagement and innovative marketing distribution, efficient insurance administration and new products.
It is very clear that the innovative use of technology is creating great opportunity but there are some real challenges for these early stage companies getting market traction on scale.