Traditional carriers and innovative startups are embracing insurance technology to operate more efficiently and to offer a stellar customer journey. We help clients make the most of insurtech trends, using platforms such as our Fintech Control Tower.
Insurtechs are digital challengers and enablers, whose primary objective is transforming segments of the insurance value chain by leveraging the latest technologies, adopting new business models, and having customers at the forefront of their strategic and operational thinking. Examples include:
The insurtech industry has gained ground and attention as additional incumbent insurance carriers and brokers chase newcomers in the use of artificial intelligence, the Internet of Things, advanced analytics, and other emerging technologies across every aspect of the industry’s value chain. The tens of billions of dollars that investors continue to pour into insurtech startups signals the industry’s move away from inflexible, established IT architecture—and toward a complete digital transformation.
We help incumbent insurers, regulators, corporate builders, and corporate venue capital firms navigate the continuously developing insurtech ecosystem. Our global fintech platformm FinTech Control Tower, is a joint venture with Expand Research that draws on proprietary data tools, the latest market intelligence, and BCG’s fintech consulting services to help clients uncover opportunities and execute on their fintech agenda.
FinTech Control Tower by BCG is a joint venture with Expand Research that is aimed at offering a data-driven view of the global fintech ecosystem, exploring emerging trends, highlighting top players, and analyzing winning business models and the technologies that matter most in today’s insurance industry.
It provides market intelligence to facilitate the digital transformation of the insurance industry, leveraging three key assets:
We helped a leading European insurance group launch an insurtech venture, including creating scalable digital business models, identifying IT requirements and AI use cases, and outlining a go-live roadmap. We also supported ramp-up activities, including recruiting employees and acquiring business partners.
We conducted due diligence on an insurtech acquisition target for a European auto insurance technology company, including analyzing the target’s market, competitive dynamics, and potential for growth and integration with the acquirer’s business.
After a steep decline in funding in 2022, insurtechs are transitioning from a growth-oriented mindset to one focused on conserving cash and achieving profitability.
Although private market funding for insurtechs hit a new high in 2021, valuations of public firms have underperformed vis-à-vis the general stock market.
With a focus on robust equity funding, the latest roundup from the BCG FinTech Control Tower (FCT) provides an update on insurtech investments made during the first half of 2021.