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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

E: BRENTON@INSURTECHAUSTRALIA.ORG

W: INSURTECHAUSTRALIA.ORG