“The insurance industry talks a good game about InsurTech but the follow is still so last century But InsurTech is changing that Shifting the focus away up or delivery isn’t always there But it needs to be as this great profession of from legacy operations, Insurers are adopting new tech and innovative ways ours is facing a genuine existential crisis Our traditional ways of working and to engage digitally with customers and their ecosystems The InsurTech Book servicing our customers are becoming increasingly irrelevant The insurer that is the first, definitive compendium of the rapid evolution that is touching every will survive in the long term is the one that behaves more like a retail business; aspect of this global insurance industry It’s a must read for anyone remotely pre-empts consumer demand; interacts with customers in the way they want; interested in technology enabled insurance.” and views innovation and tech as an opportunity rather than a threat So it is Rick Huckstep, Chairman, The Digital Insurer encouraging to see so many people engaging with the necessity for change in this book There are many views, opinions and priorities laid out here and it is “This book is a much awaited cornerstone to holistically connecting insurance that debate that we need to bring out of print and into our daily conversations and technology The bar is raised and a cogent precedent is set for all the and thinking.” existing and upcoming professionals globally, that this era is the era of Amanda Blanc, Group CEO, Axa UK InsurTech A must read.” Nameer Khan, Digital Strategist “InsurTech is on the brink of changing our industry, from the inside and the outside Never before has it been more important to understand the ideas, trends and drivers behind the insurance digital revolution The InsurTech Book has a big role to play in helping us build our knowledge base and expand our sense of the possible So much of ‘the future’ is already with us in some shape or form and this book will help us build our understanding of our fast-changing insurance world.” “The wealth of ideas, the creativity, the new ways of working that entrepreneurs bring to the table, whether they come from the world of Tech or Insurance, is truly inspiring Over the last few years, I have been in the front seat to witness how such partnerships can transform the industry – and it has been an exciting journey though it is only just starting To keep moving forward and lead change, we have to publicise the work InsurTech experts Huw Evans, Director General, Association of British Insurers “In a sector with intense pressure on turnover and margins, and with hungry new players capitalised and circling ready to seize new opportunities, legacy insurance sector players are more oil tanker than yacht Insurance is an industry where players must ‘get fit or fail’, but fitness cannot be surface deep – are doing, along with insurers We need to tell their stories and that of their ideas We can’t possibly talk enough about what’s currently happening in our industry and this is why I welcome this book, a set of articles from the very minds that are making it all happen This book will interest some, inspire others and undoubtedly will scare more!” Paul Jardine, Chief Experience Officer, XL Catlin an oil tanker can’t simply morph into a yacht by attaching a sail to its funnel The industry must seek, embrace and absorb change Opportunities for competitive advantage can be brought to life by blending data from otherwise unthinkable sources which can be collectively massaged to provide underwriters with a richness of knowledge only dreamed of before Predictive analytics can fuel predictive risk control and, in turn, predictive underwriting – calling the fire brigade before the fire has started, allowing insurers to manage risks proactively as never before This book will challenge, and make you think.” Julia Graham, FBCI, FCII, Chartered Insurance Risk Manager; Deputy CEO and Technical Director, AIRMIC “Insurance has finally woken up! It’s been decades since the birth of the Internet and yet the one industry the global economy could not operate without “This fantastic InsurTech book brings together some of the brightest global insurance and InsurTech minds to share some of their best thought-provoking ideas and proposals If you allow those ideas and proposals to open your imagination, these authors can magically bring great new thoughts to infiltrate your company positively and help take it to the next level My recommendation is to let change and new ideas happen because the insurance industry is about to transform in a way that will render it unrecognizable in a few years’ time These great InsurTech authors can help guide and inspire you through these fantastic times to come; they certainly inspired me to think further into the future.” Spiros Margaris, Venture Capitalist and Advisor “This important book explores InsurTech, from its definition and its current InsurTech This book guides you, in a very smart way, through different aspects status to its future impacts While many have predicted a digital revolution, new of InsurTech and prepares you for the future trends.” programming routes such as blockchain (supporting and enhancing trust and the ability to fully use and apply data) have transformed the financial services sector in ways that most people are unaware of The insurance industry has embarked on a process of radical transformation through creativity and sustained digital innovation, with great potential for rapid business growth – or for company failure Only those able to grasp new opportunities will be able to reshape their mission and business model to take advantage of InsurTech innovations That is why this book is an essential read for those leading, managing and working in the industry and those studying to enter it, if they are going not only to understand these far-reaching industry changes but also to be part of them.” Professor Lynn Martin, Entrepreneurship and Innovation, Anglia Ruskin University and Founder, HRI “By 2020 we estimate that the percentage of insurance customers interacting with carriers through digital platforms will double to 80% Clearly, insurers must embrace digitization to extend capabilities and address this future inevitability I strongly encourage you to read this book and prepare for the future digital inevitability It will give you insight into strategy, process, organization and technology imperatives to support improved positioning.” William Pieroni, President and CEO, ACORD Sylvain Theveniaud, Allianz Accelerator, Founder and MD “In 2014 through my work at AXA, I realized that there was a new market emerging called InsurTech, and called it as such Three years on, the most innovative ideas in InsurTech are still at seed stage because InsurTech investing is still in its earliest days, or to years behind Fintech in terms of timeline and investing trends Despite suffering from an early stage equity gap, InsurTechs are continuously coming to market with very interesting products, platforms and propositions to address fundamental issues within the fabric of Insurance, enabling insurers to partner and enter new markets For those of you still wondering why InsurTech is happening right now and looking to grasp some of the key trends affecting the insurance industry, I would urge you to read this book.” Minh Q Tran, Managing Partner and Co-Founder, Proptech Capital “Insurers and the whole insurance value chain has woken up to what digital related services and products