A Global View of Insurtech June 8 2017
A Global View of Insurtech June 8, 2017 Chris Dougherty & Lauren Pollock © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 1
Insurtech -A movement by entrepreneurs, investors, and incumbents to significantly improve ("disrupt") insurance through the application of new technologies. 2
Explosion of activity in insurance innovation as carriers seek to remain relevant © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 3
2016 Insurtech funding at $1. 7 billion and 174 deals -- 2017 on track to maintain strong momentum © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 4
Bulk of Insurtech startups are in the US but Europe and India are gaining traction Source: Willis Towers Watson -- Quarterly Insur. Tech Briefing Q 1 2017 © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 5
Investor landscape includes Accelerators, VCs, CVCs, and Global (Re)insurers © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 6
Insurtech startups bringing products to market in 2017 YTD © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 7
Incumbents are valuable (critical? ) partners to new ventures in insurance Knowledge & Resources Relationships & Distribution Regulatory Interface First Customer Capital and Investment 88
Insurtech partnerships are essential for carriers to transform their business model Through partnerships Insurers are getting… - Access to emerging technologies - A deeper understanding of the customer - A new way of working; design thinking / sprints Partnerships are essential for Insurers to launch better designed / relevant products, decrease frictional costs, and enhance overall customer experience © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 9
The disruptors and enablers © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 10
“If the Insurance Industry does not innovate and become more relevant, we are in danger of being left behind. Soon. ” - Mike Mc. Gavick, CEO © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 11 11
© 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 12
XL Innovate focuses on these four pillars Acquisition & Distribution Operational Costs Business Intelligence § Selection § Automation § AI / ML § Customer Satisfaction § Simplicity § Automation § Efficiency § Data § Cost § Analytics Cost of Capital § Over Capitalization Efficiency § Velocity § Investment § Taxation § Sourcing © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 13
© 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 14
© 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 15
© 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 16
Accelerate works with our internal business units to create commercial opportunities that arise from emerging technologies – We make things go faster! © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 17
Accelerate’s key criteria to prioritize partnerships and experiments Business sponsor appetite / hunger Shared Value, in particular customer benefit Alignment with Elephants The ‘Wow’ factor Scaling potential Quick win potential and confidence in delivery Differentiation / USP from partner © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 18
Case study: Our partnership with Oxbotica © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 19
Building a culture where innovation can thrive is essential to our industry’s success Create & embrace the chaos Build diverse teams Experiment Learn from Failure Be curious Build partnerships Create a bold, empowered culture © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 20
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