Looking ahead

So, what's the near future look like when it comes to InsurTech? In the second part of our research, we've been interviewing incumbent financial institutions (including insurers), startups, and those facilitating activity between the two (often known as accelerators). The following is a sneak peek into what we've been hearing as the InsurTech market continues to mature:

The bar is being raised for investment, as neither financial institutions nor fintechs have endless time or money for experimentation.
Attention seems to be shifting from 'cool' ideas to practical applications.
There is much more of a focus on measurable results, rather than backing intriguing ideas with uncertain outcomes.
Financial institutions are seeking fintechs with actual industry expertise, preferring those providing solutions to known problems, rather than startups shopping generic solutions looking for a problem to address within the financial sector.
Someone needs to own fintech within a financial institution to avoid duplication of effort, working at cross-purposes, and going off track in terms of strategy and goals.
Fintechs are getting savvier about who to target at financial institutions with their pitches and are seeking a clearer path to adoption.

So, while the fintech gold rush may have come to an end, there still appears to be "plenty of gold in them thar hills!" (as prospectors used to declare back in the Old West). Whether insurers can successfully mine InsurTech treasures and forge them into something useful will depend on how well organized they are in formulating and executing a comprehensive strategy to develop and integrate new technologies across their organization.

Special Reports /

InsurTech startups wane, but funds still pour into maturing market

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