can for them and their customer However, this desire for change has not permeated through to all layers within insurers and significant resistance remains to changing processes for new product development, new partnerships, new claims methods, and new data techniques While this is understandable in that no-one wants their cozy lives disrupted, the reality is that there is no alternative It really is, adapt the new or face an uncertain or terminal future This book outlines, from a variety of “I had the pleasure of partnering with the Startupbootcamp InsurTech perspectives, the nature of these changes It provides a broad primer for those Accelerator and to run a number of mentorship programmes and events There’s who are central drivers of the needed changes but also a rallying cry to get on something truly rewarding about having tech folks and insurance experts around with the job Insurance is lucky in that it does have money and the capability – the table This book takes you through the journey of some of the projects that all it lacks is time This book is all about ‘hurry-up’.” are currently shaping the InsurTech scene and I am certain that you will, while Rob Wirszycz, Executive Chairman, Questers Group and Chairman, RightIndem reading it, experience that excitement and feel inspired to innovate.” Hélène Stanway, Digital Leader, XL Catlin “InsurTech is rising and will irrevocably transform the insurance industry, forcing incumbents to adapt But to adapt we first need to know and “For many years, the insurance industry has remained at a standstill understand the ecosystem – which is why The InsurTech Book is required InsurTechs have appeared out of the blue and are revolutionizing the way reading Ecosystems matter Partnerships are the key It’s the future of insurance companies work The rationale behind such a change is based insurance The book understands that the InsurTech startups are the on major drivers, including the advent of new technologies and evolving agent of change needed in transforming our business models For me, the consumption patterns and customers’ needs; requesting real-time and interoperability of the incumbent is key, both the interoperability of the tech on-demand ways of doing things Insurance learns very fast and will certainly, stack but also the interoperability of our industry’s talent.” in the near future, reshape and transform itself as the new standard of Zia Zaman, Chief Innovation Officer, MetLife Asia The InsurTech Book This edition first published 2018 © 2018 FINTECH Circle Ltd Registered office John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher Wiley publishes in a variety of print and electronic formats and by print-on-demand Some material included with standard print versions of this book may not be included in e-books or in print-ondemand If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com For more information about Wiley products, visit www.wiley.com Designations used by companies to distinguish their products are often claimed as trademarks All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners The publisher is not associated with any product or vendor mentioned in this book Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose It is sold on the understanding that the publisher is not engaged in rendering professional services and neither the publisher nor the author shall be liable for damages arising herefrom If professional advice or other expert assistance is required, the services of a competent professional should be sought Library of Congress Cataloging-in-Publication Data Names: VanderLinden, Sabine, editor | Millie, Shân M., editor | Anderson, Nicole, editor | Chishti, Susanne, editor Title: The insurtech book : the insurance technology handbook for investors, entrepreneurs and FinTech Visionaries / edited by Sabine VanderLinden, Shân M Millie, Nicole Anderson and Susanne Chishti Description: Chichester, United Kingdom : John Wiley & Sons, 2018 | Includes index | Identifiers: LCCN 2017057073 (print) | LCCN 2017059018 (ebook) | ISBN 9781119362241 (pdf) | ISBN 9781119362203 (epub) | ISBN 9781119362210 (pbk.) Subjects: LCSH: Insurance | Insurance—Technological innovations Classification: LCC HG8051 (ebook) | LCC HG8051 I6165 2018 (print) | DDC 368—dc23 LC record available at https://lccn.loc.gov/2017057073 A catalogue record for this book is available from the British Library ISBN 978-1-119-36221-0 (paperback) ISBN 978-1-119-36224-1 (ePDF) ISBN 978-1-119-36220-3 (ePub) ISBN 978-1-119-44456-5 (Obook) 10 Cover Design: Wiley Cover Image: © pkproject/Shutterstock Set in 10/13pt Helvetica LT Std by Aptara, New Delhi, India Printed in Great Britain by TJ International Ltd, Padstow, Cornwall, UK The InsurTech Book The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries Edited by Sabine L B VanderLinden Shân M Millie Nicole Anderson Editor in Chief Susanne Chishti Contents Contents vi Preface viii About the Editors xi Acknowledgments xiv Disrupting Car Insurance – Drivies App Makes Driving More Fun, and Insurance Fairer Genomics 101 – The Search for a Better Life Expectancy Predictor Leads GWG Life to a Science Lab 75 80 What is InsurTech? InsurTech Definition as Its Own Manifesto Why is Insurance Failing? Digital Transformation in Insurance – Four Common Factors from Other Industries InsurTech – Problem or Solution for Agents and Brokers? The Best InsurTech May not be InsurTech “Real” InsurTech Startups it Differently! 13 17 21 24 InsurTech Now and Next A Cartographer’s Dream – Exploring, and Mapping, the New Unknown 32 Where Does InsurTech Leave the People who Work in Insurance? 35 InsurTechs – Magical Thinking and Other Secrets of Success 40 “INSoT” – The Insurance of Things and the Proliferation of Protection 43 From Insurance Premium to Discrete Event 47 Seamless Insurance: The Time is Now 50 The Potential of a Pension Dashboard Infrastructure for UK Pension Savers 53 Six Mega-trends that Will Take Insurance Back to the Future 57 InsurTech – Not a Zero Sum Game 61 The Founder’s Journey Not too Big to Learn not to Fail? Insurance Expertise, Family, and Integrity – The Story of SPIXII’s Founding Team 68 71 Internationalizing InsurTech Internationalizing InsurTech – A Global Phenomenon in Different Markets Increasing Access to Insurance in Developing Countries Insurance in China Seven Things Insurers and InsurTechs Need to Know about the German Insurance Market InsurTech in Turkey – Challenges and Opportunities InsurTech in Latin America – The Promise of Insurance for Everybody? InsurTech Trends – Why Regionalization Matters 88 91 95 98 102 106 108 Collaborative Innovation: Observe – Partner – Invest The Corporate Collaboration Opportunity in InsurTech 117 Competition vs Coopetition in the Insurance Market 121 Incumbent and InsurTech Collaboration via Open Innovation Strategy 124 A Collaborative Approach in the InsurTech World – One Platform in One Click 129 Dating InsurTech Startups 134 Altered Attitudes, Altered Outcomes – Collaborating for a Better Future 137 Think InsurTech Culture Before InsurTech Adoption 140 You Said Tech A Four-Step Practical Guide to Build InsurTech Value Chain Ecosystems 148 Sell Your Insurance at the Right Time – Consider Micro Policies 153 InsurTech: Refreshingly Different – Like Lemonade! 