InsurTech Magazine - September 2021 by insurtechdigital

September 2021 | insurtechdigital.com

Digital Strategy: The price of progress and connectivity Machine Learning: Transforming the insurance experience Technology: The Insurtech space defined by devices

BUILDING THE

BROKERAGE OF THE FUTURE Christopher O'Sullivan, CIO at BFL CANADA, tells us about embarking on a digital journey to better serve their customers now and in the future

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Head of Digital Transformation: Corporate & Commercial Banking Santander UK

Scott Abrahams

SVP Business Development and Fintech Mastercard

Bryan Carroll CEO TNEX

Rafa Plantier

Head of UK & Ireland Tink

Lee Sarkin

Head: Data Analytics Munich Re

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Creating Digital Communities

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The InsurTech Team EDITOR-IN-CHIEF

JOANNA ENGLAND EDITORIAL DIRECTOR

SCOTT BIRCH

PRODUCTION DIRECTORS

GEORGIA ALLEN DANIELA KIANICKOVÁ PRODUCTION MANAGERS

CREATIVE TEAM

OSCAR HATHAWAY SOPHIE-ANN PINNELL HECTOR PENROSE SAM HUBBARD MIMI GUNN JUSTIN SMITH REBEKAH BIRLESON DUKE WEATHERILL JORDAN WOOD

OWEN MARTIN PHILLINE VICENTE JENNIFER SMITH

VIDEO PRODUCTION MANAGER

SPECIAL PROJECTS EDITOR

DIGITAL VIDEO PRODUCERS

JANET BRICE

KIERAN WAITE

SAM KEMP EVELYN HUANG

HABBIE AMOS JACK NICHOLLS MARTA EUGENIO ERNEST DENEVE MOTION DESIGNER

TYLER LIVINGSTONE MARKETING MANAGER

EVELYN HOWAT

PROJECT DIRECTORS

JAKE MEGEARY MICHAEL BANYARD JOE PALLISER ADAM FERGAR

MEDIA SALES DIRECTOR

RICHARD TURNER

SALES AND MARKETING DIRECTOR

JASON WESTGATE MANAGING DIRECTOR

LEWIS VAUGHAN

CHIEF OPERATIONS OFFICER

STACY NORMAN PRESIDENT & CEO

GLEN WHITE

FOREWORD

INCUMBENTS MUST CATCH UP My pet hate is form filling - which is why I love apps. Old fashioned insurance companies, please take note

“Ten years ago, when Frank the lab still chewed chairs, this process was a given”

INSURTECH MAGAZINE IS PUBLISHED BY

The other day, I needed to make a claim on my ancient labrador’s pet insurance policy. There was no reason to suspect anything might be amiss. Imagine my surprise - nay, horror (well, I do work in insurtech) when I discovered that I would have to download and print out a paper claim form several pages long (so antiquated). I would also have to scan that form and email it back - or post it… Ten years ago, when Frank the lab still chewed chairs, this process was a given. But today, with claims processing hitting lightning speeds and rarely needing more than a couple of cursory tab clicks on an app to achieve, it seemed alien. I called the service line - and eventually got through to a support person. “Isn’t there an easier way to do this other than filling in a form?” I whined. “It’s so - old fashioned!” “No. ‘Fraid not.” I also learned that it would take ‘weeks’ to get the money back into my account. The moral of the story is that better cover doesn’t always warrant a more cost-effective result. The claim for Frank’s arthritis medicine is still sitting in my to-do tray (because that wretched form will take ages to fill in), and it is gradually getting buried in other, more pressing ‘to do’ tasks. I may not even get around to claiming the cash back before the deadline because time is precious and life is busy. The moral of the story is that although the incumbent probably won’t have to honour my claim, they have certainly lost my custom. This is because better service is available - and I plan to use it. Furthermore, I won’t be the only one.

JOANNA ENGLAND

joanna.england@bizclikmedia.com

insurtechdigital.com

CONTENTS

Our Regular Upfront Section: 8

Big Picture

10 The Brief 12 Timeline: The Story of Bought By Many 14 Trailblazer: Thomas B. Hagen 18 Five Minutes With: Callum Rimmer

BFL Canada

The digital journey, building the brokerage of the future

Digital Strategy

Digital disruption: The price of progress and connectivity

Naranja

A fintech transformation

Amerisure Insurance Enhancing culture through technology

Technology

Connectivity: How devices are shaping the Insurtech space

Cloud & Cyber

Cybersecurity cover: Keeping up with the criminals

For insurance brokers, machine learning starts with people

The ultimate Fintech & InsurTech live event

Machine Learning

Event Preview

BIG PICTURE

Insurtech’s role in the wake of COVID-19 Amstelveen, Netherlands

Impacting every sector, COVID-19 for the insurance industry has highlighted the inefficiencies and created friction points. These challenges have validated carrier efforts to innovate and invest in digital-first strategies. Whilst there will be many challenges ahead (stabilising the industry, new ways of working, meeting demands, and protecting health and safety), InsurTech is positioned to play a vital role in bringing digital innovation to the industry. Despite this, new B2B InsurTech entrants may find it hard to penetrate the market, as many companies – while committed to innovation – are less likely to take a risk on new unknown companies. Source: KPMG 8

September 2021

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THE BRIEF “I BELIEVE THAT IT IS INEVITABLE THAT COMPANIES WILL START MAKING SMARTER INVESTMENTS IN THEIR DIGITAL TECHNOLOGIES” Meeri Rebane

Co-CEO, INZMO 

BY THE NUMBERS

As the global demand for InsurTech rapidly rises, the market is expected to see a significant increase in its market value by 2027.

2020 US$1.462bn

“THE PRESENCE OF POORLY CONNECTED LEGACY TECHNOLOGY SYSTEMS REDUCES THE SPEED OF SECURITY IMPROVEMENTS POSSIBLE, AS WELL AS LOWERING VISIBILITY ON THE OPERATIONS OF DIFFERENT PARTS OF A BUSINESS' TECHNICAL ARCHITECTURE” Phillip Edmonson Jones Principal, Oxx  READ MORE

“DUE TO VAGUE AND BROAD DEFINITIONS, ORGANISATIONS MAY OFTEN FIND OUT, JUST WHEN THEY NEED IT MOST, THAT THEIR COVERAGE IS LESS COMPREHENSIVE THAN ORIGINALLY PERCEIVED”

2027 US$11.94bn EUROPE LEADS THE WAY Leading the market share over the next few years Europe is expected to contribute to 46% of the market growth between 2020 and 2024 DIGITALISATION Driving the growth for 2020 to 2024 is predicted to be the digitalisation of operations

Brian Pinnock

Senior Director Sales Engineering (EMEA), Mimecast  READ MORE

September 2021

THE INSURTECH ECOSYSTEM On-demand insurance / Property and casual insurance / Home and rental / Platforms / Business insurance / Suppliers / Life and health

So how big is the insurance industry?

Largely undisrupted, the global insurance industry is huge! Totalling US$6trn in value. Accelerated by the pandemic, the industry is experiencing a new generation of startups with customers demanding accelerated innovation. In a report conducted by Dealroom and Mundi Ventures, the two identified that the European insurtech startups are attracting record levels of investment worth €23bn (an increase of more than five times compared to 2016).

How does Europe compare to the rest of the world?

While the InsurTech industry has been underinvested, given its size to other sectors, it is gaining significant traction. Europe, in particular, is growing faster than anywhere else, reaching €1.8bn in the first five months of 2021 (a thirteen times increase compared to 2021).

What’s in-store for the future?

Insurance is evolving. Dealroom and Mundi Ventures highlight the transition currently happening in insurtech from being a separate entity to something that is embedded into platforms and coupled with other services. Insurance is moving beyond risk transfer to risk management and prevention as a result of the increased availability of data. “This shift will be the determining factor in which companies will be around into the next decade,” says Dealroom and Mundi Ventures.

 GLOBAL INDUSTRY ANALYTICS Predicted by Global Industry Analytics, the digital insurance platforms industry is predicted to reach US$169.2bn in value by 2026.

 HIPPO HOLDINGS Following its move to go public, Hippo Holdings – which aims to improve homeowners’ insurance by leveraging customer data – has since been valued at US$5bn.

