InsurTech Digital - December 2023 by insurtechdigital

December 2023 | insurtechdigital.com

Insurtech Incubators APITURE DRIVING DIGITAL BANKING INNOVATION WOLT A SAFETY NET FOR THE PLATFORM ECONOMY

IN INSURTECH

HOW AI IS EVOLVING THE CUSTOMER EXPERIENCE We look at ways AI is evolving insurtech consumer experiences, from chatbot upgrades to embedded offerings FEATURING:

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CHARLES TAYLOR

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FOREWORD

IS SATELLITE OBSERVATION DRIVING THE FUTURE OF P&C UNDERWRITING? Natural catastrophes are sadly becoming ever more frequent. As industries grapple with our changing planet, we look at how P&C underwriting is being transformed by earth observation technologies

“AS NATURAL CATASTROPHES (NATCATS) SWEEP OUR CHANGING PLANET WITH FRIGHTENING FREQUENCY, INSURERS NEED NEW WAYS TO SPOT, ENUMERATE AND PRICE RISK”

INSURTECH MAGAZINE IS PUBLISHED BY

In this issue of InsurTech Digital, we look at how satellites are revolutionising underwriting for P&C insurers. As natural catastrophes (natcats) sweep our changing planet with frightening frequency, insurers need new ways to spot, enumerate and price risk. We ask industry experts how, and why, satellite imagery is the answer. We’ll also look at the latest in consumer journeys. If one thing has always been true in insurance, it’s that no one looks forward to taking out coverage. Traditionally overburdened with cumbersome forms and pages of jargon to sift through, the customer journey is, historically, anything other than pleasant. Today, things are changing. We look at how insurers are leveraging the latest in AI technology to automate customer experiences and streamline both policy and claims processes. We’ll also delve into the work insurtechs are undertaking today to bolster data privacy and we'll look at the growing relationship between insurtechs and healthtechs. And, you can stay across the latest from the world of insurtech over on our website. Just visit insurtechdigital.com. LOUIS THOMPSETT louis.thompsett@bizclikmedia.com

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CONTENTS UP FRONT

12 BIG PICTURE

Increase in natcats sees P&C premium costs soar

14 THE INSURTECH INTERVIEW Tom Padgett, President and General Manager of Enterprise at Smarsh

18 LIFETIME OF ACHIEVEMENT IN INSURTECH

14 12

Peter Zaffino, CEO at AIG

22 PEOPLE MOVES

The latest people moves in the world of insurtech

24 THE MONTH THAT WAS

Net-zero the target for leading insurer Allianz

000 36 6

December 2023

DECEMBER 2023

FEATURES

28 EVENT REVIEW InsurTech Live recap

36 TOP 10

Insurtech incubators

48 DIGITAL STRATEGY

Earth observation and imaging in insurance underwriting

58 APITURE

Apiture is driving digital banking innovation in the US

70 TECHNOLOGY

AI in insurtech: Evolving the customer experience

70 insurtechdigital.com

In Association with:

THE TOP 100

LEADERS OUT NOW

Championing leaders from global organisations, celebrate those who elevate the industry day in, day out.

Read now

DECEMBER 2023 86 WOLT

Deploying a safety net into the platform economy

102

102 CLOUD & CYBER Protecting data security and integrity in insurance

112 MGA/TPA Insurtech: a growing marriage with healthtech & telemedicine

112

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Knowledge Partners

THE TOP 100 COMPANIES IN FINTECH Discover the companies leading the way, setting the pace and inspiring global business change.

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BIG PICTURE

Image credit: Getty Images

December 2023

Increase in natcats sees P&C premium costs soar

Fort Myers Beach, Florida

Workers walk along piles of debris near Estero Blvd in the aftermath of Hurricane Ian. Insurance quotes have had an inflationary pinch on south-eastern US consumers following the storm, with home and property insurance premiums rising. The sector is among the most affected by the climate crisis. Rising premiums, therefore, represent a whole new area where climate change is affecting household budgets, as prices for certain insurance coverages reach unaffordable levels.

THE INSURTECH INTERVIEW

December 2023

Padgett

Tom

Smarsh President and General Manager of Enterprise, Tom Padgett, discusses the latest innovations in regtech and how Smarsh is leading in compliance

Q. HOW DOES YOUR POSITION NOW DIFFER FROM YOUR DREAM JOB AS A CHILD?

» I wanted to be a pro athlete so it’s very

similar in that it’s highly competitive and there’s typically a winner and a loser, but there certainly aren’t crowds cheering for me or booing me.

Q. WHAT IS THE BEST PIECE OF ADVICE YOU HAVE EVER RECEIVED?

» I’ll position this as it relates to TOM PADGETT TITLE: P RESIDENT AND GENERAL MANAGER OF ENTERPRISE COMPANY: SMARSH INDUSTRY: REGTECH LOCATION: UNITED STATES An accomplished executive and leader with progressive sales and leadership experience building and leading talented teams to achieve hyper growth within the enterprise software and information services.

leadership advice. I was told to actively try to recruit people who are better than me, then struggle trying to find ways to develop them.

Q. WHAT IS THE BIGGEST WORKPLACE CHALLENGE YOU FACE DAY TO DAY?

» It’s really not much different than it has always been as a leader. It’s effectively communicating to different individuals with different goals and aspirations in a way that they all feel aligned around what we’re trying to accomplish and they understand how important they are in achieving that goal. insurtechdigital.com

THE INSURTECH INTERVIEW

Q. WHAT IS THE BEST THING ABOUT YOUR ROLE AT SMARSH?

Q. CAN YOU TELL US ABOUT THE LATEST INNOVATIONS IN REGTECH?

to be the proximity I have to our customers and really being able to understand why our solutions are so valued. As head of the Enterprise business, I’m in regular communication with our largest customers, learning how Smarsh platforms and services are solving their compliance challenges. It’s also so fulfilling to observe how, as their relationships with Smarsh develop, our customers increasingly perceive their communications data not as a challenge but as a source of valuable intelligence.

caught my attention in recent months has been how regtech providers are responding to the normalisation of hybrid working models and the increasing use of mobile communication channels. Smarsh identified early on that these developments would make “Change-ofvenue” conversations, whereby people continue the same conversation across different channels, a serious compliance challenge. In response, we’re constantly expanding the platforms we monitor, meaning that our customers can supervise conversations regardless of

» The best thing about my role has

December 2023

» An area of innovation that has really

the channel – this includes encrypted apps like WhatsApp and WeChat.

Q. HOW CAN, OR WILL, AI CHANGE THE GAME IN REGTECH?

Q. WHAT IS SMARSH DOING TO HELP INNOVATE IN THE SPACE?

our customers increasingly adopt AI tools in their businesses, they’re naturally curious about how we are incorporating this technology into our solutions. Furthermore, for RegTech companies focused on communications compliance, I do believe that the rise in the scale and diversity of content means that AI is no longer “nice-to-have”, but an essential component to compliance solutions.

» In many ways, it already has. As

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LIFETIME OF ACHIEVEMENT IN INSURTECH

MEET THE MAN CHAMPIONING CHANGE AT INSURER AIG As the CEO of US insurance giant AIG, Peter Zaffino is committed to tackling climate change and being an ‘ally’ in the fight for equal pay

eter Zaffino is Chairman and Chief Executive Officer at American International Group (AIG), one of the world’s largest insurance organisations covering property & casualty insurance, life insurance, retirement solutions and other financial services. Based in New York City, AIG is active in approximately 70 different countries and jurisdictions and its common stock is listed on the New York Stock Exchange. Zaffino has been Chief Executive at AIG since March 2021. He joined the business in July 2017, initially in the role of Global Chief Operating Officer. At the time of his appointment, he was described by Brian Duperreault, his predecessor in the CEO role with whom Zaffino had worked at Marsh & McLennan, as “one of the most talented executives operating in the insurance industry” who brings “deep insurance knowledge and expertise to the leadership team at AIG”. And so it has proven; less than twoand-a-half years after taking up the COO role, Zaffino was also appointed to the role of President at AIG. In March 2021, he succeeded Duperreault as Chief Executive Officer, taking over the role of Chairman of the Board in addition in January 2022. A vastly experienced insurance industry leader In the top job at AIG, he can draw on more than 30 years of experience in the insurance 18

December 2023

and reinsurance industry. He began his career serving several executive roles at marketleading companies, including a portfolio company of GE Capital that specialises in alternative risk insurance and reinsurance. He then joined Guy Carpenter, a leading global risk and reinsurance specialist that is a subsidiary of Marsh, serving as President and CEO until 2011. He then made the step up to become President and CEO at Marsh – a role he held for six years, staying with Marsh until he left to join AIG in 2017.

PETER ZAFFINO TITLE: CEO COMPANY: AIG INDUSTRY: INSURANCE LOCATION: UNITED STATES Peter Zaffino is Chairman and Chief Executive Officer at AIG. An experienced insurance industry leader, he has over 30 years’ experience in the industry – including in senior roles at Guy Carpenter and Marsh. He holds a Bachelor’s in Economics from Boston College and an MBA in Finance from NYU Stern School of Business.

PETER ZAFFINO PETER ZAFFINO PETER ZAFFINO PETER ZAFFINO PETER ZAFFINO

LIFETIME OF ACHIEVEMENT IN INSURTECH

Speaking earlier this year to Bloomberg, Zaffino said that “understanding unpredictable risks” has been the biggest challenge for the insurance sector over the last few years. “Whether it was the pandemic, understanding what could happen if a potential war broke out, but also climate change. We’ve had 100 natural disasters reported through nine months of this year; that just hasn’t happened in the past.” Indeed, the AIG that Zaffino leads is unflinchingly cognisant of the threat that climate change poses to humanity. AIG describes climate change as a “major and unprecedented threat to human health and international security”. In the insurer’s most recent ESG report, published in 2022, AIG said it “takes great pride in our expertise as risk managers and have a full appreciation 20

December 2023

for the role the insurance industry plays in the global economy”. The company is in the midst of driving an improvement in its environmental impact; it has already recorded a 27% reduction in Scope-1 and Scope-2 greenhouse gas emissions (GHGs) between 2019 and 2022, and is committed to reaching net zero across its operations, underwriting and investment portfolios by 2050 or sooner. Fairness and equality play out on the course It’s not just environmental sustainability that AIG cares about, either; the firm is serious about diversity and inclusion. AIG is a signatory to CEO Action for Diversity & Inclusion, a pledge among business leaders that rallies to advance D&I in the workplace through greater collaboration.

“ WE’VE HAD 100 NATURAL DISASTERS REPORTED THROUGH [THE FIRST] NINE MONTHS OF THIS YEAR; THAT JUST HASN’T HAPPENED IN THE PAST” Zaffino himself is committed to fulfilling the pledge on behalf of AIG by reducing unconscious bias through training and education; and making AIG a place where colleagues can have complex conversations about diversity, equity and inclusion. Last year, 52% of AIG’s new hires were women and 40% were ethnically diverse, its reporting indicates. This commitment to diversity, equity and fairness is reflected in some of the highprofile partnerships that AIG has undertaken in recent years. It was a shirt sponsor for the New Zealand rugby union team during a period of dominance that the All Blacks enjoyed over the game; it previously sponsored Manchester United Football Club; and it has recently extended its sponsorship of golf’s AIG Women’s Open through 2030.

