InsurTech: Enabler or disruptor? - ANZIIF/media/files/pdfs/events pdfs/2018...InsurTech: Enabler or...
Transcript of InsurTech: Enabler or disruptor? - ANZIIF/media/files/pdfs/events pdfs/2018...InsurTech: Enabler or...
InsurTech: Enabler or disruptor? Australia’s report into the InsurTech ecosystem
Andrew Parton, Partner EY
Brenton Charnley, Chairman Insurtech Australia
Where have we come from?
2015
2016
Mar. 2017
Sept. 2017
Oct. 2017
Jan. 2018
Now
InsurTech booms globally, early
days in Australia
Insurtech Sydney
& Melbourne
Meetups
ANZIIF Insurtech
Conference
Macquarie Bank
US Study Tour
Insurtech
Australia
launched
Global Insurtech
Alliance
launched
Over 30 members, 20 partners,
investments…we’re on our way
But, we’re just getting started…
We only represent 1% of the global insurtech community
23%
40%
17%
20%
Years of operation
0-1 years
2-3 years
3-5 years
6+ years
30%
20%
33%
17%
Stage of the company
Pre-launch
Post-launch (pre-revenue)
Post-launch (post-revenue)
Post-launch (post-profit)
Insurtech as an enabler
Insurtech is enabling the value propositions in Australia
New products to
deliver better customer value
propositions
Innovative marketing and
distribution
Pricing and underwriting
agility
Efficient insurance
administration
Smarter loss prevention and remediation
23%
23%
12%
18%
24%
New product to address customer value proposition
Innovative Marketing & distribution
Pricing and Underwriting Agility
Efficient Insurance Administration
Smater Loss prevention and remediation
Key themes: Collaboration needed
Greater levels of collaboration are needed between insurtech and incumbent insurance players1
Key themes: Playing to strengths
Insurtechs and incumbents need to leverage their strengths when partnering2
Key themes: Short runways, longer sales
Insurtechs are bootstrapping with short runwaysand longer sales cycles3
Key themes: Insurtech growing pains
Insurtechs need to overcome both their internal challenges in growing as well as the challenges of working with slower moving incumbents
4
Key themes: We’re building momentum
The Australian ecosystemis young, growing very fast and represents a great launch pad into other regions
528%
38%
10%
10%
7%7%
Capital raised to date
<$100k
$100k-$500k
$501k-$ 2m
$2.1m-$5m
$5.1m-$10m
>$10m
The value of InsurTech deals globally is significant and continues to rise…
…and Insurtechs want to work with insurers
1.Acceleration of innovation
2.New market entry opportunities
3.New digital customer propositions
4.Enablers of new business models, e.g., platforms & ecosystems)
5.To satisfy their curiosity, e.g., ‘I want to get an ecosystem!’
6.To hedge their bets, e.g., a ‘blind’ investment to participate in the new economy in some shape or form, i.e., ‘me too’ play
Incumbents often seeking
1.Access to customers
2.Help to scale into new markets
3.Sharing of Data
4.Provision Of capital / investment
5.Accelerator/Incubator program
6.Underwriting capacity
InsurTech startups often seeking
But where to start and what to do?
I need to understand
what digital innovations
to apply to my
organisation and
where..
The volume of Insurtech
vendors continues to grow,
making the selection process
of who to work with more
difficult..
The time and cost to test new
digital capabilities is high, and
the risks associated with being
‘wrong’ can be significant..
How do I balance freedom to
experiment with the need to
integrate and scale..
What digital innovations to apply and where?
The foundation for new businessmodels and products, plus easier data access for all parties
Digital insurers combine these
technologies acrossthe value chain
New competition and partnership opportunities for insurers, with a focus on
advanced risk mitigation techniques
Invaluable data streams for moreprecise underwriting, more responsive claims management and product innovation
Automation of core number crunching and transaction processing, focusing
humans on high-value tasks
New and deeper insights into customer needs, market trends and emerging risks based on advanced pattern recognition
Drones & SatellitesAutomation of many tasks previously handled by humans in claims and underwriting
— with efficiency gains up to 40%
Blockchain
Telematics
Artificial intelligence (AI)
Intelligent Automation/Robotics
Internet of things (IoT)
The combination of value chain, technologies, products and creates a vast universe of opportunity
Marketing
& Distribution
Immersive
Training – AR/VR
Claim
Management
Policy
Admin Underwriting
Corporate
Functions Product
AI: Investor
engagementRPA:
Compliance
reportsAI & RPA:
Automated
Financial ReportingRPA: Claims
settlement
RPA: Automated
Pay & Close
Drones for
Claim & damage
assessment
Digital
underwriting -
Blockchain
loT: Loss
Prevention
Automated Ins.