157 Forget Peer-to-Peer, the Future of Insurance is Invisible and Parametric 161 Behavioural Design and Price Optimization in InsurTech 165 Data Changes Everything 171 Beware of GDPR – Take your Cyber Risk Responsibility More Seriously 175 Why Claims Sharing? Innovating within the Businessto-Business Insurance Claims Handling Ecosystem 179 Reinsurers Need Backward Innovation 182 Becoming Tech-First – Why Adopting a “Tech-First” Mindset is Non-Negotiable 227 Practical Robotics in Insurance – The Future is Here Already 231 Frictionless Insurance in a Land of Utility 236 The Smart Journey – From Contract Hype to Insurance Reality 240 InsurTech and AI – You Can Run but You Cannot Hide from the Future 244 Blockchain Startups – Unlikely Heroes for the Insurance Industry? 247 Alexa, Can You Get me an Insurance? A Structured Approach to the Hyped Technology of Voice-Based Assistants 250 InsurTech’s Big Questions – Why the Customer is Still Always Right 254 ClaimsTech – The InsurTech’s Action List 257 Technology is Not Enough 260 Business Models Business Model Innovation – From Incremental to Disruptive The Future of Insurance – From Managing Policies to Managing Risks Seeing through the Hype – A Closer Look at Key Smart InsurTech Business Models Assessing the Long-Term Viability of the Insurance Peerto-Peer Business Model You Said … Sharing Economy? From Claim Settlement to Claim Prevention – How Insurers Can Make Use of Predictive Analytics to Change their Business Model True Business Model Innovation – a Credit-Based Approach From Event-Focused Insights to Coaching 190 195 199 202 206 211 215 218 InsurTech Futures Digital Transformation and Corporate Innovation Management – an Incumbent’s Action Plan 268 The New World of the Connected Customer – The Future of Microinsurance? 271 Personal Asset Liability Management System 274 Social Media in Insurance 277 InsurTech and the Promise of “Property Value Hedging Technology” 280 Insurance 2029 – Life Backup Companion 283 List of Contributors 288 Index 303 vii Contents The Value Chain Preface Preface viii The FinTech Book – the first globally crowdsourced book on the financial technology revolution – was published by Wiley in 2016 and has become a global bestseller It exceeded all our expectations, and, in the meantime, the book is available in five languages across 107 countries both in paperback, e-book, and as an audiobook More than 160 authors from 27 countries submitted 189 abstracts to be part of the book About 50% of all contributors were chosen to write for the final book When we launched The FinTech Book during 2017 across the world, our authors and readers had many opportunities to meet in person, sign the books together at global book launch events, and deepen our FinTech friendships worldwide In 2017 we decided to extend our FinTech Book Series by writing three new books on how new business models and technology innovation will change the global asset management and private banking sector (“WealthTech”), the insurance sector (“InsurTech”), and regulatory compliance (“RegTech”) We followed our approach of crowdsourcing the best experts for you to give you the most cutting-edge insight into the changes unfolding in our industry The InsurTech Book is the first book taking this approach globally – a book that provides food for thought to FinTech newbies, pioneers, and well-seasoned experts alike Let me introduce you to our contributors and authors The reason we decided to reach out to the global FinTech and InsurTech communities in sourcing the book’s contributors lies in the inherently fragmented nature of the field of Financial Technology applied to insurance globally There was no single author, group of authors, or indeed region in the world that could cover all the facets and nuances of InsurTech in an exhaustive manner What is more, by being able to reach out to a truly global contributor base, we not only stayed true to the spirit of FinTech and InsurTech, making use of technological channels of communication in reaching out to, selecting, and reviewing our would-be contributors, we also made sure that every corner of the globe had the chance to have its say Particularly those that have very distinct views as to where InsurTech is going and the unique challenges it faces due to the inherent building blocks on which insurance grew Thus, we aimed to fulfil one of the most important purposes of The InsurTech Book, namely to give a voice to those that would remain unheard and to spread that voice to an international audience We have immensely enjoyed the journey of editing The InsurTech Book and sincerely hope that you will enjoy the journey of reading it, at least as much More than 250 authors from 25 countries submitted 244 abstracts to be part of the book We asked our global FinTech and InsurTech communities for their views regarding which abstracts they would like to have fully expanded for The InsurTech Book Out of all these contributors, we selected 75 authors who have been asked to write their full article, which has now been included in this book We conducted a questionnaire among all our selected authors to gain greater insight into their background and expertise More than 70% of our authors have postgraduate university degrees (see Table 1) and strong domain expertise across many fields (see Table 2), and 77% of our authors had their articles published before Table 1: What is the highest educational qualification of our 75 authors? Table 2: List all areas in which our authors have domain expertise; multiple choices were possible Which is your highest educational qualification? In which areas have you got domain expertise in (multiple responses possible)? 80.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% ix Preface 70.00% ) t t s e n y ion n ics e g ing ie dels in rit t en en nc tio oT t nk ank em ura ula em ecu ova kch aly chin s (I renc o a M g r a oc An ag Ins Reg nag ers Inn tB eB il Bl ata e/M Thin tocu ess b / a ta en ivat Man e y e n e c s i p f i m C D en R nc sk M st Pr set pr t o Cry Bus g ia er ve Bi ellig rne pl Rl nt In As t m / rm e t E n e tfo In Co lI at la ia or c P i p f r ti Co Ar g kin High School Degree Undergraduate University Degree Postgraduate University Degree Tables and show that 35% of our authors are entrepreneurs working for InsurTech startups (many of them part of the founding team), 40% come from established financial and technology companies, and another quarter from service providers such as consulting firms or law firms servicing the financial services and insurance sectors More than a fifth of our authors work for startups with up to five people and another 35% for startups/small or medium-sized enterprises (SMEs) up to 50 people Twenty-two percent of our authors are employed by a large organization of more than 1,000 employees In summary, we are very proud of our highly qualified authors, their strong expertise, and passion for InsurTech by being either entrepreneurs or often “intrapreneurs” in large established organizations who all are committed to playing a significant role in the global FinTech and InsurTech revolution These remarkable people are willing to share their insights with all of us over the next pages n Ba Table 3: Authors selected the type of company they are working in Where you work? 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Startup Established Financial Services Company Established Technology Company Service Provider by the global FinTech community, as well as the final authors whose insights you will be reading shortly) In addition, we would like to thank our editors at Wiley whose guidance and help made sure that what started off as an idea, you are now holding in your hands Table 4: Size of companies our authors work for What is the size of the company you are working in? 40.00% 35.00% Finally, I would like to thank the fantastic editors, Sabine VanderLinden, Shân M Millie, and Nicole Anderson Editing a crowdsourced book naturally takes several months and it was always a pleasure to work with their strong domain expertise and vision for the future of InsurTech globally! 