It's time for Fintech to recognise Disruptive Insurance Innovation

Steven Mendel By Steven Mendel

I'm delighted that Bought By Many was named Fintech Innovation of the Year at the inaugural Fintech Innovation Awards last night. With software pioneers Cashfac and Misys, banking giant Lloyds, and the world's first peer-to-peer lender Zopa nominated in the same category, it was particularly humbling to win.

More importantly, however, are two points which this underlines.

1.Fintech isn't just about helping incumbent financial services companies do what they do better. It's also about disruption of the financial services value chain.

Disruptive Fintech businesses - which Matt Harris has dubbed "finsurgents" - are on a mission to disintermediate incumbents, creating new value for consumers in the process. It was great to see strong showings last night from some of the UK's top finsurgents - Nutmeg in investments, Transferwise in money transfers, RateSetter in lending.

At Bought By Many, we see ourselves as "the next generation insurance intermediary", distributing insurance by leveraging mobile technology, social media, and big data - and generating new value for both individuals and risk carriers in the process. Which brings me to my second point:

2. The Fintech revolution can and should embrace insurance as well as banking and payments.

Up until this point, the Fintech world has been largely blind to the finsurgency happening in the insurance industry.

With the exception of Insly - a software platform for face to face brokers - not a single insurance startup was named in this year's Fintech 50.

This, despite VCs like Rob Moffat at Balderton and Yann Ranchere at Anthemis talking openly about their appetite for disruption in insurance.

My hope is that this is it the start of the Fintech world opening its eyes - not just to the opportunities inherent in insurance's long & complex value chain, but also to the finsurgent companies who are attacking those opportunities.

Don't know who those insurance finsurgents are? Hey Guevara, InShared, Friendsurance, Worry+Peace and Bought By Many are all good places to start.

More like this: