Polls, Q&A and feedback

1. Polls, Q&A and Feedback for
The Digital Insurer Webinar:
2018 Digital Insurance Predictions

2. 2
Poll 1
Will Lemonade justify its latest valuation? Would you buy at latest valuation
of US$600 million?

3. 3
Poll 2
Which business models will generate most value?

4. 4
Poll 3
Which parts of the overall insurance value chain are most likely to be
outsourced over the next couple of years?

5. 5
Poll 4
Which of these holds the out most promise for claims innovation in the year
ahead?

6. 6
Poll 5
What is the key benefit for insurers adopting blockchain/DLT into core
operations?

7. 7
Poll 6
Will the insurance industry be able to change fast enough to compete and
partner with the large, agile tech brands?

8. 8
Poll 7
Is C Suite compensation still too short term to ensure longer term digital
innovations are committed to and maintained?

9. 9
Q&A
Question Answer
1) Digital insurance is all about engagement and
experience. How will insurers be able to make money with
the engagement models? Who will pay for the extra
services which are not currently in the core capability of the
insurers?
(1) I would say as long as the service add value then
comsumers will buy. If this is part of an ecosystem then
the cost of distribution can be splt across many
products i.e is attractive to the consumer
(2) We are seeing a variety of approaches - sometimes
priced into core product, sometimes extra charges;
sometimes provided by broker, sometimes by insurer,
sometimes by a partner of either. Specific examples in
cyber insurance include AON/ Stroz Friedberg, Beazley
breach response, AIG cyberedge.
2) Is there any organisations or cohorts that are
specializing in consulting the New Comer (Insurer who start
their business model from scratch) to build the appropriate
business model?
(1) That would be all the traditional consulting firms, but of
course especially the ones who have deep insurance
expertise, like KPMG
3) Working on a pure digital insurer platform is nice for
simplified products but how can this be combined with AI to
handle more complex and personalized situations like
Health insurance which for complexity is very high on the
list of things to digitalize?
(1) My view is that chatbot offer a great way to experiment
with the AI to human interface for sale of more complex
products
4) What are the biggest roadblocks for insurances
companies to adopt a customer centric business process
that augment well in social or digital channels not just a
website or Mobile APP ?
(1) Flexible, nimble and agile supporting IT infrastracutre
who'll provides the real time personalized business
value to the customers.
(2) I would say the biggest current roadblock is the
insurance company having a real single view of
customer to inform any conversation on social media -
so everything is still very reactive.

10. 10
Q&A
Question Answer
5) In spite of the hype of benefits, the ecosystem driven
Digital and Connected Insurance seems not to have picked
up. What is the actual problem that drags adoption?
(1) Think there are good example in China working well .
But a key driver will be for people to experience the risk
reduction i.e services that keep me safe (from an
individual perspective)
6) In such an ecosystem, who can effectively be the owner
of it, and who will the orchestrator of this ecosystem? Will
there be any go-between (I will call them adhesive)
companies
(1) My view is to do a scale need a modern tech stack
7) Can Digital Business Models and InsurTech enablers be
the same if we talk about retail insurers versus commercial
insurers?
(1) Interesting question. We have seen some platform
plays start as distrbution models and then trend to
enablers . not so much in the other direction?
8) How do you see regulation and governance evolving in
these ecosystems?
(1) Yes, in a positive way. Open Banking / APIs will
penetrate the insurance world and will force insurere to
open themselves.
9) I am trying to pick up on the new models being referred
to by theme number 5..what are those?
(1) I think in terms of ""digital first"" models instead of
Physical first models
10) As regards chatbots driven by AI, they are currently
treated as another piece of software code and not
regulated. When do you think they may be considered as
serious customer suggestion/enticement for regulation?
How can such regulation be realistically enforced?
(1) Hi. hopefully it will be not overregulated as will be a
great sale process . But the good news is all the data is
iollected to very easy to monitor
11) Can blockchain disrupt the whole insurance industry. Is
it a treat or a change?
(1) Is it still a solution looking for a problems or some reslly
good use cases

11. 11
Q&A
Question Answer
12) In regards to the new business models of Insurtechs, I
am still not quite convinced of how „new“ the business
models really are, i.e. to me it seems like most Insurtechs
simply provide insurance services using new technology
such as analytics, digital distribution channels, etc. Which
aspects of Insurtech business models do you feel are truly
new?
(1) What you say is largely true, and a natural phenomenon
based on what problems people want to solve. But I
would say micro insurance is an example of new
approaches, as would be on demand insurance
13) The products and companies that are getting most
press are B2C but are commercial insurers changing their
business models too?
(1) Yes, commercial insurers are increasingly active,
particularly in three areas: 1) Product: expanding
services related to the underlying product (e.g. in
property, marine, cyber) 2) Distribution - exploring or
developing 'digital platforms' particularly at the SME
end; 3) operations: rethinking claims and processing,
exploring blockchain.
14) What is a Physical model and what is a digital model? I
only see that our insurer need to renew their IT and make
much more automized and in realtime, no breaks by
interfacesAnd they have to develop new tariffs and services
and business lines
(1) Physical is face to face first based sales. Very Difficult
to move (Asia Perspective) from face to face to digital
first
15) Payment is a very import process but is not on the
focus by insurer
(1) Absolutely . Ant / Alibaba and Tencent are making
payment moves in SE Asia - Ref Gojek in Indonesia
16) Banking as a Service (BAAS) is evolving, can we see
that evolving in Insurance - Insurance as a Service
(1) Yes. The shift from protection to prevention is an
example of this trend.