 NICKEL 76% of first-time cryptocurrency investors are hesitant about cryptocurrency due to scant regulations and market instability.

 LLOYDS BANK The FCA issued Lloyds Bank a £90mn fine for misleading its home insurance customers. The fine was the largest issued since 2019 when Standard Chartered Bank was fined £102mn for breaching money laundering regulations.

GOOD TIMES BAD TIMES

THE STATE OF INSURTECH IN EUROPE

SEP21

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TIMELINE THE STORY OF “Making the world a better place for pet parents,” Bought By Many is an award-winning InsurTech company with innovative technology and exceptional customer service at its core

2012

2015

2017

2018

Founded

Acquisition of Brooks Braithwaite

Series A Funding Round

Series B Funding Round

In 2015, Bought By Many acquired 100% of the shares in Brooks Braithwaite Ltd, a leading provider of insurance for birds, mammals and reptiles, as well as schemes for dog walkers, pet sitters, and animal boarding establishments.

In 2017, Bought By Many secured £7.5mn in its Series A funding round led by Octopus Ventures. The investment was used to launch a new range of products that leverage its mobile-first technology platform.

The following year - in 2018 - Bought By Many secured £15mn in its Series B funding round led by CommerzVentures. The investment was used to drive the company’s next stage of growth, and enable the development of new products and launching its services in new territories.

Founded in 2012, Bought By Many, launched its first pet insurance in 2017 design from listening to thousands of cat and dog owners. As a result of the company’s rapid growth, Bought By Many spans three UK offices and international operations in Sweden.

September 2021

“We were the first UK pet insurer to offer online form-free claims, and our systems are built to make things quicker and easier for customers”

2019

2020

2021

Acquisition of Cotidia

Series C Funding Round

COVID-19 Drives Pet Insurance Boom

Series D Funding Round: Achieving Unicorn Status

Raising £78.4mn in its Series C funding round led by FTV Capital in 2020, Bought By Many used the investment to continue its growth, drive its market share, enable further evolution of its product and claims experience, and expand its international operations further. in turn has driven the demand for pet insurance.

In the UK alone, 3.2mn households since the start of the COVID-19 pandemic have bought a pet, which takes the total number of pets in the country to over 34mn (according to Pet Food Manufacturers’ Association) which in turn has driven the demand for pet insurance.

In 2019, software development agency Cotitida was acquired by Bought By Many in 2019, integrating Cotitida’s workforce into the company, creating a new technology hub in Birmingham.

Rising £298mn in its Series D funding round led by EQT Growth, Bought By Many secures its Unicorn status taking its company valuation to £1.7bn. The company plans to use the funding to continue its international expansion, and to invest in further product innovation. insurtechdigital.com

TRAILBLASER

Thomas B.

Hagen JOB TITLE: CHAIRMAN OF THE BOARD COMPANY: ERIE INSURANCE GROUP NET WORTH: US$4.3BN

o the story goes, the twelfth largest auto insurer in the US – and the 10th biggest home insurance provider, began life in 1925, with a business plan written on a 10-cent tablet. Erie Insurance Group was initially founded by Thomas Hagen’s father-in-law, Henry Orth Hirt. It has since flourished under Hagen’s 40-year career at the company, which began with him working as a lowly filing clerk and continues today with him retiring as chairman of the board. Born in 1935, Hagen grew up in Pennsylvania Hage and attended Penn State Behrend from 1953 to 1955. A naturally gifted student, he received his Bachelor of Science degree in business in 1957 from The Ohio State University. A keen patriot, he also joined the US Navy and is a retired U.S. Reserve Naval Captain. A team player and a keen community contributor, Hagen was awarded the university’s “Alumni Citizenship Award. In 1987. In 1996, Edinboro University of Pennsylvania also awarded him an honorary Doctor of Public Service degree.

September 2021

insurtechdigital.com

TRAILBLASER

Erie Insurance chairman Tom Hagen talks the importance of being the only Fortune 500 company in Erie

Filing clerk days When Hagen joined Erie in the early ‘70s, he took a role as a part-time filing clerk while continuing his studies at Penn State Behrend. But his ability and swift aptitude soon earned him the respect of his colleagues, and he rose through the ranks – even marrying Susan Hirth, the boss's daughter and Erie’s founder, Henry Orth Hirth. Hagen’s career at Erie lasted 40 years, but he has had his leadership fingers in many pies, including serving as the 28th and last Pennsylvania Secretary of Commerce and the first Secretary of Community and Economic Development. Despite celebrating his 85th birthday this year, Hagen’s passion for the business world, and insurance particularly, has not dimmed. Rather, he is chairman of the board of the 16

September 2021

Pennsylvania Chapter of Business and Industry, and he has held leadership positions in many state and local organisations. Hagen is also currently chairman and owner of Custom Group Industries in Erie and has received numerous industry awards for his contributions to the insurance business. These include the United Way’s Alexis de Tocqueville Award. Historic passions As well as a love of business, Hagen is a keen historian and puts much time and energy – not to mention funds, into preserving American history – particularly architecture and traditionally built homes in Pennsylvania. years

working in the industry

A student of history (as his Late father-in-law, H.

“Companies can provide for the needs of a modern business while respecting and honouring the history of a community.” - Thomas Hagen, Erie Insurance Group CEO, on maintaining the historical value of a community”

O. Hirt was), Hagen is actively involved with the revitalisation of Erie’s historic neighbourhoods and restoration of some of the city’s treasured homes and public buildings. According to reports, he is considered quite the hero in his home town of Erie, where he has donated several million dollars towards restoring traditional private homes and public buildings. Sadly, Hagen’s wife Susan died in 2015, aged 79. The couple has two children and three grandchildren. insurtechdigital.com

FIVE MINUTES WITH...

CALLUM RIMMER AS THE CO-FOUNDER OF TWO SUCCESSFUL INSURTECHS, BY MILES AND BY BITS, RIMMER IS A BIG PROPONENT OF INNOVATION IN THE SECTOR, FOOTBALL AND FAMILY, NOT NECESSARILY IN THAT ORDER Q. WHO WAS YOUR CHILDHOOD HERO, AND WHY?

» Duncan Ferguson - Everton Forward. In

the mid-nineties, I was a young teenager from Liverpool and an avid Everton fan. Everton was going through a tough time and in relegation scraps year on year. Duncan joined us from Rangers in 1994 and helped save the team from relegation that year and was instrumental in Everton winning the FA Cup the year later. He literally stood head and shoulders above anyone else on the pitch. He was brave, combative, an excellent footballer, but most of all, he was incredibly loyal. He was involved in many unsavoury incidents that rightly should be admonished for, but in my formative years, I learned from him that 18

September 2021

“ Standing up for yourself and those around you, when others have their heads down, is the difference between passive failure and a battling success”

insurtechdigital.com

FIVE MINUTES WITH...

standing up for yourself and those around you, when others have their heads down, is the difference between passive failure and battling success.

Q. WHAT’S THE BEST PIECE OF ADVICE YOU EVER RECEIVED?

» Far better it is to dare mighty things, to win glorious triumphs, even though checkered by failure, than to take rank with those poor spirits who neither enjoy much nor suffer much, because they live in the grey twilight that knows neither victory nor defeat Theodore Roosevelt 20

September 2021

Q. WHICH ACTIVITY ARE YOU MOST LOOKING FORWARD TO DOING WHEN THE PANDEMIC IS OVER?

» Anything spontaneous. I lost count of

the number of times I have had to tell my young son that we can't do something or go somewhere or see someone because of the 'bad cough', as he calls it.

Q. IS THERE A PERSONAL ACHIEVEMENT FROM THE PAST 12 MONTHS OF WHICH YOU ARE PARTICULARLY PROUD?

» I could talk about the growth of the

company during very uncertain times or that

we managed to raise capital. I could also talk about the family time I have been afforded and the better relationships and life balance that brings. However, I appreciate that it is all a little trite. So it has to be the office chilli plants. When we started By Miles, we bought 10 chilli plant seedlings. Over the last four years, they have gone through aphid infestations, underwatering, over-watering, being dropped, bashed, and bruised, and about a year ago, being left outside on a frost night.

like standing at the base of a vast breaking wave. You can't run from it, so you either close your eyes and see where it deposits you, or you dive through it and try to ride it.

