Current global adoption levels for insurance fintech solutions are standing at an all-time 24 per cent with Australia recording a higher than average interest due to the upswing in telematics and wearable technologies, according to the EY Fintech Adoption Index.
While money transfers and payments services still lead the fintech charge with an adoption rate of 50 per cent in 2017, insurance has come in a surprise second with a 24 per cent global adoption rate.
The adoption level for insurance fintech services in Australia stands at four per cent higher than the global average (29 per cent), linked to the upswing of personalised wearables with in-built abilities which allow for prediction of claim probability and lifestyle trends by insurance firms.
The growth of premium comparison websites was also touted as a contributor to the rise in fintech-based insurance solutions.
EY Asia-Pacific fintech leader, James Lloyd said adoption statistics were driven by consumer demand and increased expectations of services providers which included insurance firms.
“We are seeing greater engagement from the larder, traditional financial services players as they invest in their innovation agendas and partner with fintechs to keep pace,” he said.
“We expect to see adoption levels continue to increase rapidly.”