Insurtech Australia has published a candid and practical guide on “what it really takes” for incumbent insurers and insurtechs to collaborate more effectively.

The Building Bridges report is based on feedback gathered from the group’s advisory committee, and is split into two parts.

The first section is directed at insurers. It says they hold “significant leverage” in relationships with insurtechs, but the way they engage affects the quality of innovation they can attract.

Insurers are advised to be clear and transparent from the start and avoid “corporate innovation theatre”.

They are expected to create fair and accessible pathways, and understand that their evaluation process is “a real cost” to insurtechs with limited resources.

“The responsibility of incumbents in our industry is to support, enable and collaborate in order for us to continue to grow and succeed,” QBE Ventures global head of emerging technology Alex Taylor said.

A specific brief should be combined with a flexible approach, insurers must “show up as a genuine partner” once engaged, and relationships should be ended “with respect”.

“How you exit matters – for your reputation and for the insurtech’s ability to plan,” the guide says.

In part two, insurtechs are encouraged to “get their house in order” before approaching insurers – which includes compliance, business readiness and knowing how the potential partner operates.

“Insurtechs should understand how large insurers make decisions, and the compliance obligations they carry, including CPS 230,” Curium founder Tetiana George said. “Navigating this proactively is key.”

The guide says getting to the right stakeholders is “half the battle”, and it contains advice on how to achieve this.

It says landing a key partnership is “just the beginning” and keeping it healthy takes “deliberate effort”. It also warns against overreliance on one marquee client.

Find the guide here.