Tech Nation Insurtech and Insurtech UK have urged that all insurance leaders “must remain committed” to supporting innovation and insurtech despite the impact of covid-19 on the sector.
In a joint statement released this morning, Tech Nation Insurtech and Insurtech UK said the impacts of Covid-19 on the insurance industry are “immediately pressing” and come with “unclear longer-term repercussions”.
As a result, they added that Insurers are “understandably reprioritising” within their businesses, but warned that there may exist the temptation to pull support from mid-term and long-term opportunities, such as innovation and insurtech.
They said that Innovation in the UK insurance sector “depends heavily” on the leadership of major insurers as they often underwrite the risks that allow insurtechs to innovate on behalf of customers.
As such, it has has asked all leaders in the UK insurance sector to commit to supporting:
- The active exploration of strategic partnerships with insurtechs
- Mutual collaboration between insurtechs firms and insurers, to develop initial concepts into products that will ultimately better serve customers
- Investment into new and existing initiatives, via both traditional and corporate
- Venture Capital communication between firms, to ensure that it is clear and timely, and as transparent as possible with respect to the decision-making processes around engagement, funding, and ongoing support
The statement continued: “Many of our insurtech firms are SMEs, now facing tremendous challenges as a result of Covid-19 and its impacts on the economy. They are also beacons for the future of the insurance sector and leaders in their own right, with a responsibility to ensure that the products and services they provide add tangible value for customers, particularly in these difficult times.
“Innovation and insurtech pave the way for the future of the insurance sector, and at this critical juncture, the sector must now band together and collaborate as best it can. If UK insurance leaders remain committed to innovation and insurtech, then the UK will remain a global leader in insurance and will be well-positioned to emerge from the current crisis with a more resilient, sustainable, and customer-centric insurance sector.”