The majority of stakeholders in the Irish insurance technology sector believe that there is more opportunity to collaborate with traditional insurance companies and bring major change, a new report has found.
The report on the wider sector from not-for-profit innovation cluster InsTech.ie indicated greater optimism about the its future, with 60 per cent saying there was greater room for collaboration between startups and established firms.
That willingness to work together could ultimately lead to better experiences for consumers, InsTech.ie said, and Ireland has the potential to be a global centre for insurance innovation, InsTech.ie chief executive Gary Leyden said, with the funding of Irish businesses in this sector increasing in recent years.
“Leading insurance companies in the marketplace here want to be a positioned at the forefront of transformation,” he said. “They accept that there needs to be change, and the technology will drive a lot of that change. But they equally accept that this isn’t something they can do alone and and more than ever, they need to build up ecosystems to deliver on that.”
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But while almost 69 per cent of those surveyed said emerging technologies such as blockchain and AI were essential for innovation and growth, a resistance to change remains one of the biggest barriers to implementing innovation in the sector. Other barriers include the slow pace of change in the sector, legacy IT systems, and building trust.
The entrance of new companies into the market could also help reshape the sector. The majority of new insurtech business are looking to enter new markets, the survey found. The insurtechs are also bringing new talent to the sector. While 39 per cent of founders came from an insurance background, the majority were from a non-financial services background.
Mr Leyden highlighted that as one of the more interesting findings of the report. “Innovation should really start from the outside in from the customer’s perspective,” he said.
The report was presented to the Government.
“Innovation in the Insurtech sector has the potential to pass on huge benefits to customers. Ireland hosts all of the world’s top 10 global software companies and 11 of the top 15 global insurers,” said Minister for State at the Department of Finance, Neale Richmond. “With a strong track record in both insurance and technology, Ireland has all of the elements to create a powerful cluster of insurance innovation and is a natural hub for the next wave of disruptive Insurtech firms. This InsTech report gives us a framework to explore the opportunities.”
The insurtech sector currently employs more than 4,600 people in Ireland across 114 businesses. InsTech.ie was founded in 2021 with the task opf promoting greater innovation in the insurance sector, helping businesses to grow into international markets. It is backed by founding members that include AA, VHI, RSA, FBD, Irish Life, Allianz, Axa and Laya.
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