& Adjudication
Weather
Statellite: Claims
Fraud Detection
AI:
Customized
policy creation
RPA: Mobile
app based RPA
Blockchain:
Re-insurance
Customer
self-service
Big Data Usage
Model: Personal
Property
Blockchain:
Peer-to-Peer
Smart Policy
Telematic:
Automated
FNOL
Robo Advisor
Customer PolicyAI: Online
Policy
Acquisition
Satellite:
Customer
Acquisition
Artificial
Intelligence:
Cross-selling
AI: Predictive
Robo Sales
Social
Media
Acquisition
Unified digital
shop for
Insurance-
Blockchain
Interactive
service
experience -
AR/VR
Virtual Sales
assistant
AI: Risk ProfileDrones: Asset
Automated
Inspections
loT: Smart
device trigger
Telematics:
Fleet Insurance
Insurance valuechain
On what horizon should you focus your insurtech, digital and innovation efforts?
And what levels
of investment
and return should
you expect?
Type of growth
Disruptive
New customers
New to the world
TransformationalNew to you
New to you
Incremental
Existing
Existing
10%
70%
20%
20%
70%
Ideal level of
enterprise investment
10%Return on investment
Illustrative figuresProducts / business models
Cu
sto
me
rs / m
ark
ets
How do you scale – look at all of the digital enablers across your enterprise
Innovation
Agility
Workforce anddigital culture
Customer activation
Cybersecurity and risk
Experience design
Data and analytics
Digital architecture
Digital governance
Getting started - EY Insurance Hub process
Define the
problem/opportunityStep
1
An Insurance Hub Pod Approaches to charter
an Insurance Hub Pod :
1. Insurance carrier defines the
business problem to
solve/opportunity to explore
2. EY defines the Pod, and invites
a carrier(s) and Insurtech(s) to
participate
Our Insurance Hub process
An Insurance Hub Pod 1. Insurance company supplies
participating business and
technology resources
2. Selected InsurTech vendors
supply their technology and
necessary support resources;
facilitated by EY
3. EY provides the required EY
insurance business advisors
and technology developers
4. EY supplies the technical
development environment and
workspaceDefine the
problem/opportunityStep
1
Define & assemble the
team and technologyStep
2
Our Insurance Hub process
An Insurance Hub Pod A working prototype that can be
leveraged for a future production
release is jointly built by the
insurance company, the InsureTech
vendors and EY business and
technology resources.
Define the
problem/opportunityStep
1
Define & assemble the
team and technologyStep
2
Define plan, build
& test solutionStep
3
Our Insurance Hub output
An Insurance Hub Pod With code in hand, and
business/technology proposition
either proven or disproven, Insurer
can decide next steps.
Proposition & MobilizationFocused on prototype definition,
mobilization, backlog1-2
POC DevelopmentFocused on coding, UI
development3-4
Knowledge ExchangeFocused on POC vetting, user
feedback5-6
Implementation
Code pack delivered7-8Sprint
Sprint
Sprint
Sprint
From the EY Digital Insurance Innovation CenterUse case: Automated claims with advanced telematics
How do we obtain evidence of what really happens in a
motor accident and make the claims process seamless for
the customer?
Business problem• Integrate advanced telematics data with core processing
systems to communicate with customers via chatbot
• RPA extends from first notification of loss through to payment and claim settlement
Business opportunity
Secure paymentsystem
Advanced telematics
data
Advanced telematics data captured and downloaded from the cloud
Integrated chatbot platform
Automates claim workflow and interacts with claimant Processes payments on the basis of chatbot triggers
So, what’s next for Australian insurtech?
Andy & Brenton’s 5 point plan…
Businesses don’t do business with each other– people do1
Incumbent players to define how to innovate beyond the core2
Type of growth
Disruptive
New customers
New to the world
TransformationalNew to you
New to you
Incremental
Existing
Existing
Get involved - an ecosystem thrives when people participate and support each other3
Start small and focused, but begin with the end in mind4
Proposition & MobilizationFocused on prototype definition,
mobilization, backlog1-2
POC DevelopmentFocused on coding, UI
development3-4
Knowledge ExchangeFocused on POC vetting, user
feedback5-6
Implementation
Code pack delivered7-8Sprint
Sprint
Sprint
Sprint
Look across your operating model to become a truly digital enterprise5
Innovation
Agility
Workforce and
digital cultur
e
Customer activation Cyberse
curity andrisk
Experience design
Data and analytics Digit
al architecture
Digital governance
Thank you
Andrew Parton, Partner EY
Brenton Charnley, Chairman Insurtech Australia
Insurtech Ecosystem Report due 11th May please see us at Insurtech alley
to register for a copy.