Australia could lead the world’s insurtech charge, thanks to its innovative and collaborative industry and conducive regulatory environment, a company founder says.
Former local Zurich CEO Daniel Fogarty launched Evari in 2017, aiming to simplify the insurance process for SMEs.
Four years on, Evari has evolved into primarily an end-to-end technology business, with clients in Australia, the US and UK, while also running a successful direct insurance offering for tradies and professionals through partnerships with Bunnings and RAC. It has about 35 staff globally and is continuing to grow.
“I’m bullish about Australia’s role in the global insurtech push,” Mr Fogarty told insuranceNEWS.com.au.
“We have a great insurance industry and a high standard of regulator. We can try different things and then export know-how from Down Under to the rest of the world.
“Most Australian insurtechs have an international outlook and are operating internationally.”
Mr Fogarty, who is on the board of Insurtech Australia, says the culture of the Australian industry is also key. He says while competitive, it’s also “collegial”.
“Our industry wants to work together,” he says. “We all compete but we know we need to work together and that is a strength of ours in Australia.”
He believes the increased focus on compliance since the Hayne royal commission has been a distraction for some, but that those companies are missing an opportunity.
“Compliance can tie people in knots, and improving things for the customer can get forgotten.
“So many people are focused on compliance, but we need to look at it more broadly because innovation can solve those problems too.”
Mr Fogarty says insurance companies are increasingly outsourcing technology “because the cost differentiation is enormous”.
“We need to help insurers get off their old tech,” he says.
“We do a lot of work with underwriting agencies as they can be more nimble, but insurers are awake to this as well.
“Having led one of the incumbents I’ve seen both sides of the fence. Insurtechs expect things to happen in weeks or months, but for incumbents it’s quarters and years.
“We need to adopt digital more aggressively, for the benefit of our industry and our customers”
Originally published: https://www.insurancenews.com.au/insurtech/australia-can-lead-the-way-in-insurtech