Speaking on the Golf Channel’s Morning Drive programme when the championship was first renamed for its new sponsor, Zaffino said he was “positioning AIG as a thought leader on issues at the global stage – whether that’s women’s professional golf and something as prestigious as the Women’s Open, but also women in business and women in society”. He added that supporting gender equity in business involved looking at numerous different topics – including striving for equal pay, implementing strong support systems, and acknowledging that diverse and inclusive teams “produce better results”. AIG ‘has to be an ally’ on gender parity “We have to be an ally with our employees and all of our stakeholders throughout the year on a global basis,” Zaffino continued. It is, perhaps, a mark of his commitment to diversity and inclusion that he speaks so openly about AIG’s ambitions on the subject. Zaffino himself is relatively cautious and reserved; he doesn’t undertake a myriad of media appearances, so when he speaks, you know that it will be on a topic that he, and his colleagues, think sincerely about. Away from AIG, he is a member of the boards of The Michael J. Fox Foundation for Parkinson’s Research and the New York Police and Fire Widows’ and Children’s Benefit Fund. Zaffino holds a Bachelor’s in Economics from Boston College and an MBA in Finance from NYU Stern School of Business. insurtechdigital.com

PEOPLE MOVES

THE LATEST PEOPLE MOVES IN THE WORLD OF INSURTECH We celebrate the new faces at insurtech companies across the globe, featuring new appointments at Wefox, Generali and more

“ We are proud to welcome Giulio Terzariol as CEO Insurance at Generali. We will benefit from the wealth of experience that Giulio is bringing to the Group, leading teams in different countries across the world”

December 2023

GIULIO TERZARIOL JOB FROM: G ROUP CFO – ALLIANZ JOB TO: INSURANCE CEO – GENERALI Generali has appointed Giulio Terzariol as the CEO of its newly created ‘Insurance’ division. Terzariol will be responsible for all of Generali’s insurance business units across Europe, Latin America and Asia – and will report directly to Group CEO Philippe Donnet. The company says that by amalgamating its insurance operations in this way, it will help contribute to strategic alignment within the business, as well as simplifying its operating model and helping to improving business effectiveness. Terzariol will take up his new role next month. He joins Generali from Allianz, where he served in management functions for more than 20 years, most recently as Group Chief Financial Officer. Donnet says that Generali will benefit from “the wealth of experience” that Terzariol will bring to his new employers.

KRISTIE FELTON JOB FROM: H EAD OF PARTNERSHIPS – AT-BAY JOB TO: H EAD OF INSURANCE – AT-BAY Business insurer At-Bay has appointed Kristie Felton as its new Head of Insurance. It’s a step up for Felton – an accomplished insurance industry veteran who has more than two

decades of experience in the sector. She had previously been Head of Partnerships at the insurtech, and had been filling in the role of Head of Insurance on an interim basis for six months. In her new role, she will be responsible for overseeing the strategic direction and execution of all At-Bay’s underwriting, partnerships and field operations. At-Bay Co-Founder and CEO Rotem Iram called her “a phenomenal leader”.

tech veteran Marty Smuin as its CEO. He has been on Arturo’s board for two years and “loved us so much he decided to helm the ship,” the firm says.

ROBERT STEWART JOB FROM: B USINESS DEVELOPMENT EXECUTIVE – VESSELSVALUE JOB TO: D IRECTOR OF BUSINESS

JONATHAN WISMER JOB FROM: C FO – RESOLUTION LIFE U.S. JOB TO: G ROUP CFO – WEFOX Wefox has welcomed Jonathan Wismer as its new Group CFO, allowing Fabian Wesemann to take up the role of Chief Investment Officer – a position that will help drive the German insurtech’s growth through M&As. Wismer previously held roles at insurance giants including AIG, Zurich, Liberty Mutual, Allianz and KPMG.

DEVELOPMENT – VERISK Data analytics and technology provider Verisk has hired Robert Stewart as Director of Business Development at Verisk Underwriting Solutions – one of two new hires announced by the company. He has over 35 years’ experience in the insurance industry, including notably as Senior Partner and Director at Miller Insurance Services.

NEIL GARRETT JOB FROM: S ALES DIRECTOR – SOLERA AUDATEX

MARTY SMUIN

JOB TO: S ALES DIRECTOR – VERISK

JOB FROM: B OARD MEMBER – ARTURO

Data analytics and technology provider Verisk has named Neil Garrett as its new Sales Director – the second of two hires recently announced by the company. An expert in the UK’s insurance market, Garrett will play a crucial role in supporting Verisk’s business goals and joins after a decade at Audatex.

JOB TO: C EO – ARTURO Arturo – an insurtech that provides intelligence on the history and state of a property, such as roof condition, for use in pricing homeowners’ insurance – has hired

insurtechdigital.com

THE MONTH THAT WAS

NET-ZERO THE TARGET FOR LEADING INSURER ALLIANZ New net-zero initiatives, capital investment and continued AI implementation cap off the month that was...

INSURTECH OPENLY RAISES US$100M IN SERIES D FUNDING

ALLIANZ WANTS TO ‘LEAD BY EXAMPLE’ WITH NEW NET-ZERO TARGETS Insurance giant Allianz plans to reach net-zero emissions in its investment and P&C underwriting portfolios by 2050, the company has announced. As part of the commitment, the insurance company will increasingly target renewable and low-carbon energy, technologies that assist with the green transition, and sustainable mobility. READ NOW

Premium homeowners insurance provider Openly has raised US$100m in a Series D funding round led by Eden Global Partners. Per the transaction, Eden Global Partner’s CEO David Dwek has joined Openly’s Board of Directors. The funding comes as Openly bids to transform the homeowners’ insurance journey with its comprehensive service and strong customer service, made possible through its proprietary technology platform. READ NOW

RAAC: HOW INSURER AXA USED AI TO IDENTIFY PROBLEM BUILDINGS New disclosures from AXA Commercial show how the insurance giant used artificial intelligence to identify customers affected by the RAAC concrete crisis. Concerns about the building material’s durability and reliability have been raised since the 1990s, but in the UK, it was not until a partial RAAC collapse in a school this summer that the issue began to mothball. READ NOW

INSURTECH UNICORN BOLTTECH TAKES ON EXTRA $50M IN FUNDING Insurtech firm bolttech has taken on an extra US$50m in funding from Leapfrog Investments, bringing the total amount raised by the firm as part of its Series B round to a staggering US$246m. The company claims it’s the largest ever Series B raise for an insurtech, coming four months after bolttech announced its first tranche of Series B investment, which gave it a valuation of US$1.6bn. READ NOW

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EVENT REVIEW

RECAP We round up the highlights from InsurTech LIVE, our one-day event that saw all areas of the insurtech world come together under one virtual roof. For all our content from the show, head over to our website WRITTEN BY: LOUIS THOMPSETT 28

December 2023

eaturing a series of remarkable guest speakers, panelists and keynote contributors, InsurTech LIVE came to a close on 18 October 2023. Fear not, those who couldn’t make it on the day, below we round up the highlights from our one-day virtual event, where we discuss digital strategies, driving partner ecosystems and the

value of making customer engagement more impactful. Embracing InsurTech: Revolutionising strategies for future success Starting the show was AXA Global Healthcare’s Frederick Bisbjerg, who discusses a balanced approach to the relationship between insurance

incumbents and insurtechs, driving a successful future for both. While admitting that insurance innovation is overdue, Bisbjerg notes that the pace at which insurance works differs from the fast-paced, rapidly scaling approach seen at insurtechs. So, while insurers need to enhance their digital transformation efforts, insurtechs insurtechdigital.com

EVENT REVIEW

FREDERIK BISBJERG Chief Transformation Officer AXA

need to understand the slower operating models in which incumbent insurers operate, tailoring solutions accordingly so the best outcome for incumbents and insurtechs can be met.

InsurTech: When things go wrong Of course, as an emerging industry, scaling is not always so rosy for burgeoning insurtechs. Marsh’s Assistant VP Rupert Poland, and SVP of FINPRO Alex Phillips, joined InsurTech LIVE to discuss when things can go wrong. Marsh data reveals that on average, regulators are the second most likely bodies to take out a claim against an insurer after customers – a result of unwitting regulatory breaches from the insurer/insurtech. insurtechdigital.com

RUPERT POLAND Vice President Marsh McLennan

ALEX PHILLIPS Senior Vice President Financial Lines Marsh McLennan

The pair outlined five areas where the risks for insurtechs may be different than for incumbent insurers, saying insurtechs need to carefully consider their reliance on third parties, regulatory changes across different markets, AI, fraud, and cybersecurity. Third parties (incumbents) usually supply insurtechs with capacity for their products – so should anything change with an incumbent, this could put an insurtech at risk. Compliance in all territories is something insurtechs need to carefully consider, particularly when it comes to AI and cybersecurity.

December 2023

EVENT REVIEW

JOEL AGARD Head of Innovation Zurich Insurance

The InsurTech Ecosystem Forum: Driving Partner Ecosystems In our first panel, we featured an open discussion with Joel Agard, Head of Innovation at Zurich Insurance, Stefano Bison, Group Head of Business Development & Innovation at Generali, and Gil Arazi, Founder and Managing Partner at FinTLV Ventures. Our panelists discussed collaboration and innovation within the insurtech sector, driving efficiencies forward, how to enhance customer experiences and mitigating risks. Investment strategies and insight into the ways disruptive technologies are revolutionising the insurance landscape are also firmly on the agenda.

STEFANO BISON Group Head of Business Development & Innovation Generali

GIL ARAZI Founder & Managing Partner FinTLV Ventures insurtechdigital.com

EVENT REVIEW

Making customer engagement more impactful This fireside chat saw a conversation with Peter Stockhammer, Managing Director of Generali, speaking about integral customer engagement within businesses. He explored topics surrounding new strategies designed to help customers and how organisations can make these successful. Additionally, he discussed how organisations can change their approach to customers and make their interactions more impactful.

PETER STOCKHAMMER Managing Director Generali Engagement Services

JAYAKUMAR VENKATARAMAN Managing Partner, Europe, Financial Services and Insurance Infosys Consulting

LINDA FREINER Group Head of Sustainability Zurich Insurance

CLAIRE VAN DER ZANT Director of Strategic Partnerships Shieldpay

The Climate Risk Forum: Creating a sustainable business landscape Our Climate Risk panel explored the challenges and opportunities insurers face in addressing climate-related risks. The discussion included how technology is being leveraged to enhance risk assessment, develop innovative insurance solutions and drive sustainable practices. Our experts discussed strategies for adapting to a changing climate and creating resilient insurance ecosystems. Speaking on the panel were Jayakumar Venkataraman, Managing Partner for Europe in Financial Services and Insurance for Infosys Consulting; Linda Freiner, Group Head of Sustainability for Zurich Insurance Group, and Claire Van der Zant, Director of Strategic Partnerships for Shieldpay. InsurTech Digital would like to thank all our guest speakers, pannelists and presenters for joining us, as we continue to drive digital connections in our industry. Stay tuned on our website at insurtechdigital.com. insurtechdigital.com

INSURTECH INCUBATORS At a time when funding, mentorship and access to venture capitalists is highly sought after, we look at who the Top 10 insurtech incubators & accelerators are WRITTEN BY: ALEX CLERE

t’s a challenging time for many insurtech entrepreneurs. Though the sector has expanded exponentially in recent years, indicating that it is possible to scale a neat idea into a successful insurtech business, access to funding and mentorship has never been harder to come by. That’s why incubator programmes prove so useful to those who can get accepted, providing connections to investors and helping founders to hone their idea and their pitch. With this in mind, we count down the Top 10 insurtech incubator and accelerator programmes out there right now.

