The insurance industry can take advantage of rising insurtech investment to become more efficient and expand into emerging markets, Aon Global CEO of Analytics Paul Mang says.

“Opportunities presented by disruption vastly outweigh the threats and we encourage insurers to build capabilities in what we term open-architecture innovation models,” he told an Aon Benfield conference on the Gold Coast last week.

“This could include partnerships with even the most entrepreneurial start-ups that some have labelled disrupters.

“We can help new technologies and new business models be adopted faster by reducing risk and volatility.”

There are more than 550 insurtech start-ups worldwide with about $US14 billion ($17.42 billion) in investment, with capital rising 55% since last year, he says.

Forces shaping future trends include new sources of behavioural data via the Internet of Things, enhancing pricing and risk selection. New products and services will offer speed and flexibility in an on-demand economy, Mr Mang told the conference.

Adapted insurance products to cover the new risks of digital networks and platforms are beginning to have increased commercial influence over more traditional corporations.

“Analytics, coupled with technological innovations, will enable us to address stubborn industry challenges and open new growth opportunities for the sector to tackle evolving risks such as cyber, pathogens and casualty catastrophes,” he said.