Capgemini releases its first World InsurTech Report today.

[nusratjahan]

The insurance technology (InsurTech) sector is expanding and ushering in a new era of collaboration between established and emerging players in the insurance industry. This is according to the first edition of the World InsurTech Report, published today by Capgemini in collaboration with Efma .

The report shows that insurance industry managers believe the " InsurTech " phenomenon will be a major catalyst capable of redefining the customer experience , ensuring greater shop efficiency, and creating new business models. The industry also expects "cross-pollination" from other sectors, such as manufacturing, and new competitive landscapes with the entry of " BigTech " companies. This comes on the heels of an InsurTech sector that saw investment increase at a compound annual growth rate of 36.5% between 2014 and 2017.

There is a consensus that InsurTech companies are having a significant impact on the industry. When asked about the current and potential impact of InsurTechs , 67.1% of traditional players stated that these companies have the ability to " redefine the customer experience " (91.7% of InsurTech managers agreed with this statement), while 36.7% indicated the possibility of " introducing new business models " and 35.4% believed that InsurTechs will "enhance the capabilities of existing insurance companies." InsurTech respondents agreed with these statements (58.3% and 33.3% respectively).

Nearly 96% of executives surveyed said they plan to establish some form of collaboration with InsurTechs : partnerships and a Solution-as-a-Service (SaaS) approach were the most popular options among respondents. The vast majority said they prefer an approach based on "collaboration aimed at developing a new solution." An equal majority said they prefer a SaaS approach to engaging with InsurTechs . Conversely, only a third said they are considering acquisitions.