At least one InsurTech company will enter the Austrian financial services market and challenge the position of established insurers.
This is a short version of the article ”5 predictions for the Austrian financial services market and its CEE footprint in light of the global Covid-19 pandemic” and focus on the 3rd of 5 predictions “At least one InsurTech company will enter the Austrian financial services market and challenge the position of established insurers.”
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2020 was a rollercoaster for all of us, but “Life is a rollercoaster, you just gotta ride it!” Therefore I would like to invite you to have a look into the crystal ball, as it is important to position for the post-covid period.
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The entire article “5 predictions for the Austrian financial services market and its CEE footprint in light of the global Covid-19 pandemic” is available here.
Let’s have a look into the crystal ball
What will the Austrian financial services market look like in the next couple of years? And will today’s major Austrian financial players remain prominent in the future?
So far, the outbreak of Covid-19 truly showed that we are living in a volatile, uncertain, complex and ambiguous (VUCA) world.
What is known is that the global pandemic is acting as an accelerator for global trends:
- Demographic change: population growth, young vs. old countries, old vs. young generations, migration, urbanization, war for talent, etc.
- Digital transformation: data and analytics, automation, connectivity, omnichannel approaches, user and customer experience, accessibility anywhere / anytime, etc.
- Technology and innovation: exponential growth and agility of tech, artificial intelligence, security, adoption in ‘social service’ models, evolution of communication channels, blockchain, Open Banking, etc.
- Sustainability: scarcity of resources, ownership of responsibility, climate change, etc.
Beyond this, we know that it creates opportunities as well as disruptions.
Based on recent market developments and global trends, below are five predictions for how the Austrian financial services market will evolve over the next four to five years[1] and how those predictions are impacted by the global pandemic.
3rd of 5 predictions
At least one InsurTech company will enter the Austrian financial services market and challenge the position of established insurers.
- Unlike their banking counterparts, Austrian insurance companies have not yet been confronted by InsurTech firms competing for ownership of end-customers.
- Established Austrian players are already collaborating with start-ups and have started to drive their own digital transformation.
- However, challenger InsurTech companies who are already active in other markets (e.g. Germany, France, Netherlands) can easily enter the Austrian market.
- With the right risk appetite and capital injection, existing market participants could also adapt their business by vertical integration and become a challenger to InsurTech.
How is the prediction impacted by the global pandemic?
Collaboration between InsurTechs and Austrian insurance companies remains high and is likely to continue.
At the same time, InsureTech’s competing for the ownership of end-customers were able to continue their growth path. The French InsurTech Luko, for example, has not only a smart business model: Luko is also backed by their shareholders to continue their social and environmental impact mission.
Entire article
The entire article “5 predictions for the Austrian financial services market and its CEE footprint in light of the global Covid-19 pandemic” is available here.
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About
This is an updated version of the article “Five predictions for the Austrian financial services market and its CEE footprint”, which was initially authored by Tobias Schaller and published with Capco in February 2020.
Since summer 2020, Tobias acts as an independent trusted advisor via his own consultancy mosaikProjects.
The update provides insides based on latest available data and recent market activities and reflects the five predictions in light with the global Covid-19 pandemic throughout 2020.
References
[1] The predictions were initially authored by Tobias Schaller and published with Capco February 2020.