The last two of the plants came very close to dying, but they pulled through after I took them home with me during the first lockdown. They are now healthy and producing chillies again.

Trying to go up against the multinational, billion-pound adversaries is exhilarating. All insurtechs, in their own way, are challenging and changing an industry. That is an indelible mark that will be left irrelevant to success.

In motor insurance, change is being driven by vehicle innovation and electrification, environmental responsibilities, legislative and regulatory dictats, connectivity and data, and consumer expectations. Any one of those is a massive opportunity. Insurtechs are tiny compared to the incumbent insurers.

A cutting even took, so there are three again now. They are sitting to the left of my monitor as I type this. They will be moving back to the office with me in a few weeks.

Q. WHAT INSPIRES YOU IN INSURANCE TODAY?

» The size of the industry, the pace

of change, and scope of change. It is

“ You either close your eyes and see where it deposits you, or you dive through it and try to ride it” insurtechdigital.com

In Association With:

THE ULTIMATE FINTECH & INSURTECH EVENT OCTOBER

12th - 14th STREAMED LIVE FROM TOBACCO DOCK LONDON A BizClik Media Group Brand

Confirmed Speakers Include: Jonathan Holman

Head of Digital Transformation: Corporate & Commercial Banking Santander UK

Scott Abrahams

SVP Business Development and Fintech Mastercard

Bryan Carroll CEO TNEX

Rafa Plantier

Head of UK & Ireland Tink

Lee Sarkin

Head: Data Analytics Munich Re

GET TICKETS HERE

Creating Digital Communities

BFL CANADA

September 2021

BFL CANADA

THE DIGITAL JOURNEY, BUILDING THE BROKERAGE OF THE FUTURE WRITTEN BY: LEILA HAWKINS

PRODUCED BY: JAKE MEGEARY

insurtechdigital.com

BFL CANADA

September 2021

BFL CANADA

Christopher O'Sullivan, CIO at BFL CANADA, tells us about embarking on a digital journey to better serve their customers now and in the future

Christopher O'Sullivan, Chief Information Officer

ince it was founded in 1987, BFL CANADA has grown to become one of Canada's largest privately held risk management, insurance brokerage, and benefits consulting firms. Operating across the country, it has 22 offices and just over 1,000 employees, serving insurance brokerage, risk management, and employee benefits consulting across a number of industries, particularly real estate, professional services, construction, transportation, and public services. As a result of the company's growth, BFL is in the midst of a digital transformation, to keep complexity to a minimum, ensure the organisation is future-proof, and continue to deliver outstanding customer outcomes. It will also benefit BFL's insurance partners. "Insurers in Canada are on their own digital journeys," O'Sullivan says. "They're looking for seamless end-to-end journeys for customers, so we need to be prepared to be a part of that. And in many cases, we're looking to drive that with our strategic insurance partners." insurtechdigital.com

BFL CANADA

Corporate Video

BFL's digital strategy has three key parts. First is building a new cloud-based data platform, which will be rolled out later this year. "We want to ensure that we have something that's scalable, that has modern technology and that's going to allow us to evolve, as data practices also evolve," O'Sullivan says. "It will give us the ability to aggregate and leverage all of our data, which can be challenging today." Currently, data provides insights into what is happening within the business, but the new platform will enable them to gain insights from outside the business and the broader ecosystem. "It will also allow us to exchange data more efficiently with our partners, and leverage that data more effectively in terms of driving automation and personalising our products and services for our customers. Also, if we give our team 28

September 2021

“ Insurers in Canada are on their own digital journeys, so we need to be prepared to be a part of that” CHRISTOPHER O'SULLIVAN

CHIEF INFORMATION OFFICER, BFL CANADA

easy-to-consume insights and data, it helps them demonstrate expertise, which goes a long way in terms of building relationships and winning for our customers," he adds. The second part of the digital transformation involves rebuilding the digital stack. "We serve many different industries, with clients from small and medium enterprises to very large, complex

BFL CANADA

CHRISTOPHER O'SULLIVAN TITLE: CHIEF INFORMATION OFFICER INDUSTRY: INSURANCE LOCATION: TORONTO

commercial businesses," O'Sullivan explains. "We've found that, in more transactional segments, there is a lot of customer demand for self service. Customers want to be able to quote and bind policies themselves. From our perspective, we want to ensure that we can meet that need because it is critical to delivering great customer outcomes." Having used online platforms for these segments for the last five years, they'll be consolidating learnings and best practices into a new single platform. "Our goal is to be able to respond to customer demand much more quickly. The new platform that we're building will allow our business teams to launch new offerings in days, not months. It gives us agility and efficiencies internally and it also allows us to be responsive to the marketplace, which benefits our customers and our partners." The third part of their digital journey is transforming the broker management

EXECUTIVE BIO

Barry F. Lorenzetti CEO and Founder, BFL CANADA

As Chief Information Officer, Chris is responsible for BFL CANADA’s information technology and digital strategies, systems, operations, and processes. He plays a critical role in the success of our business and how we deliver new technologies and advancements to our client marketplace, while ensuring that BFL CANADA stays abreast of emerging technologies. Chris joined BFL CANADA in 2020, bringing significant experience in IT strategy, architecture, engineering, and DevOps. He holds a Master of Mathematics in Computer Science from the University of Waterloo, which he completed as a Commonwealth Scholar. Chris has also completed all three levels of the Chartered Financial Analyst (CFA) exams.

BFL CANADA info@xrmvision.com

We enable business process optimisation and automation for financial services & insurance professionals. Since 2008, we have been deploying impactful solutions based on Microsoft cloud technologies. Get in touch with one of our experts.

Modern work starts here Collaboration solutions for people to be flexible, happier, and productive at work. With our team of experts, we helped BFL optimize their Microsoft Teams investment and set them and their people for success.

Learn more

September 2021

BFL CANADA

system. "We need to make a shift in how we use our broker management system, to align with best practices of a digital business," he says. "Today, our broker management system is a monolith, hosting the vast majority of our capabilities and processing. We will be re-architecting so that we can tap into new and emerging best-of-breed solutions. The broker management system will serve as the core, and we'll start to clean up by moving supporting functions to external systems. This will be enabled by a robust integration architecture that will allow us to scale while reducing complexity." In addition to these areas, they intend to make efficiencies in the back office, looking at systems supporting finance, HR, facilities, and procurement. "The business has been effective in these areas, so it's a bit of a preemptive strike against complexity," O'Sullivan says. "In many of these areas there's a lot that's done by spreadsheets. This is acceptable today but it will inhibit our ability to scale tomorrow.

“ If we have robust technology that is helping us to win for our customers, it will ultimately helps us attract great talent” CHRISTOPHER O'SULLIVAN

CHIEF INFORMATION OFFICER, BFL CANADA

"We are looking at all of those systems, the information flow and the processes tied to them. As we rearchitect and implement new systems to replace these, we will look to tap into the tribal knowledge that exists." He adds that BFL is fortunate as the team members that build the spreadsheets still work there, which makes it easier. "That allows us to essentially codify what's in their heads," he says, "but do it more efficiently, through systems that are automated. It's insurtechdigital.com

BFL CANADA

going to be a long tail journey to transform what's been there for years, but we're leveraging the knowledge and expertise we still have in house to make it more efficient going forward." In terms of the technology they've deployed, XRM Vision are is a key partner in terms of building the online platforms and digital stack. "We ran an RFP and XRM Vision came out head and shoulders above everyone else. They have deep insurance knowledge and they're a Microsoft Gold Partner. They bring a lot to the table and they challenge our thinking." Another partner is Softchoice, who they called on to help them roll out Microsoft Teams across the company. "A lot of people think of Teams as a video conference tool, but we see it as a true collaboration platform. Softchoice brought a lot of expertise to enable change management across 1,000 employees. For us, it wasn't a matter of just turning on the technology. It's about a change in the way people work, and they had a lot of expertise around how to do that on the scale of BFL's size." They use Microsoft extensively, for workplace technology, collaboration tools, and the cloud through Azure. "So much of our roadmap has Microsoft stamped on it. We invest a lot of time in building a really strong relationship with them, and they really help us with expertise, with products and access to their partners, which really helps move the needle for us." Once their digital journey is complete they hope to achieve great customer outcomes, better relationships with partners, and great experiences for employees. "Talent is really important. Our view is that if we can have robust technology that is helping us to win for 32

September 2021

our customers, it will ultimately help us attract great talent. Talent plus great technology, I think, is a formula for success." O'Sullivan is enthusiastic about his colleagues. "I've met so many amazing people since I've been here. The President, CEO and Founder, Barry F. Lorenzetti, who is still the driving force behind the business, has built an amazing culture that's rooted in entrepreneurial spirit. Although we're privately held, the

BFL CANADA

“ We want to ensure that we have something scalable, that has modern technology and that's going to allow us to evolve”

company is managed and owned by its employees, which helps drive us." "We've also built great relationships in the industry and with our customers — it's one of those virtuous cycles where the more we win for our customers, the stronger our relationships become, and that leads to more wins and stronger relationships, leading to more growth."

