Artificial intelligence (AI) and the Internet of Things (IoT) technologies have helped the burgeoning InsurTech sector to secure $711m in funding last year.
This figure equates to 44 percent of the total investment in InsurTech, while AI and IoT only represent 24 percent of last year’s 216 deals. The concentration of this funding into the small area shows just how attractive this new tech is to the insurance industry.
Accenture’s report notes that AI and IoT are set to be disruptive in the space as they are essential when targeting increased levels personalisation and improved outcomes for customers. The technology could mean going a step beyond simply assessing risk, as risk could be actively monitored and mitigated to save customers from losses.
The research behind these results was conducted by Accenture, analysing the data of 450 InsurTech deals that span the last three years. Accenture’s newly released report is titled “The Rise of InsurTech”.
Coinciding with the release of the report was the Accenture Fintech Innovation Lab in London, which this year differed by including a dedicated InsurTech stream, representing the prominence and growing interest in the potential of the Fintech strain.
Roy Jubraj, a co-author of the report and Accenture’s Digital & Innovation lead in the company’s Financial Services practice in the U.K. and Ireland said: “We’ve seen a rapid acceleration of investment into and deal activity around intelligent automation and IoT start-ups over the last 12 months. 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 momentum behind InsurTech and Fintech in general in the U.K has continued to grow even amid the economic uncertainty brought about by Brexit. The value of InsurTech investments doubled last year to $19 million, with AI and IoT areas beginning to climb significantly with a $1.7 million total.