London is undoubtedly the FinTech capital of the world, and via their FinTech Lab, consultancy company Accenture sit at the heart of this rapidly growing field.
A recent report released by the lab examines the insurtech sector specifically, and explores the investment landscape in the sector. The report analyzed over 450 deals conducted over the last three years, and reveals a particular focus in the sector on technologies such as AI and IoT. Indeed, deals in these two areas alone increased by 79% in 2016.
“We’ve seen a rapid acceleration of investment into and deal activity around intelligent automation and IoT start-ups over the last 12 months,” Accenture say. “These technologies are primed to disrupt the industry in the years to come, so it’s fitting that we’ve established a dedicated insurtech stream as a key part of Accenture’s FinTech Innovation Lab in London.”
The insurance industry is targeting technologies such as AI and the IoT specifically to help it deliver more personalized service to increasingly demanding customers. The technologies both help provide insurers with more data to assess risk, and then help them do the calculations to underpin that assessment.
What's more, despite concerns surrounding Brexit, the UK, and London specifically, continues to thrive in terms of attracting investment. The value of investments in insurtech has doubled in the past year, albeit from a relatively low base.
“The rise in insurtech is further evidence of the growing role that new technologies are playing in shaping innovation across financial services. The next challenge for insurtech startups is the same as what the more mature fintechs are now facing – being able to translate that investment into growth and customer acquisition,” Accenture say.
The industry was showcased at the recent graduation day of the latest cohort from the Accenture FinTech Innovation Lab in London. It works with 20 startups from around the world, operating in areas such as insurance, retail and investment banking. I'll be talking about a few of the most interesting of these startups in subsequent blogs.