December 2023

TOP 10

insurtechdigital.com

TOP 10

Lloyd’s Lab

XL Innovate In 2015, three years before its acquisition by insurance giant AXA, XL Group launched its first venture capital initiative called XL Innovate. The group aimed to invest in companies with a focus on developing new capabilities in the insurance sector, and creating partnerships outside the traditional underwriting space to enable uninsured risks to be underwritten. The new vehicle provided not only investment, but advice and guidance too, usually taking an equity position in the companies it invested in.

Lloyd’s Lab connects insurtech founders with one of the largest and oldest insurance markets in the world, Lloyd’s of London. The accelerator programme, therefore, boasts an unparalleled reputation within insurance circles and helps founders to grow their book of contacts. Lloyd’s Lab helps startups grow from innovation through to traction and market success. It comes with a coworking space in London, access to experienced insurance professionals, and a highly focused environment for nurturing participating startups.

Hartford InsurTech Hub

InsurLab Germany

The Hartford InsurTech Accelerator is part of an initiative convened by the city of Hartford, Connecticut designed to nurture a prosperous insurtech community. The scheme boasts partners including HSB, Travelers Insurance and Nassau and puts on several events a year, including pitches, innovation challenges, networking evenings, and keynote addresses. Despite its relatively diminutive stature (indeed, the population is about 120,000), the city of Hartford is actually fairly wellknown within insurtech circles, as it hosts the annual InsurTech Hartford Symposium.

InsurLab Germany connects insurance companies, startups and research institutions in an effort to drive collaboration and innovation within Germany’s fastgrowing insurtech sector. Indeed, Europe’s largest economy has much to boast about from an insurtech point of view, including an addressable market of more than 80m people and success stories like wefox, Getsafe, Clark, and Hepster. What’s more, the country’s insurtech scene is diverse with no one city dominating the landscape too much – although Berlin, Munich and Frankfurt-amMain are obvious destinations. insurtechdigital.com

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TOP 10

InsurTech NY

LumenLab by MetLife

It’s no wonder an insurtech accelerator would want to claim New York City as its home. There are over 100 insurtechs in the city – including Policygenius and Cover Whale – according to industry database Crunchbase. InsurTech NY aims to capitalise on the Big Apple’s flourishing insurtech success by connecting participants with valuable partners, mentors, and investors. It has previously worked with some of the biggest insurance carriers and brokers in the US, providing a pathway for alumni like Goose Insurance, Relay, Insurmi, and Steadily.

Since 2015, MetLife’s LumenLab has been helping insurtech founders and entrepreneurs to grow out their business concept, which could, after all, become the next revolutionary idea in the insurtech sector. Perks for participants include a 7,800-square-foot workspace as well as a business incubator with access to dedicated innovation experts. LumenLab was established to develop disruptive new business models in the areas of wellness, wealth, and retirement that could then translate into a competitive advantage for MetLife. insurtechdigital.com

TOP 10

Startupbootcamp InsurTech

Munich Re Digital Partners As its name suggests, Munich Re Digital Partners is a subsidiary of the European reinsurance giant Munich Re. It works alongside insurtech entrepreneurs to help them bring innovative new ideas and businesses to market, all backed up by Munich Re’s pedigree and expertise. Unlike other accelerators, which are billed as a fixed-term programme, Munich Re Digital Partners presents itself as a longerterm business partnership – and it has already helped to incubate the likes of Next Insurance and Simply Business.

Startupbootcamp InsurTech works with promising early-stage insurtech startups to help them grow and generate value both for their businesses and for the broader insurance ecosystem. As such, it is one of several incubator and accelerator programmes under the ‘Startupbootcamp’ brand. Each year, the London-based scheme selects 10 of the most promising insurtech startups from around the world to work with, giving participants access to programme partners, mentors and a host of past alumni – as well as free office space for three months!

Global Insurance Accelerator The Global Insurance Accelerator works with early-stage insurtech startups to build disruptive products and technologies designed for use in the insurance industry. The programme is powered by an ecosystem of leading investors and sponsors, including insurance companies, higher education institutions, and economic development initiatives For nearly a decade, the Global Insurance Accelerator has been

making initial investments, providing deep insight and connecting founders to their future customers to fast track their idea into a successful startup. Unlike most programmes on this list – which our based in internationally recognised insurance hubs like London, New York, Singapore or Zurich – the programme is based in Des Moines, Iowa, which it calls the insurance capital of the US.

We are the Global Insurance Accelerator WATCH NOW

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December 2023

TOP 10

Plug and Play Insurtech Plug and Play Tech Centre’s insurance accelerator is one of the best known in the industry, intent on turbocharging insurtech innovation and modernising what it describes as an “ancient” industry reliant on legacy systems and technologies. Plug and Play works with some of the largest insurers – including Zurich, State Farm, Nationwide and Aon – to foster exciting insurtech solutions in the fields of P&C, Life and Health, and General Insurance. The programme runs four separate accelerator

schemes based in major regional insurance hubs – Munich, Singapore, Tokyo and Beijing – and has helped to nurture well-known insurtech brands including Tilt, Mulberri, Tapoly and Bdeo. Plug and Play Insurtech boasts a network of 500+ leading corporations – 50% of them in the US or Latin America, 20% in Europe, and the rest in Asia. The programme can also draw on hundreds of venture capital firms that it has connections with, as well as universities, government agencies, and more than 50,000 startups.

insurtechdigital.com

DIGITAL STRATEGY

EARTH OBSERVATION AND IMAGING IN INSURANCE UNDERWRITING With a rising number of satellites in orbit, we ask how earth observation technologies are changing the way insurers spot and enumerate risk WRITTEN BY: ALEX CLERE

December 2023

he increased frequency and severity of disastrous natural catastrophes (natcats) is exerting both a human cost and significant amounts of insured losses, presenting an existential threat to insurers. The entire insurance sector relies on strong data from the outset, so volatile and unpredictable risks seriously hamper the industry’s ability to thrive. Natcats are a risk both in terms of property insurance – freak weather events like storms, floods and earthquakes often leave millions of dollars’ worth of destruction in their wake – as well as agricultural insurance, wrecking crops and making it harder for growers to earn a living from one season to the next. One of the most championed risk technologies, which could potentially help insurers mitigate against the mounting threat posed by climate change, is satellite observation and aerial imaging. It’s not a new concept; it is, after all, the same underlying technology that connects our smartphones and powers Google Maps. But adoption has traditionally been limited among insurers, due to the high cost associated with satellites. But all of that is changing. Reijo Pold, Founder & Chief Strategy Officer at Value.Space, explains: “Historically, satellites have been used selectively across the insurance spectrum due to high costs, with post-catastrophe analyses being the well-known use case to date. Now, we are seeing a surge in claims and losses globally that are primarily driven by changing climate patterns, that is pushing already brittle infrastructure to breaking points. “This is also starting to inflict damage to properties and cities on a large scale as well. Insurers today want to analyse risk ahead of time to make more accurate decisions insurtechdigital.com

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DIGITAL STRATEGY

“ Historically, satellites have been used selectively across the insurance spectrum due to high costs” REIJO POLD

FOUNDER & CHIEF STRATEGY OFFICER, VALUE.SPACE

and improve their loss ratios. This capability exists today – we have made it cost-effective, and it will be even better in the years ahead, with new satellite capabilities coming online.” What are the main use-cases for satellite imaging in insurance? Owing to the nature of aerial imaging and photography, drones and satellites can prove

immeasurably powerful for the insurance sector. They are able to take in huge swathes of data – more than any human is able to process – and make sense of it, either for the purpose of loss adjustment or risk assessment. The insurance verticals most conducive to the use of earth observation, aerial imaging and satellite technology are those where timely, accurate data on geographical and environmental conditions are crucial,” says Mark Costello, Co-Founder & CEO of commercial insurance broker Taveo. The continuous influx of real-time data from these technologies can lead to more dynamic insurance models; better risk management; and more accurate, faster claims processing across these verticals. insurtechdigital.com

DIGITAL STRATEGY

Within each of these insurance lines, there are multiple individual use-cases such as risk assessment, fraud detection and claims handling that can be supported using aerial and satellite technology. Robert Kozikowski, Co-founder and CPO at Tensorflight, a Polish-American insurtech that uses satellite imagery and AI to provide insights into the physical characteristics and risk profiles of buildings on the ground, elaborates: “With satellite imagery, we can evaluate every global structure, gather building-related information (such as building dimensions, construction type, nearby vegetation, and potential hazards) and detect changes to properties. 52

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“This includes damage analysis following natural disasters, such as hurricanes and within conflict zones, where on-theground inspections are impossible and other sources of imaging are unable to provide the level of detail required for the insurance process. We also operate in the agricultural space and use satellite imagery to monitor crop health and forecast potential crop damage.” The technology is currently used to analyse risk and adjust for loss once a claim has occurred, with Costello noting that it is weighted toward one more than the other: “Currently, the emphasis seems more on risk analysis as it helps in proactive

Main uses for earth observation and satellite imaging, according to Mark Costello, Co-Founder & CEO of Taveo • Agricultural Insurance: These technologies are invaluable for monitoring crop conditions, assessing damage from extreme weather events, and verifying insurance claims. They can provide data on soil moisture, vegetation health, and other critical parameters that impact crop yields. • Property and Casualty Insurance: Aerial and satellite imaging can assess property values, structural integrity, and damages post-disaster, aiding in both risk analysis and loss assessment. • Natural Catastrophe Insurance: Earth observation helps in monitoring

and assessing risks associated with natural disasters like floods, wildfires, or hurricanes, enabling better risk modelling and faster claims processing post-event. • Environmental Liability Insurance: Monitoring pollution, land use changes, or other environmental liabilities becomes feasible with these technologies. • Marine and Aviation Insurance: Tracking assets and assessing risks or damages in remote or expansive areas like oceans and airspace benefit significantly from aerial and satellite imaging.

management and pricing insurance products accurately,” he says. “However, the technology’s role in loss assessment is also growing, especially with data analytics and imaging technology advancements.” Kozikowski agrees that underwriting is the primary application. “It’s swift,” he explains. “For any asset an insurer is interested in, one can quickly procure a recent high-resolution image, extracting the data needed to formulate insurance pricing. Almost any location of interest to an underwriter typically has readily available imagery.” What future applications for satellite imagery are there? As with most technologies, adoption is often shaped by availability. As more satellites are launched, the ability for companies – not just insurers – to leverage the technology has become exponentially more affordable. There are now more than 1,000 Earth observation satellites in orbit, covering everything from telecommunications to satellite internet. “While most insurance verticals already leverage satellite imagery, the game-changer lies in advancing automation,” Robert Kozikowski explains. “This includes swifter analysis, extracting richer data points, and monitoring a broader spectrum of assets and risks through Earth observation. “An emerging trend is the integration of predictive analytics with constant satellite monitoring. Insurers are transitioning from a static ‘sell-andforget’ model to a dynamic approach, continuously observing assets and proactively forecasting potential risks.” 54

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DIGITAL STRATEGY

“The insurance verticals most conducive to the use of earth observation, aerial imaging and satellite technology are those where timely, accurate data on geographical and environmental conditions are crucial” MARK COSTELLO

CO-FOUNDER & CEO, TAVEO insurtechdigital.com

“There is so much potential in this area,” Taveo’s Mark Costello continues. “Existing applications will be expanded and better calibrated [in future]. The evolution of Earth observation, aerial imaging and satellite technology, particularly when coupled with advancements in AI and ML, could lead to myriad new applications within the insurance sector.