30.00% 25.00% Preface x 20.00% 15.00% 10.00% 5.00% 0.00% 1-5 people 6-50 people 51-100 people 101-1000 people 1001+ people Thus, this project would not have been possible without the dedication and efforts of all contributors to The InsurTech Book (both those who submitted their initial abstracts for consideration Susanne Chishti Co-Founder, The FinTech Book Series Editor in Chief, The InsurTech Book CEO and Founder FINTECH Circle and the FINTECH Circle Institute Twitter: @SusanneChishti @FINTECHCircle @InsurTECH_Book LinkedIn: FINTECH Circle Group See abstract: How to pivot from B2C to B2B and why it’s necessary See abstract: AI in InsurTech – Opportunities and regulatory challenges Vasyl Soloshchuk Tony Tarquini CEO and Managing Partner, INSART www.linkedin.com/in/vsolo/ www.twitter.com/vsoloINSART List of Contributors 300 Director of Insurance, EMEA, Pegasystems Limited www.linkedin.com/in/tony-tarquini-2b92a/ www.twitter.com/TarquiniTony See chapter: InsurTech Trends – Why Regionalization Matters See chapter: Practical Robotics in Insurance – The Future is Here Already Christophe Spoerry Tobias Taupitz Co-founder, Euler Hermes Digital Agency www.linkedin.com/in/spoerry www.twitter.com/@spoerry See abstract: Reinventing a 100-year-old Insurance Service with APIs Catherine Stagg-Macey Founder, Executive/ Team coach, Belgrave Street www.linkedin.com/in/staggmacey www.twitter.com/@staggmacey See abstract: Why an unexamined life is the downfall of a founder Laimonas Stoncius Founder and CEO, ClaimsControl www.linkedin.com/in/stoncius/ www.twitter.com/claims_control See chapter: Why Claims Sharing? Innovating within the Business-to-Business Insurance Claims Handling Ecosystem Gabriel Swift Senior Marketing Adviser, NTT Data Inc www.linkedin.com/in/gabrielswift/ www.twitter.com/GabrielSwift1 See abstract: Swinton Insurance – search optimisation and interaction design Tokio Marine tests new blockchain-based insurance policy Eunice Tan Local Principal, Baker McKenzie Wong & Leow www.linkedin.com/in/eunice-tan-9232417/ See abstract: Singapore racing ahead to become the InsurTech hub Co-Founder and CEO, LAKA www.linkedin.com/in/tobiastaupitz/ www.twitter.com/tobsnt See chapter: True Business Model Innovation – a Credit-Based Approach Stewart Taylor Head of London Market Modernsation and InsurTech, HFG www.linkedin.com/in/stewarttayloruk/ https://twitter.com/stewarttayloruk See abstract: Why DINO-insurers will be killed off by the InsurTech meteor Sylvain Theveniaud Managing Director, Allianz Accelerator www.linkedin.com/in/sylvaintheveniaud www.twitter.com/sylvainth See abstract: Accelerating start-ups: From interactions to shaping frameworks for success Periklis Thivaios Partner, True North Partners LLP www.linkedin.com/in/periklisthivaios/ See abstract: Insurance is not a Business Model InsurTech Could be Denis Thomas Associate Director, KPMG www.linkedin.com/tdenisk www.twitter.com/tdenisk See chapter: Competition vs Coopetition in the Insurance Market Brian Tang Neil Thomson www.linkedin.com/in/brian-w-tang-7131293 www.twitter.com/CapMarketsProf www.linkedin.com/in/neil-thomson-b92b379/ www.twitter.com/_NeilThomson Managing Director, Asia Capital Markets Institute Strategic Sales Director, Freelance InsurTech Consultant See chapter: InsurTechs – Magical Thinking and Other Secrets of Success Jean-Charles Velge Tuan Trinh www.linkedin.com/in/jean-charles-velge-4345131/ www.twitter.com/velgejc www.linkedin.com/in/tuan-trinh-b81b3419 www.twitter.com/trinhanhtuan247 See chapter: Forget Peer-to-Peer, the Future of Insurance is Invisible and Parametric See abstract: On the Creation of an Online Social Insurance Platform Tobias Troendle Management Consultant, Diconium Strategy www.linkedin.com/in/tobias-troendle-07413890/ www.twitter.com/TobiasTroendle See chapter: Alexa, Can You Get me an Insurance? A Structured Approach to the Hyped Technology of Voice-Based Assistants Shwetank Verma Managing Partner, Leo Capital www.linkedin.com/in/shwetankv/ www.twitter.com/shwetankv See abstract: Cs of Opportunity Koen Vingerhoets Blockchain Adviser, KBC Steve Tunstall www.linkedin.com/in/koenvingerhoets www.twitter.com/IthronKoen www.linkedin.com/in/stevetunstall www.twitter.com/inzsure1 See abstract: Blockchain: A matter of life and death See chapter: Why is Insurance Failing? Gerben Visser Richard Turrin www.linkedin.com/in/gerbenvisser www.twitter.com/fincon CEO and Co-Founder, Inzsure Artificial Intelligence | FinTech WealthTech | InsurTech Professional and Chief Innovation Officer, Singapore Life www.linkedin.com/in/turrin/ See chapter InsurTech and AI – You Can Run but You Cannot Hide from the Future Founder, FinTech Consortium See abstract: Into South East Asia's InsurTech Ecosystem Henrique Volpi Author, InsurTech Entrepreneur and Co-Founder, Kakau Igor Valandro www.linkedin.com/in/henriquevolpi/ www.twitter.com/VolpiIT www.linkedin.com/in/igor-valandro-1010b16 See chapter: Seamless Insurance: The Time is Now CEO, Air See abstract: Enabling Usage Based Pricing: Airs Business Model Sabine VanderLinden CEO, Startupbootcamp InsurTech, Rainmaking Innovation InsurTech, The Proposition Circle www.linkedin.com/in/sabinevanderlinden/ www.twitter.com/SabineVdL See chapter: You Said … Sharing Economy? See abstract: The New Customer Reality: AI Is Everywhere Igor Volzhanin CEO, DataSine www.linkedin.com/in/ivolzhanin/ See abstract: Serving Customers Benjamin Von Euw Enterprise Architect, iA Financial Group www.linkedin.com/in/benjaminve/ See chapter: From Event-Focused Insights to Coaching 301 List of Contributors Founder, InsurTech Consulting Partners Co-Founder, Qover Nigel Walsh Paul Wilson www.linkedin.com/in/nigelwalsh www.twitter.com/nigelwalsh www.linkedin.com/in/mymarketer www.twitter.com/paulwilson Partner, Deloitte See chapter: Frictionless Insurance in a Land of Utility John Warburton List of Contributors 302 Founder, Konsileo www.linkedin.com/in/johnwarburton1/ www.twitter.com/broking_john See chapter: Where Does InsurTech Leave the People who Work in Insurance? MIchael Weinreich Venture Partner, Finleap GmbH www.linkedin.com/in/michael-weinreich-35038b12 www.twitter.com/@MWFintech See abstract: Solving the ‘unsolvable equation’ – decrease cost yet increase customer satisfaction Insurance Digital Marketing Technologist Lead, Capgemini See abstract: Using Behavior-Modification Gamification to Bring Insurers into the Connected World Selim Yazici Co-Founder, FinTech Istanbul and Professor, Istanbul University www.linkedin.com/in/selimyazici/ www.twitter.com/SelimYazici See abstract: Digital Transformation in Insurance and the State of InsurTech in Turkey Dorota Zimnoch Founder and MD ZING Business Consulting, Strategic Advisor, The Heart www.linkedin.com/in/dorotazimnoch www.twitter.com/D_Zimnoch See chapter: Incumbent and InsurTech Collaboration via Open Innovation Strategy Ronald Weissman Michael Zoelzer www.linkedin.com/in/ronald-weissman-36a3841 www.linkedin.com/in/michaelzoelzer www.twitter.com/michaelzoelzer Partner, Circini Innovation See abstract: UBI: The New Paradigm Disrupting Auto Insurance Today and Other Lines Tomorrow Co-Founder and COO, WearHealth See abstract: Merging claims data with data from wearables Harry Williams