LEO TECH SERVICES
Insurtech_White_Paper.compressed
Insurtech_White_Paper.compressed
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Insurance Tech Investments: Innovation or Returns?<br />
FinTech is looking to be the most promising startup industry for the next decade.<br />
Goldman Sachs estimated that startups could wrestle up to $4.7 trillion in annual<br />
revenue, and $470 billion in profit from financial institutions. Even a basis point of<br />
the market share represents significant business, so investors are extremely eager<br />
to back new entrants. Or to get in themselves: Goldman is so impressed with<br />
peer-to-peer lending, it is launching its own online operation, Mosaic.<br />
In offices well away from Wall Street, Leo Tech has turned its focus to a lessermentioned<br />
sub-sector of FinTech, InsurTech.<br />
35%<br />
FinTech Funding % Breakdown<br />
30%<br />
30.1%<br />
25%<br />
20%<br />
15%<br />
19.3%<br />
17.3%<br />
10%<br />
8.6%<br />
9.4%<br />
5%<br />
4.6%<br />
3.0%<br />
1.6%<br />
4.0%<br />
2.0%<br />
0%<br />
Investment<br />
Tech<br />
Alternative<br />
landing<br />
Mobile<br />
Payments<br />
Banking<br />
Tech<br />
Remittance Payments Insurance<br />
Tech<br />
Crowdfunding<br />
Payment<br />
Cards<br />
Bitcoin<br />
Insurance tech only accounts for ~10% of the investment in the FinTech space.<br />
However, we believe there are many undervalued assets in this often overlooked<br />
sub-sector.<br />
Over the past year, my team has committed sizable resources into researching the<br />
InsurTech venture capital space and have used the findings to educate our firm on<br />
this market movement, and to predict the potential disruptions area.<br />
Insurtech defined<br />
Looking at the root of this buzzword it's important to understand what we define as an 'insurance' business, and what we consider to be technology.<br />
Insurance businesses can overlap a number of areas including Customer Engagement, Regulation, Internet of Things, Data Analysis, Investment Management,<br />
Data Security and Health.<br />
As for technology we're not just considering big data and wearables. We're talking about the application of knowledge. More broadly that's the application<br />
of techniques, skills, methods and processes to improve insurance businesses in the range of products they offer, the way they perform internally, and<br />
ultimately the way they better serve customers.<br />
© Leo Tech Services Pte Ltd, 2016 1
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