“ Insurers are transitioning from a static ‘sell-and-forget’ model to a dynamic approach, continuously observing assets and proactively forecasting potential risks” ROBERT KOZIKOWSKI

CO-FOUNDER AND CPO, TENSORFLIGHT

“Employing real-time imaging for dynamic risk evaluation enables accurate pricing and policy terms. Post-disaster, automated damage analysis could expedite claims processing. Predictive analysis for loss prevention could predict loss scenarios and inform on preventive measures. Continuous tracking, monitoring, and valuation of assets ensures adequate insurance coverage. “Equally, enhanced, or even hyperlocal, weather analysis better assesses weather-related risk – which is crucial for agriculture and property insurance. Monitoring compliance with environmental regulations in real-time for environmental liability policies. Continuous monitoring of 56

December 2023

infrastructure integrity to detect & highlight potential risks. Assessing and adapting to new risk profiles driven by climate change. “Further, customised insurance products tailored closely to individual or industryspecific needs based on data insights, and real-time policy interaction allowing policyholders to adjust coverage based on current data, fostering a more flexible insurance model, will be possible. These emerging applications could significantly

DIGITAL STRATEGY

enhance the precision, efficiency, and customer-centricity of insurance services, aligning them more closely with real-world conditions and client needs.” If that utopian vision comes to fruition, it will be to the benefit of both insurers and policyholders. New threats, stemming largely from increased climate risk, threaten to destroy the bottom lines of many insurers unless they find new ways to define and characterise risk. Flood, for instance, was

once considered uninsurable, and there are suggestions that wildfire risk is headed in that direction. Likewise, embracing new technologies as they become available – or affordable – is a hallmark of the insurtech sector. Identifying risk before loss occurs will protect the policyholder from potentially devastating circumstances and improve trust between the insurer and the insured. insurtechdigital.com

Apiture is driving digital banking innovation in the US AD FEATURE WRITTEN BY: SCOTT BIRCH PRODUCED BY: JAKE MEGEARY

October 2023

insurtechdigital.com

December 2023

APITURE

Apiture’s Chris Cox and Daniel Haisley share how the innovative fintech is transforming how US financial institutions engage with consumers and businesses

inancial Institutions in the US have always prided themselves on delivering personal customer service. With the decline in use of brick and mortar branches and face-to-face interaction, many of these institutions may feel like there is a growing gap between them and their valued customers – but it does not have to be that way. In fact, these financial institutions could provide even better, more individual experiences thanks to advances in online and mobile banking technology. Apiture is a digital banking company headquartered in Wilmington, North Carolina, that serves community and regional banks and credit unions in the US market. The company’s mission is to empower financial institutions to know and serve their clients with the care of a traditional community institution at the scale, speed, and efficiency required in today’s digital world. Apiture does exactly that for more than 300 clients throughout the US, delivering comprehensive online and mobile banking solutions that help community and regional institutions level the playing field with larger institutions. Apiture’s flexible, highly configurable solutions include innovative data intelligence and embedded banking strategies to empower banks and credit unions to attract and retain consumer and business customers. insurtechdigital.com

APITURE

Chris Cox and Daniel Haisley, Apiture: Innovating US Financial Institution Engagement. WATCH NOW

COO Chris Cox explains that the US banking market is very large and competitive, with up to 9,000 banks and credit unions all competing for the same customers, the same deposits, and the same loans. “Research clearly shows that for all businesses, including financial institutions, digital engagement is paramount,” says Cox. “Consumers are willing to change financial institutions for a better digital experience. That means innovation is necessary to allow our clients to compete in the market by creating new and better user experiences and digital engagement. It’s our job to bring that technology to financial institutions in the US in a meaningful way.” One of the main challenges any fintech faces – especially in a vast market like the US – is having a point of difference, a unique 62

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selling proposition. Digital banking is an increasingly crowded industry, and standing out from the competition is essential to survive and thrive. So what makes Apiture different from the rest? “One of our key advantages is our ability to help our clients innovate quickly by integrating our solutions with best-ofbreed fintechs,” says Daniel Haisley, EVP of Innovation. “We can bring those fintechs to the table, while we also continue to enhance our solutions through in-house development based on what we are hearing directly from the market and from our clients.” The way that community and regional financial institutions serve their customers has evolved dramatically in the last decade. For more than 100 years, relationships were driven through face-to-face interactions,

CHRIS COX TITLE: COO COMPANY: APITURE LOCATION: UNITED STATES Chris Cox serves as the Chief Operating Officer of Apiture, overseeing all aspects of business operations. Previously, Chris was the General Manager of First Data’s digital banking business. He also led mobile payment product development efforts at First Data. Prior to joining First Data, Chris was a Principal Consultant at Diamond Management & Technology Consultants and a Staff Consultant at CSC Consulting. Chris has more than 20 years of experience in banking, payments, mobile commerce, product innovation, and technology strategy. He holds a bachelor’s degree in mathematics from Miami University and an MBA from Duke University.

insurtechdigital.com

DANIEL HAISLEY TITLE: EVP OF INNOVATION COMPANY: APITURE LOCATION: UNITED STATES Daniel Haisley serves as EVP of Innovation at Apiture, leading development of Apiture’s Data Intelligence and API Banking solutions as well as other innovation initiatives. Daniel h as an extensive background in product and design management. He brings 10+ years of experience driving innovation in technology for financial institutions, previously holding product leadership roles at Live Oak Bank and 1st Source Bank. Daniel is a graduate of Purdue University in West Lafayette, IN, where he earned a B.S. in Financial Counseling & Planning, and the Graduate School of Banking at the University of Wisconsin in Madison, WI.

December 2023

APITURE

“ In the US market, there’s just so much room for improvement when it comes to helping financial institutions to maximise their potential” DANIEL HAISLEY

EVP OF INNOVATION, APITURE

and conversations with people walking into a branch off the street. Those physical meetings and interactions have dwindled, so how can bankers go about serving the unique needs of individual customers and members? That’s where Apiture comes in. “With our data intelligence solution, that’s exactly what we seek to do,” explains Haisley. “We give the bank the insights to understand each customer, to understand their needs, and then execute on those needs through relevant interaction with that customer within digital channels.” Cox says financial institutions have the potential to know more about their customers than any other business. That’s because financial activity touches every aspect of a person’s life throughout their entire life. “Financial institutions want to be able to use their data to know their customers better – but mostly they can’t,” says Cox. “That’s because they don’t have access to relevant data. They don’t necessarily have the ability to turn that data into meaningful

insights, and they can’t always trigger actions from those insights. So that’s what Apiture is doing with its Data Intelligence solution.” Haisley leads the Innovation Team behind Data Intelligence – a suite of options that helps financial institutions better use their vast amount of customer data. There are a range of options under the Data Intelligence umbrella, such as Data Engage – a no-code toolkit that helps financial institutions see how users are engaging with digital banking and lets them create on-screen tips and guides to encourage engagement with their digital banking solution. Data Intelligence also allows banks and credit unions to better understand user behaviour and create relevant targeted marketing. “Innovation is important in the digital banking space, because in the US market, there’s just so much room for improvement when it comes to helping financial institutions to maximise their potential,” says Haisley. “Every day, the Innovation Team wakes up thinking about how we can do that. How can we bring solutions to bear that will better help the consumers and small business owners understand their finances better, know what decisions need to be made, and execute on those decisions. Innovation drives that.” Apiture is also exploring the use of AI to deliver tools that will provide a real-time assessment of a customer’s financial standing along with proactive recommendations to improve that standing. By analysing data such as transaction history, account balances, and engagement metrics, this technology will enable financial institutions to establish a highly personalised, consultative relationship with their customers. insurtechdigital.com

APITURE

The use of artificial intelligence is not new in the financial sector, but Haisley believes there is huge potential to be unlocked. “There’s a tremendous amount of data that banks and credit unions have available today, to do things like provide and manage budgets for their customers or members,” says Haisley. However, historically banks have used that data to look back at customer history rather than use the data to predict what will happen in the future. 66

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“In so doing, you empower your customers and your members to learn the easy way versus learning the hard way,” says Haisley. “And that’s where artificial intelligence and machine learning really unlock an inflection point for digital banking.” Right now, the Innovation Team is laser focused on helping banks and credit unions to better utilise the data that they already have while also using APIs to empower those financial institutions to create unique experiences.

“ We built this company specifically so that we could be a great partner to financial institutions in the US market” CHRIS COX COO, APITURE

“By using APIs, we can bring system and people together that otherwise may not have been connected,” says Haisley. “For example, using APIs to embed banking capabilities in non-financial partners’ software – like a university’s student portal or medical practice management software – is a powerful new way for financial institutions to connect with more customers digitally.” Apiture has grown since its formation in 2017 as a joint venture between First Data Corporation and Live Oak Bank. insurtechdigital.com

December 2023

APITURE

The company prides itself on having a team with hundreds of years of collective experience working at leading US banks and credit unions. Despite its tender years, Apiture provides the operational efficiency of a mature company, coupled with the agility of a startup – something vital in the fast-moving world of fintech. Company culture is also essential for success. “We built this company specifically so that we could be a great partner to financial institutions in the US market,” explains Cox. “We created a team, processes and tools all geared specifically toward being real partners to our clients. This is a relationship business that we’re in. And we take that very seriously. “We’ve also focused a lot on our company culture. When we built the company, the idea was if we create a great place to work where people get excited to come to work every day, that directly translates into happy and satisfied clients. “Our job is to create a seamless digital experience that allows financial institutions to engage with their customers. We do that by building a great solution. We do that by integrating partners and solutions. And we do that well.” That is clearly the case, with more financial institutions choosing to leverage Apiture’s tech solutions and deliver the feature-rich online and mobile banking experience that today’s consumers and businesses expect in an increasingly digital-first world.

insurtechdigital.com

TECHNOLOGY

AI IN INSURTECH: EVOLVING THE CUSTOMER EXPERIENCE In this roundtable, we look at ways AI is evolving insurtech consumer experiences, from chatbot upgrades to embedded offerings, claims and quote generation WRITTEN BY: LOUIS THOMPSETT

December 2023

Insurtech Digital asks the experts how AI in insurtech is evolving the customer experience for insurers, featuring:

RENÉ SCHOENAUER

LAUTARO MON

Guidewire Director of EMEA Product Marketing

Charles Taylor Chief Product Officer

JOHN BEAL

MOHIT MANCHANDA

LexisNexis Risk Solutions SVP of Analytics and Insurance

EXL SVP & Head of Insurance

As the needs of consumers change, so too must technology match these changes. Insurtech Digital looks at how AI and machine learning automating customer service in insurance, particularly chatbot and automated telephone experiences. We delve into ways AI is boosting personalised sales, particularly with regard to embedded insurance products, and look at how technology is making the claims process more efficient. Furthermore, we speak to our experts about ways AI is making management policy and quote generation more efficient, and look at how insurers are striking the balance between enhanced automation and retaining a human touch in the services they provide.

