4 PwC Global InsurTech Report – 2017 Insurers are going beyond disruption In 2016, the insurance sector was in the midst of the FinTech Figure 1 Percentage o reenues at ris to InsurTech copanies revolution, with InsurTech disruption on the mind of 74% of insurers. Today, while most respondents still see business as What percentage of your business (in terms of revenue) is at risk of being lost to standalone FinTech companies within the next five years? being at risk, InsurTech is becoming more widely understood and accepted. Gaining a better understanding of InsurTech has 201 2017 led the majority of respondents (56%) to estimate between 1% and 20% of revenues being at risk (see Figure 1). 0 – 1 In fact, insurers are taking a more proactive approach to seize 0 – 3 the opportunities offered by InsurTech, with 52% putting disruption at the heart of their strategy. 10 –  Additionally, insurers are the most active among Financial Institutions when monitoring FinTech in order to respond 22 ­–  20 competitively and are increasingly partnering with innovators (45% in 2017, versus 28% last year). Partnering can assist 4­ –­ € incumbents to meet changing customer needs and target new segments, for example, pay as you use insurance. €ource‚ ƒw„ …lobal FinTech €urvey ­†‡ ˆnsurance €ector ƒarticipants New innovations will also enhance incumbents’ operations, such as the use of artificial intelligence (AI) to improve efficiency by automating existing customer-facing underwriting and claim “I believe startups will drive this disruption and will processes. be integrated into either tech companies or traditional institutions.” Head of Innovation of a large Asian Insurance company