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Market Disruptors in Insurance
Scott Topper, PwC Insurance StrategyDecember 5, 2016
2016 IASA Carolinas Winter Meeting
PwC | Future of Insurance
“With dramatic advances in
software and data, shouldn’t the way we buy and experience our
insurance products change dramatically? ”
16 Things from Andreessen Horowitz,
2015
page 1
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
According to PwC’s Global CEO survey, the insurance industry is undergoing more upheaval than any other industry
page 3
69%Changes in distribution
channels 49%Changes in
availability and use of data
88%Changes in regulation
71%Changes in customer behavior
C a u s e s o f D i s r u p t i o n
Emergence of Innovative
Business Models
Exploding Intelligence and Automation
Consumerization of Decisions
Digitization of Everything
Source: PwC Annual Global CEO Survey
The Insured
Driven by social and technological trends, next generation of insureds will demand solutions to help them and their peers to manage and prevent potential disruptions in individuals and businesses lives.
Contextual
Preventive
Personalized
On-demandRewarded
Shared
Financial impact
ExperienceImpact
Wave 1 Wave 2 Wave 3
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. page 4
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. page 5
Customer RevolutionShifts in customer expectations, information access and diversifying needs are creating networks of self-directed, self-organizing and self-aware groups
Power shifting to customers
Growing expectations & sophistication
Rise of sharing economy
Emerging models of advice
Trends• Proliferation of mobile devices• Widespread adoption of social
media networks• Changing behaviors and
demographics
For each customer there is only “one best experience”, and the
attributes of this experience must be in all interactions
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. page 6
of Smartphone users use the Internet to shop at least once
a month
79%of Adults have Mobile
Devices within Arm’s Reach 24/7
91%Sources of information used
by insurance shoppers
11.7of consumers use at least one
type of social media
95%
Consumerization of decisionsShifts in customer expectations, information access and diversifying needs
are creating self-aware, self-directed, and self-organizing groups
page 6
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Millennials represent a sizable, growing workforce demographic, constituting 50% of the workforce by 2020
page 7
50%50%
25%
75%
2011 2025
12011 PwC study, “Millennials at Work: Reshaping the Workplace.”2Forbes, “Millennials are the True Entrepreneur Generation.”
75%
25%
2020
Change in Workforce Demographics1,2
Other generations Millennials
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. page 8
Millennial Small Business Owners67% of Millennials indicate interest in starting their own
business, representing a greater opportunity for small commercial insurers relative to previous generations1
of Millennial entrepreneurs are optimistic the local
economy will improve over the next 12 months2
82%of Millennial entrepreneurs plan to grow their business
in the next 5 years, compared with 73% of Gen X-ers and 57% of Boomers2
87%of Millennial entrepreneurs applied for a business loan within the past two years,
compared with 30% of Gen X-ers and 20% of Boomers2
58%of Millennial entrepreneurs give themselves an “A” or a
“B” on tech-savviness2
85%
1Forbes, “Millennials are the True Entrepreneur Generation.”2Bank of America, Small Business Owner Report, Fall 2014.
page 8
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Millennials are highly-informed consumers and value authenticity, seeking out sources of advice perceived as trustworthy and ignoring advertising
page 9
Of the 80 million millennials living in the U.S. today, about 43% rank authenticity over content when consuming news1
About 33% of all millennials rely on blogs for information when making a purchase, compared to older generations that consumed information via traditional channels2
Only 1% of millennials rely on advertisements to make them trust a brand or company3
12014 PwC study, “Playing for Keeps: How insurers can win customers, one at a time.”2,3Forbes, “10 New Findings about Millennial Shoppers.”42015 PwC study, “Shopping for Growth: Optimizing acquisition to drive growth in insurance.”
AwarenessCustomer is made aware of the company and it’s offerings
Information GatheringCustomer reaches out to the company to gather further information
QuoteCustomer requests a quote to determine premium amount
PurchaseCustomer’s quote is accepted or amended and policy is paid for and bound
Television Social Media
Website/Mobile
Call Center
Online Quote
Online Purchase
Purchase with Agent
Older consumers Millennials
Channels Accessed Over Customer Journey4
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Once a purchasing decision has been made, millennials will develop loyalty and relationships with companies and brands that consistently deliver value
page 10
Brand Loyalty among Millennials
• Brand loyalty matters to millennials –60%2 say they are often or always loyal to brands they currently purchase
• Millennials will be more loyal as brands continue to engage them –62%2 say that if they are engaged on social networks, they will become more loyal customers
• 75%2 of millennials say it is important for companies to give back to society in addition to making a profit – millennials may be more loyal to those companies committed to corporate responsibility
Top Brands among Millennials1
1Business Insider, “Top 100 Millennial Brands 2015” 2Forbes, “10 New Findings about Millennial Shoppers.”
