Evolution needed to cater to new market

A product evolution is needed to keep pace with an ever-changing market, one exec has said

Insurance News

By Jordan Lynn

A product evolution is needed to keep pace with the ever-changing start-up market, one exec has said.

Lambros Lambrou, a member of the Global Aon Risk Solutions operating committee, as well as CEO for the business in Australia and a member of the Pacific board of the company, said that the industry should look to work alongside the start-up community for mutual gains.

“It certainly is important for the insurance industry to evolve its product offering and cater for these smaller businesses,” Lambrou told Insurance Business.

“Start-ups don’t face historical challenges and, as a result, are transforming and upending the way the world does business.

“These businesses are disrupting the traditional value chain and we encourage that; and it is important that client and data driven organisations such as Aon work closely with these companies to add value to what they do.”

A report published by Forbes found that Southeast Asia currently has more than 400 venture capital investors looking for their next investment, and Singapore’s place as a strategic, regional hub places the market at the top of many lists.

With fintech, insurtech and other start-ups top of mind for many in the industry, Lambrou noted that collaboration between the industry and developing businesses will be mutually beneficial.

“Start-up entrepreneurs are natural risk takers but business risk planning and insurance are not high on their priority list,” Lambrou continued.

“No matter what stage a start-up is in they will face challenges, just like any other business, so it’s important that they have access to resources, fact-based insights and solutions from leading insurance organisations like Aon in order to achieve their business objectives.”

In Australia, Aon Risk Solutions recently announced a three year corporate partnership agreement with innovation platform York Butter Factory (YBF).

The deal will allow for Aon in Australia to “stay ahead of the disruptive and innovative forces of the FinTech phenomena as start-ups continue to reshape the financial services market,” Lambrou continued.

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