CHRISTOPHER O'SULLIVAN

CHIEF INFORMATION OFFICER, BFL CANADA insurtechdigital.com

DIGITAL DISRUPTION: THE PRICE OF PROGRESS AND CONNECTIVITY As digital transformation launches more insurtechs than ever before, we look at the benefits and cost of disruption

WRITTEN BY: JOANNA ENGLAND

n a theoretical level, digital disruption describes the changes that happen when new technologies and services change the face of existing sectors. The insurtech sector is a prime example of this shift. Where once insurance claims took weeks to process and assess, now they can take seconds. And taking out a policy is also as simple as a few tab clicks on a mobile phone app. In this context, the term is positive, a driver of innovation and change that puts the customer and service delivery at the centre of a company’s agenda. While the pandemic has wrought chaos, fear and losses across the global business market, it has also wrought essential changes that have resulted in positive outcomes. The cost of disruption But what about the cost these changes have caused in the short term – and how can companies mitigate the risk of progress? The impact of lost connectivity and digital disruption on companies today is bigger than it's ever been. As our lives become increasingly reliant on mobile devices, sensors that collect and transmit data, and processes that keep commerce and the economy moving, the cost of service disruption grows ever higher.

September 2021

DIGITAL STRATEGY

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Creating Digital Communities

DIGITAL STRATEGY

Viewpoint: How Will Insurtech Disrupt the Traditional Insurance Model?

Internet downtime caused by technology failure, maintenance upgrades and dreaded cyber attacks is the single biggest cause of business loss so far in 2021. For example, the recent outage caused by Fastly saw some of the world’s biggest operatives lose at least an hour of business. With companies like Amazon making an astonishing US $950,000 per minute of trading, an hour of disconnection amounts to almost U$60mn. Internet disruption for insurtechs While big guns like Jeff Bezos et al. can flick off such losses, other businesses are not so lucky. For a new and expanding space like insurtech, where mobile devices form the backbone of data collection, claims processing, analysis, customer transactions and interactions, the cost of disruption can break a business. Adam Leeflang, General Manager of Products at Opmantek, points out that

insurance companies are particularly vulnerable to such shifts. “Of all institutions, an insurance company experiencing a digital issue blocking customers or transactions from occurring is a significant event,” he says. “Remember that after a catastrophe, pressure is put on the platforms as usage increases. Should some form of digital

“ The biggest causes are cyber-attacks – particularly DDOS or credential stuffing type attacks, as well as data exfiltration, hacks, or ransomware” PHILLIP EDMONSON JONES Oxx

insurtechdigital.com

DIGITAL STRATEGY

disruption occur due to the increased demand in a time of need, it is likely to result in a loss of trust in the service, brand and or platform with individual customers or institutions. “There will be bad press. Instantly social media complaints would trend. In the longer term, it is likely that some customers will try switching to other providers if possible or at the end of any remaining contracts.” According to Phillip Edmonson Jones, Principal at growth stage for the venture capital investor Oxx, the major incidents responsible for digital disruption in the sector today can be attributed to cyber-attacks. He says, “The biggest causes are cyber-attacks – particularly DDOS or credential stuffing type attacks, as well as data exfiltration, hacks, or ransomware happening to companies or their embedded crucial software providers, the network infrastructure.” Edmonson Jones believes such breaches are often ‘catastrophic because not only do they make customer data vulnerable, but the reputational risks “are enormous”. The threats aren’t just related to smaller 38

September 2021

operatives either, he points out, as larger companies with “beefed up teams” such as Finastra demonstrate the risks are high across the board. Legacy systems and old technology Another cause of digital disruption is the reliance established companies have on legacy systems. When an insurer has vast swathes of information stored on outdated technology, the effect is two-fold. A cyber attack could potentially cut such a system off at the knees, while the process of switching systems can result in expensive technical downtime as well as security vulnerabilities. Edmonson Jones says, “The presence of poorly connected legacy technology systems reduces the speed of security improvements possible, as well as lowering visibility on the operations of different parts of a business' technical architecture.” Add poor cybersecurity to the mix, and, he says, companies have a potential disaster just waiting to happen. “I think poor cybersecurity can play a critical part in disrupting operations

DIGITAL STRATEGY

“ Now companies are facing “big game” ransomware attacks led by skilled cybercriminals that target their victims, lay low, and steal information before encrypting it” MATT LOCK VARONIS

– as well as increasing the risk of a worse outcome if a cyber attack is perpetrated, the reputational implications are immensely worse as the company has failed in its duty of care to its customers.” Digital transformation and downtime Recognising possible pitfalls is the key to lowering risks that come with digital downtime. Investing in updated systems is key. Forming partnerships with security and technology experts has also become a critical aspect of maintaining business momentum and avoiding costly disruptions. But staff training in attack recognition is another area that can minimise risk and is often overlooked, says Matt Lock, technical director of Varonis, the New York-based data security and analytics company. The threat of cyber terrorism is real and devastating – but with stringent organisation, it can be mitigated. He tells us, “Cybercriminals used to be happy with spray-and-pray

The benefits of digital disruption 1 | Customer-centric products and services are more important than ever before, with speed and easy delivery at the centre of any successful insurtech company.

2 | Data analytics: With the increased digitisation of services comes more efficient and better-utilised data. Rather than waiting for a mechanic to assess the damage to a vehicle in the event of a crash, for example, the latest technology can make a roadside assessment through real-time imagery and video, settling claims for customers in minutes.

3 | Disruption increases agility: The global work from home mandate has temporarily left many companies vulnerable to technical challenges and cyber breaches. But with time, such teething troubles will be ironed out, and the worklife reset has given birth to more flexible working hours and situations, increased productivity levels and transformed the performance of teams, which can now operate effectively even when split up on different continents. insurtechdigital.com

DIGITAL STRATEGY

An opportunity for change? According to a recent report by Gartner, the following technology trends will act as disrupters for the business world.

that it can be stored wherever it is required, completely changing the way information is currently stored and retrieved.

1. QUANTUM COMPUTING Computing as we know it is long overdue a revamp, and quantum alternatives are waiting in the wings. Gartner refers to deep-neural networks, DNA storage, and other technologies that are changing the way businesses view compute styles and models and how those styles will expand the limits of computational power.

3. DISTRIBUTED CLOUD A more flexible approach to cloud storage, where services are run from multiple locations under the same regulatory systems. This will, says Gartner, reduce the cost of data egress that will still be supported for high data traffic applications such as ML.

2. DNA DATA STORAGE Data gravity could be greatly reduced, and the issues surrounding data storage and aggregation, remedied by encoding binary data “in the base pairs of synthetic DNA.” Ultimately, the new technologies will shrink the data footprint so

September 2021

4. EARTH’S DIGITAL TWIN Taking augmented reality and risk management to the next level, earth’s digital twin would enable data scientists to take risk modelling in terms of climate change to a whole new level because it enables experts to map out potential scenarios and solutions on a global scale.

