The Digital Insurer’s German News Correspondent Uli Kleber of Generali attended the conference. The slides are his reflections of the event from a digital insurance perspective. Berlin, 5-6 April 2017

1. Uli Kleber, The Digital Insurer
EXECInsurtech conference, Berlin, Germany April 5th & 6th 2017
EXECInsurtech REVIEW

2. EXECInsurtech – REVIEW
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Rooted in the startup community, ‘pirate’ events shape the digital age:
• EXECFintech and Insurtech (Berlin, April & year-end in Cologne)
• Riot (later-stage innovations festival – Berlin, June) and
• Pirate Summit (seed-stage startups – Cologne, September)
• EXEC gathered a curated crowd of startup entrepreneurs, corporates
and investors for a two day application-only conference in Berlin.
• In its successful fourth year, EXEC now brought its fintech and
insurtech event under one roof – 2017 saw 700+ attendees with 46%
startups, 28% corporates, 22% investors and 4% others (press,
service providers…) from 30+ nationalities.
• This deck captures some personal takeaways from the various
sessions and comments from the event.

3. Little brother was yesterday..
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Fintech Stage Insurtech Stage
Get ready, Fintech..next year Insurtech will fill the big stage!
Packed Super-packed

4. Pitch winner 2016 review –
winner just closed first financing round!
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• Dreamquark = Team of French particle physicists
that develop deep-learning AI algorithms for
financial services, insurers & healthcare
• Already in use by existing insurers in a number of
countries – just closed first financing round
 Great role model for this year’s pitch winners 
Presenter: Nicolas Meric (Dreamquark)

5. PITCHING winners 2017 – Getsurance & Insly
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• Insurtech – category Seed: Getsurance
Robo advisor with fully digital
underwriting for life and disability
• Insurtech – category Series A: Insly
One-stop-shop CRM software for brokers

6. ONE – a single policy for all coverages
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• ONE offers a single policy to which
all future coverages are added
• Trust: digital economy >
traditional economy
• Today: Data & technology owned
by companies – Future: my data
becomes a currency and I decide
when to share and for what
Presenter: Samir El-Alami (ONE)

7. P2P made in Germany – creating efficiencies
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• Founded in 2010, now >100k customers
• P2P – claims paid:
• Small: by social network
• Large: through standard insurers
• Efficiencies:
• Personal groups reduce cheating
• Digital admin more efficient for small claims
• Less tax and commissions because of P2P
 cash back for social group (up to 40%)
• Claims frequency: P2P < market
Remember The Digital Insurer poll (Feb 2017)? Source: Poll during The Digital Insurer-webinar:
„Peer-to-Peer Insurance & Community” on Feb 9th, 2017
Presenter: Tim Kunde (Friendsurance)

8. MunichRe: Insurtechs grow & mature
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• Thomas Edison: „Vision without execution is hallucination.“
• Munich Re provides startups with license and capacity and
helps with geographic expansion
Source: Munich RE
View on market – investment focus so far on personal lines:
• Order > chaos
• +Collaboration between
startups & incumbents
• Maturity of stages makes
funding easier
• Tech know-how +
industry knowledge =
winning combination
Next
steps
Expectations for next phase – 2017+Insurtech investment phase 1 – until 2017
Presenter: Jennyfer Yeung-Williams (MunichRE)
5%
34%
8% 15%
18%
20% Pet
Misc.
Rental
Package
Connected home
Motor

9. Investors’ roundtable covered lots of ground
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Investor types:
• Reinsurers – could they use startups to bypass
traditional insurers in their access to customers?
• Insurers – provide not only resources but also
hands-on experience
• Independents – more flexibility, no need to mold
your business to one structure right off the bat
Moderator: Max Steinmetz (ZEB)
Panelists: Christian Nagel (Earlybird)
Andrei Brasoveanu (Accel)
Paul Morgenthaler (CommerzVentures)
Florian Graillot (Axa Strategic Ventures)
LoBs:
• Life is very prominent,
what about more Health
and P&C startups?
Privacy:
• „The willingness to share is already here. Do
you know how much information you are
sharing when you use Google Maps?“
• Customers are willing to share data when
they get someting in return
What startups need to approach investors:
• Innovative product
• Answer to: „What is your value-add/the need you
address?“
• Ability to deliver
• „Combination of team (=digital & industry know-
how) & traction (=early revenue, ability to set up
sales channels, capacity to compress sales cycles
or activate brokers) “
Key takeaways on..
Connected technology:
• Opportunity for innovation in
parametric insurance based on
sensortech = claim, if outside of
defined parameters, e.g. weather
for crop insurance

10. What problem are you solving?
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1. Yes, there is an insurtech bubble.
2. For all it‘s worth..leverage the bubble!
3. But, please..define first what problem you are solving!
Inside the industry, all know about the need for change:
• Everybody knows the “why“ and “what“ of the industry issues, but
hardly anyone knows the “how“  opportunity for insurtechs!
• Lots of disrupting internal and external forces, but, be careful:
 Keep customer at center and realise that also customers are at
different maturity stages
 Start with “why“ and
then move on to “how“!
The battle between every startup and incumbent comes down
to whether the startup gets distribution before the incumbent
gets innovation. – Alex Rampell, Andreessen Horowitz
Presenter: Nigel Walsh (Deloitte)

