Insurers playing insurtech catch-up in Asia, says Baker McKenzie

Speaking in Hong Kong last week, Singapore-based fintech and insurtech adviser Stephanie Magnus, a principal at Baker McKenzie Wong & Leow, said: "Insurance companies are playing catch-up. They are lagging behind their financial services peers in technology implementation."

"We expect to see insurtech incubator and accelerator programmes to produce key acquisition and joint venture targets for our big insurance clients, and expect this to remain an exciting space for business tie-ups over the next 18 to 24 months."

One example of investment is Australian giant IAG which has recently announced an Asia insurtech fund setting-up Firemark Labs in Singapore. Australian rival QBE is also expecting to invest around A$50m (£31m) in start-ups this year in the UK, the US, Israel and Australia - data analytics will be a focus.

Brian Chia, head of corporate and commercial practice at Wong & Partners, member firm of Baker and McKenzie in Malaysia, added: "This is strategically important for insurance companies. They are motivated to explore new distribution channels, product offerings, as well as risk assessment and management capabilities that are made possible by insurtech. With increased margin pressure, insurance companies need to join the insurtech race to stay in the game."

Chia added each jurisdiction in Asia has different regulations, for example for acquiring start-ups, and levels of government support; IP protection and keeping key staff is an important consideration when acquiring a start-up.

Related: Seven Asia insurtech start-ups to watch in 2017.