INSURTECH Trends, disrup,ons and inves,ng Zurich May 3 rd 2017 2 - - PowerPoint PPT Presentation

INSURTECH

Zurich – May 3rd 2017

Trends, disrup,ons and inves,ng

2 of the #InsurtechTop9 influencers

Minh Q. Tran

@Minh_Q_Tran

Florian Graillot

@FGraillot

What we have built for AXA in AXA Strategic Ventures

s

4 |

AXA Strategic Ventures

€10->250->400

s

5 |

AXA Strategic Ventures

Why do we search worldwide for Disruptive Technology ?

@Minh_Q_Tran

7

Technology

Trends

User

Trends

Business

Trends

Framework for spoting disruptive innovation Disruptive innovation

Macro trends

@Minh_Q_Tran

Digital right management Listen to music online 1€ per song

iTunes

Digitalization of music

@Minh_Q_Tran

@Minh_Q_Tran

What is InsurTech ?

@Minh_Q_Tran

InsurTech will be the next FinTech

11 |

InsurTech = technologies that might impact/disrupt insurance businesses

Many sub-industries… … under 3 verticals + prevention scope

IoT Digital Health Cyber Security Big Data FinTech RegTech Digital Leads

InsurTech

Life Health P&C

InsurTech

@Minh_Q_Tran

Prevention

Why Insurance has a strong potential for disruption ?

@Minh_Q_Tran

Because this industry is very attractive

13 |

Here are the 4 main reasons why Insurance is open to disruption

Insurance is a huge market worldwide… … with regulation as a barrier-to-entry… … where technology is at the center

• n several aspects …

… but digitalization is well behind other industries like banking

Life Insurance $2.3T

Non-life Insurance $1.4T

• Solvency II
• Agents (MGA)
• Broker
• Reinsurer
• Mobile for distribution
• Big data for underwriting
• Machine learning for personalization

Personal Banking Online Merchants Media Retail Electronics Retail Apparel Retail Airlines Investments Hotels Supermarkets Electricity, Gas, Water Automobiles Government Services Healthcare Providers Insurance Real Estate Telco & Cable

Source : https://medium.com/@robmoff/disrupting-insurance-4cf61fb8c551#.ofh3bhzbb

@Minh_Q_Tran

InsurTech has already attracted significant investments

@Minh_Q_Tran

InsurTech will be the next FinTech

15 |

InsurTech investments are lagging 2 years behind FinTech, but growth might be faster

InsurTech investments are growing…

@Minh_Q_Tran

And insurance companies themselves are investing in InsurTech

16 | Source : https://www.cbinsights.com/blog/insurance-startup-investing

… including investments from insurance companies

Most active Insurance investors Insurers mainly focus on “strategic” opportunities.

@Minh_Q_Tran

Major investors and incubators are investing in InsurTech

17 | Source : http://insights.venturescanner.com/2016/01/25/number-of-investments-by-top-insurance-technology-investors/

Incubators are the most active so far…

Incubators/Accelerators are the most involved in InsurTech meaning InsurTech is still in the early days.

@Minh_Q_Tran

Most of the deals were done in the US

18 |

… and most InsurTech startups are still in early days

Series A/B (5%) Seed Pre-A (95%)

@Minh_Q_Tran

How to look at the InsurTech space

@Minh_Q_Tran

InsurTech map (2/2)

20 |

Horizontal: all the value chain is being challenged by startups

Out of 2.000 leads received in 1.5 year, 13% were fully InsurTech startups 35%

• f ASV dealflow

50%

• f ASV dealflow

15%

• f ASV dealflow

Distribution Claim Product & Pricing

From “one size fits all” to customized & per-use products thanks to Big Data, Machine Learning, … From off-line to on- line sales. From manual to cloud-based claim process.

@Minh_Q_Tran

21 |

Vertical: all business lines are targeted by InsurTech startups

Life Insurance Health P&C

@Minh_Q_Tran

What we think might happen in InsurTech

@Minh_Q_Tran

s

23 |

How Internet of Things (IoT) could reshape insurance

What for ? Which use case ?

• Generate data by measuring

customers behavior & environment

• Collect & mobilize more

diversified source of relevant data

• Health: smart watch, fitness band,

connected breathalyzer, food sensor, …

• P&C: car telematics, smart home,

water leak tracker, …

• Anticipate risks and increase

number of opportunities to interact with customers.

• Better size risks and price risk

accordingly even on a personalized basis.

• Prevent from accident

@Minh_Q_Tran

s

24 |

How Big Data could help better do insurance

Create personalized policies Train AI / Machine Learning technologies Claim management

• Insurance companies have huge sets of data
• n claim (e.g. car accident: pictures, list of

damages, pricing to repare, money reimbursed)

• AI / Machine Learning startups need lots of

data to make their technology relevant

• Opportunity for insurance companies to

partner with startups to better leverage their datasets through cutting-edge analysis tools and technology

Collect data Personalized products Better user experience More engagement

@Minh_Q_Tran

s

25 |

Full-stack digital leads in life insurance

Generate leads Contact management

* http://www.cnet.com/news/your-next-insurance-agent-will-be-a-robot/

Value chain ASV portfolio Startups identified KYC Subscription Qualify leads *

@Minh_Q_Tran

s

26 |

Just-in-time insurance: customized & per-use products

Mobile broker

Manage insurance policies in 1 place, then sell relevant insurance products.

On-demand insurance

Sell the right insurance policy at the right time.

P2P insurance

Sell niche products to homogeneous customer bases.

Just-in-time insurance

the right policy at the right time @Minh_Q_Tran

Even Internet giants are interested in InsurTech

27 |

GAFA could compete on personalized products

Level of information

• n customers

What kind of actor What kind of data high low GAFA know almost everything about their customers (position, move, activity, …) Banks know limited info based on payment habits (where customers purchase goods) Insurers know only data given by their customers (size of apartment, overall value of belongings, …)

Internet giants might be the first to sell personalized insurance policies.

@Minh_Q_Tran

s

28 |

Direct link from startups to re-insurance companies

Risk for insurance companies is to be bypassed as re-insurers might use InsurTech startups as a front end to get a direct relationship with customers.

@Minh_Q_Tran

Coming soon: Disruptive Technology Building Innovation/Investment Platform

@Minh_Q_Tran