Insurers should consider forging strategic partnerships with insurtechs as they strive to connect with consumers in a digitally driven economy, according to GlobalData.

The research and consulting group says the industry remains largely hesitant to embrace new technology, despite widespread expectations that apps and other mobile platforms will increasingly dominate the provision of insurance services.

“It is important that these providers welcome change and are willing to consider introducing new technologies,” GlobalData Financial Analyst Thomas McCourtie said.

“Partnering with the groups developing these propositions may prove strategically canny because the agreement would be mutually beneficial.

“Incumbents need start-ups for their technical prowess and start-ups need access to the wide customer bases commanded by the established providers.

“Failing to do so could result in an increase in competition, with insurtech proving a serious standalone competitor.”