Insurtech in Israel: Global Implications

by Donald Light, June 14, 2017
Industry Trends
Global

Abstract

Israel, the “Startup Nation,” is turning its focus to insurtech in a big way. Why should the rest of the world take notice?

Celent has released a new report titled Insurtech in Israel: Global Implications. The report was written by Donald Light, a Research Director in Celent’s Insurance practice.

Israel is a small country that is a global leader in technology and VC-fueled startups. In March 2017 Intel paid over $15 billion to acquire Mobileye (a provider of key technologies for autonomous cars). Even before this transaction, Israeli insurtech activity had been booming. This report describes the foundations of that activity, and what it means for the global insurance and insurtech sectors.

The past two years have seen rapid growth in Israeli insurtech activity focusing on underwriting, fraud/analytics, distribution, and cyber-insurance. Fintech has the ability to draw on the strengths of Israel’s startup ecosystem, including strengths in security, mobility, and technical skills developed in elite Israeli military units.

“Given Israel’s combination of geostrategic challenges, outstanding technical and scientific education, major presence of global technology firms, and an army which exploits technological advantages, it is not surprising that many startups in Israel focus on two major themes: cybersecurity and fraud,” Light said.

“Each element of the startup ecosystem, such as very good technical education, is present in Israeli insurtech,” he added.

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is a wholly-owned operating unit of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
Yumi Nagaoka
ynagaoka@celent.com
Tel.: +81 3 3500 3023

Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

What Is Unique About Insurtech in Israel?

3

 

Israel’s Startup Ecosystem

3

 

What Is Unique About Israel’s Insurtech Sector?

4

What Is the Current Level of Israeli Insurtech Activity?

7

 

Jumpstarting Insurtech in Israel

7

What Are the Global Implications of Israeli Insurtech?

9

Leveraging Celent’s Expertise

10

 

Support for Financial Institutions

10

 

Support for Vendors

10

Related Celent Research

11

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