TECHNOLOGY

How is AI and machine learning automating customer service in insurance, and how is it improving the chatbot/automated telephone experience?

René Schoenauer Insurers have deployed AI and machine learning into the claims processing, underwriting, and fraud detection arms of their business, and in this are using chatbots to improve customer service. As chatbots are available 24/7 to assist customers and help with basic inquiries, such as completing common transactions and checking information, customers are able to get help when they need it. At the same time, we should not underestimate the need for human touch for particularly stressful and non-standard claims situations. In addition, AI and machine learning can be used by insurers during different parts of the claims-handling process to quickly gather and analyse information. For example, machine learning can be used to analyse images and assess the severity of damages. It can then forecast the repair costs and book the repair with a verified provider, sharing the details with the customer instantly. All of this can be done quickly and efficiently and significantly speeds up the settlement of the claim.

Lautaro Mon In the insurance industry, AI-powered chatbots and virtual assistants are integral parts of customer service automation. Utilising machine learning algorithms and Natural Language Processing (NLP), these advanced systems offer a nuanced understanding of customer inquiries, extending from routine policy information to risk assessment. This capability is mirrored in state-of-theart automated telephone systems that not only efficiently direct customer calls but also analyse sentiment. This technology allows insurers to offer a more customised, empathetic service, fitting into a broader strategy that combines human expertise with AI for improved customer interaction and satisfaction. Virtual insurance agents or chatbots are also crucial in the application of AI in customer service. Unlike standard automated systems, these intelligent agents engage users in conversations that are both informative and enjoyable. They ask questions related to customers’ needs, lifestyles, and preferences, gathering invaluable data. More than mere data collectors, they act as brand ambassadors, setting a positive tone for all customer interactions. John Beal There is no shortage of data in insurance. AI and ML are helping insurance providers to operationalise all of this data, bringing it in at the right time to support quotes, price a risk, expedite a claim, flag possible fraud or understand a cross-sell opportunity. AI/ML systems allow insurance providers the ability to condense large volumes of disparate data down to consumable insights. They are also helping consumers and insurtechdigital.com

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businesses mitigate their own risks, to help prevent a claim from occurring. Most insurance customers want simplicity, transparency and speed – from quote to claim. To achieve this, insurance providers are increasingly using automated processes, offering quicker ways of doing things with a greater degree of accuracy but without losing the human touch when it’s needed. Mohit Manchanda Customer service is ripe for transformation, with many opportunities to reduce friction for both customers and agents. AI and machine learning are already transforming the quality of customer service that the insurance sector can offer - not just for automated chatbots (by recognising a customer’s needs and pulling historical data for more personalised chatbot experiences) but live telephone calls too.

For customer service in insurance, AI is improving the experience in two ways. First, conversational AI allows customers to selfserve across a range of digital channels. Conversational AI or chatbots today are natural language-based and can easily personalise the journey based on customer intent, tone, and profile to handle simple to medium complexity queries in an efficient and empathetic manner. Second, AI-based assistants, who listen to an ongoing call and provide transcription, intent identification, and next best action in real time, can help agents to understand different accents, provide the right information, and create a personalised experience for customers for medium to high-complexity queries. AI can provide procedural guidance to agents, especially those who are new to their roles, to handle customer queries in a compliant yet customer-centric manner - something which is critical for a product as complex as insurance. Making an agent’s work easier implicitly improves the experience of the customer. They experience shorter, more efficient calls and a faster resolution. We have seen over 40-50% more efficient query resolution in areas where AI has been deployed. insurtechdigital.com

TECHNOLOGY

How is AI boosting personalising sales? And do embedded insurance offerings help with bespoke sales offers?

René Schoenauer Embedded insurance in and of itself will not necessarily result in more personalised offerings, but we certainly see the increased availability and use of connected devices as offering opportunities for better tailoring of insurance products to customer’s needs. AI will have a role to play here in that the data from devices will need to be analysed, and in some instances, different 76

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levels of cover may be activated based on the location of a car, for example, or whether someone is at home or not. There is also a significant opportunity to go beyond insurance, if insurers can achieve the level of data analytics capabilities necessary. For a customer, preventing a loss event is even better than quickly and efficiently resolving one. Through the use of sensors and AI, insurers have an opportunity to, for example, detect and stop a leak from becoming a major issue, or identify when a car is about to break down and needs a service. In doing so, things that would cause major disruption end up being fairly routine fixes, letting the customer get on with their lives and leaving them much happier than had the loss event happened.

“AI and automation are not static solutions; they are tools that continually adapt to align with consumer needs and business objectives” LAUTARO MON

CHIEF PRODUCT OFFICER, GUIDEWIRE

Lautaro Mon AI is profoundly enhancing the personalisation of sales in the insurance industry. By leveraging technologies like virtual insurance agents and chatbots, insurers can gather critical insights into customer preferences, needs, and lifestyles. For instance, intelligent, human-like avatars interact with potential customers through social media platforms or websites, asking questions that help in understanding the customer better. This interaction allows for the creation of highly tailored insurance plans, which not only resonate with the customer on a deeply personal level but also increase the success rate of sales efforts. This synergy between AI and human expertise offers a unique, datadriven strategy to connect with customers more effectively.

John Beal It follows that the more you can understand about a customer and their assets such as their home or vehicle, the more personalised the experience an insurance provider can offer. It starts with better communication based on a better understanding of customer needs. Consider the volume of customer data held by insurance providers in claims, marketing, and underwriting – often held in different silos, sometimes in different sub-brands. AI and ML techniques can help make quick and accurate sense of that data. This becomes all the more important in a market rife with merger and acquisition activity giving insurance providers a more holistic view of that individual to best support their needs. insurtechdigital.com

How is AI making claims processes more efficient?

René Schoenauer One of the most important ways AI is making claims processes more efficient is through analysing patterns in customer behaviour and detecting suspicious actions and potentially fraudulent claims. This not only stops these claims from being processed, but the positive impact on an insurer’s loss ratio means better prices for customers too. In addition, leveraging AI in claims processes ensures better claims routing and segregation depending on the predicted severity and likelihood of litigation risk. Within this process, automation is based on AI predictions. Lautaro Mon Insurers increasingly leverage AI-driven analytics to delve deep into individual customer preferences and behaviours. This powerful technology enables a new degree of personalisation, allowing for the creation of highly tailored insurance plans and specific marketing campaigns. By offering insights into customer behaviour and risk profiles, AI analytics serve as a critical tool for customising services and offers. Such a level of personalisation not only targets conventional insurance products but also paves the way for innovative strategies like embedded insurance offerings. Although your text does not explicitly mention embedded insurance, the depth 78

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of personalisation facilitated by AI suggests that bespoke sales offers, which could include embedded insurance options, can be crafted to align more closely with individual customer needs. Overall, the role of AI in creating hyper-personalised experiences is pivotal, transforming how insurers interact with and serve their customers. John Beal Motor insurance claims are benefiting from AI/ML techniques. More and more insurance providers are using image recognition technology to capture damage or invoices. They then run a system audit to automatically authorise and settle the claim if their criteria are met. This speeds up the process for both the insurance provider and the customer. In the very near future, historical policy, quote, and claims history may offer a further level of security prior to an insurer releasing any claim payments. Many customers with telematics policies benefit from an improved claims experience thanks to AI and ML and this experience will be one of the key benefits to come from the connected car. From the point of impact through to claim resolution, telematics data can allow insurance providers to get on the front foot at first notification of loss (FNOL), to support the customer post-accident with emergency services, roadside recovery, vehicle rentals, and repairs whilst providing invaluable insights regarding the circumstances of the collision. Insurance providers can look at a range of data such as airbag deployment, impact sensor activation, and g-force metrics to understand claim severity and bodily injury potential. They can also bring in vehicle

TECHNOLOGY

build data to understand the repair cost and potential impact of expensive ADAS features. Mohit Manchanda AI can assist in registering, processing, and paying out claims. It can automate the extraction of data from claims submissions; analyse documents, images, medical records, and legal notices to compare them against policy terms; finalise claims payouts; and identify patterns and anomalies in claim narratives for fraud detection.

Generative AI allows claims adjusters to access data not only from claims systems but policy admin and underwriting systems to get a holistic view of the customer’s claim progression, allowing for faster and more accurate decisions and proactive communication. This proactive communication ensures that the claims journey has less friction for the customer and that the claims process enhances customer perceptions of the brand. insurtechdigital.com

Is AI making policy management more easy/digestible?

Lautaro Mon AI aids in streamlining administrative tasks such as policy management, premium calculations, and policy renewals. Elements of gamification further encourage policyholders to adopt healthier lifestyles, thereby making policy management more interactive and engaging. In light of rapid technological advancements and changing consumer expectations, it becomes evident that insurers cannot afford to regard AI and automation as static, one-time solutions. Instead, they must consider customer service automation as a constantly evolving practice to stay abreast of these changes. John Beal AI and ML techniques enable data-based decisions to be made, at speed. In household insurance, for example, prefill and data validation solutions help make the whole application process quick and simple, improving pricing accuracy while cutting the time it takes for a customer to gain a quote. No more guessing at rebuild costs or property age. This is only possible through a huge amount of modelling, linking, and AI-ML techniques to pull all the data together to return accurate and up-to-date information on the person and property. In the US, we are using AI-enabled innovation to help consumers and insurers gather more information about the inside and outside of the home and the roof condition for underwriting, renewal and in the event of a claim. 80

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For businesses needing new commercial property space, AI can provide valuable insights into the footfall, crime rate, exposure to perils, portfolio risk aggregation, or other local circumstances that increase the risk to the property. Forewarned is forearmed, so access to these insights allows the customer to take preventative measures which has the benefit of reducing the risk and potential claims costs.

What about quote generation? René Schoenauer AI is able to quickly collate and analyse insights and ever-changing risk factors for consideration by the underwriter to support policy decisions.

