Insurtech Talent Development in Hong Kong – From Insurance to Insurtech: Strategies for Building a Sustainable Talent Pipeline

6 From Insurance to Insurtech: Strategies for Building a Sustainable Talent Pipeline 10 Willis Towers Watson, Willis Re and CB Insights (2021, October). Quarterly Insurtech Briefing Q3 2021 . https://www.wtwco . com/-/media/WTW/Insights/2021/10/quarterly-insurtech-briefing-q3-2021.pdf?modified=20211026222035 11 Ibid. 12 Gallagher Re, Gallagher and CB Insights (2023, August). Gallagher Re Global InsurTech Report Q2 2023 . https://www.ajg.com/ gallagherre/-/media/files/gallagher/gallagherre/global-insuretech-report-2023-q2-v2.pdf 13 KPMG and The Digital Insurer (2019). Insurtech 10: Trends for 2019 . https://assets.kpmg/content/dam/kpmg/xx/ pdf/2019/03/insurtech-trends-2019.pdf There is also significant global interest in insurtech investment. The world witnessed the biggest amount of global insurtech funding in any recorded six-month period since insurtech came to the forefront in the first half (H1) of 2021, where US$7.4 billion was raised in just 183 days.10 Between 2017 and Q1 of 2021, on average, 6.5 times more investment was occurring on a quarterly basis into insurtech across the world.11 By Q3 of 2021, for the very first time, more than US$10 billion was invested in insurtech worldwide and the total number of deals reached an all-time high. Although a dip of global insurtech investment was observed in 2022, a quarter- on-quarter bounce back in H1 of 2023 is believed to be an indicator that the insurtech space will continue to grow and mature.12 Exhibit 1 shows the quarterly insurtech funding volume from 2014 to Q2 of 2023. The substantial increase in novel and innovative insurtech approaches implies that business models of insurance companies are transforming. At a rapid and unprecedented pace, the industry is delivering high productivity and growth, cost reductions, and better services. Through the use of insurtech, companies are not only digitalizing the legacy business, but also signaling to stakeholders that the industry is moving towards more creative ways of working that will increase opportunities as well as positive outcomes for everyone.13 Consequently, major technology solutions that can fundamentally shift the way business is conducted are now being adopted by the insurance industry. Exhibit 1: Quarterly insurtech funding volume, 2014 – Q2 2023 6,000 4,000 2,000 0 ($ in millions) Source: Gallagher Re Global InsurTech Report Q2 2023 Q1 Q2 Q3 Q4 2014 Q1 Q2 Q3 Q4 2015 Q1 Q2 Q3 Q4 2016 Q1 Q2 Q3 Q4 2017 Q1 Q2 Q3 Q4 2018 Q1 Q2 Q3 Q4 2019 Q1 Q2 Q3 Q4 2020 Q1 Q2 Q3 Q4 2021 Q1 Q2 Q3 Q4 2022 Q1 Q2 2023 Life and Health Property and Casualty