according to: More than 75% of insurers say they are exploring InsurTech partnerships to develop new solutions Collaboration will be critical to shore up weaknesses and acquire new attributes and skills +75.0% 58.3% InsurTech Disruption is Reinventing Insurance Strategic Collaboration is the Way Forward Collaborating and Growing an Ecosystem is Crucial in Light of Potential BigTech⁴ and Manufacturer Entry Investments in InsurTech grew annually from 2014-2017¹ 36.5% Future success will depend on various factors, including: InsurTechs and Incumbents recognize the value in partnering up More than half of insurers say competition could come from: InsurTechs still face challenges in key areas such as: Scalability Customer trust Brand recognition Familiarity with regulations Capital of InsurTechs of traditional insurers 67.1% 91.7% Improved ability to enhance customer experience Faster time to market Building new digital capabilities 77.2% 59.5% 46.8% Most important benefits of collaboration, according to incumbents: For traditional insurers, the best InsurTechs for high-potential, short-to-medium term² partnerships are: B2B Digital Distributors Claims Management Solution Providers Digital Brokers Marketplaces Front-runners for collaboration in the long-term³ include: Data Specialists Claims-Management Solution Providers Front-Office Solution Providers Digital Carriers B2B Digital Distributors Personal Financial Assistants BigTechs led by Amazon at 81% BigTechs are making inroads into insurance, especially in the areas of healthcare, analytics, and IoT Manufacturers 59.5%, due to connected devices and advanced analytics that may make self-insurance likelier Digital infrastructure Lean organization Digital agility Digital culture Focused InsurTech investment strategy Strong ecosystem positioning Business model innovation Sustainability, especially with changing regulations Scalability Exceptional competitive advantages, such as capturing data and monetizing analytics quickly and efficiently Ecosystem capabilities, such as designing offerings for easy integration Adaptability For Incumbents For InsurTechs For more information, visit us at www.worldinsurtechreport.com, follow #WITR18 or contact us at [email protected] by: Improving existing insurance processes Creating opportunity-rich business models Leveraging emerging technologies, including: Artificial Intelligence Connected Ecosystems Advanced Analytics Blockchain InsurTechs are redefining the insurance customer experience 1 – CB Insights Quarterly InsurTech Briefing, Q1 2018 2 – Short-to-medium term – 3-5 years 3 – Long-term - >5 years 4 – BigTechs are large, multinational technology firms such as Google, Amazon, Facebook, Apple, Alibaba, Tencent, etc.