Fintech Insurance Innovations: Ready to Disrupt

The U.S. insurance industry represents the largest in the world, with an annual revenue (think insurance premiums) of more than $1.2 trillion. However, there have been few major technological innovations in this massive industry, making it the perfect target for financial technology startups.

Insurance companies are well aware of the fintech threat, though only some have confronted it directly. According to a PwC report, 90% of insurers fear that they will lose business to a fintech startup; 43% have already put fintech at the heart of their corporate strategies. The report went on to point out that the rise of fintech in the insurance industry is a disruptive force that should not be ignored. In fact, one in three insurance executives believe this fintech invasion could cause the loss of more than one-third of traditional insurance business, according to the report.

Therefore, the World Economic Forum predicts that the most significant fintech disruption will take place in the insurance sector. While 90% of insurers fear this technological revolution, many insurance companies are beginning to see fintech not as a threat but as an opportunity. Quite a few traditional insurance providers are embracing fintech and incorporating innovative new technologies into their offerings.

Source: http://www.investopedia.com/articles/insurance/121416/could-fintechs-insurance-innovations-disrupt-industry.asp

4 thoughts on “Fintech Insurance Innovations: Ready to Disrupt”

  1. I agree that the insurance industry is one where FinTech can make an impact. As the article states, many people aren’t satisfied with insurance. Many people might also be unsatisfied with trying to figure out the differences between different insurance policies, and the time it takes to sign up for one. By emphasizing ease of use and convenience, FinTech could differentiate itself from traditional insurance companies, especially if the product does not differ too much.

  2. I agree with the article’s premise that the insurance industry is one where FinTech can be disruptive. As the article states, many people are dissatisfied with their insurance companies. This can include reasons such as difficulty choosing between policies, and time it takes to sign up. If FinTech can offer more convenience and and high ease of use, while offering products similar enough to those being offered by traditional companies, then it could make a real impact.

  3. I agree with aliao’s comment! As we’ve read in many other blog posts, FinTech has disrupted many areas such as loans and wealth management, but insurance remains one of the few areas of finance that hasn’t yet been touched. There seems to be a lack of innovation and the customer experience is pretty poor within the insurance industry, so it will be interesting to see what happens. I came across this Business Insider article (http://www.businessinsider.com/fintech-hot-insurance-insurtech-vc-economist-finance-disrupted-2017-2017-1) that is really relevant to your blog post. At the Economist Finance Disrupted conference in London the insurance industry was a hot topic for investment in FinTech. Give it a read when you get the chance!

  4. I agree with your post and alio’s comment. As we’ve seen in the news, FinTech has disrupted many sectors in finance such as wealth management and loans, but the insurance industry seems to be one of the few areas that remains old-fashioned. I believe there is a lot of potential for fintech to come into play in the insurance industry since the customer experience is pretty poor and there’s a lack of innovation.
    I found a Business Insider (http://www.businessinsider.com/fintech-hot-insurance-insurtech-vc-economist-finance-disrupted-2017-2017-1) article that is relevant to your blog post! At the Economist Finance Disrupted conference in London, the insurance industry was the hot topic for investment in fintech.

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