„ PwC Global FinTech Report 1.2 Asset management and insurance Figure : ‚reas o …isruption – ‡ncumbents’ iews s outsi ers’ opinions are also on the disruption radar Although a high level of disruption triggered by FinTech is already beginning to reshape the nature of lending and payment practices, a second wave of disruption is making inroads in the asset management and insurance sectors. Our survey found that this perception is confirmed by insiders. Nearly half of insurers and asset and wealth managers consider their respective industries to be the most disrupted. When asked which part of the FS sector is the most likely to be disrupted by FinTech over the next 5 years, 74% of insurance companies identified their own industry, while only 26% of players from other sectors agreed; 51% of asset Asset & managers said their industry will be disrupted, while only 31% of wealth other players agreed. However, there seems to be a perception gap Insurance Other management Other here; professionals from other industries do not see the same level companies respondents companies respondents of disruption in these areas. The fact that only insiders are aware of this situation, while outsiders don’t perceive it could indicate 74% 26% 51% 31% that the disruption is in its very early stages (see Figure 4). Even so, venture capitalists are looking very closely at start-ups dedicated to reinventing the way we invest money and buy insurance. Insurance In€estment Ž —eath ‘anagement Annual investments in InsurTech start-ups has increased fivefold over the past three years, with cumulative funding of InsurTechs Source: ‚ƒ …oa FinTech Sur€ey 21† reaching $3.4bn since 2010, based on companies followed in our DeNovo platform. The pace of change in the global insurance industry is accelerating more quickly than could have been envisaged. The industry is at a pivotal juncture as it grapples with changing customer behaviour, new technologies and new distribution and business models. The investment industry is also being pulled into the vortex of vast technological developments. The emergence of data analytics in the investment space has enabled firms to hone in on investors and deliver tailored products and automated investing. Additionally, innovations in lending and equity crowdfunding are providing access to asset classes formerly unavailable to individual investors, such as commercial real estate.