What's the benefit of partnering with an insurtech accelerator?
Between 2016 and 2022, insurtech startups attracted $43 billion in investment. There’s a huge opportunity that awaits corporations – to reevaluate their approach to disrupting the innovation landscape. Now is the time for corporate leaders to support and elevate early-stage startups, not only to continue innovating and evolving internally, but to also move the needle forward for the industry as a whole.
“The insurance industry is not traditionally known as cutting edge, and partnering with startups is a way for us to connect with organizations that are really driving innovation in the insurtech and fintech space,” said Chad Virgin, managing director at Allianz Life Ventures.
It’s time to change the stigma that the insurance industry is not agile or forward-thinking.
Companies like Allianz Life Insurance Company of North America and Securian Financial mentor, coach and invest in startups through gener8tor’s OnRamp Insurance Accelerator.
Since launching the program in 2019, the accelerator has invested in 20 companies that have gone on to raise over $140 million in funding, employ more than 415 individuals and generate $15 million ARR. Plus, one of those companies successfully exited in 2022. Not only did each of those startups receive a cash investment of $100,000 as part of the accelerator and access to a three-month program, but they also benefited from individualized coaching and support from Allianz Life and Securian Financial, as well as connections to each of the company’s global network of mentors and investors.
“Not only has Securian Financial gained a significant amount of insights and learnings through our collaboration with gener8tor, but we’ve also been exposed to a range of early-stage innovators and created valuable new relationships. More so, we’ve increased our presence in the venture ecosystem, which has been instrumental in staying current on the industry’s biggest trends and opportunities,” said Patrick Boyd, 2nd VP of Enterprise Business Development at Securian Financial.
You might be thinking: “Sure, that sounds great, but we don’t have the time to do that…Who will manage the process, where will this fall on my priority list, how will this impact the overall business?” And the list goes on.
As a natural way of doing business, the idea of jumping in to support a startup ecosystem tends to get pushed to the back burner. But taking the leap doesn’t have to be so daunting – nor does it have to be done alone. As corporations look to grow their own networks, build their business and evolve with the times – and industry – finding partners that live and breathe the startup ecosystem can dull the implementation headache.
One piece of advice: Don’t let your concerns impede you from rolling your sleeves up and jumping in, especially in the year ahead. Forrester analyst Ellen Carney predicts that 25% of insurtechs will exit the market in 2023, a metric that’s undoubtedly fueled by M&A, and creates a buyer’s market. Wouldn’t it be nice to have a piece of that pie? Being immersed in the startup ecosystem can be your answer to staying ahead of the innovation curve.
Luckily, the corporate mindset has shifted – it’s not about competing, but rather collaborating instead. Businesses are realizing they don’t have to “do it all” – they can outsource and bring that innovation from elsewhere. Together, the expertise and recognition of corporations, with the innovation and freshness of startups, brings new achievements to light, builds a stronger foundation and elevates the insurance industry as a whole. This newfound synergy can – and should be – the answer to the next wave of innovation.
