InsurTech. Just a phenomenon? And what does it mean for talent?

More than $22m (£16.5m) was invested into InsurTech in 2016, according to data from Accenture, with investments trebling in the last 3 years. There are now over 1000 InsurTech start-ups in the UK alone. Despite this and the growing media attention, there is still no clear understanding of what this means.

River Partnership has polled 50 UK-based senior leaders across the Insurance industry, InsurTechs and Consulting to provide a live view. Polled professionals include: CEO, COO, Head of Strategy, Head of Innovation, Insurance Partner, InsurTech founders.

This report answers:

-   The position of InsurTech on the CEO agenda
-   How organisations are currently responding to InsurTech
-   The impact of InsurTech on talent.

Key findings:

1. InsurTech features on the agendas of all executives polled but it is not yet a top 3 issue. Traditional threats continue to dominate, with cost and risk & regulation stated as key focusses in the short-term.

 2. There is a lack of consensus on what impact InsurTech will have on incumbent businesses, but there is agreement amongst leaders that it is important. 81% of those polled stated that if they don’t act soon InsurTech could have a detrimental impact on their business in the longer term.

 3. There are three distinct responses to InsurTech being employed by polled leaders of incumbent businesses.

      a. External Venture Capital Funds
      b. Internal Innovation / Strategy Teams
      c. No action

 4. Despite the appeal of InsurTech, there is minimal movement today between top talent from incumbent businesses to start-ups. InsurTech Founders polled highlighted compensation gaps and cultural differences as the two top reasons they are unable to recruit seasoned Insurance professionals.

 5. Threat to retention will come from traditional competitors strategically engaging InsurTech. The ability to use this as an attraction tool will support recruitment of both experienced Insurance professionals and non-insurance talent interested in tech-enabled disruption.

To receive the full report, including recommendations on how to react to these findings, please contact Helen Prudhoe, Head of Financial Services Strategy / +44 (0) 20 3096 8865

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