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Social media is increasingly used by commercial carriers to reach a larger segment of the small business market
page 11
Hiscox allows its customers to submit reviews directly on its website and then post those reviews on a variety of social media platforms. It also allows customers to share links to various whitepapers from its website on social media platforms
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
New companies are also emerging in the P2P space with updated approaches and compelling “online” experiences to meet sharing economies
page 12
“Bought By Many clubs together people to buy insurance. The
bigger the group, the better the deal.” – Source: Company via
Mattermark
Source: https://boughtbymany.com/
Health sensors
The Risk
New risks will emerge related to the new technologies, but in general risks will become more predictive and manageable, allowing models to shift from protection to prevention.
Connected Cars and
ADAS
Industrial Sensors
Other sources:
CAT, Weather,
Imaging, etc.
Connected Homes
Behavior influencers
Risk mitigation
Risk factors
detection
Soft Telematics
Lifestyle
Populat-ion
health
Smart cities
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. page 13
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Companies are increasingly utilizing smart, connected sensor technology, an integral part of the Internet of Things (IoT)
page 14
Sensor Technology Adoption Internet of Things
SensorsSensors measure some characteristic of an object or the environment it is in
Networking PlatformsMeasurements are relayed as structured data on a network
Big Data and ComputingData is gathered in real-time and continuously, driving decisions from analytics
The Internet of Things transforms the data from sensors to become valuable information, so product improvement can occur along with enhanced customer experience
*Top Performers are companies are in the top quartile for revenue growth, profitability, and innovation
Source: PwC 6th Annual Digital IQ survey, 2014 over 1,500 executives
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
IoT is driving a massive increase in connected devices, and corresponding global revenue across industries is estimated to be around $8.9T by 2020
page 15
$0
$9
$8
$6
$1
$7
$3
$4
$2
$5
Consumer Electronics
Automotive
Healthcare & Life Sciences
Energy & Utilities
Retail
Construction/Infrastructure
Industrials/Manufacturing
2020
8.9
2014
3.5
$8.9T IoT Market by 2020
0
5
10
15
20
25
30
35
40
45
50
TV’s
Internet of Things
2014 2020
Smartphones
Tablets
50B Connected Devices by 2020
PC’s
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
However, the real value of the Internet of Things is in the information generated by connected devices
page 16Source: IBM Global Technology Outlook 2014
Volume of Data Generatedby Category
The data is what allows companies to both optimize existing processes and develop entirely new lines of business
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Across the industry, real-time data from connected devices has traditionally been used in consumer insurance but is now spreading to other sectors
page 17
2014 201920092004
Auto
Sub-
Indu
stry
Ex
ampl
esC
ompa
ny
Exam
ples
• Telematics from car sensors informs UBI
• Behavioral traits derived from consumer driving data enhances underwriting
• 40% decrease in expected premiums in the next ten years
Home Health/Life Workers’ Comp Other Sectors
• Connected Home• Drones reduce
costs and increase efficiency in claims reporting for roof damage
• Armband sensors generate further insights on consumer health trends
• Shoe sensors monitor exercise levels to inform wellness programs
• Body motion sensors provide data on high-risk areas of the workplace
• Hardhat sensors may detect when pressure is applied to the head region
60% of insurance companies
have piloted or considered pilots of IoT
15%of insurance companies
have launched
IoT- based solutions
The Insurance Industry is
investing in IoT
Sources: “Six Primary Use Cases Dominate the Adoption of the Internet of Things Within Insurance.” Gartner, July 2015; “UBI Global Study 2016,” Ptolemus.
