UK Insurtech Market Size

UK Insurtech Market Analysis

The UK insurance industry is fundamentally changing. The UK general insurance market continues to be fiercely competitive but is troubled by sustained low profitability fueled by the predominance of online distribution channels. Insurers recognize that the everyday lives of their customers are being transformed by new technologies. They also recognize that this transformation is affecting their own industry, which is undergoing an ecosystem disruption caused by technology-driven new entrants and existing competitors alike. Insurers are thus facing increasing pressure to evolve and reinvent themselves before that disruption hits the bottom line.

Just as the banking industry is being revolutionized by FinTech companies, so the insurance industry is joining the digital revolution. For millennials and other customers who are now getting comfortable running their entire financial lives from their mobile devices, insurance represents just another component of their financial lives that can be handled on a phone, via an app. consumers now demand real-time engagement and online access to services managed across their mobile and personal devices. Insurers therefore need to embrace the transition from the traditional and rather dusty world of insurance to a new, comprehensive, fully integrated, digital ecosystem. The InsurTech industry looks to be here to stay. Young and agile startups will continue to make inroads into the mature UK insurance industry.