How Innovation by Tech Start-ups Including Insurtechs Helps Markets to Flourish | Financial IT

How Innovation by Tech Start-ups Including Insurtechs Helps Markets to Flourish

Insurtech , Investment , FinTech StartUps
13.12.2021 12:45 pm

Insurtech companies have attracted another record level of investment, with investment in insurtech start-ups exceeding the US$10 billion mark for the first time in any one year on record, according to 2021 Q3 data
This record investment is being partly driven by the fact that major insurance companies have demonstrated they struggle to innovate their operations and service.
Major insurance companies are becoming increasingly reliant on insurtechs to attract investment so they can innovate services, which major insurers then use to gain competitive advantages in the marketplace.
Also, the coronavirus pandemic encouraged an acceleration of digitalisation initiatives across many industries and this has played into the hands of insurtechs and their clients.
There was a similar story in the telecoms market, as companies like Wayra have grown by offering a global Open Innovation Hub, run by entrepreneurs, to help scale telecoms start-ups.
Wayra is Telefónica's Open Innovation Hub, with unparalleled access to networks, capital and corporations.
Telefónica provides unprecedented access to business development opportunities with some of the world’s largest companies. It has 346 million customers around the world, which are all accessible to Wayra’s start-ups.
Ultimately, this all shows the value of start-ups in marketplaces – they drive innovation through necessity, with their ‘small company in a hurry’ mentality.
Of course, there are many tech start-ups that rise and fall quickly, but their value for innovating impacts right across a marketplace.
This results in better services and better value for money for customers, which in turn drives adoption of new services and greater adoption of existing services, that helps economies to grow and create wealth for investors.

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