Moran Zur www.linkedin.com/in/harryewilliams/ www.twitter.com/_harrywilliams www.linkedin.com/in/moran-zur-46038057 www.twitter.com/@Safe_Beyond Business Designer, Fjord See chapter: Technology is Not Enough CEO, SafeBeyond See abstract: The World’s First Emotional Life Insurance Platform A acceleration 117, 119 accelerators 135, 148, 270 accelerometers 76 accessibility 91–94 accountability 216 acquisitions 136 ACRE Africa 93 action lists 257–259 action plans 268–270 active digital footprints 167 actuarial science 51 adaptation brokers 18–20 SPIXII 72–73 adjacent ideas 130 adjacent innovation 190–192 Admiral 277–278 adoption of InsurTech 140–142 adverse selection 110, 154, 192 advice technology 92, 106 affinity groups 148–149 affordability 62, 91–92, 154–156 Africa 93, 271–272 ageing process 80–81 agents 17–20, 93, 98 see also brokers; intermediary processes aggregation of data 173 aggregators 103 agile approach 8, 248 agricultural insurance 51–52, 62, 93 AI see artificial intelligence aims/means confusion 195–196 all-cause mortality 81 Amazon Alexa 251 analytics see claims analytics; data analytics; predictive analytics angel investors 281 anticipation 219–220 apathy 173 APIs see Application Programming Interfaces app-based solutions 75–79, 93, 180 Application Programming Interfaces (APIs) 136, 179 approximation trend 59 artificial intelligence (AI) 244–246 application of 88 business models 194 change and 228–229 constituent categories 231 employment and 35–36 seamless insurance 50–51 startups 254 asset inventories 209 asset liability management 274–276 asset sharing 194 asset under-utilization 207–208 asymmetry of information 165 attended RPA 233 attitude alteration, collaboration 137–139 attitude predictors 77 “attractive attributes” 38 augmented insurance 51 authenticity 210 auto-rating microinsurance 273 automatic pricing 276 automation process application of 88 business models 194 claims 50, 180 employment and 35, 36–37 robotics use 234 smart contracts 240 Aviva 169 B B2B Insurance see Business-to-Business Insurance B2C Insurance see Business-to-Consumer Insurance backward innovation 182–185 Baidu, Alibaba, Tencent, and Jingdong (BATJ) 95–96 banking activity 153, 277 banking crisis 182 BATJ see Baidu, Alibaba, Tencent, and Jingdong behavioural aspects 40, 53 behavioural design 165–169 big data 78, 110, 212, 245, 280 Big Five personality traits 166, 170 biometrics 109–110 BlaBlaCar 209 blockchain claims sharing 181 corporate collaboration 118 future potentials 255 international markets 90 regional trends 109–110 smart contracts 240 startups 247–249 The InsurTech Book:The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries Edited by Sabine L B VanderLinden, Shân M Millie and Nicole Anderson © 2018 FINTECH Circle Ltd 303 Index Index Index 304 bonuses 141 bot-led solutions 50–51, 172, 244–245 see also chatbot solutions; robotic brand personality 261 Brazil 106–107 brokers commercial insurance 37–39 manifesto for 39 online services 93, 106–107 problems/solutions 17–20 producer connection 14 “robo brokers” 191 role revisions 180–181 see also agents; intermediary processes bubbles and investors 34 budget restrictions 249 Bundesliga metaphor 100–101 bundling insurance 92, 191–192 business discrete events 48–49 business insurance 47 business lines 7, 202–203 business models data-driven 212 innovation 190–194, 215–217 long-term viability 202–205 P2P Insurance 202–205 predictive analytics 211–214 preparation of 132 smart InsurTech 199–201 startups 26, 159 voice-based assistants 251–252 business objectives, cooperation 127 Business-to-Business (B2B) Insurance 179–181, 197, 209 Business-to-Consumer (B2C) Insurance 13, 209, 251 business units 130 buy model, partnerships 125–126 buyers 208 Buzzmove startup 256 C C2C see customer-to-customer markets Camp, Garrett 254 capacity, startups 201 capital abundance, protection gap 63 capital funding 73, 119–120, 135 capital markets 182–184 captology 168 car insurance 75–79, 92–93, 126, 169, 200–201 cash flow analysis 275 CBien B2B Insurance 209 change inevitability 228–229 change management 140 change resistance 138–139, 142 change threats 68–69, 137 chatbot solutions 51, 233, 244–245, 259 Chen, Dr Brian 82 Chierici, Alberto 71 China 95–97, 110, 275, 279 Christensen, Clayton 134, 142 claim filing 280 claimant lawyers 138 claims analytics 258 claims data 180 claims fraud see fraud claims handling ecosystem 179–181 claims management 89, 157–158, 161 claims pooling 159 claims prevention 57–58, 211–214 claims process automation of 50 recovery support 45 streamlining 179–180 suppliers 258 claims risk 171–172 claims settlement 211–214, 215 claims sharing 179–181 claims surveying 181 ClaimsTech 257–259 Client Value Proposition (CVP) 141–142 Climate Corporation 25–26, 48 cloud-based policies 273, 276 coaching 218–220 cognitive computing 244 collaborative approaches 117–134, 137–139 hedging technology 282–283 international markets 88 pension savings 55 success and 41 collaborative consumption 206 collaborative economy see sharing economy commercial insurance 32, 33, 37–39, 48–49, 51–52 commoditization of insurance 37–38 commoditization risk 193 communication efficiency 141 communication gap 62–63 community-based insurance 97, 108, 207 company builders 270 company–customer gateway 250 company focus see supply-driven focus company operations comparison websites 33, 103, 278 see also price comparison sites competition 46, 121–123, 214 crisis costs 178 cross-selling opportunities 122 crowdfunding 201 cultural challenges 140–142 cultural constraints 99–100, 136 customer benefits credit-based approach 216 voice-based assistants 252 customer centricity 63, 153, 254–256, 261–262 customer expectations 9, 101–102, 195 customer experience disruptive technologies 124 expectations of insurers 153–154 innovation and 38 startups 24 Customer eXperience (CX) 258 customer focus 15 customer needs goal-based insurance 245 startups 256 customer–producer connection 14 customer risk profiles 196–197 customer segments 72, 102 customer services 89, 157–158, 233 customer strategy 70 customer-to-customer (C2C) markets 21 customer transparency 13 customer value, startups 73 customer–voice-based assistant gateway 250 “customership” 58 customization see personalization; tailor-made products CVC see corporate venture capital CVP see Client Value Proposition CX see Customer eXperience cyber extortion 178 cyber insurance 110 cyber-physical systems 211 cyber products 22 cyber risk 175–178 cyber security 246 D data analytics apps 77–78 digital ecosystems 219 as enabler 129 identifying sources 212–214 micro policies 156 microinsurance 273 strategic advantage 100 telematics 109–110 use of 32, 62–63 data capture 259 data collection 171–173, 212–214, 218 data dependence 175 data-driven business models 212 data, knowledge and 219–220 data protection 242 data reliability 181 data security 251 data sources change and 171–174 pooling function 173 data structure, claims sharing 179 data surveillance 284 data ubiquity 194 databases 240 decentralized ledger technology 90 decision-making processes 140–141 “delighters” 38 demand-driven focus 15 demand-side insurance 274, 286–287 305 Index competitive advantage 122 complaints processes 257 complexity 260–261, 284, 286 compliance requirements, ideation 130 comprehensive personal assets 275 compulsory insurances 103 computerization impacts 36–37 conflicts of interest 215–216 connected customers 271–273 connected devices 163 consolidation activities 107 consumer discrete events 47–48 consumers personalization 