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INSURTECH 101
BRENTON CHARNLEY
CHAIRMAN & CO-FOUNDER, INSURTECH AUSTRALIA
2 MAY 2018
INSURTECH 101
TECH TO WATCH
SO WHAT?
WHAT YOU CAN DO
SUMMARY
3
4
5
CHANGED THE GAME
6
WHAT GAME ARE WE PLAYING?
INSURTECH 101
TECH TO WATCH
SO WHAT?
WHAT YOU CAN DO
SUMMARY
INSURANCE(INDUSTRY)
TECHNOLOGY(INNOVATION)
INSURTECH: A DEFINITION
the application of technology innovation in the
insurance industry value chain to solve known
challenges, and discover unknown
opportunities, in order to deliver value for
customers
“
”
INSURTECH ON THE RISE
https://www.willistowerswatson.com/-/media/WTW/PDF/Insights/2018/01/quarterly-insurtech-briefing-q4-2017.pdf
Business Model
Operating Model
New Applications
Risk mitigation
INSURTECH
Partnerships
Improvements
New products Platforms
Distribution
IT’S MORE THAN TECHNOLOGY
ENABLING MORE THAN DISRUPTING
https://www.willistowerswatson.com/-/media/WTW/PDF/Insights/2018/01/quarterly-insurtech-briefing-q4-2017.pdf
WHAT ARE THEY ENABLING?
EY & Insurtech Australia Ecosystem Report 2018
WHAT IT’S NOT
ONLY
DISTRIBUTION
JUST
STARTUPS
5 YEARS
AWAY
SOMETHING
TO IGNORE
INSURTECH 101
TECH TO WATCH
SO WHAT?
WHAT YOU CAN DO
SUMMARY
CHANGING THE VALUE CHAIN
Today more than ever, some of these
intermediaries run the risk of getting
disintermediated sooner rather than later
because they are unable to adapt their
business model, disruptors are penetrating
their markets, or technology is changing
the entire industry.
“
”Walter Kielholz, Chairman SwissRe
2016
REINSURANCE DEALS
https://www.willistowerswatson.com/-/media/WTW/PDF/Insights/2018/01/quarterly-insurtech-briefing-q4-2017.pdf
https://www.cbinsights.com/research/reinsurance-tech-startup-moves/
INVESTMENT ALL OVER
https://www.linkedin.com/pulse/my-four-ps-insurtech-matteo-carbone
TECHNOLOGIES TO WATCH
INSURTECHS - MODULARITY
http://www3.weforum.org/docs/Beyond_Fintech_-_A_Pragmatic_Assessment_of_Disruptive_Potential_in_Financial_Services.pdf
INSURTECHS – USAGE ON DEMAND
http://www3.weforum.org/docs/Beyond_Fintech_-_A_Pragmatic_Assessment_of_Disruptive_Potential_in_Financial_Services.pdf
INSURTECHS – EMERGING RISKS
http://www3.weforum.org/docs/Beyond_Fintech_-_A_Pragmatic_Assessment_of_Disruptive_Potential_in_Financial_Services.pdf
INSURTECH 101
TECH TO WATCH
SO WHAT?
WHAT YOU CAN DO
SUMMARY
27
WILL INSURTECH DISRUPT?
SPEAKING TOO SOON?
I am sure as hell not worried about
insurtech(s) disintermediating what I
do for a living. They’d better be good
at their jobs because I’m damn good
at sales.
“
”Steven DeCarlo, CEO AmWINS
2017
DISRUPTION HAPPENS QUICK-ER
Neither Redbox nor Netflix
are even on the radar
screen in terms or
competition.
“
”Jim Keyes, Blockbuster CEO
2008
“
”Olli-Pekka Kallasvuo, Nokia
CEO 2008
From a competition
perspective, the iPhone is
nothing but a niche product
DISRUPTION HAPPENS QUICK-ER
THREATS TO GROWTH
https://www.pwc.com/gx/en/ceo-survey/2017/industries/pwc-ceo-20th-survey-report-2017-insurance.pdf
THREATS TO GROWTH
PLANS FOR GROWTH
https://www.pwc.com/gx/en/ceo-survey/2017/industries/pwc-ceo-20th-survey-report-2017-insurance.pdf
WHAT GAME ARE WE ACTUALLY
PLAYING?
RUGBY = INSURANCE
TEAMS = COMPETITORS
RULES = REGULATIONS
NEW PLAYERS = BETTER GAME
NEW TECH = IMPROVE THE GAME
37
ENTERTAINMENT
WE’RE PLAYING A DIFFERENT GAME
Rugby
20th
AFL
4th
BBL
5th
HOW CAN YOU BE A GAME
CHANGER?
INSURTECH 101
TECH TO WATCH
SO WHAT?
WHAT YOU CAN DO
SUMMARY
7 STEPS TO INSURTECH SUCCESS
RESPOND DIVERSIFY
STRATEGY
EXPLORE EXPERIMENTBE
READY
SEARCH
USE YOUR
CORE
PEOPLE
FIRST
EXECUTE
RESPOND
IT’S AN INCUMBENT PROBLEM
It’s hard for big carriers to innovate as
they have so much to contend with
already – industry headwinds, legacy
issues. But they need to be in the
game, right now.
“
”Caribou Honig, Cofounder of QED
investors
INNOVATOR’S DILEMMA
Should we invest to protect the least
profitable end of our business, so that we
can retain our least loyal, most price-
sensitive customers? Or should we invest
to strengthen our position in the most
profitable tiers of our business, with
customers who reward us with premium
prices for better products?
“
”Clayton Christensen, Innovator’s
Solution
DIVERSIFY
Core Business90%
Better. Faster. Cheaper10%
Change the
Game0%
WHAT INVESTMENT IS OFTEN LIKE
CHANGE THE GAME100%
STARTUP INVESTMENT (x10)
Core Business70%
Better. Faster. Cheaper
20%Change
the Game10%
TIME TO GET IN THE GAME
EXPLORE
DISRUPTIVE INNOVATION
Clayton Christensen, Innovator’s
Solution
“
”
…disruptive technologies offer other benefits—
typically, they are simpler, more convenient, and
less expensive products that appeal to new or less-
demanding customers
TECHNOLOGIES TO ADOPT
EY & Insurtech Australia Ecosystem Report 2018
EXPERIMENT
NEW PRODUCT DEV IS HARD
50-60% New product developments fail
BE READY
5 STEPS TO BE STARTUP READY
NARROW
FOCUS,
GET BUY IN
PROCUREMENT
& LEGAL
INTERNAL
CHAMPION
MOVE FASTGET OUT THE
BUILDING
USE YOUR CORE
Core Assets
LEVERAGE CORE ASSETS
Customers
Brands
Data
People
CapitalPartners
Operations
Market
BUT, PLAY IN THE RIGHT SANDPIT
PEOPLE FIRST
PEOPLE FIRST
“
”
Organisations don’t
innovate…people do.
INSURTECH 101
TECH TO WATCH
SO WHAT?
WHAT YOU CAN DO
SUMMARY
SUMMARY
INSURTECH IS
HERE &
ENABLING
MUST RESPOND
WITH
A FOCUSSED
STRATEGY
NOT JUST
TECHNOLOGY -
BUSINESS MODEL,
PROCESS &
PRODUCT
LEVERAGE CORE
ASSETS &
PARTNER
GET STARTUP
READY
THANK YOU
BRENTON CHARNLEY
CHAIRMAN & CO-FOUNDER, INSURTECH AUSTRALIA
W: INSURTECHAUSTRALIA.ORG
