There is a growing realisation among insurers that they must combat the threat of insurtech disruptors, according to a report from technology services provider TAS.

The study draws on in-depth interviews held between February and June with 50 leaders from a broad range of private and publicly listed insurance companies.

Half of the participants are concerned about the rapid rate of change in the sector due to disruptive innovation, with 20% highlighting “how to innovate and adapt to disruption” as the biggest challenge in the year ahead.

“Incumbents are experiencing a sink-or-swim mentality, with leaders acknowledging that they need to keep up, but expressing uncertainty about how to best do this,” TAS says.

TAS CEO Shane Baker believes Australia’s insurance industry is at “a tipping point”.

“Insurers are concerned about the outlook and how best to adapt quickly rather than be left behind,” he said.

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