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
IoT will likely reduce aggregate loss, driving down premium and creating opportunities for products and services that go beyond compensating for loss
1 2
Total Insurance Industry
Premiums*
Total Insurance Industry
Premiums
20262016
New IoT-enabled Risk Services
New IoT-driven Insurance Products
New IoT-based Products & Services
15%1
40%2
to
1 Represents a drop in the premium basis, mostly across primary perils in the next ten years. ”Can a Fixed Cost Property/Casualty Industry Survive the Internet of Things?”, Celent, March 2016.2 As a comparison, the auto insurance market is projected to decline by as much as 40% due to the expected emergence of autonomous vehicles according to a KPMG study
Impact on reinsurance is expected to be higher as severity decreases
Examples
Guaranteed Performance, Uptime, and other Value-added Services, etc.
New Cyber Liability Coverages for attacks on smart, connected assets
Remote Monitoring and Notification Services, Predictive Maintenance, etc.
Traditional Property Insurance, Liability Insurance, etc.
Explanation
Solution offerings for both insurance and non-insurance companies using the power of IoT
Insurance products and coverage enhancements are developed for risks introduced by IoT tech
New risk-mitigation services are offered by both insurance and non-insurance companies as a
result of adoption of IoT technologies
Existing insurance premium basis declines over time as IoT-enabled risk services help to avoid and mitigate risk, and real-time data from IoT installations makes underwriting more precise
The IoT Opportunity for Insurance
page 18
ILLUSTRATIVE
The Insurer
Carriers will position themselves as risk management platforms, interacting with new partners to bring new value propositions to the market while optimizing their operations.
Insurer as a Platform
Core Claims function
Core Life Insurance function
Sureify HealthIQ Goldbean
Claim DI WeGoLook Tyche
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. page 19
The Ecosystem
Unlike other industries, innovation opportunities in insurance are driven by advances and changes happening in other areas and industries, and this will expand the ecosystem and the opportunity space for insurers
Intermediaries
Service Providers
Carriers
Reinsurers
Regulators
IoT and Remote Access
Connected Health and P4
Medicine
Connected Cars, ADAS, Autonomous
Artificial Intelligence /
Cognitive Computing
Traditional ecosystem
……
Illustrative, not exhaustive
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved. page 20
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Many believe that Insurance is changing and opportunities exist in a global insurance market of over $5 Trillion
page 22
“I think you’ve got to look at disruptors and see what you can learn
from them, because they often come in with
some very smart innovation and different service propositions.”
John Neal, CEO of QBE Group, PwC 18th Annual CEO Survey
“We have already seen the impact of better
data and new platforms in motor insurance. Insurers
will be Uber-ized unless we find new ways to add value.”
Inga Beale, Lloyd’s CEO
“…there is a significant opportunity to bring a
fresh approach to insurance and
reinsurance, one based not just on world-class
underwriting, but also a strong foundation of large data analytics, research, and fully-
integrated technology.”
“Duperreault to pioneer fresh approach to risk”,
Intelligentinsurer.com, dec.13
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
The industry is gradually transitioning across different dimensions and lines of business
page 23
Purpose Reactive Preventive and pro-active
Product Complicated Simplified / Sophisticated
Distribution Advisor Omni-channel
Advice Siloed Holistic
Decision Maker Employer / State Individual
FROM TO
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Incumbents and investors have realized that new Startups bring answers to many challenges that they face in the current changing environment
page 24
Source: CB Insights
+ 300%
Funding Deals
FinTech Financing TrendFunding in FinTechstartups is booming,
influenced by increasing market
activity.
However, even more relevant is the
increasing deal activity as a proxy to understand how
incumbents are leveraging the
FinTech ecosystem
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Investors have also started to look at a more specific “InsurTech” landscape to seize opportunities in the global insurance market
page 25
900
220
The number of FinTech investors increased by
400% since 2010
Also a new “InsurTech” landscape has
emerged and is attracting more and more interest from investors who are
looking for Insurance-specific solutions
Because of this interest, a group of
290+ investors -almost nonexistent in 2010 - are already in
“InsurTech”
Source: CB Insights
29020
900+
220
FinTechInsurTech
2010 2015
Number of Investors
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Incumbents, but also new players, are bringing solutions that tap into existing opportunities across the insurance value chain
Meet changing customer needs
with new offering
Enhance interactions and
build trusted relationships
Augment existingcapabilities and
reach with strategic
relationships
Business Opportunities – External View
Leverage existing data and analytics to generate deep
risk insights
Utilize new approaches
to underwrite risk and
predict loss
Enable the business with sophisticated
operational capabilities
Business Opportunities – Internal Viewpage 26
• Mainly driven by customer expectations
• Opportunity for fast followers since value propositions can be quickly replicated
• Front runners have the opportunity to gain market relevance and position themselves
• Mainly driven by Technology advances
• A source of competitive advantage but demanding deeper changes
• Sets foundations of how the company wants to understand and manage the risk
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
These solutions are the result of a new mindset that pushes Startups to seek solutions to real problems, enabled by new available technologies
page 27
think as aDisruptor
act as aStartup
Fast Prototyping, starting day 1
Leverage the ecosystem relationships
Continuous evolution
What’s the problem to solve?
