Amazon and Tesla are considered less of a threat to insurance providers than insurtechs, a GlobalData survey has found.

While big tech companies are often noted for strong consumer trust and excellent digital capability, insurtechs were selected as the main threat by almost one-third of industry respondents – nearly twice as many as the tech giants.

Insurtechs also placed ahead of existing and new competitors, and banks.  

“Specialist players ... can offer more variety to consumers and chip away at market share,” analyst Ben Carey-Evans said. “Industry insiders clearly now see insurtechs as a form of threat.”

Insurtechs have mostly been collaborators to date, but poll respondents see them as potential challengers. Insurtechs can make incumbent insurers “look old-fashioned by comparison”, offering the service younger consumers have come to expect.

They focus on specialised areas where they have greater expertise than insurers – for example, renter and usage-based motor insurance.

GlobalData points to US insurtech Lemonade, which it says has established itself as a leader in property and casualty in recent years, has moved into pet insurance and expanded into Europe.

“It has also made a name for itself as an industry leader in AI adoption, customer service and flexible online payment options.”