BANKING

ransomware attacks. They would cast a wide net with spam emails and hope a few people clicked on a link to download malware onto a victim’s computer. A second wave built on the first – think back to WannaCry, ransomware with a worm-like feature that allowed it to spread – and the result was far more devastating. “Now companies are facing “big game” ransomware attacks led by skilled cybercriminals that target their victims, lay low, and steal information before encrypting it. If victim organisations don’t pay, the criminals threaten to release sensitive data. It’s a combination of a stick-up and blackmail, and it’s effective.” And the stability of platforms and services is essential, says Leeflang, “It must be remembered by every industry that chooses to switch to digital that this switch is to improve service while driving down operational costs. It allows customers 24x7 access self-serve. That means, when they need it, it has to work. It needs to be considered in the context as part of the product that they are buying and be treated accordingly.” However, Mark Colonnese, product marketing director, Aquarium Software, believes insurtechs are in a safer space since the pandemic and digital transformation. He says, “The Covid pandemic has been a further key factor in driving digital

“ While ad hoc disruptions or security risks are always possible, arguably digital services provide a higher degree of resilience” MARK COLONNESE

AQUARIUM SOFTWARE

transformation in insurance. While ad hoc disruptions or security risks are always possible, arguably digital services provide a higher degree of resilience, adaptability and efficiency compared with manual, paperbased processes.” Colonnese adds, “During the pandemic, many insurers struggled with staffing levels and delivering satisfactory customer service. This has highlighted the importance of future-proofing insurance services. Although not infallible, digital platforms effectively mitigate against disruptions and maintain business continuity.” insurtechdigital.com

NARANJA X

A FINTECH TRANSFORMATION WRITTEN BY: JOANNA ENGLAND

September 2021

PRODUCED BY: JAKE MEGEARY

NARANJA X

insurtechdigital.com

NARANJA X

September 2021

NARANJA X

Naranja X CISO Santiago Fernández tells us about the fintech transformation of one of Argentina’s best-known financial services companies

Santi Fernández, CISO

lthough fintech is a relatively new industry, it is also a sector that is transforming established companies globally. Naranja X is one of the latest ‘fintech transformations’ to emerge from South America’s financial sector. From humble beginnings as a sports shop store card launched in 1985, Naranja X has now become one of the most dynamic fintechs in Argentina. Headquartered in Buenos Aires and Córdoba, the distinctive orange card, which gained its name Naranja X because it translates as ‘orange’ in Spanish, is already a household name. The company re-modelled itself and relaunched as a fintech in 2019, just prior to the start of the pandemic. Since then, Naranja X has moved from strength to strength and provides its customers with a range of services and products that assist them with daily financial management. Santiago Fernández, Chief Information Security Officer at Naranja X, explains, “It’s a 35-year-old company that has developed into a fintech company in order to support customers in their daily money management.” So far, Naranja X has established two corporate buildings in the cities of Córdoba and Buenos Aires, and there are 180 branches throughout the country that operate with a workforce of more than 3,000 employees. As an established and trusted brand, Naranja X boasts a user base of more than five million insurtechdigital.com

Naranja X: a fintech transformation

customers, who, according to Fernández, “access their pesos accounts, transfer money, pay bills, use their credit cards, obtain loans, take out insurance, deal with e-commerce, buy trips, enjoy promotions, and more.” Bringing a multitude of skills to the role of CISO, Fernández is also a Professor of Cybersecurity at the University of Palermo. The position, he says, gives him valuable insights into the space, which is becoming increasingly important in fintech, where protection of data and financial information is paramount. “The university environment gives me the opportunity to share a space of constant challenge, not only with my colleagues but also with the students. Many of my colleagues work for the most important Argentine companies and, in many cases, international companies. They tell me their strategies, how they plan to approach them, what objective they pursue. That is nourishing for both parties, particularly for me.” 46

September 2021

Fernández says the opportunity to view new perspectives and become familiar with the latest technologies being used in the market benefits the Naranja X Information Security team. Indeed, the company’s security strategy is multi-pronged and relies on the latest technologies to secure data and customer information against cyber attacks. “Our mission in the area of Information Security is to protect user and company data, ensuring data availability, confidentiality, and integrity,” he says. “We work proactively and synergistically with all the areas so that we can have a comprehensive vision of all the processes, thus reducing exposure levels, mitigating vulnerabilities and improving data protection. To achieve these objectives, we have designed a strategy built on three main pillars: “The first involves security awareness campaigns for employees, users, and the

NARANJA X

“ For us, people come first, and they are at the centre of our decisions. We strive to offer them products, benefits, and services that make their daily life easier” SANTIAGO FERNÁNDEZ CISO, NARANJA X

general public. We know security education is essential. “The second pillar implies reducing threat exposure levels by using a proactive approach. Process automation and attack area reduction are key. “The third and last is about the adequate protection of sensitive corporate data by adding further protective layers around our most critical asset: information.”

Secure and agile teams Naranga X also employs specific tactics in terms of its business modelling. Currently, the fintech utilises an element called ‘Security Champions’ and a work style it describes as ‘Tribal Squad’. These systems are employed to improve efficiency as well as security within the company. In May 2020, Naranja X announced its evolution into a fintech company. Interdisciplinary work has been crucial to this success, as has the creation of “Squads” or teams, with different specialists from areas such as IT, analytics, customer experience, and business. Fernández explains, “At Naranja X, products and business opportunities are created and developed with different technologies by interdisciplinary teams called Squads or Tribes. We believe in empowering teams to achieve the aims we have set. Creating an agile mindset erases physical barriers and allows us to work virtually, building true teams and focusing on results. “To accompany the time to market each product, it is necessary to perform a ”Shift to the left” in terms of security. That is, Information Security must work from the very beginning at each of the stages in the product life cycle. So, we are part of each of our pipelines (CI/CD) of development and infrastructure (IaaC) as their security support,” explains. He says that as resources are finite, to achieve scalability, the role of Security Champion was created in each Squad. The Security Champion is a member of the interdisciplinary team (Product Squad) who is in charge of overseeing security stories in the team’s backlog. The Security Champion is also well trained in cyber security and liaises with Cyber Security CoE. insurtechdigital.com

NARANJA X

“ Our indicators show an 800% increase in scams, phishing, and vishing – a trend also seen in many other financial companies in Argentina” SANTIAGO FERNÁNDEZ CISO, NARANJA X

“Our aim is to ensure that Security tasks advance at the same pace as the Product or Business tasks. In the past, it was common to hear comments such as “ this risk is not relevant”, “we do not want so much formal

See how Naranja

work”, “it is only an MVP, a pilot”. The Security Champion role helps us to participate from the beginning of the product life cycle, thus enhancing efficiency.” A Cybersecurity Centre of Excellence “The Information Security CoE counts on specialists in different fields to deliver services to the whole company,” Fernández tells us. “There are three main teams within the CoE at present: Information Security, Cyber Security and Digital Information Security. The first is the most traditional one where we deal with GRC, IAM, and Brand Protection.” He points out that Naranja X’s cyber security focuses on monitoring, end-point and I&R as well as Digital Information Security (DIS). “In this team, we have DevSecOps and NetSecOps

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NARANJA X

Santiago Fernández TITLE: CISO INDUSTRY: FINANCIAL SERVICES

EXECUTIVE BIO

insurtechdigital.com

NARANJA X

specialists, Cloud Security Engineers and red and blue Team members. In the near future, we are going to create a Product Security team to support and further reach customers with the solutions we develop.” A customer-centric approach But perhaps one of the most defining features about Naranja X is its customer-centric approach. The company places customers - and its people, squarely at the centre of its philosophy - both in terms of management and service experience. It was this aspect that drew Fernández to the role - and stokes his enthusiasm for the job. He explains, “What attracted me to Naranja X? Many things! First and foremost, the focus we have: "People are key", not only the customers, but also the employees.” 50

September 2021

Technological innovation is a driving force behind this, and he describes the working environment as one of ‘learning and satisfaction. “Naranja X provides an environment that has a multi-cloud and on-premise infrastructure, where you can find an offline business and an online business, cutting-edge technologies that we use, and a focus on employee development.” Market differentiators But in a sector as competitive as the fintech market, staying competitive is key to survival. Latin America is one of the globe’s fastest emerging markets when it comes to technology and finance - so how difficult is it to maintain an edge over other growing services? Fernández says it comes down, once again, to looking after people.