149 rapid changes 17–18 consumption 206, 286–287 contactless cards 236 contract law 241–242 contract management 240 see also smart contracts cooperative insurance see Person-toPerson Insurance coopetition 121–123 core ideas 130 core innovations 190–191 corporate collaboration 117–120 corporate culture 136 corporate innovation 124–125, 268–270 corporate venture capital (CVC) 119–120, 135 cost reduction, product development 121 cost restrictions 109 coverage distribution models 154–156 pension dashboards 56 creative skills 207 credit-based business models 215–217 crime patterns 172 Index 306 demographic-based approaches 78–79, 98, 165–166 design solutions 260–262 Design Thinking Framework 132 desirability of ideas 130 deterministic smart contracts 241 developed countries’ innovation 110 developing countries 91–94, 110, 151–152 development costs 121 development partners 54–55 developmental aspects 40, 89 differentiated insurance 47, 260–261 digital customers 72, 153–154 “digital by default” digital distribution 127 digital ecosystems 218–220 digital evidence, fraud 259 digital-first business models 203 digital footprints 167 digital health market 97 digital infrastructure 162–163 digital innovation 125 digital insurance 92–93, 268–269 digital literacy 207 digital media breach 178 “digital mutual” business models 192–193 digital revolution 124 digital technologies accessing 207 cyber risk 175 digital transformation 13–16, 59, 104, 128, 268–270 digitalization 16, 100, 117, 157, 227 direct insurance companies direct producer-to-customer connection 14 discrete events 47–49 dispute threats 137 disruption effects 75–79, 157–163, 177 disruptive ideation 129, 130 disruptive innovation 134, 190–194, 268 Disruptive InsurTech startups 25, 27 disruptive technologies 124, 244 distributed ledger principles 109, 240 distribution channels 103–104, 126–127 distribution or experience process 68 distribution models/approaches 89, 92, 154–158, 162–163, 191–192 double manual entry work 180 driverless cars 200–201, 254, 256 Drivies app 75–79 due diligence 11–12, 232 dynamic pricing 51 E economic development 91 ecosystem business models 193 ecosystem concept 6–7, 103, 107, 148–152, 179–181, 218–220 ecosystem economy 139 ecosystem power players 95–96 education delivery 272–273 efficient innovation 123 embedded insurance 162, 164, 191–192 empathy 36–37, 39 employees robotics and 232 startups 249 tech-first mind-set 227–230 employment effects 35–39 enablers 36–39, 129, 162, 281 end-to-end transformation 229 engagement duration/intensity 135 high-intensity 136 social networks 58 entrepreneurial culture 136 entrepreneurship 41–42, 73, 207 entropy 122 environmental data 172 epigenetics 81 Ergun, Cansen 102–104 “escape hatch”, smart contracts 241 “escrow” accounts 161 ethical concerns 169 European Union (EU) business models 199–200 event-focused insights 218–220 evolutionary innovation 269 exclusions, smart contracts 241 execution 236, 238 experience process 68–69 expertise 71–74 exponential change 237, 268 external innovation management 270 F Facebook 167, 271, 277–278 facilitators 281 failure avoidance 68–70 insurance industry 9–12 reasons for 141, 249 family ethos 71–74 farming see agricultural insurance fast iterations 76–77 Fear of Failure (FOF) 69 feasibility of ideas 130 fee-based income 215 fines 178 FinTech 6, 21, 32–34 business models 215 challenges/opportunities 102 G GAME changing technologies 90 gamification techniques 75, 245 Gartner’s Hype Cycle 269 GDPR see General Data Protection Regulation Gen X 89 Gen Y 95, 228 Gen Z 228 General Data Protection Regulation (GDPR) 175–178 General Insurance 215–216 generic processes 234 Genomics 101 80–82 Germany 98–100 “giant risk carriers” 163 gig economy 194, 255 see also sharing economy Global Cyber Impact Report, 2016 175–176 global initiatives 60, 88–90 global positioning system (GPS) 76 goal-based insurance 245–246 good faith notion 241 Google’s Project Loon 271 governance structure, pensions 56 Government support necessity 56 GPS see global positioning system granularization of risks 193, 286 Greece 92–93 Guner, Erdal 102–105 GWG Life 80–82 gyroscopes 76 H health insurance 149, 151–152, 199 health market 97 hedge funds 194 hedging technology 280–282 Hellas Direct 92–93 HiPPO (Highest Paid Person’s Opinion) Syndrome 100 hiring strategies 72 historical data 130 home insurance 171, 200 home telematics 45 Horvath, Dr Steven 80–81 hub structure, claims sharing 179–181 human factor in success 234–235 human–machine interaction 244–245, 258–259 hype cycle topics 269 I IaaS see Insurance-as-a-Service ideation process 129–133, 140 IDF see Insurance Development Fund ILS see Insurance Linked Securities incremental change 159, 237 incremental innovation 190–194, 268 incubation 118, 135, 207 incubators 123 incumbent insurers action plan 268–270 current business models 195 German market 98–100 innovation difficulties 68–70, 192 open innovation strategy 124–128 opportunities 104–105 partnering startups 33, 248–249, 269–270 problems/challenges 21–22 startups enabling 24–26 technology trends 280 value chain 7–8 as winners 16 independent broker channel 18 Indian online brokers 93 individual approach 59 individualized offerings 214 Industrial Revolution 182 information assets 176 information asymmetry 165 307 Index culture 140 customer centricity 255 startups 134, 136 First Notice of Loss (FNOL) 179, 259 first party claims 257 FNOL see First Notice of Loss focus, business lines FOF see Fear of Failure forecasting claims 258 founding SPIXII 71–74 fraud 58, 174 blockchain startups 247 claims sharing 181 data protection and 241 digital evidence 259 failure and seamless insurance 50 fraud risk 202–205 freemium business models 193–194 freemium products 272 frictionless distribution 162–163 frictionless insurance 191–192, 236–239 Friendsurance 209, 278 full-stack insurers 21, 23, 25 funding 73, 119–120, 135 Index 308 information exchange 137–138, 139 information issues, smart contracts 241 information presentation 261 information sources, apps 77–78 information technology (IT) 11, 99 infrastructure development 162–163 ideation process 130 pension dashboards 53–56 injection technologies 233 innovation 22 B2B claims 179–181 barriers to 142 business models 190–194, 215–217 collaboration 125–126 customer experiences and 38 developed countries 110 disruption and 158–160 distribution or experience process 68 frictionless insurance 237 incumbents’ difficulties 68–70 open strategy 124–128 partnerships 125–126 pension dashboards 55–56 reinsurance 182–185 startups 134 technologies 6, value chain 157–158 voice-based assistants 250, 253 innovation centres 123 innovation management 130, 268–270 INSoT see Insurance of Things InsTech London 33–34 institutional asset management 275 insurance definition 218 future of 195–198, 231–235 Insurance-as-a-Service (IaaS) 162–163, 282 insurance bills 283 insurance consumers see consumers Insurance Development Fund (IDF) 63 insurance industry challenges 21–22 failures 9–12 growth 36 problems 21–22 trust 9–10, 57 Insurance Linked Securities (ILS) 182 insurance options 47–49 insurance penetration rates 11, 62, 91–92, 104, 106 Insurance of Things (INSoT) 43–46 InsurTech characteristics 129 definition 6–8 filling gaps 195 opportunities for 281–282 InsurTech startups 24–27 integrated insurance products 43–44 integrated loss prevention 44–45 integrated recovery support 45 integrity 71–74 intelligence systems 233–234 intelligent products 57–58 intelligent sales approach 155 intermediary processes 10 see also agents; brokers