The COVID-19 outbreak has left the insurance industry reeling as companies grapple with the question of pandemic cover, the cancellation of major events and the surge in health and travel insurance claims. But what about insurtechs? Does the pandemic spell trouble for start-ups and more established insurtech players, particularly with the current trends in capital markets indicating an investment slow down? Or does the outbreak present a unique opportunity for the accelerated disruption of the insurance industry?
Insurtechs rely on the incumbent insurers both as investors and as consumers of their products and services. As companies focus on cash conservation, tackling staff shortages, stability and the challenges that remote working pose in the wake of the outbreak, they may be less likely to be on the lookout for new investment opportunities. Whilst this may pose problems in the short-term for insurtechs with the weakest balance sheets, insurtechs are uniquely placed, with their nimbleness, technical infrastructure and direct sales approach, to take advantage of the emerging opportunities that the outbreak has given rise to and the digitisation it is accelerating.
In our most recent insurtech briefing which can be found here, we consider the challenges insurtechs face, the opportunities that are likely to present themselves and the options available to insurtechs in these unprecedented times.