Insurtech can be an enabler for the insurance market, not a disruptor, claims Aon’s Global Insurance Market Opportunity (GIMO) report.
The annual report from the risk, retirement and health solutions provider found that the fast-growing insurtech sector could be more beneficial than previously thought due to ‘open architecture innovation’. According to Aon, established organisations can play an important role in this, ‘by collaborating in a framework which has both standards that enable scalable solutions for clients and the flexibility that encourages entrepreneurial innovation’.
The GIMO report also found that insurtech could become increasingly important in the cyber risk, casualty catastrophe risk and pathogen risk areas of insurance. Collaborations between insurtech companies and technology and analytics providers could make these sectors far more insurable, says Aon, and open up opportunities for insurers and reinsurers to provide enhanced products to their customers.
Paul Mang, Aon’s global CEO of analytics, said: “We know that the insurance sector is facing challenges in the current macroeconomic environment; so we should expect leading organisations in the industry to drive change. We are already using technology to make us more efficient as a sector, and to expand into emerging risk markets. However, the true transformation will happen as we re-imagine risk management altogether. In this new environment, collaborations, or what we call open architecture innovation, will be key to creating net new growth.”