In a recent interview with Melissa Collett, the CEO of InsurtechUK, highlights the value and importance of driving innovation in the insurance industry.
The recently appointed CEO of Insurtech UK was drawn to the opportunity to harness her passions within one organisation – insurance, technology and supporting consumer rights. Collet explains how traditional insurance has its challenges, can be difficult to access and, at times, excludes various groups. The CEO of Insurtech UK has been a long-time supporter of insurtech, with its potential to make insurance easier, faster, more accessible and inclusive for customers. According to Collett, Insurtechs are critical in driving insurers to embrace innovation.
The underlying mission of Insurtech UK is to make the UK a leading hub for insurance innovation. This requires developing an ecosystem that supports emerging businesses in accessing funding while continuing to support companies as they expand and evolve. Access is the critical factor here, including access to funding, partnerships, and policymakers delivering what is required.
Insurtech UK represents one of the largest insurtech partnerships in the world. Joining the organisation gives access to insights, partners, potential investments and vital stakeholders in the industry. Collet emphasises that it provides access to a community.
Insurtech UK has focused on establishing partnerships with UK organisations like Innovate UK and the Department for Business and Trade, which has enabled consistency for UK insurtechs over the last few years.
The Nexus of Insurtech report recently published by McKinsey in collaboration with Insurtech UK provides a clear view of where the UK stands with investment and how it could develop. One of the key findings of the report was that the total value of the UK insurtech sector stands at $20 billion, with London consisting of more insurtech ‘unicorns’ than Europe combined.
The UK contains the highest density of insurtechs among the major economies, so it represents a major hub at present. This goes beyond London, with approximately a third of the UK’s 280 insurtech businesses being located outside of London and members of Insurtech UK nationwide.
A big advantage of the UK market and why it has an established insurtech market is its customer base. Collet explains that UK customers are typically very insured compared to other countries but are equally open to new, innovative products, which creates a significant opportunity for insurtechs looking to develop.
There is a range of factors that make the UK appealing for insurtech, and the UK must receive investment to continue scaling, as well as securing the opportunities to expand outside of the country. There are examples of insurtechs thriving overseas and then expanding into the UK market as part of their broad scaling-up plans, and Insurtech UK is keen to highlight the advantages of the UK as the location for expansion. Insurtech UK has already established a connection between the UK and the state of Connecticut in the US, an area regarded as the insurance capital of the US.
Without the necessary recognition and investment, the UK could lose its reputation as a market leader for innovation. Insurtech UK is driving support to ensure the regulatory conditions in the UK work with businesses to enable further growth and progress.
Some barriers make it challenging for insurtechs to expand in the UK, and the process can be time-consuming. Insurtech UK is working with regulators and policymakers to streamline the process and encourage more insurtechs to become carriers in the UK rather than looking to develop overseas.
Insurtech UK is working with some of the most innovative businesses nationwide. These are companies committed to delivering creative solutions and supporting customers with access to simple, innovative insurance products. Collett hopes that by the end of the year, their community will have expanded further, ensuring insurtechs are well-connected in the UK and globally and creating an ecosystem that drives growth and helps innovative businesses to support new customers.
