Sinem Cantürk - Partner, Head of Information Risk Management and Financial Services Sector Leader at KPMG Türkiye; shared details of global researches conducted by KMPG on InsurTech.

“The society has already embraced the concept of FinTech; however we have begun to encounter ‘InsurTech’ term frequently only since last year. When we examine the top 100 FinTech companies of the last three years; we can clearly see that insurance enterprises nearly doubled in number.”

Trend will continue through 2017

Stating that many insurance giants will leave traditional methods behind and turn into agile and rapidly growing InsureTech companies, Cantürk said: “Researches conducted by KMPMG indicate that insurance companies will utilize their resources seriously in partnering up with InsureTech companies.” Cantürk listed the trends that will attract the most investment in 2017 as follows: “Blockchain, particularly in commercial lines and reinsurance; artificial Intelligence such as chat bots, virtual agents and decision support for customer facing staff; The internet of insurance: the impact of connectivity on insurance propositions; and tech-enabled cyber insurance solutions and services.

Sinem Cantürk, said that this transformation would affect many areas; and that not only companies but tech talent will flow into the traditional insurance sector. She said:

“Insurance boards are currently dominated by accountants, actuaries, risk and regulatory experts, with tech experience often very thin on the ground. A number of new roles were created in 2016 to combat this, such as Chief Data Officer, Chief Technology Officer and Chief Digital Officer, with people imported from outside the industry to fill them - a trend we're likely to see accelerate in 2017.

 InsurTech grows in Turkey, too

Cantürk stated that InsureTech has begun to be popular in Turkey as in the rest of the world; and said that insurance companies will be able to reach wider audiences and market cheaper products and services via InsureTech approach. Reminding that InsureTech was only a sub-branch developing under the shadow of FinTech; Sinem Cantürk said that in 2017, the development of InsureTech accelerated on its own.

Blockchain accelerates insurance transformation                                                           

Cantürk emphasized that ‘blockchain’ concept is growing constantly according to KPMG researches, adding that insurance market began to get its share from the pie. She said: “Major insurance companies are investing into it, consortiums are forming around it, and investors are pouring in capital. While still early days, evidence suggests blockchain technologies will create significant commercial and economic value for the industry. Cantürk summarized the potential contributions of blockchain for insurers as follows: more efficient processes, improved pricing and risk management, enhanced trust via better claims experience, greater financial inclusion, demand for new insurance products and services, use of new ‘smart’ contract models.