Don’t believe in the hype about insurtech yet? Prepare to get on the bandwagon, because it seems one of the giants of the insurance world already has.
That giant is Aviva, with the 321-year-old company declaring its intention to become a financial technology firm.
Speaking on Wednesday, the company’s CEO Mark Wilson announced at a Press conference that: “We want to turn Aviva into a fintech. We will do acquisitions in this space… I don’t mean billions, there’s nothing imminent.”
According to a report by Business Insider, Wilson, speaking at Aviva’s Digital Garage in Hoxton, East London, stated that artificial intelligence and big data are of particular interest to the firm.
He outlined that the Digital Garage, which began life last year, is part of a long term effort to turn Aviva into a digitally focused company – with its aim being to “compete and cannibalise” the rest of Aviva.
“We believe what we have is world leading,” he said. “What we’re trying to do is fundamentally change the insurance industry. How long will it take? I don't know.”
The company is said to be spending a minimum of £100 million a year on digital transformation and has established a venture capital fund that has £200 million to invest by 2020. It has already made six investments, with another imminent.
In addition to potentially acquiring and investing in start-ups, Wilson also outlined that it is open to partnerships around the world and is currently experimenting with micro-insurance, on-demand policies and blockchain.
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