A cohort of insurance providers signed up to the FinTech Pledge, which was launched across the UK banking sector last year by tech company growth platform, Tech Nation.
The Pledge, supported by HM Treasury and developed by the FinTech Delivery Panel, aims to set standards for the establishment of efficient and transparent commercial partnerships between financial institutions and tech startups.
Among the signatories are protection and health insurer Aviva and Munich Re’s Digital Partners alongside Admiral, Brit, esure, Lloyd’s and investment management firm, Investec.
Tech Nation stated that the group of insurance signatories comes at a “pivotal time” for the UK’s InsurTech sector, as “it sees rapid growth in the UK, increasing its weight as a strategic subsector for the UK economy.”
Looking at VC investment in Q1 of 2021 alone, UK InsurTech companies raised $187m, representing 3% of all UK VC investment and more than half of total UK InsurTech investment in 2020.
Highlighting the importance of building the UK’s InsurTech sector, economic secretary to the Treasury John Glen commented, “We’ve set out a plan for a more open and technologically advanced financial services industry – and the FinTech Pledge is accelerating our progress towards this goal.
“By committing to help FinTech firms onboard, large established financial institutions are sending a clear message that the UK is the best place in the world to develop innovative financial services. I’m pleased to see insurers making the commitment to boost their partnerships with InsurTechs and ultimately deliver better services for people and businesses across the UK.”
Commenting on bringing in InsurTechs in the initiative, Tech Nation director of FinTech Delivery Panel and InsurTech board Victoria Roberts said, “When large financial institutions and FinTech scaleups work together, everybody wins. Established institutions may benefit from a new customer experience, lower risk variability and a reduced cost base. For FinTechs and InsurTechs, partnering can be an opportunity to develop their products and scale a new solution at pace. And society at large benefits when we encourage innovation, support entrepreneurship, and work to drive real change in the future of our financial services.”
Echoing a similar sentiment, chair of Tech Nation’s InsurTech board Louise O’Shea added, “Efficient, transparent communication between large financial firms and InsurTechs is the key to innovation – and to continuing the growth of the UK’s booming tech sector. We’re delighted that so many of the world’s leading banks and insurers are embracing the latest technology and data applications in the UK to help secure our nation’s transformation to a truly modern and resilient insurance sector.”
The first five signatories of the Pledge included Barclays, HSBC, Lloyds, NatWest and Santander and the second cohort of FinTech signatories include Atom Bank, Co-operative Bank, Nationwide Building Society, TSB and Virgin Money.
Copyright © 2021 FinTech Global
