AICB-PwC Malaysia FinTech Survey: Insurance Cut
This report is the insurance-focused cut of the Asian Institute of Chartered Bankers (AICB) and PwC Malaysia report on FinTech, “Catching the FinTech Wave” which gathered views of 84 senior professionals from banks, insurers, asset managers and FinTech companies in Malaysia.
of insurers believe that part of their business is at risk of being lost to FinTech companies
of insurers see opportunities for differentiation and cost reduction from FinTech
of insurers believe the general insurance sector is 3rd most at risk due to FinTech disruption
of insurers see pressure on margins and information security as top threats from FinTech
Flexible and customer-centric innovations are already commonplace in industries such as retail, entertainment and hospitality. And insurance, being an industry with products that at times can seem incomprehensible, is prime for some disruptive innovation.
Large global insurers - most with presence in Malaysia - including AXA, Allianz, AIG and MetLife, are taking note. Many have established their own in-house venture capital funds.
Total funding for insurance technology (InsurTech) start-ups exceeded USD 1 billion in the first half of 2016 alone, according to CB Insights. The deal volume experienced during that period makes it likely that the year’s investment will top 2015’s record of USD 2.7 billion.
However in Malaysia, insurers appear unconvinced. 40% are still on the fence about customer readiness to accept FinTech.
This uncertainty about customer readiness creates inertia amongst insurers when it comes to embracing digital innovation to bring about change at every point along the industry's value chain.
Base: Financial institutions – 66, Insurance companies – 30, FinTech companies – 18
Base: Malaysian financial institutions – 66, Malaysian insurance companies – 30, Global – 544
Base: Malaysia, all – 66, Malaysian insurance companies – 30, Global – 432
Base: FinTech companies – 14, Insurance companies – 14
Source: AICB and PwC Malaysia FinTech Survey 2016