Cloud Computing and the Internet of Things are the most powerful drivers of Insurtech progress, with Big Data also accounting for major gains.
UK Insurtech is booming as research finds the emerging market attracted £218 million in investments in the first half of 2017 alone.
Putting the acceleration of this progress into perspective, the figure for the same period of time in the UK in 2016 was only £7.3 million.
The global management consulting giant Accenture conducted this research, and the report also found that Big Data, Internet of things (IoT) and Cloud Computing have been the biggest drivers of investment throughout Europe.
Cloud Computing stands tallest among the technologies driving innovation, having been responsible for $268 million in funding alone in Europe.
Roy Jubraj, Digital and Innovation Lead, Accenture, said: “2017 is looking like the year of UK insurtech, with a dramatic increase in investment and deals in the last 12 months. Europe overall is gathering momentum, with the UK topping the table and confirming its place as a global hub for insurtech. This year the UK witnessed one of the largest global insurtech deals, which is a strong sign for UK investment and something the UK will be mindful in preserving as we move towards a post-Brexit economy.
The UK saw an outstanding Insurtech deal struck when Gryphon Insurance raised £180 million in funding on its own. However, even without this colossal deal the UK would have been able to boast a 422% increase in Insurtech investment, according to Accenture research.
Mr Jubraj said: “Deals in cloud computing and the internet of things are particularly accelerating. The explosion of data made available by an increasingly connected world is bringing unprecedented change and allowing modern insurers to understand customers and create personalised, dynamic relationships with consumers.”
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IoT in particular is providing insurers with rich data on customers to inform the most suitable, accurate cover. A prominent use case example is car insurance, with devices harvesting a plethora of different types of data to give great transparency.
“Investors can see the potential in this and are backing efforts to unlock the value of technologies. That is why we are seeing deals that range from an app for buying short-term car insurance to a connected home solution that complements home insurance policies,” said Mr Jubraj.