03 Executive summary PwC’s second year of collaboration with the Startupbootcamp InsurTech looking to combine a number of different external propositions, along with program takes place against a backdrop of growing excitement, invest- their own capabilities, to deliver more powerful propositions. ment and a rapidly increasing number of new businesses and collaborative partnerships. The growth of InsurTech has been remarkable, with a thriv- With the ecosystem maturing, the stage is set for InsurTech to begin deliv- ing ecosystem of start-ups, insurers, investors and innovators springing up ering significant value, which has the potential to change insurance for the over the past twelve months. greater good of both customers and the industry as a whole. InsurTech has opened a fantastic window of opportunity. Notably, this year, we are witnessing start-ups emerge with more sophisti- cated and wide-ranging value propositions that augment and supplement But it is important not to get carried away. InsurTech will not transform the entire insurance value chain. This is a step away from the skewed focus the bottom line overnight and it will not all be plain sailing. Maturing start- on distribution that was initially the case when InsurTech exploded onto ups will need time to prove their value in an industry where KPIs such as the scene. claims ratios can take time to be realised, insurers need to transform how they work and these collaborative models will take time to embed. And, of It is not just the start-ups that are reaching maturity, so is the InsurTech course, not every start-up will succeed. ecosystem as a whole. Last year’s report highlighted the importance of collaboration between start-ups, insurers and others to deliver value for Nevertheless, InsurTech is a movement on the verge of a breakthrough. customers and the bottom line because InsurTech offerings were primarily Insurers understand that InsurTechs can help them grow revenue, launch enabling rather than disruptive. This remains the case and it seems as if the innovative propositions, reduce costs and transform their relationships battle for hearts and minds has now been won - insurers are increasingly with customers for the better. As those hopes are realised, the growth of looking outwards to innovate and their engagement with start-ups is more InsurTech could become exponential. positive and advanced. The position of Startupbootcamp and PwC at the centre of the InsurTech This can be seen in the increasing number of proof of concepts (PoCs) ecosystem offers a unique view of its rapid progress. In this report, we will that are being carried out as well as their increasing complexity. No longer share our insight, the trends we see and explore how collaboration be- are start-ups seen as point solutions, for example, many insurers are now tween InsurTechs and insurers can drive value in the future.