'Insurtech' will transform insurance, but pace of adoption is slow

INSURANCE is a sector that experts widely believe is "ripe for disruption'' for a few reasons. It is heavily reliant on data. Its cost base is high which suggests inefficiencies.

Distribution costs plus operating costs take up a significant chunk of annual premiums. It remains heavily reliant on face-to-face sales, even though a number of insurers are in the process of digitising parts of the process. In product design, it remains very much in a one-size-fits-most mode - that is, in many products, the best risks pay the same price for protection as poorer risks, even though uninsurable risks are…