29 Mar A call to the industry to invest in Insurtech
The TAS executive team attended ANZIIF’s inaugural Insurtech Conference – the first insurance-led event that brought insurers, tech start-ups and other industry stakeholders together to brainstorm and discuss all things insurtech in Australia.
Several high-profile speakers were in attendance, including Martin Blake and Ian Pollari, KPMG; Alex Scandurra, Stone & Chalk; Mark Adams, ASIC; Dr Catriona Wallace, Flamingo AI; Dr Katrina Ellis, APRA and Chris Maccan, Suncorp.
The conference explored burning topics in the insurtech space, such as how insurtechs and insurers can partner to deliver better outcomes to customers, and the important role of innovation and collaboration in Australia’s growing eco-system.
The top insights we took away include:
Gen Y behaviours cannot be ignored in the insurtech movement. Gen Y represent 22% of the population in Australia. The majority of millennials today are digitally driven and focused on lifestyle and travel, with delayed house purchases and no insurance knowledge. Millennials are unlikely to purchase long-term health insurance, so insurers need to offer flexible, short-term health insurance plans.
Baby Boomers are in increasing need of health insurance. As Baby Boomers reach retirement age, they are living longer and facing increased health needs. Downsizing houses and financially supporting children and family are also common trends amongst this demographic, leading to less asset covers and more life insurance purchases.
Regulation, lack of investment and skills are slowing insurtech. Regulation barriers are holding the insurtech movement back, with lack of investment proving to be an issue. However, the top concern is workforce-related, with 74% of business challenges stemming from a lack of internal skills and capability.
Invest more in insurtech to accelerate growth. By investing more in insurtech, businesses can accelerate growth and aim for continuous improvement. A flexible and agile approach is needed, with strong collaboration and partnerships between start-ups and insurance companies important to see the eco-system flourish.