Insurers See Insurtech Startups as Threat, PwC Report Finds

A recently published PwC report found that 90% of insurers fear they will lose business to startups disrupting the industry. Annual investments in insurtech startups have increased fivefold over the past three years, with cumulative funding reaching $3.4 billion since 2010. As customers demand personalized insurance products and companies increasingly try to cut costs, almost half (48%) of insurers fear that up to 20% of their business could be lost within the next five years to standalone insurtech startups, which are accessing and analyzing data in new ways quickly, not thwarted by legacy technology systems.