2023 insurtech trends roundup

Hello and happy 2023.

I’ve been head down in strategy for the past few weeks. Thought I’d share some interesting nuggets I found along the way.

Some great stats from a KPMG study interviewing 1,325 Chief Execs across 11 major markets…

Accelerating growth and the digital agenda:

• 68% say they will primarily use inorganic tactics, including strategic alliances with third parties (the focus for 29 percent), M&A (24 percent), joint ventures (11 percent) and outsourcing (6 percent)
• 78% say “we need to be quicker to shift investment to digital opportunities and divest businesses that face digital obsolescence”
• 75% say “we have an aggressive digital investment strategy, intended to secure first-mover or fast-follower status”

And a nice study on TSR (total shareholder return) from the BCG folk comparing their MICs (Most Innovative Companies) with the MSCI (a broad global equity index across 23 developed markets).

Who doesn’t love an acronym, right?

And the output from weeks of strategic deep dive (with a few days of Covid thrown into the mix) is there’ll be a continued focus on corporate innovation, with a particular bend towards inorganic growth. And those further along the innovation maturity curve will start to double down on the measuring and quantifying (and refining as a result!) innovation success.

Boiling this down further, 3 simple steps become clear:

1. Know your business needs and where opportunities lie near and far term. Prioritise these
2. Focus on inorganic growth opportunities – identify partners who can realise solutions aligned to needs/opportunities. Validate quickly
3. Don’t think of inorganic routes (partnering, investing, M&A) as binary. Run a PoC, model the opportunity and scale

Miss a step, it won’t work.
Do it badly, it won’t return.
Don’t do it? Well, that’s a choice you don’t have.

Btw the Sønr team can help with ALL the above.
Drop me a line and we can explore just how.

Normal SøNws will resume next time.

Let’s start with what insurtechs/startups could expect. A couple from LinkedIn:

INSURTECHS/STARTUPS

10 predictions for startups in 2023 from Sam Jacobs
[Read in full here]

Some hard truths but the perspective that the second half of ’23 may not be as tough a year as many predict. Also, one of my favourite Warren Buffet quotes – ‘Only when the tide goes out do you discover who’s been swimming naked’.

A little closer to home and, as always, some great insight from Florian:

1. InsurTech will make it easier for new players to enter the industry
2. If a wave of M&A is expected, the InsurTech industry is likely to see a rise in cross-border deals
3. New InsurTech solutions will emerge to keep improving operational effectiveness

What does 2023 hold for insurtechs written by Gia Snape
[Read in full here]

Featuring insight from a good few familiar names including Andrew Johnson, Madhu Tadikonda, Brian Pattillo

1. Harder to get tech funding – ‘the pain is and will be heightened’
2. ‘Look for a path to profitability with less patience on vanity metrics’
3. ‘Pressure mounting on those companies that sold the idea of endless growth to secure funds’

 LIFE & HEALTH

‘A bunch of health-tech experts asked for their not boring ’23 predictions’ by Christina Farr (thanks for the share Dan Caines!)
[Read in full here]

If you’re in health this is a beaut. I’ve pulled a few favourites but there’s plenty more:

1. The senior living industry will collide with health care
2. Who will buy digital health tools? It’s not who you expect
3. How bad will it get for tech-backed insurance? Worse
4. Virtual care will continue to grow, but hybrid models will be most successful
5. Biosecurity will become more of a thing

I like this one a lot also. Simple, clear and eminently sensible.

1. Evolving cognitive technologies will help insurers capture opportunity from more discrete market segments
2. Customer experience will continue to drive underwriting innovation
3. Human + Machine operating models will help alleviate underwriting skills shortages

PROPERTY & CASUALTY  

Top trends in P&C insurance 2023 from Capgemini
[Read in full here]

A decent look back on 2022 and a neatly prioritised set of 10 trends for the coming year. The top two (based on business impact and adoption priority), possibly not unsurprising, being:

1. Embedded insurance enabling protection at the right time and through the right channels
2. Insurers prioritising sustainability within corporate strategy

INDUSTRY WIDE

And finally a broader 2023 insurance outlook from Deloitte. It’s a good read and I recommend a scan through at the very least. Lo and behold it kicks off with…

Right, if that doesn’t get you in the mood for 2023, I’m not sure what will.

Before signing off a callout to any insurtechs around the world who are thinking of pitching the Lloyd’s market.

There’s no better programme to get involved in than Lloyd’s Lab who are currently recruiting for their 10^th cohort. Applications close 12^th Feb and I strongly recommend you check it out.

Shout me if you’d like to connect.

Have a good one.

Matt

Sønr is the world-leading market intelligence platform created specifically for the insurance sector. It provides you with the knowledge and tools to stay relevant, compete and plan for the future.

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