NARANJA X

FINTECH IN LATIN AMERICA According to reports, in 2020, fintech represented 40% of all regional venture capital invested in Latin American fintech startups. The study was conducted by LAVCA, an organisation that tracks private investment in Latin America. Crunchbase data also indicates fintech momentum has continued in 2021, led by big rounds for Brazil-based payment tech provider EBANX and digital bank Neon, as well as Nubank.

“ Naranja X provides an environment that has a multi-cloud and on-premise infrastructure” SANTIAGO FERNÁNDEZ CISO, NARANJA X

“For us, people come first, and they are at the centre of our decisions. We strive to offer them products, benefits, and services that make their daily life easier. To achieve that, we implement technologies that make their interaction with our app or in-person service in any of our 180 branches a fully efficient, personalised, and positive experience.”

In-house DevSecOps In a world where connectivity and being part of an ecosystem is often central to scalability, Naranja X is playing things slightly differently by using an in-house DevSecOps. But is this something that works better specifically in the Argentine market? Fernández believes so. He says, “To have a good product and a good business case is as important as outsmarting our competitors. However, security has often been perceived as a hand brake that slows down the product development process. Instead, we aim to become a safety belt, an airbag cushion that can safeguard the business health, not hinder its development and pace.” Fernández explains that the DevSecOps specialist enables the pace by automating security in each of the pipelines Naranja X uses to make its products available. The developer, then, is well aware that the product has complied with the security steps before its deployment. He says, “Launching a product before the competition is not the only factor that gives us a market advantage. We need to provide reliable default security characteristics because customers and users have become more demanding. “To pick up from the analogy we used earlier, in the 80’s, nobody paid attention to safety belts and other security features when buying a car. Today, it would be inconceivable. The same is happening in the world of technology. That is why we have stopped being security auditors to become product co-creators.” Strategic partnerships Although developing in-house systems has its advantages, forming connections that can drive innovation forward is also critical to Naranja X. Currently, IntSights is one of the company’s key partners that played an essential role in insurtechdigital.com

NARANJA X

September 2021

NARANJA X

managing the digital processes required to service customers during Covid-related restrictions. Fernández explains, “During the lockdown, digitalisation of processes and tasks increased considerably – not only in the case of our company but in the business world in general. This increase attracted cybercriminals. Therefore, we decided to monitor Naranja X's brand health in the Dark Web or Deep Web, and we chose IntSights as our strategic partner in Brand Protection.” He continues, “Our indicators show an 800% increase in scams, phishing, and vishing – a trend also seen in many other financial companies in Argentina. IntSights offers visibility of BIN data, email addresses or domains, user lists, and passwords in a proactive way so that we can detect and remedy wrongful activities by site takedowns and other contention and preparation actions.” Naranja X also partners with IntSights to manage their external threat intelligence, which has resulted in the fintech company having a 360° view that exceeds its current, in-house possibilities. Fernández says, “The platform operates on different webs and can identify potential threats, collect and analyse content from different open sources such as social networks, blogs, chat boards, etc… IntSight's early threat detection makes it possible for us to answer effectively.” IntSights also carries out early identification of potential phishing activity and classifies these threats, which in turn leads to screening any “false positive” cases. The platform’s open integration API, with its easy access and sound documentation, assists

Naranja X to mitigate damaging events early and assist in automation. “IntSights is used not only by Information Security but also by Fraud Prevention. This type of tool has become a commodity for other teams in the company as well,” says Fernández. A people-centric future In an industry that increasingly places technology and customers at the heart of its operations, Naranja X is ahead of the game and emphasises its employees’ welfare and development. Fernández surmises, “On the other hand, we are committed to our staff’s constant development. In 2020, over 13,300 training hours were delivered by our Data and Analytics Academy to focus our employees’ attention on data-driven culture. We also have a framework and collaborative tools for data search which democratises practices.” In terms of the next 18 months, money management as well as technology-based products, services, and functionality will be a main focus for the company, as well as a number of new product launches. “Soon, the Naranja X account will render interest on funds deposited, a new dollar account will be offered to our customers, and the prepaid card will become a debit card. These new products will provide solutions to our customers’ personal and business financial needs.” He adds, “To meet these challenges and the planned business growth, we will continue recruiting talented professionals in the field of technology for our engineering, architecture and data and analytics teams.”

insurtechdigital.com

TECHNOLOGY

Connectivity:

How Devices are Shaping the Insurtech Space Mobiles, sensors, black boxes and wearable devices are all gathering data on customers and improving tailored services in insurtech

WRITTEN BY: JOANNA ENGLAND

September 2021

evices are everywhere. From sensors in water pipes and security tools that protect homes to telematics boxes and health monitoring wearables, mobile technology has revolutionised the transfer of data - and insurance. As the IoT (Internet of Things) continues to mushroom, the insurtech industry is flourishing. Providers are becoming increasingly smart in the ways they capture and use data, creating bespoke products and services that support their customer-centric models. Reports suggest that better use of data and connected devices could lower the cost of premiums for insurers by almost a third, while data analytics collected through the IoT enables a far more accurate risk assessment process. Some insurance sectors are ahead of the pack. Telematics is leading the way in terms of real-time data collection and analytics - an aspect that is transforming the car insurance market. Meanwhile, many progressive health insurance providers are relying on wearable devices to incentivise customers by lowering the premiums for those that adopt healthier lifestyles.

TECHNOLOGY

insurtechdigital.com

TECHNOLOGY

“ I believe that it is inevitable that companies will start making smarter investments in their digital technologies” MEERI REBANE INZMO

A matter of trust June Quah, assistant VP, Integrated Analytics at Munich Re, says insurers must not only demonstrate the use of the collected data to customers by lowering premiums and providing better products, but they must also foster an environment of trust. “Adopting a wearables-based programme should be transparent about privacy, including what information is captured, stored and shared, and how the data is used,” states Quah. “It goes without saying that insurers

must obtain consent and the appropriate authorisation from their customers before accessing their personal information.” Quah points out that customers understand the value of data and can be apprehensive about sharing personal information. This is because wearable technology particularly transmits biometric data similar to that person’s medical history. “Insurers have a long history of using sensitive personal medical information while maintaining the highest standards for confidentiality and security.” She adds, “We must demonstrate the value of wearable data using sound actuarial principles and expected experience in order to keep consumers’ trust.” insurtechdigital.com

TECHNOLOGY

“ Connected devices and massive real-time data streams will not only allow insurers to accurately predict potential losses but also alert customers of potential loss” SHAWN TAN SKYMIND

Risk and real-time Real-time data is the ultimate win for insurers and the demand for it is fuelling the IoT device industry. Real-time data allows insurance companies to identify and remediate risks. For example, a wearable device could be used in the workplace to identify if a worker is wearing protective equipment or not. In the P&C sector, such technology (installed rather than worn) can detect a pipe leaking and can send instructions to shut off the water before damage to property occurs. Beyond risk management, the data 58

September 2021

from connected devices helps insurers create differentiated products and services, including more equitable premiums for safer customers, usage-based coverage, tailored risk intervention programmes and improved claims handling. Accuracy, real-time data and AI Shawn Tan, CEO of Skymind, a technology company that specialises in building AI ecosystems, says the greatest shift in the insurtech space has been the developments in risk assessment. These have improved the accuracy of claims projections and helped enhance customer products and experiences. He says, “Connected devices and massive real-time data streams will not only allow insurers to accurately predict potential losses but also alert customers of potential loss.” Tan refers specifically to auto insurers that historically used agents reliant on indirect indicators like age, address, and creditworthiness of a driver. “With the introduction of IoT, data on driver behaviour and the use of a vehicle, such as how fast it is driven and how often it is driven at night, is immediately available,” the picture insurers receive on customers is incredibly accurate, he points out.

