Disruptive Innovations arising from Insurtech - Brenton Charnley Insurtech Australia

Brenton Charnley, Insurtech Australia
DISRUPTIVE INNOVATIONS
ARISING FROM
INSURTECH
BRENTON CHARNLEY
LEAD & CO-FOUNDER
INSURTECH AUSTRALIA
5 DECEMBER 2017

OVERVIEW
INSURTECH TRENDS
UNDERINSURANCE GAP
OPPORTUNITIES

BRENTON
CHARNLEY

Brenton Charnley, Insurtech Australia 5

INSURANCE
(INDUSTRY)
TECHNOLOGY
(INNOVATION)

INSURTECH: OUR DEFINITION
the application of technology innovation in the
insurance industry value chain, to solve
known challenges and discover unknown
opportunities, in order to deliver value for
customers

Business Model
Operating Model
New
Applications
Risk mitigation
INSURTECH
Partnership
s
Improvements
New products Platforms
Distributio
n
MORE THAN TECHNOLOGY

WE’RE PLAYING A DIFFERENT GAME
AFL
4th
F1
1st
IPL (20/20)
6th

CHANGED THE GAME

INSURTECH ON THE RISE SINCE ‘15
2014 2017

BUT, INVESTMENT NOW COOLING
https://www.willistowerswatson.com/en-US/insights/2017/10/quarterly-insurtech-briefing-q3-2017

ENABLING
NOT
DISRUPTING
OUTSIDERS
MOVING IN
AND (UP)
NOT
JUST
STARTUPS
INTEGRATED
CONVENENICE
DISTRIBUTION
STILL A
FOCUS
NEW
PRODUCTS
& RISKTRENDS
2017
INSURTECH
1
2
3
4
5
6

ENABLING
NOT
DISRUPTING

DISRUPTIVE INNOVATION
Clayton Christensen, Innovator’s Solution
…disruptive technologies offer other benefits—
typically, they are simpler, more convenient, and
less expensive products that appeal to new or less-
demanding customers.

ENABLING NOT JUST DISRUPTING
http://www.mckinsey.com/industries/financial-services/our-insights/insurtech-the-threat-that-inspires

DISTRIBUTION
STILL A
FOCUS

DISTRIBUTION GOING STRONG
50-65%
• Digital lead generation
• Brokerage & advisory
• Price comparison
• MGA platforms
• D2C
https://www.willistowerswatson.com/en-US/insights/2017/10/quarterly-insurtech-briefing-q3-2017

https://www.insurancetimes.co.uk/95-of-investment-in-insurtech-distribution-will-be-wasted-guidewire-chief-
exec/1425572.article

INTEGRATED
CONVENIENCE

Brenton Charnley, Insurtech Australia https://venturebeat.com/2016/04/21/amazon-now-sells-product-protection-insurance-for-when-manufacturers-warranty-expires/

Brenton Charnley, Insurtech Australia https://www.chinainternetwatch.com/22192/tencent-wechat-insurance/

OUTSIDERS
MOVING
IN (AND UP)

MOVING UP THE VALUE CHAIN
Today more than ever, some of these
intermediaries run the risk of getting
disintermediated sooner rather than later
because they are unable to adapt their
business model, disruptors are penetrating
their markets, or technology is changing
the entire industry.
Walter Kielholz, Chairman SwissRe
2016

REINSURANCE DEALS
http://www.oliverwyman.com/content/dam/oliver-wyman/v2/publications/2017/jun/Oliver-Wyman-Policen-Direkt-Global-
InsurTech-Report-2017-Final.pdf

https://www.cbinsights.com/research/reinsurance-tech-startup-moves/

http://www.theactuary.com/news/2017/11/amazon-set-to-disrupt-uk-insurance/

Brenton Charnley, Insurtech Australia https://www.theguardian.com/money/2016/nov/02/facebook-admiral-car-insurance-privacy-data

Brenton Charnley, Insurtech Australia https://www.cbinsights.com/research/baidu-alibaba-tencent-insurance/

NEW PRODUCTS
& RISK

INSURTECHS - MODULARITY
http://www3.weforum.org/docs/Beyond_Fintech_-_A_Pragmatic_Assessment_of_Disruptive_Potential_in_Financial_Services.pdf

INSURTECHS – USAGE ON DEMAND

INSURTECHS – EMERGING RISKS

INSURTECHS – REINVENT LIFE

INSURTECHS – CLOSER TO HOME
Flare HR is a company delivering value in
the ‘HR tech’ services sector. Similar to
the business model of the multi billion
dollar company Zenefits,FlareHR provides
software that manages the on-boarding
of new employees, other human
resources functions and payroll.
It generates revenue by also delivering
financial services and products, such as
superannuation and life insurance, to
employees.
New distribution channels
Cover Genius is a global distributor of
insurance products for online businesses.
It is one of the fastest growing fintech
startups to have emerged from Australia.
Cover Genius’ first brand to launch was
RentalCover.com which sells insurance
for car rentals from its own site and also
through the largest online travel agents
globally. As a full stack startup they
control all facets of both their partner
relationships and the customer journey.
Digital distribution platform
ROOBYX provides refreshingly simple
access to replacing these lost
protections, starting with Income
Protection Insurance. They are building a
community and providing on-demand
workers with useful tools and assistance
to help them navigate through the
sharing economy and the portfolio to
careers it’s likely to create.
Gig-economy insurance