Which are potential solutions?
How to be distinctive?
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Incumbents have the opportunity to approach the FinTech ecosystem with different innovation models and take advantage of it
page 28
Sourcing model
• Ideas ‘in-sourced’ from within the company
• Dedicated internal team develops new products & services
• Potential to partner with external companies
• Ideas sourced from both inside and outside the company
• Dedicated internal team constantly monitors trends and markets
• Internal incubator identifies and supports ventures
• Ideas sourced from outside the company
• New ventures division set up to identify, iterate and bring to market new ventures
Fundingmodel
• Streamlined business case or stage-gating to balance procedural burden and risk
• Deploy internal SMEs to incubate and iterate ideas
• Pitch and invest model applied from within the company
• Expert panel provides high level guidance and approval at key milestones
• Pitch and invest model where Company provides cash and support for equity
• Corporate network provides guidance for incubation
Go-to-market model
• Idea / venture adopted under company’s brand
• Venture can go to market under company’s or new brand
• Venture is graduated into company’s R&D funnel
• New venture goes to market under own brand, leveraging corporate channels and relationships
Venture Capitalist
Innovation Hub
Internal Incubator
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Recent activity
shows some examples of
the opportunity space and
how incumbents are reacting
Mass Mutual’s In-house Startup
Offers simplified life insurance for Millennials through a convenient
online experience
John Hancock + Vitality
Partnership allowing personalized life insurance, using wearables and
online channels
“ACE Takes 24% Stake”
ACE backs CoverHound, an online site and Google Insurance search for
comparing and buying auto and property insurance
AXA Strategic Ventures
A €200M venture capital fund. Recent Investments: PolicyGenius (June 2015)
an online platform for comparing & buying insurance and Bee (Nov. 2015)
which provides financial services to low-and middle income neighborhoods
Investments in Digital Currency & Blockchain
New York Life, Transamerica Ventures and others invest in the
Digital Currency Group, a company focused on building and investing in
bitcoin & blockchain companies
Northwestern Mutual Acquires LearnVest
Northwestern Mutual acquires LearnVest, an online personal finance platform initially focused on women
American Family Ventures
Focus investment activity at the intersection of technology & risk management, with a variety of 20
different partners listed online
Allianz Joins Forces to Establish a New Online Player
Allianz joins Chinese internet Giant & an Asian investor to establish a new digital, customer centric insurance company in China with affordable coverage options
Ping An + Bought By Many
Partnership with Bought By Many is using social data to develop niche,
personalized product offerings in the travel insurance market
page 29
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Trends in market disruption have varying degrees of impact across personal lines, commercial lines and life insurance businesses
page 31
Personal Lines Commercial Lines Life Insurance
• Reaching the Un(der)insured• Spread of value propositions for
microsegments• Usage & Behavior based personalized
insurance• New models of holistic advice (Robo-Advice)• SoMoLo Omni-channel experience• Online aggregation and comparison• Consolidation of Self directed services• Education & Shared Knowledge• Rise of B2B2C Platforms• Connected Health & P4 Medicine• Sophistication of preventive insurance
models• Granular Risk and/or Loss Quantification• Robotics and Automation in core insurance• As-a-service solutions for core insurance
• Emerging solutions for shared economies• Online aggregation and comparison• Consolidation of Self directed services• Frictionless capital flows across the value
chain • Connected car / automated driving systems• Remote data capture and analysis• Quantification of emerging risks• Sophistication of preventive insurance
models• Shift from probabilistic to deterministic
model• Granular Risk and/or Loss Quantification• Crowdsourcing & Democratization of
information• Robotics and Automation in core insurance• As-a-service solutions for core insurance
• Spread of value propositions for microsegments
• Leveraging peer to peer networks• Emerging solutions for shared economies• Usage & Behavior based personalized
insurance• SoMoLo Omni-channel experience• Online aggregation and comparison• Targeted engagement & Retention models• Consolidation of Self directed services• Ecosystem Partnerships• Connected car / automated driving systems• Sophistication of preventive insurance
models• Granular Risk and/or Loss Quantification• Crowdsourcing & Democratization of
information• As-a-service solutions for core insurance