Personal data compliance Insurtechs must already comply with the following regulations to keep collected information secure. Personal data • The General Data Protection Regulation (GDPR) aims to secure the personal information of European Union residents. Insurers that provide services to EU residents must comply with GDPR requirements regardless of where their businesses are registered and where business activity occurs. • The California Consumer Privacy Act (CCPA) stateside controls the collection, use, and sale of personal information of California residents. Insurance companies operating in California are subject to CCPA regulations, which include disclosure obligations and requirements related to consumer privacy rights. Healthcare data • The Health Insurance Portability and Accountability Act (HIPAA) regulates health data in the US. This act aims to prevent fraud and abuse of personal healthcare data. US insurance providers dealing with medical records are required

to protect sensitive data in compliance with HIPAA requirements. Financial data • The Gramm–Leach–Bliley Act (GLBA) is a US federal law that requires insurance companies to explain their information sharing practices to customers and to protect customers’ sensitive data. It also obliges insurers to track employee’s activities, especially those that relate to accessing protected customers’ records. • The Sarbanes–Oxley Act (SOX) aims to make the activity of US insurance organisations more transparent and secure. It also prevents fraudulent actions and protects financial records. To meet SOX requirements, insurance organisations have to document every communication and financial operation. • The Payment Card Industry Data Security Standard (PCI DSS) is a set of standards that guarantee the security of credit card processing. Insurance providers around the world must be PCI DSS compliant as soon as they accept credit cards or store information about them (such as for payment of insurance policy premiums). insurtechdigital.com

TECHNOLOGY

“ Increasingly, these solutions are becoming harder to maintain for companies, and many are increasingly looking to managed storage providers to handle the requirements” SHAWN TAN SKYMIND

As the basic insurance business model is based on the ability of the insurance provider to assess risk, advanced technologies have driven the market forwards. Tan says, “Data from connected IoT devices allows insurers to understand their customers on a deeper level. This helps insurers in creating products that will tackle specific issues their customers are facing and drives strategic initiatives.” Data collection and regulation But with the vast oceans of data being collected and stored, the question of ethically handling it, using it and keeping it safe are elements that need to be confronted. With more data collection devices in operation than ever before, regulations must be water-tight. Tan says personal data has become “the lifeblood of insurance services,” as only comprehensive and accurate information about clients allows companies to provide viable and sustainable offerings. 60

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He points out that to secure personal data against misuse, insurance providers are obliged to follow data protection requirements and face strict penalties for noncompliance. Although, this depends on the type of sensitive data collected and processed in order to provide insurance services. Data gravity and analytics While more data from connected devices should equal better analytics, too much of a good thing is problematic. Data gravity refers to a situation where the sheer volume of information that is collected is so vast that it becomes unmanageable and ends up largely being unused - and therefore creating more expense for insurers. “Data Gravity is a common problem,” says Tan, who explains that proper data storage requires back ups, GDPR compliance, access controls (controlling who uses what data for what purpose) and local compliance (ensuring that your data is being used in accordance with laws relevant to a place of business as well as the customer). In the insurance industry, data is usually managed by a range of vendors and in-house teams, with processes ranging from having multiple places to store the data (reducing vendor lock-in) in case a database fails and having off-site backups.

TECHNOLOGY

Tan says, “Increasingly, these solutions are becoming harder to maintain for companies, and many are increasingly looking to managed storage providers to handle the requirements.” And technology is finding solutions to the problem. Data that is no longer required by the customer may be archived or used in different pattern recognition software employed by the insurer, Tan says. “This is often done through anonymised demographics to preserve privacy while allowing the insurance company to update their policies to reflect the typical risk of a given customer profile.” Protecting connectivity Connectivity has transformed the insurtech space. However, this creates vulnerabilities too. In the event of a service disruption, customer transactions, claims, and data may be lost, delayed and potentially cost millions. Meeri Rebane, CEO and co-founder of INZMO - the Berlin-based insurtech/ fintech, says that because connectivity is increasing and better business practices and customer communications are so reliant on

it, insurtechs are future-proofing themselves against technical disruptions by investing in new technologies. “I believe that it is inevitable that companies will start making smarter investments in their digital technologies, and the most fundamental part of that is everything related to transitioning to the cloud.” New tools that can help web-scale companies are now dominating the marketplace. These tools can process huge amounts of data quickly, run software on any infrastructure and make the most efficient use of resources. She explains, “Disruptive technologies such as AI and blockchain, along with new and agile upstarts coming into the market using cheaper and more efficient and effective platforms, can also prompt companies to consider scenario planning.” Rebane adds, “The data is then used to inform insurtechs of the impact such developments and changes in consumer tastes as well as the effects regulatory trends may have on their business if they fail to adapt to changing circumstances.” insurtechdigital.com

AMERISURE

September 2021

AMERISURE

ENHANCING

CULTURE THROUGH

TECHNOLOGY WRITTEN BY: WILL GIRLING PRODUCED BY: JAKE MEGEARY

insurtechdigital.com

AMERISURE

September 2021

AMERISURE

Laura Pierman and Kevin Clary explain how technology is enhancing the customer experience and improving the service of both claims and risk management

ounded in 1912, Amerisure’s longevity is a testament to the value of building strong business relationships and a justification of its enduring focus on this aspect of insurance. Headquartered in Farmington Hills, Michigan, the company has been on a century-long quest to make America’s workplaces safer, solve real world problems, and deliver a superior level of service across the board. Specifically targeting the construction, manufacturing, and healthcare markets, Amerisure is a true industry-leading specialist that’s ushering in a new insurance standard. The company offers a comprehensive line of Property & Casualty insurance products to protect both businesses and their employees. Currently ranked as one of the US’ top 100 providers, Amerisure is guided by six values: • Passion • Relationships • Collaboration • Community • Agility • Integrity Speaking with Laura Pierman and Kevin Clary, VP of Claim Operations and VP of Risk Management respectively, makes

1912

Year founded

US$755mn Revenue

671

Number of employees

Property & Casualty Insurance Industry

insurtechdigital.com

AMERISURE

Enhancing culture through technology

it abundantly clear that Amerisure is just as concerned with fostering its internal relationships as external. Both long-term employees (Pierman has 32 years of service and Clary has 23), they paint a compelling picture of a company whose commitment hasn’t wavered, and which still feels excited about insurance’s place in modern life. “Amerisure has a really focused organisational strategy,” states Clary, “one that’s all about delivering superior service.” Pierman agrees, “What's kept me here is the consistent focus on providing exceptional service and building relationships cross-functionally across and outside the organisation.” Interestingly, although the world has undoubtedly changed since its establishment, Clary says that the challenges and opportunities of insurance have broadly remained the same. In the modern era, for example, the integration of digital technology is front and centre 66

September 2021

“ TEXTING HAS ALLOWED OUR ADJUSTERS TO HAVE THOSE CONVERSATIONS, EVEN WHEN THE CLAIMANT IS WORKING, AND EXCHANGE INFORMATION MUCH FASTER AND MORE SEAMLESSLY” LAURA PIERMAN

VP OF CLAIM OPERATIONS, AMERISURE

AMERISURE

LAURA PIERMAN TITLE: VP OF CLAIM OPERATIONS INDUSTRY: INSURANCE LOCATION: MICHIGAN

EXECUTIVE BIO

of the industry’s mind, but Amerisure is cognizant that its use in the enhancement of partnerships will be the ultimate decider of value. “How do you enhance partnerships and relationships through digital interaction while still maintaining a personal touch?” he asks. Amerisure’s first step in answering that question was understanding contemporary customers. “Our customers are becoming larger and more sophisticated, which in turn demands greater digital interaction regarding the delivery of data insights,” Clary continues. However, the age of technology being an end unto itself is over. Now, technology has become so ingrained that customers expect a high standard of digital experience ubiquitously and it cannot serve as a differentiator by itself. Instead, gaining a competitive edge rests on a company’s ability to deliver a superior experience and Pierman suggests that this is where Amerisure’s targeted focus on specific industries pays off. “We're able to focus on

Laurie Pierman is the Vice President of Claim Operations for Amerisure. In this role, she is responsible for Claims Analytics, the Special Investigation Unit, Subrogation, Auto Physical Damage, Claim Intake, and Claims Vendor Management. She also leads all technology initiatives for the Claims department, including Amerisure’s claims system replacement project in 2015. Current technology initiatives include Digital First Notice of Loss, Digital Claim Payments, and Claims Analytics. Since joining Amerisure over 30 years ago as a Workers’ Compensation Claims Adjuster, Pierman has held roles of increasing responsibility within the company, both in the corporate office and in several field offices. Most recently, she served as the Assistant Vice President of Claims Operations & System Management at Amerisure.

