There were a record-breaking number of insurance technology investments made in the second quarter of 2018, with incumbent firms showing an unprecedented level of interest.
That is according to a quarterly briefing by Willis Towers Watson (WLTW), which shows that there were 71 InsurTech deals made worldwide between April and June this year.
However, the $579m (£439m) invested signifies a 20% drop on the level of funding recorded in the previous quarter.
WLTW said InsurTech could be most transforming to value chains in the life and health insurance industry, with the positive impacts for customers substantially profound.
"While P&C insurers have a chance to develop real-time dialogues with customers, the opportunity hardly compares with that for Life & Health insurers," WLTW Securities CEO, Rafal Walkiewicz.
"The eventual winners will be the ones who shift their attention to offering customers a true partnership to live longer and healthier lives."
WLTW highlighted how new forms of underwriting data are "expanding exponentially" thanks to advances in the understanding of the human body, and a rapid increase in wearables.
The firm believes that, as data continues to grow, there may be greater convergence between health and life insurers.
It also expects emerging technologies to enable customised insurance offerings that better align sales incentives and help resolve compliance issues, while also closing protection gaps created by one-size-fits-all products.
"The application of InsurTech ranges from the explicit use of new technologies to distribute and underwrite policies, to more indirect usage such as wellness," WLTW managing director, Greg Solomon, said.
"But everything overlaps - the change will be profound, but many incumbent carriers have some way to travel yet."
