Is insurtech rapidly losing its momentum?

Start-ups were meant to shake up the industry but instead many are struggling

Is insurtech rapidly losing its momentum?

Insurance News

By Ryan Smith

Is insurtech – and indeed, the whole financial technology space – losing momentum? At the very least, the pace of start-up creation seems to be slowing. More than 1,000 fintech start-ups were created in 2015 in the United States. In 2016, that number dropped to just 500, according to data-analysis company Tracxn.

Start-up creation in the sector also slowed dramatically in France, Germany and the UK, according to French finance publication Les Echos.

“There are signs that the financial sector transformation promised by these actors is stalled,” Accenture said in a recent report. “The technological breakthroughs are real, but many fintechs are struggling to scale up.”

Some start-ups have developed truly innovative technology “but have failed to capture the market,” Accenture said. Meanwhile, disruptive technologies have managed to fragment the financial services market, Les Echos reported.

“Early warning signs of the collapse of an integrated financial service provider model are appearing in the rate schedules of asset managers or private banks,” Accenture said in its report.

Related stories:
Capgemini looks at the key broker vs. tech battleground
Insurtech won’t phase out agents, says AIA

Keep up with the latest news and events

Join our mailing list, it’s free!