€ PwC Global InsurTech Report – 2017 “I believe InsurTech will have repercussions across the entire insurance industry, both consumer and commercial aspects – startups will find ways of undertaking processes and services in a better manner than incumbents.” CEO of a large Asian Insurance Company Prioritising better risk insights and customer engagement Insurers’ focus has shifted to become more customer centric. Figure 2 Insurance innoation tren‚s In line with last year, customer engagement and the generation of better risk insights are identified as the most important ƒlease rate the degree to which these ˆnsurTech trends will be important for the insurance industry over the next five years innovation trends by 94% of respondents (see Figure 2). The si‰e of the bubbles is proportional to the number of related FinTech companies as assessed by the Še‹ovo platform Current InsurTech value propositions reflect these innovation trends. With market players focusing on Internet of Things (IoT) ’ ˆncr eased sophistication of data models and analytics to better identify startups and solutions that leverage data usage and monitoring, and “uantify risk new tools are being developed that will help companies align ­’ ˆncreased sophistication in methods to reach‡ engage and serve with customers’ needs as they change from protective to  customers in a highly”targeted manner ery important •’ –ise of aggregators to compare products and services from different preventative models. Alongside this shift, InsurTech companies Œ are focusing on specific microsegments and developing products ­ providers to reach them. The growth of specific products on demand (e.g. ’ „onsolidation of “as”a”service” solutions enabling outsourcing of core pay as you use) and P2P models highlight this trend. insurance functions ™’ šmergence of connected cars and autonomous vehicles impacting auto Prioritising customer engagement will ensure products are claim fre“uency and severity intuitive, easy to use and accessible. According to respondents, • as only 16% and 25% of their customers currently engage with ƒeel o iportance them through mobile and website, there is ample room to boost ™ digital interactions. As participants expect these channels will be used by 81% and 90% of their clients in the coming years, insurers will need to focus their investments on connectivity ‘oderately important and mobility. €lightly likely Œery Žikely InsurTech companies are in a strong position to develop new ƒielihoo‚ to respon‚ to the tren‚ products, drive market innovation, and help incumbents remain relevant to changing customer demands. €ource‚ ƒw„ …lobal FinTech €urvey ­†‡ ˆnsurance €ector ƒarticipants and Še‹ovo