Six insurers have announced they have signed The Fintech Pledge, supported by HM Treasury and developed by the Fintech Delivery Panel, which aims to set “world-leading standards” to accelerate the growth of the UK’s fintech sector.
Admiral, Aviva, Brit, esure, Lloyd’s and Munich Re Digital Partners have joined the pledge in order to “demonstrate their commitment to keeping the UK at the forefront of financial innovation by strengthening their partnerships with tech scaleups”.
The first five signatories of the Pledge; Barclays, HSBC, Lloyds, NatWest, Santander; have now implemented the core components to increase transparency and communication when engaging with prospective fintech partners, and continue to review best practice and share their experiences with the second cohort of signatories.
Increasingly, tech startups and financial institutions are looking to partner with each other to drive better consumer and client outcomes.
According to TechNation, the new signatories sign at a “pivotal time” for the UK’s insurance and insurtech sectors, as insurtech sees rapid growth in the UK, increasing its weight as a strategic sub-sector for the UK economy.
In March 2021, London-based Zego, which provides insurance to gig economy workers, raised $150m (£107m) and became the UK’s first insurtech unicorn. Looking at broader VC investment trends, in Q1 of 2021 alone, UK insurtech companies raised $187m (£134), representing 3% of all UK VC investment, and representing more than half of total UK insurtech investment in 2020.
John Glen, economic secretary to the Treasury, said: “We’ve set out a plan for a more open and technologically advanced financial services industry – and the Fintech Pledge is accelerating our progress towards this goal. By committing to help fintech firms onboard, large established financial institutions are sending a clear message that the UK is the best place in the world to develop innovative financial services.
‘I’m pleased to see insurers making the commitment to boost their partnerships with insurtechs, and ultimately deliver better services for people and businesses across the UK.”
Ben Luckett, chief innovation officer, Aviva, said: “This Pledge supports our ongoing collaboration with fintech and Aviva’s development in this area. The benefits and opportunities that come from working with the right start-ups are significant and not to be underestimated.
“Fintech is a key part of how we are transforming our business to serve our customers more effectively. Partnering with start-ups ensures we are always learning, challenging ourselves and improving as a business.”