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Disruptions in Personal Lines Insurance – Usage Based Insurance, Ridesharing, Peer to Peer, Direct-to-consumer, ADAS & Autonomous Cars
page 32
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Disruptions in Commercial Lines Insurance – Direct to Small Business, Drones, Internet-of-things, alternative risk transfer, emerging risks
page 33
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Disruptions in Life Insurance– Robo-advice, Personalized insurance, Medical advances, Automated underwriting, decreasing morbidity and mortality risk
page 34
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
New approaches in Personal lines are emerging to benefit from grouping risks in an efficient and “social” way: as affinities to get customized value propositions from the carriers…
Spread of value propositions for microsegments
Leveraging peer to peer networks
SoMoLo Omni-channel experience
Consolidation of Self directed services
“Pioneer in leveraging crowdsourcing techniques in the insurance space. The company also uses social
media marketing to enable insurers to generate awareness. It provides unconventional insurance solutions such as pet insurance, gadget insurance
and insurance for children of rugby players.”
Source: Bought by Many
page 35
“The company’s P2P-based business model is to provide a sharing economy alternative and greater transparency than
the traditional insurance model. P2P insurance models enable policy holders to pay premiums into a pool from which claims damages are paid; excess premiums are returned to the policy
members at the end of the period with Lemonade regulating the portion of the claim that exceeds network support.”
Source: Lemonade
However, the 100% Peer to Peer models that are about to emerge once faced existing challenges and will pave the path for other players to follow
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Usage based insurance is shifting from an underwriting focus to more consumer focused value propositions: one variable can be enough the meet the needs of a specific segment…
Usage & Behavior based personalized insurance
SoMoLo Omni-channel experience
Connected car and automated driving
Granular Risk and/or Loss Quantification
Ecosystem Partnerships
“One of the pioneers in pay-per-mile insurance in the US, offering an attractive value proposition to low-mileage drivers (…). partnered with Uber to develop a car insurance plan specifically for Uber drivers. This per-mile plan only charges drivers
for miles driven during their personal use, thereby complementing Uber’s insurance plan. ”
Source: Metromile
page 36
“Provide hassle-free and quick insurance to the customer segment that wants to borrow someone else's car and be temporarily insured during
that timeframe. (…). Cuvva claims to provide a superior product compared with other pay-as-you-go companies since it doesn’t have a
fixed monthly fee (…).”
Source: Cuvva
… but also pay as you go service can be an option to provide quick insurance to individual that shared their cars
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Following personal lines trends, online distribution is also impacting the Micro and Small Business space
Spread of value propositions for microsegments
Online aggregation and comparison
Consolidation of Self directed services
“Online insurance broker that helps small- and
medium-scale businesses access commercial
insurance. The company runs insureon.com and
techinsurance.com marketplaces where small business can apply online
and receive insurance quotes for multiple
commercial products.”
Source: Insureon
page 37
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
And data and analytics will provide the opportunity to understand and quantify risks in a more granular way, also by leveraging non-traditional data sources
Remote data capture and analysis
Sophistication of preventive insurance models
Granular Risk and/or Loss Quantification
Crowdsourcing & Democratization of
information
“Imaging analytics solution provider. The company uses
artificial intelligence to process a large
database of satellite imaging and draw
socioeconomic insights. Orbital
insight has developed machine learning algorithms that can be used for self-analysis of data
points.”
Source: Orbital Insight
page 38
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Also, new players are bringing new approaches and building new value propositions from scratch to target specific segments
Personalized Insurance
Self directed services
Connected Health & Medical Advances
Sophistication of preventive insurance models
Granular Risk and/or Loss Quantification
Sureify claims to provide a unique opportunity for users to save on their life insurance premiums through its connected
health wearable devices. (…) Customers can benefit from this real-time health monitoring and follow a pay-per-lifestyle insurance model, according to the company.