internal bias 248 internal collaboration 117 internal innovation 124–125 internationalization 88–90 Internet use 33, 271–273, 274 Internet of Things (IoT) claims and 57, 180, 259 effects of 43 examples 107 future potential 255 home telematics 45 opportunities 105 psychographics and 167 real-time B2B claims 180 regionalization 109–110 use of 88 intrapreneurs 70 investment partnership model 125 returns on 122, 232 startups 126–127, 270, 281 investors 34, 41–42, 73, 104, 107 invisible insurance 161–164 IoT see Internet of Things IT see information technology K Kano, Noriako 38 Kawakita Jiro (KJ) method 148–149 Key Performance Indicators (KPIs) 76–77, 141, 149 KJ (Kawakita Jiro) method 148–149 “Know Your Customer” (KYC) systems 245 knowledge and coaching 218–220 KPIs see Key Performance Indicators KYC see “Know Your Customer” systems L language processing 258–259 large organizations acquisitions 136 innovation 69, 192 startup relations 135 transformative innovations 192 M machine–human interaction 244–245, 258–259 machine learning 167 Maimbo, Sam 63 management opportunities 89 Managing General Agents (MGAs) 33, 193 margins, scalability 14–15 market economy platforms 208 market reality, reinsurance 182–183 market trading 182 marketing automation 19 on-demand insurance 110 value chain 89 markets Germany 98–100 global initiatives 88–90 non-transparency 13 overlooked opportunities 61 risk and 11 startups tapping into new 26 mass tailoring 286 means/aims confusion 195–196 measurement tools 233–234 mediation of disputes 137 medical-evidenced-based underwriting 80, 82 mega-trends 57–60 membership concept 58 messenger commerce 250 methylation sites 81 MGAs see Managing General Agents micro lenders 93 micro policies 153–156 MicroEnsure 92 microinsurance 108–109, 118, 151–152, 271–273 middle men substitution 14 millennials 89, 95, 106–107, 227–228 Millon, Renaud 71–72 mind-set innovation and 68–69 tech-first 227–230 mitigation technologies 110 mixing groups 41 mobile channels 110 mobile phones 62, 76, 92–93, 272 see also smartphones mobile wallets 272 mobility futures 194 monetization 252–253 mortality, all-cause 81 motor insurance see car insurance “mudas” 219 multinational companies 102, 139 Munich Re Digital Partners 117, 126 “must-be attributes” 38 mutual insurance 159, 192–193 see also Person-to-Person Insurance N Nagji and Tuff’s innovation framework 190 natural language processing 258–259 Net Promoter Score (NPS) 234 Netflix 278 network interruption 178 niche products 155, 278 “no” decisions 72–74 non-deterministic smart contracts 241 non-transparent markets 13 non-value-added (NVA) work 231 NPS see Net Promoter Score nudges 169 NuvaLaw case study 137–139 NVA see non-value-added work 309 Index Latin America 106–107 law attitudes to 137–139 contracts 241–242 see also legal frameworks leadership 70, 95–96 Leakbot gadget 256 lean methodology 76–77 ledger principles/technology 90, 109, 240, 255 legacy challenges 18, 35 legacy systems 41, 99, 227, 237, 248 legal frameworks 201 see also law Lemonade insurance company 157–160, 168–169, 261 liabilities personal assets 274–276 redistribution of 10 liability risk 178 licences to operate 104, 121 life backup companions 283–287 life-changing events 275 life expectancy predictors 80–82, 219 life insurance 129, 150 litigious insurance 137 local initiatives 60 long-term viability, business models 202–205 loss levels 61–62, 182–183 loss prevention 44–45 loss records 181 loyalty 19 O Index 310 offerings, ideation process 130 OKChexian InsurTech 96–97 on-demand insurance 59, 88, 110, 191 “one-dimensional attributes” 38 One Platform, One Click 129–133 one-stop shops 98 online accessibility 207 online insurance services 93, 95–97, 106–107 online sales channels 273 online world, customer experiences 153 Open API hub 179 open innovation strategy 124–128 open platform business models 194 operating models 216, 252 operating systems 251 operational partnerships 135–136 operational resilience, robotics 232 optimization 285–286 oracles, smart contracts 241, 242 organizational culture 140 organizational impacts, cyber risk 176 organizational responsibilities 177 Osterwalder’s business model 252 ownership, reduced need for 207 P P&C see property and casualty insurance P2P Insurance see Peer-to-Peer Insurance; Person-to-Person Insurance PaaS see Platform-as-a-Service pace 236, 238 pain points 72 parametric insurance 161–164 parametric payments 96 parametric policies 48 partnerships CVC 119 digitalization 117 innovation drivers 125–126 protection gap 63 sharing economy 208 startups/incumbents 33, 69, 248–249, 269–270 types 134–135 Pasqualotto, Alberto 71–72 passive digital footprints 167 pay-per-use insurance 59, 109 payment innovation 89 payment online 273 payment platforms 151 Peer-to-Peer (P2P) Insurance 58, 90, 97, 108, 110 business models 192–193, 201, 202–205, 209 conflicts of interest 216 as disruptive 161 pooling model 150 as revolutionary idea 159–160 sales/distribution 157–158 Pension Dashboard Infrastructure 53–56 performance orientation, innovation 269 Person-to-Person (P2P) Insurance 201 see also mutual insurance; Peer-to-Peer Insurance personal asset liability management 274–276 personal lines insurance 33, 36 personality traits 166–167, 170 personalization AI and 51, 246 digital customer experience 153 health insurance products 149 price optimization 165 services provision 173–174 see also tailor-made products persuasive technologies 168 Ping An Insurance 97 Platform-as-a-Service (PaaS) 282 platform-based ecosystems 139 platform-based risk trading 184–185 platform models/approaches 193, 194, 208, 229, 277 Plug and Play Insurance (PPI) 119, 154 policy-driven business model 196–197 policy-holders data collection 171–172 obligations 172–173 risk actions 171–172 specific data 171–172 policy management 89, 195–198 policy purchase 280 policy transformation, smart contracts 242 policy wording 191 Ponemon Institute 175–176 pooling claims 159 data sources 173 P2P business model 202–205 risk management 10 pooling models 150 post-sales processes 168–169 post-sales risk profiling 165 power of utility 284–285 PPI see Plug and Play Insurance pre-sales processes 165–167 predictive analytics 211–214 preference predictors 77 premium cap 26 “premium model” 253 provider-centric approach 50 Prudential Insurance Co v IRC 241–242 psychographics 165–167 Pugh Matrix 149–152 “pull-based” sales approach 155 “pull” insurance 191–192 purchase process characteristics 10–11 “push” approach 155 Q Quality Function Development (QFD) Matrix 149–150 R R&D see research and development random events 218, 220 RDA see Robotic Desktop Automation reactive trends 57–58 real-time B2B claims 180 recovery support 45, 280 redistribution function, risk management 10 referral agreements 135 regionalization 108–110 regulatory environment China 95 credit-based approach 216 cyber risk 175–178 developing countries 94 frictionless insurance 237 ideation process 130 information exchange 139 insurance industry 21 microinsurance 109 reinsurance 182–185, 281 relationship-focused value proposition 19 relationships, startups 134–136, 149 reputational damage 177 research and development (R&D) 118, 123 resistance to change 138–139, 142 resource wastage 99–100 retail industry 153 retention of customers 158 return-on-equity (RoE) 184 returns on investment 122, 232 revenue generation 206–207, 252 revenue models 252–253 risk actions/characteristics 171–172 risk assessment 77–78, 110, 194, 196–197 risk aversion 141 risk carriers 25, 163 risk culture 142 risk, cyber risk 