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Chairman’s Opening Remarks

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InsureTech Connect

CHAIRMAN’S REMARKS

ITCisallaboutyou.

Thisimpactsrealpeople.

Perspectivesonchange.

Caribou HonigChairman & Cofounder

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QED: We are Operators Masquerading as Investors

Frank RotmanNigel MorrisCaribou Honig Miles Reidy Bill Cilluffo

ü Collectivelyover120yearsofexperienceinbuildingFinancialServicesbusinesses

ü Investinginbreakthroughdisruptersattackingtheincumbentsandleveragingnextgenerationpropositionsinlending,payment,wealthmanagementandinsurance.

ü Playactive,hands-onconsiglioreroleswithleadersleveragingouroperating,underwriting,andmarketingexperiencestoprofitablyscalequicklyandsoundly

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InsureTech Connect Is All About You

…and many hundreds more!

Entrepreneurs Investors Executives

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InsureTech Connect Is All About You

Founders&CEOs Partners&MDs VP&C-suite

Founders/CEOs

Entrepreneurs Investors Executives

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InsureTech Connect Is All About You

6Continents31Countries

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Our industry – your work – touches people

“I’mafraidyourhouseinsurancedidn’tcoverawolfblowingitdown.”

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I speak from experience.

“FireDepartmentofficialssaidFridayanundergroundpowerlineshortedandcausedthetwo-alarmblazeatTheDunes,SunsetWatchandLesnerPointeEastcomplexesalongPageAvenue.”

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It was pretty bad

Exteriorviewofmycondo.

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It could have been worse.

Buildingnextdoorasseenthroughdiningroom“window”

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We had adequate insurance.

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Residents of the building next door did not.

Rubblegone…Concreteslabstillayearlater.

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Would you buy life insurance from this man?

YES!Idid.Butthatwas2006.

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Immovable Object…meet Irresistible Force

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Change. Is. coming.

“Silicon Valley is coming. There are hundreds of startups with a lot of brains and money…”

“History doesn’t repeat itself but it often rhymes.”

“We always overestimate the change that will occur in the next two years and underestimate the change that will occur in the next ten.”

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We’ve seen this in Lending.

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NewchannelsandUXacceleratetheslowdecayofbranches

Beginningtorefactorthetechnologystack,Cobol->APIs

EmergingpartnershipbetweenStartupsandBanks

Shiftfromprovingscalabilitytoprovingsustainability

Overall“splinteringoftheValueChain”

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Startups engage in every part of the Insurance Value Chain

Distribution&Brand

Product Data&Underwriting

Operations&Regulatory

BearingtheActualRisk

Replaceagents…ormakeagentsbetter.

Bestopportunityforinnovationanddefensibility.

Newdata.Analytics.Machinelearning.

Lesssizzlethantherest,butmaybelotsofsteak.

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Look for the hallmarks of tech-driven transformation

LessFriction + Transparency Deflationary

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Build, Buy…or Partner

Speed +Focus,CultureofTakingRisk

Strength+Experience,CultureofRiskManagement

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The Jury Is Out as Startups Become Carriers…

Maximizeproduct,marketing,andunderwritingflexibility.

Areregulatoryandcapitalhurdlesoverwhelming?

StartasanMGAandverticallyintegratewithscale?

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…while many insurers have become VC’s

SuccessFactors

ü Talented,smartpeople

ü Clearinvestmentmandate

ü Avoidadverseselection

ü Dealflow

Another Option:Carrier + VC Partnership?

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5 InsureTech Predictions through 2017

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CambrianExplosionofecosystemcontinues…fewexits

2nd waveofCorporateVCFirmsenterthemarket

WinnersbegintoexpandX-border

Risk-bearinginnovationsgobeyondP2P

ParametricInsurancegains(some)momentum

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Final thought: is a state of mind.