TECHNOLOGY

Leveraging AI for quote generation means that underwriters have access to the most up-to-date threat analysis and risk factors to ensure that accurate quotes are created seamlessly. This also leads to the ability for insurers to offer dynamic pricing, which is based on predictive analytics and AI. Within this, insurers could rate quotes based on customer retention or attraction criteria, in order to provide personalised customer service to current and future customers. John Beal Pricing insurance is based on a number of factors, including predicting the risk of a claim. Here machine learning algorithms speed the identification

of the most predictive attributes behind claims losses for use at the point of quote. For example, cancellations and gaps in coverage in motor insurance are predictive of claims but insurance providers also need to understand when those changes to policies occurred. A great example of this is the ML techniques that allowed them to distinguish between policy changes directly related to national lockdowns versus changes that occurred outside of those times to support the fairest treatment of customers when they come to buy or renew their next motor annual policy. Protecting the consumer’s identity and personal information is another important role AI and ML play. insurtechdigital.com

Is it still important to retain a balance between technological upgrades to customer service and maintaining a human touch? Where should the line be drawn?

René Schoenauer Customers expect their claims to be paid out faster but want to feel as if they are being valued. Striking a balance between the two means using both AI and humans hand in hand. In our annual report, How Insurers Can Support Their Customers In Uncertain Times, the majority of customers (56 percent), said that they prefer to make a claim over the phone and 39% over email. Perhaps surprisingly, 20% of 18–24-yearolds would prefer their insurance agent to file their claim on behalf of them. The human touch in insurance is still needed and insurers must consider how they can provide better personalised support and increase their customers’ confidence. Lautaro Mon Absolutely, it’s by combining the best of AI with human expertise that better service to customers can be delivered, as well as more accurate risk assessments and ethical decisions made. Human claims adjusters review AI-generated insights, while human agents step in for complex or sensitive customer service issues. 82

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John Beal It’s hard to think of a data-driven, digital business that does not need to retain this balance. Consumers can become frustrated if the only line of communication is automated customer service. To commit too far in the other direction and enforce all interaction to have a human touch can have equally damaging results. Automated processes are designed to lessen the strain on an organisation’s resources and accelerate day-to-day tasks.

TECHNOLOGY

These can even save consumers time in cases where they are looking for a simple, quick quote or way to lodge a claim. As well as speed, transparency, and simplicity, customers want consistency and reliability from their insurance provider – when that is delivered trust is built. Data-driven automation employing technology, artificial intelligence, and ML helps provide consistency and reliability as the backbone of an insurance provider’s proposition, freeing insurance providers to offer the personal touch when it’s needed.

Mohit Manchanda Insurance products are sensitive; they’re invested in earlier to provide support if life gets tough later. When agents are dealing with customers, that customer on the other end is usually at a vulnerable point – their property may be seriously damaged or they themselves may be hurt. AI can assist that customer by speeding up the process of getting them the advice and help they need. Still, it should not overtake the human element of customer experience or replace the agents themselves. On its own, AI can perform many tasks and transform the entire customer service experience for insurance customers, but it simply cannot synthesise the empathy and understanding that a human agent can provide. Insurers must engage with the experts on AI – whether external or internally hired professionals – who can identify at what points in the customer service journey AI can make a difference. For example, EXL’s smart agent assist solution works in conjunction with the agent in real-time to help with a service conversation as it happens. This way, the customer can benefit from the real human touch of an agent on the line, but the agent is supported by an AI assistant which identifies and analyses queries, providing tangible insights in real-time to help them resolve queries efficiently. The use of AI for audit also ensures that we can ensure that every customer service interaction is done in a compliant and customer-centric manner with any deviations leading to agent coaching and improvement discussions. insurtechdigital.com

Consumer’s technology preferences are, today, changing at a rapid pace. How important is it that insurers see customer service automation as a practice in need of constant evolution?

Lautaro Mon With rapidly changing consumer technology preferences, insurance firms must regard customer service automation as an ever-evolving practice. Constant adaptation is essential for meeting customer expectations effectively. AI and automation are not static solutions; they are tools that continually adapt to align with consumer needs and business objectives. AI exerts significant changes, including hyper-personalised customer experiences and AI-driven risk prevention. These innovations highlight that insurers recognise the need for continuous innovation to meet consumer expectations. This manifests in features like the “AI-Powered Hyper-Intuitive Customer Experience,” where insurers can employ advanced AI interfaces, such as holographic avatars, to adapt to consumers’ growing comfort with and expectations for hightech interactions. As technology advances, so will consumer preferences for how they wish to interact with services. If insurers fail to keep their customer service automation 84

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tools up-to-date, they risk not only operational inefficiency but also a growing disconnect with their customer base, which could directly impact business growth. John Beal Consumer expectations are evolving quickly, especially where technology preferences are concerned. When applying for a new policy, submitting a claim, or prospecting renewals, consumers increasingly expect automation and simplicity using the technology they are familiar and comfortable with. Keeping pace with this expectation is front of mind for much of the insurance sector but what we need to remember is that behind every automated service is data to drive those decisions and responses. The right data has to be injected at the right point at the right time in the customer journey to smooth the customer experience – whatever the technology used. Mohit Manchanda It is not just customers’ technology preferences that are changing - their expectations of customer service are evolving, too. In today’s economic climate, financial difficulties mean customers have a lower harm threshold; insurance firms must make their critical customer services resilient to provide more tailored and responsive support. Today, insurance brands are held to the same standards as retail and customer service brands, which is the experience that customers benchmark them against. Such higher expectations of service go together with an expectation of better technology, which keeps pace with the technological evolution customers see in their day-to-day lives.

TECHNOLOGY

They have become accustomed to omnichannel service options, faster responses, sleeker journey design, and personalised recommendations that meet their needs. They are naturally frustrated when the frictionless experience is not available to them when contacting their insurer. Historically, the insurance sector has been slow to modernise, but this attitude is changing, and AI is the catalyst. In the race to invest in AI capabilities to keep pace with competitors and transform

business operations, we are seeing an increased appetite for emerging technology among insurers. However, it is also important that apart from AI technology, insurers ensure that AI is used responsibly and that customer and data privacy is protected. Trust is the bedrock of an insurance business, and it is important that despite the advent of modern and new technology, it remains the foundational pillar of an insurer’s relationship with its customers. insurtechdigital.com

DEPLOYING A SAFETY NET INTO THE PLATFORM ECONOMY WRITTEN BY: ALEX CLERE PRODUCED BY: JAKE MEGEARY 86

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WOLT

insurtechdigital.com

Garrett Olson, Head of Insurance & Risk Management at Wolt

WOLT

Technology company Wolt’s Head of Insurance and Risk Management, Garrett Olson, explains the insurance needs of Wolt’s 180,000+ courier partners

nybody who lived on planet Earth during the COVID-19 pandemic will be very familiar with the convenience and variety that comes from having food, groceries and merchandise delivered to your door. In the US, companies like DoorDash, Grubhub and UberEats are helping to create a roughly US$25bn economy – buoyed by strong growth during lockdown. One of Europe’s leading players in the industry is Wolt, a Finnish-headquartered technology company that makes it easy to discover and get the best restaurants, grocery stores and other local shops delivered to your home or office. Founded in 2014, Wolt has rapidly grown to a 9,000-person company spread across 25 countries and hundreds of cities – from Oslo to Tokyo. Wolt has also expanded from restaurants to multiple verticals, and customers can today order a broad selection of products on Wolt – from medicines to dog food and flowers to cosmetics. In 2022, Wolt joined forces with DoorDash, which operates in 29 countries today, including 25 of them with the Wolt product and brand. What are the needs of a courier partner? Understanding the demands of courier partners is the first step towards providing a relevant insurance proposition for them – a process which is led by Wolt’s Head of Insurance and Risk, Garrett Olson.

Based in the Danish capital, Copenhagen, Olson has been with Wolt for just over three years. Building simple, relevant and valuable safety nets for the platform economy motivates him. Prior to Wolt, he worked with the Executive Boards at Zurich Insurance Group; the shipping company Mærsk; and FLSmidth, an OEM to the mining and cement industry in strategy, risk and venture building roles. There is no typical Wolt courier partner. Olson understands each courier partner has their own personality, preference of vehicle and device, and desired hours on the platform. He recognises the various motivations that individuals may have for earning on the platform: sporadic and ad-hoc basis, supplementary or transitional.

WOLT

Each courier partner has different motivations, and it highlights the importance of one’s flexibility to work around their own situation and schedule. Insurance propositions should be designed for people working flexibly. “Wolt offers courier partners with insurance during the time they are logged online, making deliveries with Wolt,” Olson says. “When offering this insurance, we have focused our attention on not only the accident, but also the recovery period. We want a healthy, happy courier partner to return to the platform. This safety net enables courier partners to make deliveries with a peace of mind. How you manage this risk is one of the most essential building blocks I’ve seen to generate sustainable value, while strengthening reputation.”

December 2023

“ How you manage risk is one of the most essential building blocks I’ve seen to generate sustainable value, while strengthening reputation” GARRETT OLSON

HEAD OF INSURANCE & RISK MANAGEMENT, WOLT

Wolt’s insurance proposition for couriers With over 180,000 active courier partners fulfilling millions of orders every year, accidents are bound to happen – and they do. That’s where Wolt’s insurance proposition comes in. Having a very diverse group of people as courier partners across 25 countries underlines the challenge of creating an insurance proposition that would work for everyone. Wolt’s courier partners want flexibility. They want to be able to log on the platform when it suits them, work for as little or as long as they choose, and know that there’s always going to be enough orders on the platform to earn money. This extends to the insurance piece, too; courier partners want to know they’re adequately covered against accidents or injuries that happen in the course of their work by insurance that is able to respond quickly to the severity of the incident. Should they need to make a claim, they expect it to be as simple, intuitive and easy to follow as ordering on the Wolt app.