NOT JUST
STARTUPS

NOT JUST STARTUPS
https://www.the-digital-insurer.com/blog/insurtech-insurtechtop9-three-questions-startup-ask-vc/
CVC’s

PARTNERING STILL KEY

UNDERINSURANCE: A DEFINITON
The gap between the amount of insurance
that is economically beneficial and the
amount of insurance purchased.
Global Insurance Protection Gap
Report 2014
Source: The Global Insurance Protection Gap Assessment and Recommendations 2014

UNDERINSURANCE: CONSUMER

UNDERINSURANCE: A BIG PROBLEM
Four billion people or approximately and 55 per
cent of the world’s population are still
uninsured, there is a $168bn coverage gap in non
life and a US$20 trillion life protection gap in the
US alone.
Global Insurance Protection Gap Report 2014

UNINSURABLE
IMMATURE REG & LEGAL
AFFORDABILITY
RISK CULTURE
CULTURE &
RELIGION
RISK AWARENESS
UNDERINSURANCE: WHY?

Source: Competence Hierarchy adapted from Noel Burch

“I AM PARTLY
PROTECTED, BUT
IT COULD
BE BETTER”
“I KNOW WHAT
ARE MY RISKS
BUT I CAN’T OR
DON’T TAKE
ACTION”
“PROTECT ME
WHEN I NEED
IT TO LIVE MY
LIFE”
”I DON’T KNOW
WHAT I DON’T
KNOW”
04 03
0201
INSURTECH
&
UNDERINSURANCE
HIERARCHY OF RISK COMPETENCE
UNCONCIOUS
INCOMPETENCE
CONCIOUS
INCOMPETENCE
CONCIOUS
COMPETENCE
UNCONCIOUS
COMPTENENCE

WHAT CAN INSURTECH DO?
• ROBO ADVICE/DATA/BOTS
• NEW & RELEVANT PRODUCTS
• INTEGRATED INSURANCE
COVERAGE
• DIGITAL EXPERIENCE
• PARTNERSHIPS
• NEW LOW COST
PRODUCTS
• MICROINSURANCE
• DATA ANALYTICS
• AUTOMATED RISK
ASSESSMENT
• DISTRIBUTION
PLATFORMS
• TRANSPARENCY
• PERSONALISED
• USAGE BASED
• SITUATIONAL
• RISK PARTNER
• BUSINESS MODELS
• AWARENESS
• EDUCATION
• FINANCIAL LITERACY
• EMERGING MARKETS
• COLLABORATION
• PARTNERSHIPS
04 03
0201
INSURTECH
&
UNDERINSURANCE
AWARE ACCESS
ACTIONAUTOMATE

CLOSE THE GAP: THE OPPORTUNITY
PREMIUMS IN
EMERGING MARKETS ALONE
http://www.swissre.com/library/partner-publication/The_Global_Insurance_Protection_Gap_Assessment_and_recommendations.html

INSURTECH
OPPORTUNITIES
2018PARTNER FOR SUCCESS
• MORE COLLABORATION
• INSURTECH NEED FOR PAPER
• INCUMBENTS COME TO THE
FORE IN SOME SEGMENTS
• NEW ENTRANTS/OUTSIDERS
TO PARTNER
IMPROVE THE VALUE CHAIN
• ENTERPRISE TECH
• UNDERWRITING & CLAIMS
• DATA ANALYTICS & ML
• SERVICING & ADMIN
• REGTECH
• AUTOMATION & AI
DISTRIBUTION ROUND 2
• B2B2C & B2B
• E-COMMERCE & INTEGRATION
NEW CHANNELS FOR INTEGRATION
• PLATFORMS
• COMMERCIAL INSURANCE
• RE-INSURERS ARE COMING
• ROBO-ADVISORS
• FINTECHS TO COME
ENABLEMENT TO CONTINUE
NEW PRODUCTS
• MICRO INSURANCE
• PERSONALISED PRODUCTS
• EMERGING MARKETS
• LIFE & HEALTH OPPS
GLOBAL INSURTECH GROWTH
• INSURERS & REINSURERS
CONTINUE TO INVEST
• DIGITAL TRANSFORMATION
ACROSS INSURANCE
• INSURTECH KEY FOCUS
• MOVING FASTER
• CONNECTED COMMUNITY
• FLOW OF INSURTECHS &
FUNDING
• AUSTRALIAN COMMUNITY TO GROW
• INNOVATION 3.0 IN AUSTRALIA

www.brentoncharnley.com
www.insurtechaustralia.org
brenton@insurtechaustralia.org
+61 419 178 552
LET’S MAKE AUSTRALIA
A WORLD LEADER
IN INSURTECH

Disruptive Innovations arising from Insurtech - Brenton Charnley Insurtech Australia

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