Insurtech Deals Market Insights Deep dive - Swiss (re)insurers' approaches to Insurtech

In the first edition of our Insurtech Deals Market Insights we looked at the global Insurtech transaction scene from January 2016 to September 2021. In this deep dive we focus specifically on Swiss-headquartered (re)insurers and their digitalisation journey, examining the ways they’re partnering with Insurtechs to acquire promising technologies and capabilities. This website presents some of the main findings of our deep dive.

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There are various ways for incumbent (re)insurers in Switzerland to access Insurtech opportunities. We take a look at the pros and cons of approaches ranging from equity interests and non-equity partnerships to accelerator and incubator programmes.

Swiss-headquartered (re)insurers are just as engaged in the Insurtech space as their counterparts elsewhere in the world. We examine the digitalisation journeys and Insurtech endeavours of seven of the largest Swiss-headquartered (re)insurers.

(Re)insurers in Switzerland fundamentally believe in Insurtech. We present survey findings showing how they believe tech will change the way they operate, from underwriting, marketing and distribution to servicing customers.
Swiss-headquartered (re)insurers are on similar digitalisation journeys to their global peers. The report presents an overview of digitalisation at selected global (re)insurance carriers and the way they’re collaborating with Insurtechs.

What Swiss (re)insurers think about Insurtechs

The report reveals in more detail what selected Swiss (re)insurers think about technology and how they can benefit from Insurtech. They clearly see potential right across the (re)insurance value chain. Incumbents believe that Insurtech can change the way they fundamentally work and increase convenience for customers. They also acknowledge that tech can help them better understand market trends and customer needs while reducing costs. Another interesting finding is that (re)insurers also see potential for using tech to boost customer loyalty and acquisition by offering it to people as a value-adding tool.

The (Swiss) insurer of the future

A vision of the insurer of the future is emerging in Switzerland, with technology figuring large. Insurers will be customer-oriented, innovative and trustworthy. They’ll create a more customer-friendly journey for both new and existing clients ‒ and will be more efficient and effective, digitised and convenient for their customers. Data insights, technology applications and more efficient processes will be used along the entire insurance value chain.

The impact of Covid-19 in terms of Insurtech

Covid-19 may be lower on the agenda now than in previous months, but it’s brought about lasting changes in just about every aspect of the way we live and work. The report comes to some more nuanced findings on how it has affected (re)insurers, and particularly their relationship with Insurtech. The pandemic can be seen as a catalyst for the digital transformation of the industry, fostering Insurtech solutions. It has clearly accelerated the importance of many of the business models Swiss (re)insurers are looking into. Interestingly, while the pandemic has had an effect on collaboration within the industry, it hasn’t directly influenced the investment strategy.

“Our deep dive suggests that insurers and reinsurers in Switzerland are taking the future head on in terms of exploring and capitalising on the potential of Insurtech. The journey looks promising.”

Christoph BaertzPartner, Leader Financial Services Deals, PwC Switzerland

Going forward

Over the years Swiss-headquartered (re)insurers have become increasingly active when it comes to identifying Insurtechs that can help them close gaps in their capabilities. The search has taken them not just to Europe, but to the rest of the world as well. We don’t anticipate an end to this trend, with incumbents continuing to pursue partnerships with or investing in Insurtechs for the foreseeable future in an effort to stay ahead and differentiate themselves in the market.

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