While the number of newly founded insurtech companies decreased in 2018 and the early months of 2019, insurtech funding for 2018 continued to break records by exceeding $4.5 billion and funding in 2019 is on track to exceed $5 billion. This suggests that the industry is maturing and establishing a strong foundation within the insurance world.
The increased funding of insurtech companies shows that the insurance industry will continue to evolve. Companies seeking new opportunities to take advantage of artificial intelligence (AI), big data, and autonomy will need to enhance existing risk management approaches to account for new risks created by innovation. In this paper, Milliman’s George Barrett explores innovation driven by insurtech within the global insurance market. He also considers the emerging risks faced by insurance companies.