InsureTechWhat is it and what could it mean for insurers?
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With you today…
Matthew G SmithDirector, Global Strategy GroupKPMG in the UK
+44 7464 493615 [email protected]
3© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
The world is changing
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The drivers of disruption
1
2
3
Sector Convergence
Client experience
Extracting value
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Its already started for personal insurance….
60% online
6© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
…and its already emerging in Commercial Lines
Forces of
change
LargeSmallThe Mid market
Risk AggregationSmarter pricing
Better end-to-end solutions
Excess Capital and Capacity
Solutions vs Products
Collaborate vs BUY/BUILD
Increased growth in Captives
Emerging Risks
Sophisticated Analytics
Legacy operating models
7© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
And we see similar trends in Life & HealthInsurers are partnering with wearables startups
+Users accumulate “Vitality points” that enable them to qualify for shopping and travel points, and select users
will qualify for 15% premium reduction
Offers AXA customers a free WiThings Pulse as well as possible insurance discounts based on usage+
+ Links patients and their wearable devices to a plan that offers cash rewards for reaching health goals and specific
outcomes
8© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Venture capital has insurance squarely in its targets
Insurance Tech Financing 2011 to Present
Series A – $931M
Series B – $145M
Source: CB Insights
9© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Where is the money heading?
1,918
1,120
800 740600
390
150 140 110 50
6277
104
39
131
15
28
49
23 25
0
35
70
105
140
0
500
1,000
1,500
2,000
Health Auto InfrastructureLife & HomeComparison Product UserAcquisition
Data/Intelligence
ConsumerPlatforms
P2P
VC Investment ($M)Source: Venture Scanner, as of Jan 2016Source: 1 – Venture Scanner
Venture Capital Investment ($M)
Number of Companies
10© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
Risk and Finance
Sales & Distribution
Underwriting & Risk
ManagementProduct
ManagementMarketing and
branding
Policy administration
& ServicingClaims
Management
Investments and capital
management
Product Peer 2 Peer
Internet of Things Telematics Data Analytics
Disrupters are active across the value chain
11© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
How to make the best choices
Creating a winning strategy and driving profitable growth
Vision
Higher PurposeHow will we win?
Where will we play?
What will we be famous for?
What role(s) do we want to play in clients’ lives?
— Financial Model— Business Model— Operating Model
Impacts:
12© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
What will it take
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2
3
Organizational & Leadership clarity
Enterprise wide design of solutions
Partner and Collaborate
Thank you
kpmg.ca
© 2016 KPMG LLP, a Canadian limited liability partnership and a member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. All rights reserved. The KPMG name and logo are registered trademarks or trademarks of KPMG International.
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