Garrett Olson, Wolt's Head of Insurance, on Meeting Courier Partners' Insurance Ne WATCH NOW

insurtechdigital.com

WOLT

2014

Wolt founded

Current active Wolt markets

9K+

Number of Wolt employees

180K+

Number of active courier partners

2022

Joined forces with DoorDash

“ If we fail, it tends to still be forward. We view obstacles as opportunities. We are addressing a new segment, so inherently the status quo will push back” GARRETT OLSON

HEAD OF INSURANCE & RISK MANAGEMENT, WOLT

As with the customer app, Wolt pays close attention to the hierarchy of information, presenting key details in concise formats which also applies to the partner insurance dashboard – accentuated with graphics, icons and short descriptions wherever appropriate – to make the claim submission process as effortless as possible for courier partners who have had a fall, collision or breakage. Wolt offers two types of insurance coverage to the courier partners. The first is accident cover that includes “the broad spectrum of risks that couriers face”, Olson tells us – including dislocations, broken bones, and chipped teeth. Although Denmark is one of the world’s most bikefriendly nations, minor injuries like this are not uncommon. But the company also insures the most extreme and unfortunate end of the spectrum as well, from disability all the way up to death. “We’ve built some unique aspects into our programme, specifically because we’ve listened to courier partners, assessed municipal data and pushed the insurance industry to adapt,” Olson continues. This insurtechdigital.com

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WOLT

“ I’m comfortable, being uncomfortable” GARRETT OLSON

HEAD OF INSURANCE & RISK MANAGEMENT, WOLT

includes a death benefit paid out to a dependent of a courier partner, as well as protection against assault. The second programme revolves around third-party liability for courier partners. The benefits of this are two-fold, Olson says: first it is aligned with Wolt’s commitment to make the cities they’re in better places, as the insurance protects against unfortunate incidents courier partners may have caused. Second, it also fills an unmet gap in the insurance market. “It’s virtually impossible for an individual courier partner to go and get that type of coverage elsewhere,” he says, “particularly if their mode of transportation is an e-vehicle, a bike, or just delivering on foot.” In most Wolt countries the only component of insurance that courier partners are

responsible for themselves is the mandatory motor insurance – understandable given that riders and drivers use their own vehicles. But incidents that occur after they set foot outside that vehicle, and attempt to deliver the order to the customer, is covered through Wolt. Creating a consistent experience is ‘a challenge’ Being present in 25 different markets, one of the biggest challenges Wolt faces from an insurance perspective is, perhaps surprisingly, not complying with multiple jurisdictions – rather, it’s controlling the claim process. Courier partners want to be compensated promptly so it’s important that, when a claim is submitted in the local language, the third-party administrator or insurtechdigital.com

insurance carrier is responsive and handles the claim transparently and efficiently. “Courier partners expect compensation in hours – a big shift from the norm of weeks or months. We are down to a few days, but strive to get this down to minutes.” There are over 30 different languages used natively across the Wolt ecosystem, so it is imperative to have claims handled in the local language for the courier, third party and insurer. It builds confidence with the impacted person to navigate the process in their native tongue. 96

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“ Courier partners expect compensation in hours – a big shift from the norm of weeks or months. We are down to a few days, but strive to get this down to minutes” GARRETT OLSON

HEAD OF INSURANCE & RISK MANAGEMENT, WOLT

WOLT

As the company continues to scale, paying claims quickly and ensuring that couriers continue to receive a positive experience remains a challenge. Consistency is the end-goal, Olson says: “When we expanded our programme into more remote markets from the Nordics, to Kazakhstan and Azerbaijan, we ran into some new challenges. These are not easy markets to operate in because of how insurance is – or isn’t – regulated, how the very concept of insurance is defined, plus how the premium is calculated.”

“When you’re going to the local insurance companies and asking them to build a bespoke proposition for a disruptive business model, even if it’s reinsured outside the country, that’s where the challenges emerge – from building a new offering to processing the claims very quickly. If we fail, it tends to still be forward. We view obstacles as opportunities. We are addressing a new segment, so inherently the status quo will push back.” Assessing risk more dynamically The future of Wolt’s insurance proposition lies in dynamically assessing the risk that courier partners face in real time. Presently, risk is determined by how many hours courier partners are online – even if they’re just waiting for their next order. “The data we can’t see will eventually hurt us.” Instead, Wolt intends to use local dynamic data in insurtechdigital.com

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WOLT

“ The data we can’t see will eventually hurt us” GARRETT OLSON

HEAD OF INSURANCE & RISK MANAGEMENT, WOLT

a much more granular way to provide a more insightful snapshot of real-time risk exposures – to have relevant limits at a city or even courier level while also lowering the cost of premiums in the process. “Drawing on that dynamic component allows the insurance companies to really understand risk factors better,” Olson tells us. Those risk factors could include the weather; riders are more likely to slip or trip when it’s icy, or use a car when it rains. There are also variations between cities – some, like Copenhagen, feature segregated bike lanes, while others, like Prague, have a lot of narrow and cobblestoned streets.

Other cities feature vast and expansive boulevards. Between cities, delivery vehicles also vary; there are said to be five times as many bicycles as people in the Danish capital, but they are less popular in car-heavy Baku – the capital of Azerbaijan. Finally, exposure to risk will be influenced even by the smallest consideration like who exactly the courier is. Experienced, full-time courier partners are – in theory, at least – less likely to experience a serious crash than those who dip in and out of the app on a regular basis, perhaps going weeks or months at a time without fulfilling orders while they work other jobs or study. “Those are the things that would be captured if we used dynamic risk data. The brush stroke risk exposure and pricing in reality does not represent the entire spectrum of the risk which leads to overinsuring or under-compensating.” insurtechdigital.com

GARRETT OLSON TITLE: HEAD OF INSURANCE & RISK MANAGEMENT

EXECUTIVE BIO

COMPANY: WOLT Garrett Olson works at the technology company Wolt, where he is responsible for creating their industry-leading insurance and enterprise risk management programme. Building simple, relevant and valuable safety nets into the platform economy motivates him. Prior to Wolt, Garrett worked directly with the Executive Boards at Zurich Insurance Group, A.P. Møller - Mærsk and FLSmidth A/S in various strategy, risk and venture building roles.

WOLT

“We’ve built some unique features into our insurance program because we’ve listened to courier partners in every country” GARRETT OLSON

HEAD OF INSURANCE & RISK MANAGEMENT, WOLT

Who is Wolt’s Head of Insurance, Garrett Olson? Despite being based in Copenhagen and having an inconspicuous surname, Garrett Olson is not actually Danish by birth. He was raised in Minnesota and spent time studying in Arizona before embarking on a career outside the United States. In fact, Olson comes from a long line of Petersens, Eriksens and Olsons – Danes and Swedes, meaning the Nordic connection has come full circle. After emigrating almost 20 years ago, Olson has lived and worked in Mexico, the Czech Republic, the UK, Switzerland, Brazil and, since 2016, Denmark – which he now calls hjem. But he has always been imbued with a sense of ‘wanderlust’ – or vandrelyst, if you insist. “As a kid, my parents would take me hiking in Yosemite and we would travel all over the US,” Olson says. “I think I was months old when I went on my first trip. I think by the time I was five I had been to Hawaii and Canada a handful of times. We travelled a lot.”

That adventurous curiosity continued into Olson’s adult life. Often moving around for work, he claims to enjoy nothing more than the pure confusion that comes from experiencing a new culture inside and outside the office. “I’m comfortable being uncomfortable. The sights, the smells, the food and the feeling of being stranded in a Japanese train station and not knowing what you’re going to do,” he jokes. “Finding your new dentist and barber shop, opening up a bank account and even figuring out the best watering hole to catch a football match is part of the routine of being an expat. ” But Olson is settled now – both at Wolt, and in his adopted homeland of Denmark. When he and his wife order takeout for the evening (using Wolt, of course), they usually plump for Thai cuisine or sushi. But left alone, he will always take a trip straight back to his roots. “Whenever I have a chance, I order fried chicken sandwiches,” he says. “I think so far I’ve found two places in Copenhagen that come close to the ones back at home.”

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CLOUD & CYBER

PROTECTING DATA SECURITY AND INTEGRITY IN INSURANCE Insurers are party to reams of sensitive, financial information about policyholders – so how do they keep this data private amid myriad threats? WRITTEN BY: ALEX CLERE

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ata security in the insurance industry is a matter of the most fundamental importance. In order to write policies, insurers need to keep sensitive and personal data about policyholders and their insured assets. In a world of rampant cybersecurity threats and a rising tide of ransomware attacks, how are insurers keeping this data private – and what more can be done? “Insurance is a data-hungry business,” explains Rory Yates, SVP of Global Strategy for EIS. “Insurers take a lot of our data, and other related data, to calculate how in a pooled and capital-invested model they can reduce the financial burden of risk. It’s a massive data exchange based on trust and financial leverage. “I once worked with a market-leading UK insurer who had calculated they had more unstructured data than Facebook – something they were proud of until my team pointed out that this was expensive, largely without an ROI, planet-destructive, and‌potentially dangerous.” Data governance ‘a critical aspect’ for today’s insurers Indeed, data is more abundant now than it has been in a long time; there has been an explosion of data available to insurers over the past decade, not least because of a growing number of Internet of Things IoT devices, smart sensors and parametrics equipment. “How insurance organisations handle that avalanche of information is critical to success,” Yates says. “Data in the core technology and operational context is often one aspect of the data environment, where now we see third parties, BI and BI redundancy and back-up all acting as huge stores of the same data. It’ll require other aspects of data security to be considered, and will continue to be an area of focus for insurers.” insurtechdigital.com

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CLOUD & CYBER

“ Insurance is a datahungry business. How insurance organisations handle that avalanche of information is critical to success” RORY YATES

SVP OF GLOBAL STRATEGY, EIS

This is something that Jason du Preez, Vice President at Informatica, concurs with: “Data management is vital to the insurance industry as it reinvents itself to stay relevant in today’s digital world. Data governance has become a critical aspect of data management in an industry dependent on sensitive, personal customer data. Not only for defensive plays like regulatory compliance, but also for important offensive plays that bolster competitive advantage like more accurate risk assessment, efficient claims processing or enhanced customer experience.

“But effective data governance is a challenge for insurers, many of which are large enterprises. Our survey of 600 global executives revealed half are using five or more technologies to support data management priorities in 2023. This complexity introduces technical debt, interrupts the data supply chain, and makes transparency, data quality and governance significantly more difficult to achieve.” For du Preez, whose company specialises in AI-powered cloud data management, choosing the right data governance structures and IT systems is an important step in ensuring that you’re able to preserve the integrity of stored data. “For insurers, data fuels risk assessment, underwriting, pricing, fraud detection and claim processing – all tasks where data integrity, including quality, privacy and security is essential,” he continues. insurtechdigital.com

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“A data governance platform that simplifies these tasks with well-integrated, best-of-breed capabilities can make it easier to provide a holistic view of data assets to a broader range of users. A modern data governance approach combines discovery, classification, quality, and access management capabilities to ensure the free flow of high-quality data to those that need it without compromising on security and privacy. Combined with AI-powered 106

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“ Data management is vital to the insurance industry as it reinvents itself to stay relevant” JASON DU PREEZ VICE PRESIDENT, INFORMATICA

CLOUD & CYBER

automation, this approach can lead to faster and more informed decision-making and dependable data-driven outcomes – crucial for insurers in today’s highly competitive and regulated market.” How can insurers prevent against cyber threats? The potential dangers, when insurers don’t safeguard the integrity of customers’ data, is plain to see. As well as the inevitable data loss and reputational

damage, companies who fall foul of hackers can then find themselves on the sharp end of the regulatory and legislative whip. “A data protection breach can erode consumer trust in your company, leading to a loss of custom or revenue,” explains Louise Perkins, a Partner at Haseltine Lake Kempner LLP. Ransomware continues to be the most pervasive threat facing targets like insurers. According to IBM X-Force, of all backdoor attacks, 70% are failed ransomware attempts. insurtechdigital.com

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Nonetheless, cyber criminals are beginning to get smarter, and if they can gain access to a company’s internal systems without using brute force, they will take that opportunity. “Today, cyber criminals prefer to log in than hack in, which makes preventing the theft or misuse of access credentials critical,” says James Nadal, Product Specialist at Osirium. “Privileged log-ins and admin accounts present the greatest risk. These give users the power to do things like make changes to databases, 108

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install software, and alter system settings. In the wrong hands, they can be used to steal vast volumes of customer data. “While it’s true that cyber threats are growing in sophistication, most successful attacks are still accomplished by targeting human fallibility. Research from Verizon reveals that human error is a factor in four out of five data breaches, with employees continuing to be susceptible to social engineering methods such as phishing.

