Insurers should expect the next wave of insurtech challengers to be “savvier, more creative and more ambitious”, management consultant Oliver Wyman says.

“The first wave of insurtechs brought forward a lot of activity but little real disruption,” partner Dietmar Kottmann said.

“There will be a second wave of insurtechs… with the potential to truly change the way insurers cover risk. The question is, how will the insurance industry respond?”

Dr Kottmann and insurtech investor Policen Direkt have co-authored a report called Insurtech Caught on the Radar: Hype or the Next Frontier?

It identifies major opportunities in the insurtech space that are yet to be fully exploited.

Current insurtech investments “have a blind spot for some of the most attractive opportunities, which require truly innovative engagement models that go beyond the current value chain”, the report says.

“However, exploiting these opportunities requires a major change in approach. The race to the next frontier is on.”