INSURTECH Trends, disrup,ons and inves,ng Zurich – May 3 rd 2017
2 of the #InsurtechTop9 influencers Minh Q. Tran Florian Graillot @Minh_Q_Tran @FGraillot
What we have built for AXA in AXA Strategic Ventures
AXA Strategic Ventures s € 10->250->400 4 |
AXA Strategic Ventures s 5 |
Why do we search worldwide for Disruptive Technology ? @Minh_Q_Tran
Framework for spoting disruptive innovation Macro trends Technology Business Trends Trends Disruptive User innovation Trends @Minh_Q_Tran 7
Digitalization of music Digital right 1 € per management song Listen to music online iTunes @Minh_Q_Tran
@Minh_Q_Tran
What is InsurTech ? @Minh_Q_Tran
InsurTech = technologies that might impact/disrupt insurance businesses InsurTech will be the next FinTech Many sub-industries… … under 3 verticals + prevention scope RegTech Digital Leads Life FinTech Prevention Big Data InsurTech InsurTech Health IoT P&C Cyber Security Digital Health @Minh_Q_Tran 11 |
Why Insurance has a strong potential for disruption ? @Minh_Q_Tran
Here are the 4 main reasons why Insurance is open to disruption Because this industry is very attractive … with regulation as a barrier-to-entry … Insurance is a huge market worldwide … • Solvency II Non-life Life • Agents (MGA) Insurance Insurance • Broker • Reinsurer $2.3T $1.4T … but digitalization is well behind other … where technology is at the center industries like banking on several aspects … • 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 @Minh_Q_Tran 13 | Source : https://medium.com/@robmoff/disrupting-insurance-4cf61fb8c551#.ofh3bhzbb
InsurTech has already attracted significant investments @Minh_Q_Tran
InsurTech investments are growing… InsurTech will be the next FinTech InsurTech investments are lagging 2 years behind FinTech, but growth might be faster @Minh_Q_Tran 15 |
… including investments from insurance companies And insurance companies themselves are investing in InsurTech Most active Insurance investors Insurers mainly focus on “strategic” opportunities. @Minh_Q_Tran 16 | Source : https://www.cbinsights.com/blog/insurance-startup-investing
Incubators are the most active so far… Major investors and incubators are investing in InsurTech Incubators/Accelerators are the most involved in InsurTech meaning InsurTech is still in the early days. @Minh_Q_Tran 17 | Source : http://insights.venturescanner.com/2016/01/25/number-of-investments-by-top-insurance-technology-investors/
… and most InsurTech startups are still in early days Most of the deals were done in the US Series A/B (5%) Seed Pre-A (95%) @Minh_Q_Tran 18 |
How to look at the InsurTech space @Minh_Q_Tran
Horizontal: all the value chain is being challenged by startups InsurTech map (2/2) Out of 2.000 leads received in 1.5 year, 13% were fully InsurTech startups Product & Pricing Distribution Claim 50% 15% 35% of ASV dealflow of ASV dealflow of ASV dealflow From “one size fits all” to customized & From manual to From off-line to on- per-use products thanks to Big Data, cloud-based line sales. Machine Learning, … claim process. @Minh_Q_Tran 20 |
Vertical: all business lines are targeted by InsurTech startups P&C Life Insurance Health @Minh_Q_Tran 21 |
What we think might happen in InsurTech @Minh_Q_Tran
How Internet of Things (IoT) could reshape insurance s • Generate data by measuring customers behavior & environment • Anticipate risks and increase What for ? number of opportunities to • Collect & mobilize more interact with customers. diversified source of relevant data • Better size risks and price risk accordingly even on a personalized basis. • Health: smart watch, fitness band, connected breathalyzer, food • Prevent from accident Which use sensor, … case ? • P&C: car telematics, smart home, water leak tracker, … @Minh_Q_Tran 23 |
How Big Data could help better do insurance s Create personalized policies Train AI / Machine Learning technologies Claim management • Insurance companies have huge sets of data More on claim (e.g. car accident: pictures, list of Collect data engagement damages, pricing to repare, money reimbursed) • AI / Machine Learning startups need lots of data to make their technology relevant Better user Personalized • Opportunity for insurance companies to experience products partner with startups to better leverage their datasets through cutting-edge analysis tools and technology @Minh_Q_Tran 24 |
Full-stack digital leads in life insurance s * Contact Qualify KYC Value chain Generate leads management leads Subscription ASV portfolio Startups identified @Minh_Q_Tran 25 | * http://www.cnet.com/news/your-next-insurance-agent-will-be-a-robot/
Just-in-time insurance: customized & per-use products s Mobile broker Manage insurance policies in 1 place, then sell relevant insurance products. On-demand Just-in-time insurance insurance Sell the right insurance policy the right policy at the right at the right time. time P2P insurance Sell niche products to homogeneous customer bases. @Minh_Q_Tran 26 |
GAFA could compete on personalized products Even Internet giants are interested in InsurTech Level of information What kind of actor What kind of data on customers GAFA know almost everything about high their customers (position, move, activity, … ) Banks know limited info based on payment habits (where customers purchase goods) Insurers know only data given by their low customers (size of apartment, overall value of belongings, … ) Internet giants might be the first to sell personalized insurance policies. @Minh_Q_Tran 27 |
Direct link from startups to re-insurance companies s 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 28 |
Coming soon: Disruptive Technology Building Innovation/Investment Platform @Minh_Q_Tran
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