A survey created by InsurtechNews in collaboration with InsurTech 2016 Singapore, involving over 120 respondents. Based on the answers collected, the most relevant area of Insurtech is Connected Insurance and this is not surprising at all. According to a preliminary release of a study jointly developed by Venture Scanner together with the Connected Insurance Observatory, connected insurance initiatives represent 30% of start-ups but have gathered an astonishing 80% of insurtech funding. Online purchases continue to be deemed as very relevant although such promise is everything but new and has yet to materialize. Things may change though if the new purchase innovation is push sales... Unsurprisingly, respondents also indicated that insufficient knowledge and understanding of the insurance market is the most important challenge for InsurTech start-ups and creates an imperative for collaboration between incumbents and start-ups. The second barrier is the incapacity to engage and partner with incumbents. This point confirms the importance of all open innovation initiatives of the last few months: from hackathons to co-creation labs, from incubators to accelerators. They are all fundamental to allow start-ups to access incumbents and vice-versa.

1. InsurTech & Connected
Insurance Survey
Presented by
Luciano Pezzotta
Sept 27th 2016

2. Q1:
What is the most relevant area
of InsurTech?

3. Q1: What is the most relevant area of InsurTech?
Need
Awareness
Choice Purchase Use
Connected Insurance / IoT
P2P
• Aggregators
• Underwriters
• Policy Mgmt.
• Claim Mgmt.
• Services
Source: Connected Insurance Observatory

4. Q1: What is the most relevant area of InsurTech?
Need
Awareness
19%
Choice
13%
Purchase
21%
Use
11%
Connected Insurance / IoT 28%
P2P 8%
• Aggregators
• Underwriters
• Policy Mgmt.
• Claim Mgmt.
• Services

5. Q2:
What are the most important
benefits of connected insurance?

6. Risk selection
Risk-based
Pricing
Value-added
services
Loss control
Behavioural
steering and
loyalty system
Q2: What are the most important benefits of connected
insurance?
Source: Connected Insurance Observatory

7. Risk selection
14%
Risk-based
Pricing
36%
Value-added
services
18%
Loss control
9%
Behavioural
steering and
loyalty system
23%
Q2: What are the most important benefits of connected
insurance?

8. Q3:
What is the current maturity stage
of connected insurance?

9. Q3: What is the current maturity stage of connected
insurance?
The next twelve to eighteen
months will be the inflection
point in its adoption
37%
It will take few more years
for connected insurance to
become a mainstream
42%
It has already had a
significant impact over
the insurance sector
7%
It is not clear the
possible impact
and its extent
12%
It’s a fad that will never
produce a relevant and
long lasting impact
2%

10. Q4:
What product area has been
affected the most by connected
insurance?

11. Q5:
What area will be affected the most
in the next 12 to 18 months?

12. 61%
23%
6% 7%
26%
42%
13% 11%
8%
3%
0%
10%
20%
30%
40%
50%
60%
70%
Car Health Home Life Industrial risks
Q4: What product area has been affected the most by
connected insurance?
Q5: What product area will be affected the most in the
next 12 to 18 months?
Q4 Q5

13. Q6:
What is the most significant barrier
to insurance adoption by
incumbents?

14. Q6: What is the most significant barrier to insurance
adoption by incumbents?
33%
26%
17%
14%
9%
Concerns about privacy and legal/regulatory
Lack of technical & data management expertise
Lack of a clear and compelling strategy
High cost or unclear economic benefits
Market is not yet ready for adoption

15. Q7:
What is the most significant
challenge for InsurTech start-ups?

16. Q7: What is the most significant challenge for InsurTech
start-ups?
31%
8%
33%
8%
20%
Insufficient knowledge
and understanding of
the insurance market
Incapacity to
engage and partner
with incumbents
Lack of market vs.
product fit
Lack of a
proprietary
technology
Insufficient long
term commitment