NN co-sponsors report on State of Global Insurtech 2023
Insurtech is an under-invested sector compared to others such as health and life insurance, leaving potential for new ventures with a strong business case and operational efficiency to attract available funding. This is the main finding from ‘The State of Global Insurtech’ report, prepared by Dealroom.co, Mundi Ventures, MAPFRE, NN Group, and Generali. This is the third edition of a report that analyses the state of the insurtech industry, providing transparency through qualitative data and insights into trends and the current state of the sector.
Potential for new ventures
NN Group launched its corporate venture builder NN Ventures in April 2023, to use its existing innovation resources to (co)fund the exploration and development of a small number of new insurtech propositions up to the first significant round of investment (known as Series A). These ventures are designed to operate independently but are complementary to current NN products, therefore helping us to stay relevant for our customers and meet future needs.
Jeroen Meijers, Head of NN Ventures, reflected on the findings of the report during a panel session at ITC DIA Europe on 29 June. Jeroen said: ‘We've been partnering with insurtechs for many years and tested many ideas, and we've found that the strength comes from leveraging the assets of both the entrepreneurs and the corporate, such as the customer base and distribution capabilities...We've transformed our innovation unit to a venture builder, where we leverage our company's assets from the outset to work on specific themes with a strong business case that solve real problems for our customers.’
More key trends in the report
The report also explains that technologies such as artificial intelligence (AI) are making an impact across different areas such as claims automation, marketing, contract and policy management. Generative AI tools, such as ChatGPT, also open new doors, although it is still unknown which processes will be most affected by them. The most immediate use cases for these AI tools are customer-facing processes (lead generation opportunities, enhanced agents, customer portal, etc.). These applications can also be useful in claims automation and fraud detection, which are some of the ways we use AI at NN.
Insurance plays a key role in both climate change mitigation and adaptation, the most serious global risks today. When it comes to other emerging risks, such as cyber protection, cyber insurance was found to be a crucial factor in the cybersecurity ecosystem and an opportunity for insurtech startups.