Company: Sureify
page 39
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Wearable solutions have already entered the enterprise space, creating new opportunities to engage employees in healthier lifestyles and work habits
Connected Health & Medical Advances (P4 Medicine)
Sophistication of preventive insurance models
Granular Risk and/or Loss Quantification
“WeSavvy claims that with their solution Employees can get rewarded on their
insurance policies by Walking, Running or Cycling. They bring a B2B2C value
proposition targeting policyholders and employers. Also with their BYOW, every
employee can use his own wearable.
Company: WeSavvy
page 40
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
© 2016 PwC. All rights reserved. PwC refers to the PwC network and/or one or more of its member firms, each of which is a separate legal entity. Please see www.pwc.com/structure for further details. This content is general information purposes only, and should not be used as a substitute for consultation with professional advisors.
Thank you
Scott TopperPwC Insurance [email protected]+1 (773) 899-0069
41
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Aggregators are bringing more and more transparency and independency to buyers, allowing them to easily compare quotes from more and more carriers in a few seconds …
SoMoLo Omni-channel experience
Online aggregation and comparison
Consolidation of Self directed services
“The Zebra says the way it differentiates itself from other insurance comparison engines is
that it takes into consideration the regulation differences across different states in its
quotation calculation. (…) The firm also allows customers to browse premium quotes
anonymously and says it provides protection of customers' personal information.”
Source: Insurance Zebra
page 43
… and a second way to differentiate, they are delivering enhanced experiences as quick quotes without personal data, or detailed quotes launched from ID pics.
MIT Spinout Insurify Raises $2 Million To Replace Human
Insurance Agents With A Robot (TechCrunch)
“claims to be the first shopping platform for car insurance that instantly verifies
customer data and provides an integrated experience. (…). Insurify’s goal is to reduce the time it takes by
providing a quote in just three minutes.”
Source: Insurify
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
New players are bringing new approaches in the small business insurance to pool the risk in an efficient and “social” way
Spread of value propositions for microsegments
Leveraging peer to peer networks
SoMoLo Omni-channel experience
“Gatherins is a crowdfunding platform for business insurance. The company either assigns an
appropriate community to individuals or enables them to start their own community and invite other
entrepreneurs to join-in, using social media.”
Source: Gather
page 44
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
As the ability to generate insights from smart objects and sensors increases, companies are more readily able to collect, analyze and predict risk across multiple contexts
Remote data capture and analysis
Sophistication of preventive insurance models
Granular Risk and/or Loss Quantification
Crowdsourcing & Democratization of
information
“Data analytics and Internet of Things (IoT) solution provider. It offers a Software-as-a-Solution (SaaS) platform to companies from
different sectors including Insurers. The cloud-based platform allows companies to
capture, collect, analyze, and take action on insights. Allows to integrated all kind of
sensors including health, telematics, industrial sensors, etc. to provide deeper
insights.”
Source: Mnubo
page 45
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Advanced analytics such as machine learning bring new opportunities to build more sophisticated prevention models
Remote data capture and analysis
Sophistication of preventive insurance models
Crowdsourcing & Democratization of
information
Robotics and Automation in core insurance
“Offers cost-effective, turnkey API-based machine learning services that help
businesses understand data from monitoring sensors. The technology can be leveraged by
property and casualty (P&C) insurers to analyze data from IoT and connected home
and car devices.”
Source: Glowfish IO
page 46
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Available information can be shared with different players in the ecosystem to maximize go-to-market opportunities
Targeted engagement & Retention models
Crowdsourcing & Democratization of
information
Robotics and Automation in core insurance
“RiskMatch's offering links the various players in the disconnected commercial insurance market. Unlike its competitors in the online insurance sector, which merely provide
insurance quotations, RiskMatch claims to offer software that detects the best products and deals through benchmarking for brokers and insurers.”
Source: RiskMatch
page 47
© 2016 PricewaterhouseCoopers LLP, a Delaware limited liability partnership. All rights reserved.
Sometimes it is just a matter of providing simple products with seamless and convenient end-to-end experiences…
Self directed services
Robotics and Automation in core insurance
“Online life insurance company (…). The company provides a life cover underwritten (…) in roughly ten minutes. (…) distinguishes itself from other online insurance companies
by providing its clients features like an online medical questionnaire (…)”
Company: BeagleStreet
page 48