11. Google’s € 18bn opportunity in insurance
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Industry thought that biggest
digital impact was in:
• Product development
• Marketing and sales
Presenter: Jan Müller (Google)
Google & Bain assessed impact & opportunities for P&C insurance in next 3-5 years:
How best to apply new key technological innovations to the insurance value chain
But, results show that biggest
levers are for:
• Advanced analytics and
• Machine learning
applied to:
• Underwriting
• Claims management
Key takeaways:
• Ask yourself: is it useful for customers?
• Grow your digital perspective
• Develop your digital capabilities and culture
• Choose your portfolio wisely
• Launch and iterate quickly

12. Who is ready to tackle claims management?
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Presenter: Florian Graillot (Axa Strategic Ventures)
50%
35%
15%
Distribution
Product & Pricing
Claims
Axa Investment focus 2016-2017
Next
topics
Hot topics:
• Distribution: From offline to online
• Product & Pricing: From standard to customized, per-use products
• Claims: From manual to automated & cloud-based
• New products
(parametric, travel, art)
• Digital health (from
payer to partner)
• Claims management (AI
& machine learning)
• Just-in-time (data to offer
personalized products)
Expectations for next phase – 2017+

13. Moderator: Ferdinand Benningsen
Panelists: Julian Teicke (Wefox)
Gregor Wiest (ERGO)
Volker Büttner (Generali)
Karim Trojette (Deloitte Digital)
Christian van der Bosch (Liimex)
Panel discussion – Can incumbents & startups solve the disconnect
between insurance and technology together?
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Partnering:
• Incumbents partner with startups = scale meets capabilities
• Start projects with external players to demonstrate use case
• Embed startup initiatives with core business to incubate
other areas
How to promote an innovative culture at incumbents?
• Innovation committee and designated innovation heads
to drive in-country innovation
• Promotional events: Hackathons
• Reach out to individuals for incremental cultural change
Incumbent challenges:
• Too focused on old systems, need to foster:
 New, fast developments
 Project-based
 Quick ROI
• Issue is less about technology and more about culture
 Cultural transformation > digital transformation
Key takeaways on..

14. Just-in-time product developed in 5 weeks
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Task – develop business model in five weeks: watch insurance for Swiss watch convention
Presenter: Klaus Kummermehr (Go Beyond Investing)
+ +Collaboration:
Result
Insurer Picture recognition algorithmIT implementation
• Algorithm started with database of 3.000 watch models  now: 40.000 models recognized
• Insured online against theft and damage for a duration between 1-3 years

15. Tailor your chatbot to the customer without trying to
emulate a human conversation
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Microsoft: „2017 is the year of the chatbot“:
-Enables engaging and efficient communication
-Easily scaleable
Guided conversation along the customer journey
Importance: Knowing your customer > Natural language processing
 AI needs to detect and respond to client (e.g. 16 year old: “Hey what’s
up?” vs. 60 year old: “Good evening, how can I help you today?”)
 Conversation style does not need to emulate human interaction:
Google educated us to search with three keywords
Presenter: Johannes Windus (Spixii)

16. Usage-based insurance (UBI) provides plenty of advantages for
clients and society but can be a double-edged sword for incumbents
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Presenter: Marie-Helene Ametsreiter (Speed Invest)
• Successful in attracting & retaining desirable customers
 annual churn <4%
• Changes client behavior: reduction of accident risk by 60%
• More touch-points through gamification, 33% of insureds use product
every 2-3 days.
• Increased opportunity for x-selling with higher conversion rates, e.g.
child accident insurance for insureds driving frequently in school areas
 75% take-up rate
But: doubIe edged sword for insurers
Positive outcomes, for:
• Clients: products based on actual needs
• Society: induce safer behavior
Benefits for insurers:
UBI
provides
Consumers are willing to
share data but need to be
engaged by results
Access to consumers and data
• UBI cannibalizes existing products!
Challenge for (incumbent) insurers:

17. Moderator: Christian-Czempiel Mentrak
Panelists: Timo Dreger (Apeiron)
Robin Kiera
Inna Leontenkova (Element)
Panel discussion – New players in the insurance world
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Panelists‘ favorite global Insurtech start ups:
• Lemonade
• Metromile
• SoFi
Disrupt vs. collaborate:
• Regulation and lag times foster need for collaboration
• Startups need support to fulfill regulatory
requirements for proper conduct and management
• Reinsurers and insurers compete for start ups –> who
will hold the consumer access in the future?
15 years after direct insurance - what‘s different now?
• More serial entrepreneurs with track record
• Further development of technology and change in
consumer behaviors and expectations
• More investments & money in the market;
unfortunately, so far money > ideas
Key takeaways on..

18. How not to commit startup suicide
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Key takeaways on surviving in:
Presenter: Erik Podzuweit (Scaleable Capital)
FIN TECH
• Team – experience!
• Regulation – take it seriously!
• Clients – focus on your niche & leave
mass market to the incumbents!
• Proprietory core technology –
never outsource!
• USP – stay true to yourself: if you
build a robo advisor, be fully robo!
“Startups die from suicide, rarely from homicide.”

19. Thank you for reading!
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…you have really earned that now.

20. Uli Kleber, The Digital Insurer
EXECInsurtech conference, Berlin, Germany April 5th & 6th 2017
EXECInsurtech REVIEW

21. Picture credits
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Slide 5 – 275_1.jpg on http://gratisography.com/#nature by Ryan McGuire is licensed under CC0 1.0
Slide 11 – 353_1.jpg on http://gratisography.com/#nature by Ryan McGuire is licensed under CC0 1.0
Slide 14 – Basler Versicherungen
All other pictures: courtesy of Pirate.global/EXEC