CLOUD & CYBER

A lesson in attack vectors from the auto insurance sector By Rory Yates, SVP of Global Strategy for EIS When you login to your insurance sites and apps, you’re all too often presented with a basic username or email address and password. No biometrics or second level of security. While the services on offer are‌limited, they do present data vulnerabilities. In stark contrast to banking, this feels like a gap that needs to be closed. At this stage, most of these environments only provide a very basic level of service, reducing the amount of data in exchange. However, this becomes very different in digitised claims cycles where you can have several third-party repairers calling and asking for personal data validation.

My own experience of this has made me all too aware that sometimes we look at wider cyber threats but forget the fact that our personal data and policy information is now in the hands of several very small and not necessarily data-proficient garages. When asked, I was led to believe that this data sat in a ‘secure digital’ environment. When I arrived at the garage, I was instead authorising a printed document. In this case, better digital services handled by the provider would remove this risk and provide a far better customer experience akin to those pioneered by esure and others.

CLOUD & CYBER

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“While it’s true that cyber threats are growing in sophistication, most successful attacks are still accomplished by targeting human fallibility” JAMES NADAL

PRODUCT SPECIALIST, OSIRIUM

“The first step in stopping the theft or accidental exposure of privileged credentials is to ensure nobody has access rights they don’t need. There is always too much privilege – staff often retain access to systems they no longer require after leaving or changing roles. “Next, employees should only be granted the access they need to do their work, for the shortest possible time, and with the lowest level of privilege. Ideally, users should be separated from privileged log-ins altogether, using software that directly ‘injects’ them into systems. If nobody has access to a password, it can’t be leaked or misused.” And EIS Group’s Rory Yates concurs: “As we move to data ecosystem-based models, increased digitisation and further the data reach into other tools and experiences, data security will intensify with it. “From the right foundations, insurers can protect their core while making the data they already have far more valuable. From here, traceability and transparency improve.” insurtechdigital.com

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MGA/TPA

INSURTECH: A GROWING MARRIAGE WITH HEALTHTECH & TELEMEDICINE InsurTech Digital analyses the growing relationship between insurtech and healthtech, and how innovation in health insurance will boom in the near future WRITTEN BY: LOUIS THOMPSETT

n its latest report, The Brainy Insights suggests the global insurtech market is set to reach US$82.3bn by 2032, growing at a staggering compound annual growth rate (CAGR) of 28.9%. But what is driving this rapid insurtech growth? The healthcare and insurance sectors. In 2022, healthcare specialist insurtechs dominated revenue, generating US$2.27bn for the year. This contributed almost threefifths to all global insurance third-party administrator market revenue. As such, the sector’s significance to the growth of the insurtech market is supreme. But what is spurring such growth in the healthcare insurtech sector, and how has the marriage between insurtech and healthtech come about? Insurtech and healthtech: Playing hand in hand For Healthcare and Clinical Developer at digital mental healthcare provider Wysa,

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Chaitali Singh, the two don’t necessarily need to be seen as separate entities. She says: “Tech can often be the bridge between the world of payers and providers. It can optimise workflows, share meaningful data points, and reduce the roadblocks that can add friction to this relationship.” Perhaps then, it is the compatibility of the data gathered by healthtechs and leveraged by insurtechs that is driving optimal partnerships in the space. Head of Solutions, Europe for Persistent Systems, Devashish Mishra, seems to think so. He says: “Healthtech companies have heaps of valuable data that insurtechs can use to curate products. With the rapid growth of telemedicine, this pool of data is expanding exponentially. “By crunching data provided by healthtech companies, insurtechs can launch offerings for specific medical cases, and be sure they have the right premium and cover in place.

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“ InsurTech and HealthTech solutions often have significant technology overlap… This allows crossinnovation and even competition between the two tech worlds” ADAM DENNINGER

GLOBAL INDUSTRY LEADER FOR INSURANCE, FINANCIAL SERVICES, CAPGEMINI

“Not only does this create new revenue streams, but it also provides a far more personalised experience for customers — which is key to succeed in today’s insurance landscape. “For healthtech companies, the demand for data from insurtechs provides significant revenue. There are also opportunities for strategic partnerships. We’ll see more

healthtech and insurtech companies coming together to provide a full-service offering.” Such full-service offerings are, of course, dependent on partnerships between insurtechs and healthtechs, an industrywide marriage that Vijay Adapala, EVP of Global Supply Partnerships at Doceree, feels is still in its infancy. “Insurance companies are only just beginning to recognise the advantages of using smart insurtech, which has the potential to accelerate market growth, as these technologies become more sophisticated, accessible, and integrated into daily life,” notes Adapala. What’s more, as these technologies become more advanced, what Capgemini’s Global Industry Leader for Insurance & Financial Services, Adam Denninger, calls the ‘overlap’ of insurtech and healthtech will only broaden. insurtechdigital.com

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The payer side of health, particularly in the US and other nations with standardised private healthcare, is insurance. So, as put by Denninger, “the two big overlaps are in sales (including quoting, rating, underwriting, broker management, etc.), and service (billing, mid-term changes, etc.). “Because the main business processes have a lot of overlap, insurtech and healthtech solutions often have significant technology overlap (both in functionality and in architecture). This allows cross-innovation and even competition between the two tech worlds.” 116

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Insurtech and healthtech: Driving customer-centricity Just as the core tenant of insurtech is to drive customer-centricity, so is it the same goal for partnered health and insurtechs. In fact, insurtech health providers have been heralded for going further, expanding ‘medical inclusion’, not just the quality of customer service. Although a widely used term, you may be wondering what medical inclusion actually means. Capgemini’s Denninger has the explainer: “Medical Inclusion can mean two related but different things.

MGA/TPA

AI in insurtech: Making policy management and quote generation easier

“A general meaning is around making care available to communities that are underserved or not given reasonable access to high-quality care; a more technical meaning is about coverage eligibility rules insurance companies use to control the extent of availability of certain coverages in certain products. Technology firms in general are enabling both of these to occur. New technology-enabled tools improving access to care, quality of care, and innovative care are pervasive. “Similarly, new tools enabling superior use of data and analytics to perform

Capgemini’s Global Industry Leader for Insurance and Financial Services, Adam Denninger, discusses how AI is making policy management more digestible, and quote generation easier. He says: “In the broadest sense, the insurance industry has used AI for decades. The rule structures used for self-service quoting enrollment or mid-term changes are all built on automated decisionmaking platforms. “This is true through the Health, P&C, and L&A sectors; in all sectors, AI has been a key component of efforts to lower costs and simplify processes for a long time. “The explosion of generative AI is taking this much, much further for the industry. There is a wave of innovation across new businesses, services, claims, pricing, and even marketing and communications to deliver better outcomes, more consistently, and faster. “Most of this innovation is still in the prototype or ideation stage, but the first “production” uses have already started to appear in the industry. “This will only accelerate and broaden. Yes, policy management is becoming easier and more digestible. So is quote generation; so are many other pieces of the insurance value chain.”

MGA/TPA

“ Regulations and preexisting systems can both play a role in how fast [healthtech] innovation will spread across geographies” CHAITALI SINGHE

HEALTHCARE AND CLINICAL DEVELOPER, WYSA

underwriting, pricing and claims management (which are all critical to the financial stability of the insurance industry) are also pervasive. These changes are heavily driven from the healthtech and parts of the insurtech world.” Yet despite the capabilities being opened in health insurance by technology, Wysa’s Singh feels there is space for the industry to become more customer-centric, chiefly because the healthtech being employed, and subsequent partnerships struck are in their early stages industry-wide. Some significant partnerships have already been established, however, namely partnerships between Aetna and Apple, along with Oscar Health and Cigna. These partnerships have helped drive early innovations in telehealth specifically. Just look at Aetna’s Attain product. Designed specifically for Apple, the app takes your unique health history and combines it with wearable device activity – maximised by offering personalised goals and motivational awards. Such partnerships are fuelling the telemedicine industry, but as Singh 118

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previously noted, these partnerships are still in their early stages. With this in mind, what is holding the industry back? “Regulations and pre-existing systems can both play a role in how fast this innovation will spread across geographies,” notes Singh. It would seem then, that regulations may be slowing down growth in the sector. The Brainy Insights backs this up, citing stricter regulations on the insurtech industry as the primary caveat that could affect its estimation of an US$82.3bn insurtech market by 2032.

Principally, regulations could impact insurers’ access to client data, given greater calls for data privacy in an era of increased hacks and cyber security concerns. Singh does not think regulations will stop the industry’s growth, though, it just may take time for the already dominant insurtech market to spread its wings further. Wysa itself is already in the process of striking an insurance partnership with SwissRe, helping to provide it with “a more personalised assessment of risk to insurers” while becoming its “health and

well-being tracking mechanism across physical and mental health metrics”. Insurtech and healthtech: A telemedicine future? With the early partnership successes of insurance and healthcare in mind, delivering mass-consumed telehealth products to the market points firmly to a digital-first healthcare future. But how quickly will this future become a reality, and will consumers feel comfortable without seeing a doctor face-to-face? insurtechdigital.com

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As put by Persistent Systems’ Mishra: “Telehealth can never fully replace doctorpatient interaction. There will always be people who feel more comfortable sharing information and receiving treatment in person — digital records are around forever, and there’s a genuine fear of private interactions being leaked. “In most cases, telemedicine can easily replace face-to-face interaction — particularly for routine treatments. The way we are heading, physical interaction will only be reserved for the most serious and private treatments.” It seems, then, that digital interactions may be something consumers need to accept whether they like it or not. For Doceree’s Adapala though, patients would prefer a blend of digital and in-person interactions, depending on the circumstances. He says: “COVID19 caused the telemedicine model to gain a sizeable market share in 2020–21 internationally, altering how patients were cared for. “However, when circumstances stabilised, face-to-face consultations also started to gradually reappear. “Today, we recognise the strength and comfort of technology as well as the value of being ready for any tragedy that may arise in the future, now that the world is in a much better position and has recovered from the pandemic. “Going forward, I regard telehealth as a vital component of the broader healthcare ecosystem that complements in-person consultations.” Capgemini’s Denninger agrees, believing health insurance has been on a path to automation for many years. He concludes: “Over the last ten years the industry created roles dedicated to 120

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“Healthtech companies have heaps of valuable data that insurtechs can use to curate products. With the rapid growth of telemedicine, this pool of data is expanding exponentially” DEVASHISH MISHRA

HEAD OF SOLUTIONS – EUROPE, PERSISTENT SYSTEMS

excellent customer experience. Chief Digital Offers, Heads of Digital,Global Heads of Customer Experience and many other similar roles exist with a common purpose: winning business (and keeping it) with great experiences. “These executives fully understand that high-quality automation is critical, both to meet customer expectations and to reduce operational costs for their companies. “They also fully understand that there is no finish line in this race; expectations are constantly changing, and what carriers do must change to meet their customers’ needs. “This drives a constant need for insurtech and healthtech innovation; a constant need for new solutions to new (and old) problems.”

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