12. 12
Q&A
Question Answer
17) Do you think firms like Amazon would bother partnering
with an insurance player if they beliewve they have capital,
distribution, data and analytics themselves?
(1) Yes, because amazon's primary goal is to drive
consumption on the platform. it's inevitable they will
provide insurance to enhance their customer
proposition, but i dont see them entering the insurance
market per se
18) Major Insurance players are yet to embrace omni
channel customer interaction (Selling & servicing ) To
enable this the biggest limitation I think is the digital gap
between the operational systems and marketing systems ,
whats your take?
(1) I agree completely - legacy systems that focus on
policies don’t play well with digital / mobile / cloud
systems that focus on customers
19) Due to the inherent importance of price within the UK
Motor Insurance market, do you think customers are ready
for a "one-click switch" approach if there is a service
available to enable that?
(1) personally I would really like it if that one click was
guaranteed to broke my motor risk and get the best
price. Longer term perhaps my car emanufacturer will
manage that?
20) How do you see the (life) insurance industry embracing
or otherwise Gene Based therapies. It is not directly digital
related but does represent a change in insurance model in
that pooled risk models won’t necessarily apply. Yet there
will be plenty of data to process and will thus be amenable
to a data savvy tech insurer to exploit.
(1) Tough one. many markets have a moratorium on gene
based UW but how long will that hold as cost of testing
become routine? I do think ""keep me healthy"" is the
way forward for life companies
21) Any views on Bought by Many? does it make sense to
crowdsource (niche) insurance?
(1) Not sure. I really like the BBM model but it might evolve
more into pre packaged products offered to relevant
consumers using data analytics?

13. 13
Q&A
Question Answer
22) Traditional insurer vs. GAFA (Google, Apple, Facebook,
& Amazon) or new player like LemonadeWho will be the
first ""Kodak""? (Re)insurers understood that, but they are
not really making internal transformations including
""cultural"" or they are doing too slowly.When the first one
will downfall, it will be too late for the second one… What
do you think ?
(1) Great point. I agree internal transformations are far too
slow - because it's difficult and there's not sufficient
clarity or will to make it happen. Insurers have had to go
into run-off phases in many life insurance markets (this
driven by regulation rather than tech) and I'd expect a
run-off phase driven by tech in other parts of insurance.
23) Can you name a digital broker company? (1) Bought by Many . Many of the aggregators / Price
comparison sites also use broking licenses
24) With many insurtech startups offering similar
propisitions in the B2C world, where can they now look to
really push incrimental vital change in the commercial B2B
world, and what startups are leading the way here?
(1) There are a large number of startups improving specific
parts of the commercial value chain but there's no
standout full stack play. Examples of narrow plays in
marine include insuremytrans, focused on cargo
insurance, 30mhz helping insurers use IOT, Consirrus,
a marine insurance platform.
25) Any statistics on how many times in a year a (sorry)
average client interracts with his or her insurance?
Obviously this impacts the focus on where improvements
need to be made.
(1) Perhaps the challenge is to add services that result in
higher levels of engagement?
26) What would be you opinion on a personal financial bot
app. Handling all personal finance activities including
Insurance, Banking, Pension Savings and Private
investing
(1) Will we all have bots with our own avatars ?

14. 14
Q&A
Question Answer
27) If digital players suceed in making loss prevention and
loss mitigation much better allowing premiums to drop
significantly will customers continue to buy insurance or will
the market ultimately shrink as individuals become more
inclined to self insure?
(1) It will grow because many people have not yet
purchased insurance - just cost will reduce as risk is
lower. Insurers may well get a much higher % of
revenue from servies and not insurance premium .
Exception could be Motor insurance...
28) On a quirky note - are too much of digital initiatives,
completely distancing insurance from boomers, elderly and
luddites?
(1) yes, just as the demise of cheques and high street
branches has done for banking.
29) In terms of connected home, are the technologies
available right now just B2C plays or do they offer a
genuine risk assessment/management tool for insurers
(1) If insurers can access the data then the opportunities
are excellent
30) If all the data of each idividual will be available like a
profile and analyzeable automatically, so no human would
have access on it, but only algorithms will analyse the risk
statistic - will we deliver individual policies? And what are
your thoughts whether the primium will change based on
their
(1) Yes, this is inevitable IMHO. Premiums will change but
the big benefit for customers is that the cover will be
specific to the individual. Price will be less important as
a result.
31) Even Zhong An and Ant Financial are looking for
insurance partnerships where they do not have expertise.
If the Partner Model is more likely then they are already
ahead of the game. Will this then move the value chain for
traditional insurers because they cannot compete with
Zhong An and Ant?
(1) Yes. insurers will need to be partner friendly. David
Milligan' discussion on paltform as a services seems
relevant here

15. 15
Some of the feedback from attendees
“I really think it is
perfect. Very well
done, good
dynamics, interesting
topics.”
“Diverse views”
“Good panel. lots
of ground
covered.”
Total registrations: 698 Total attendees: 238 NPS: 48%
Top 10 countries for registrations (%)
Country Registration %
United Kingdom 15%
United States 12%
India 8%
Singapore 7%
Hong Kong 5%
Germany 5%
Canada 4%
South Africa 3%
France 3%
Australia 3%