175–178 risk granularization 193, 286 risk hedging 282 risk–insurance connection 10–11, 62–63 risk management 9–10, 157–158, 192, 195–198, 246 risk pools 202–205 risk profiles 165, 286 risk reduction measures 196 risk scenarios 121 risk trading platforms 184–185 risk transfer methods 176, 182 risk types, reinsurance 184 robo-advisory algorithms 275 “robo brokers” 191 Robotic Desktop Automation (RDA) 233 robotic process automation (RPA) 35, 50, 233 311 Index premium payments 280 premiums and discrete events 47–49 preventative approaches 22, 173, 192, 211–214, 220 preventative models 2.0 193 price comparison sites 13, 21, 106, 274 see also comparison websites price-driven messaging 75 price optimization 165–167 price setting 59, 154–156 pricing processes 51, 276 principal component analysis 241 privacy rights 177, 181 proactive trends 57–58 problem-solving 22, 260 process selection 234 producer-to-customer connection 14 product bundling 191–192 see also bundling product design 89 product development 59, 121, 162–163 product disaggregation 191 product innovation 22 product management 157 product redesign 286 product–service relationships 228 productivity 233 profit margins, claims settlement 215 profitability 122, 130, 211–212 project management 130, 132–133 property and casualty (P&C) insurance 158, 282 property insurance 200 “property value hedging technology” 280–282 protection gap 61–63, 91, 155–156 protection proliferation 43–46 protection promise, brokers 19 Index 312 robotics 231–235 AI and 88 benefits of 232 claims process 258–259 deployment of 231 types 232–233 viable processes 234 see also bot-led solutions RoE see return-on-equity Roell, Friedrich 72 role-level analysis, employment 36 RPA see robotic process automation S SaaS see Software-as-a-Service sales opportunities 89, 153–156, 157–158 see also selling process scalability 14–15, 90 Schwab, Klaus 35 scouting 269–270 seamless insurance 50–52 secondary markets 80–82 security AI 246 IT 11 “security-service-ecosystems” 15 self-driving cars see driverless cars self-serving insurance 38, 59 sellers, market economy 208 selling process 58 see also sales opportunities semantic information 241 sensors, transportation 45 sentiment analysis 245 service approach business models 199 design solutions 260 hedging technology 282 reinsurance 183 venture capital 120 voice-based assistants 250 service–product relationships 228 sharing economy 26, 139, 161, 206–210, 255 see also gig economy SHI see supplementary health insurance short duration insurance 154–156 Shrigley, David 42 simplicity 236, 238–239, 260–261 small farmers’ insurance 93 smart business models 199–201 smart contracts 90, 160, 240–243 smart factories 211 “smart insurance providers” 213 smart life insurance 150 smart technologies 138, 171–172, 197, 211 smartphones 155, 162 see also mobile phones social media 32, 167, 168, 277–279 social networks 58 Software-as-a-Service (SaaS) 118, 135, 282 solidarity principles 109 Spanish market 76, 78 speciality risks 205 specialization, startups 201 specific processes 234 speed factors, startups 248 SPIXII story 71–74 spreadsheets 258 stakeholders defining InsurTech stand-alone solutions 154 startup-storming 148 Startupbootcamp 119 startups agile approach 8, 248 AI needs 254 blockchain 247–249 business insurance 47 capacity/specialization 201 car insurance 75–79 claims prevention 57 collaborative approaches 119 customer needs 256 forms of 33 ideation process 140 incumbent insurers collaborations 16 InsurTech differences 24–27 investment in 126–127, 270 micro policies 154 “no” decisions 73–74 open innovation strategy 127–128 opportunities for 281 organizing themes 148–149 partnerships 63, 69, 126, 248–249, 269–270 relationships 134–136 Turkey 102 value chain 152, 159 Stephany, Alex 207 strategic advantage 100 strategic alliances 198 streamlining claims processing 179–180 structured approaches/processes 139, 250–253 subscription business models 197 success celebration 70 success role, human factor 234–235 supplementary health insurance (SHI) 199 suppliers, claims handling 258 supply-driven focus 15 supply-side insurance 274, 286 T tacit knowledge 36–37, 39 tailor-made products 51, 286 talent attraction 227–228 Tapoly startup 256 target-defined insurance 71–72, 130 task-level analysis, employment 36–37 team diversity 70 team goals, tech-first 228 team role, startups 248 tech-first mind-set 227–230 technical differentiations, apps 76 technological enablers 36–39, 162 technological legacies 99 technologies affordability/accessibility 91–92 employment futures 35–36 examples 92–93 innovation 6, interaction 107 introducing 228 limitations of 140 penetration rates 11 protection gap closure 61–62 rapid changes 18 trends 280 telematics 45, 75, 77–78, 109–110, 141–142, 214 third party claims 257 time to value, robotics 232 timing factors, sales 153–156 TongJuBao InsurTech 97 TONIC product 92 touch technology 250–251 TRAMBID term 34 transactional relationships 11, 208 transactional systems 58 transformative innovations 190, 192–194 transparency 11–12, 13, 55, 210 transportation telematics 45 true personalization 51 trust digital trends 59 insurance industry 9–10, 57 peer-to-peer initiatives 58, 201, 205 pension dashboards 56 sharing economy 210 Turkey 102–105 Turtlemint broker 93 two-sided platform models 193 U Uber 254, 256 Uberization, claims surveying 181 UBI see Usage Based Insurance UK Insurance Act 2015 242 UK pensions 53–56 unattended RPA 233 underinsurance 155 under-utilized assets 207–208 underwriting asset management 274, 276 commercial insurance 37–39 development of 33 digital infrastructure 162–163 incumbents 69 manifesto for 39 medical-evidenced-based 80, 82 new businesses 89 reinsurance 183 standard techniques 88 suppliers 258 TRAMBID term 34 value chain 157–158 unicorns 96, 97 uninsurable risks 62–63 United Kingdom (UK) Insurance Act 2015 242 pensions 53–56 United States Dollars, binding 99 universal market competition 121–122 up-selling opportunities 122 US Dollars, binding 99 Usage Based Insurance (UBI) 43–46, 75–76 user-centric approach 7–8, 50 user interface, AI as 51 utility 236–239, 284–285, 286–287 V value chain digital insurance 268–269 ecosystems 148–152 evolution of 23 four-step building guide 148–152 incumbent insurers 7–8 innovation 157–158 insurance companies 280 on-demand services 88 reinsurance 183 uncovering opportunities in 89 value drivers, InsurTech 89 value generation 207 313 Index surges 257 surveying claims 181 syntactic information 241 systemic failure 10–11 Index 314 value propositions 75, 132, 252 value redistribution 286–287 value stack 285–287 values of founders 74 venture capital (VC) 73 corporate 119–120, 135 partnerships 270 startup investment 281 startup-storming 148 visionaries, startups 248 voice-based assistants 250–253 W weak solutions 141 wearable devices 274 white-label insurance carriers 14 Windus, Johannes 72 work futures 194 workforce intelligence systems 233–234 working charter, SPIXII 72 workplace creation 227 Z ZhongAn company 96, 279 ... What is InsurTech? The InsurTech Book :The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries Edited by Sabine L B VanderLinden, Shân M Millie and Nicole Anderson... Companies of the New Silicon Valley Are Changing the World, Little, Brown and Company, 2017 The InsurTech Book :The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries. .. Padstow, Cornwall, UK The InsurTech Book The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries Edited by Sabine L B VanderLinden Shân M Millie Nicole Anderson Editor