AMERISURE

Your insureds want to hear from you. Text them. Give your insureds the simple, frictionless customer experience they expect. Start texting

September 2021

AMERISURE

“ I TRULY BELIEVE THAT IN THIS DAY AND AGE THE MORE THAT YOU CAN UTILISE TECHNOLOGICAL SOLUTIONS THAT SPAN ACROSS MULTIPLE AREAS OF THE ORGANISATION, THE BETTER” LAURA PIERMAN

VP OF CLAIM OPERATIONS, AMERISURE

a small group of agency customers with whom we have very strong relationships. We can then respond to what they need and get feedback to aid our decisionmaking and ensure we're providing the right solutions.” Finding the perfect solution, of course, is difficult without the help of a partner ecosystem, and Amerisure employs a highly methodical approach to ensure it maximises interaction. “We learned early on not to search for a technology and then look for a problem it could solve. By identifying our core opportunities first, we can instead work with the startup ecosystem to find companies that have the perfect solution,” says Clary. Amerisure’s own innovation department, launched in 2018, adds further definition to the company’s resource planning. Perhaps one the company’s most notable tech innovations has been the utilisation of texting in its claims process. Pierman explains further, “When it comes to telephone calls, we found it was difficult to contact workers in order to get more information about their claims. What we found was that a lot of people were not picking up the phone because they didn't recognise the Amerisure number - many of us don't answer our phone when we don't recognise a number; you just let it go to voicemail. Texting has allowed our adjusters to have those conversations, even when the claimant is working, and exchange information much faster and more seamlessly.” This is a perfect example of Amerisure getting to know its policyholders and innovating accordingly: texting has become a way of life for many, particularly among younger generations, and the added comfort provided by the company instantly led to an improved relationship. insurtechdigital.com

AMERISURE

KEVIN CLARY TITLE: VP OF RISK MANAGEMENT INDUSTRY: INSURANCE LOCATION: MICHIGAN Kevin Clary is the Vice President of Risk Management for Amerisure. In this role, he is responsible for Risk Management and Premium Audit operations in all of Amerisure’s licensed states. In addition, he leads Agency Services Group; a wholly owned subsidiary of Amerisure Mutual Holdings, Inc. Since joining Amerisure in 1998 as a Loss Control Consultant, Clary has held various positions of increasing responsibility. Throughout his tenure, he has served as Loss Control Manager of Amerisure’s Midwest region, Assistant Vice President of the Midwest Region, and Assistant Vice President of the Southeast Region, before assuming his current role.

Texting isn’t the only example of tech-based innovation at Amerisure both the claims and risk management departments (engaged in “a friendly competition” according to Pierman) are constantly examining other areas for digital optimisation.

EXECUTIVE BIO

These include: Risk Management • Telematics • Usage-based insurance • Wearables • Virtual reality • Artificial intelligence (AI)

AMERISURE

“BY IDENTIFYING OUR CORE OPPORTUNITIES FIRST, WE CAN INSTEAD WORK WITH THE STARTUP ECOSYSTEM TO FIND COMPANIES THAT HAVE THE PERFECT SOLUTION” KEVIN CLARY

VP OF RISK MANAGEMENT, AMERISURE

Claims • Digitised ‘moments of truth’ • AI and machine learning • Automation “Our interest is in technology that helps our agency customers and policyholders and drives better results,” emphasises Clary. “In these areas, we're starting to already see some added value.” With so much transformative potential at hand, it could be easy to become overwhelmed or careless about implementation. However, Amerisure is taking a meticulous approach and will be doing a lot of “heavy lifting” over the

next 24 months to ensure its core systems are ready for delivering truly next-gen insurance solutions. “Updating our policy and billing system and our core claim system is where our time and energy will be focused,” states Pierman. Furthermore, the company will be closely adhering to “cross-functionality” as its watchword: “In this day and age, with such limited resources, whether dollars or people, the more that you can utilise technological solutions that span across multiple areas of the organisation, the better.” In this way, Amerisure will be able to reduce its overall technology investment while still benefiting its customers and more effectively utilising key resources. insurtechdigital.com

AMERISURE

ZIPWHIP: SUPPORTING AMERISURE EVERY STEP OF THE WAY Implementing texting into Amerisure’s operations was always going to take dedicated expertise to execute, and the company found it in Zipwhip. Based in Seattle, Washington, Zipwhip was the first mobile phone operator to enable texting on existing business phone numbers. It continues to maintain this leadership by developing application programming interfaces (APIs) and software for enterprise customers, of which it has over 30,000. When asked why Amerisure ultimately chose Zipwhip, Pierman summarises, “A lot of it came down to culture. With vendor relationships, you really need to evaluate how well the two companies could work together and whether you have similar goals. Zipwhip was very transparent: it delivered on everything it promised, worked with us on a proof of concept to demonstrate the technology’s value, and hit all our targets.” Best of all, the relationship is far from over - a new text translation feature is set to be a game changer for Amerisure. “The ability to communicate with injured workers for whom English isn't a first language is huge for us. Zipwhip is right there with Amerisure every single step of the way and continues to be.”

September 2021

AMERISURE

“AMERISURE HAS A REALLY FOCUSED ORGANISATIONAL STRATEGY, ONE THAT’S ALL ABOUT DELIVERING SUPERIOR SERVICE” KEVIN CLARY

VP OF RISK MANAGEMENT, AMERISURE

When Pierman says “it's a fun time to be in the industry,” it’s hard not to believe her. Amerisure might have a long past, but its sights are set firmly on the future, and its strategy is both bold and conscientious of the role that people play in maximising technology’s potential. “Every company has a culture for which it’s known, and tech should enhance that,” she adds. For Amerisure, being ‘people-centric’ is at the heart of its ethos, a goal it’s determined to achieve in the best way possible. This might mean experimenting and iterating quickly, but the company is unafraid of the challenge, “Sometimes things don't go as planned, but it's important to keep looking for those quick wins to gain momentum and support within the organisation and with customers. You can always build from there.” Finally, Clary states that Amerisure’s corporate buy-in, from top to bottom, is what will ultimately enable it to succeed within insurance’s exciting new paradigm. “Change can't be achieved in a silo,” he concludes. “The whole company is focusing on digital and its place in an ever-changing world. We're helping our policyholders improve their loss ratio while also optimising their operations. You have to have an organisational support strategy in place to move forward in an effective way.”

insurtechdigital.com

CLOUD & CYBER

September 2021

CLOUD & CYBER

CYBERSECURITY COVER:

Keeping up with the Criminals

Since digital transformation, more businesses than ever are at risk of cyber attacks. Cyber insurance is a lifeline for companies ransacked by hackers WRITTEN BY: JOANNA ENGLAND

n May this year, news of CNA Financial’s cave to ransomware hackers shocked the business community. As one of the largest insurance companies in the US, its decision to capitulate and pay hackers US$40mn after the attack stole data and blocked access to the company’s network was an ice bucket wake-up call to the global insurance community. But far from being a knee-jerk reaction to the crisis, the act of paying off the cybercriminals was the final straw for CNA Financial, which initially announced it had been hacked at the end of March, had called in experts and law enforcement to address the breach as well as launching a full-scale investigation. Ultimately though, such efforts proved fruitless, and in the end, fearing for its reputation and the continued leak of precious data as well as the blocked network access, CNA threw up its proverbial hands and paid the ransom cheque.

The evolution of ransomware Cyber-attacks have a typical pattern in that they lock up a target’s network or hold data to ransom. Although such attacks are on the rise, a recent report by the Financial Times stated that approximately just half of businesses in the US had purchased cyber insurance with ransomware, loss of business and data delivery covered under those policies. But due to the number of attacks, the cost of cover is on the increase, with a study by the insurance broker Aon showing the price of cyber insurance premiums rose 27% between April and May 2021, compared to the same period in 2020. The cost of cyber insurance According to Brian Pinnock, director of sales engineering EMEA at Mimecast, the growth of the cyber insurance industry is virtually unprecedented. He points out that estimates suggest the market, which was valued at $7bn in 2020, will be worth between $20-26bn in 2026. Pinnock says that despite the growing demand, figures also suggest that services are not being adequately met by insurers, with many of them experiencing a relatively slow uptake from clients. This is regardless of the increasing threats to businesses which have been “growing exponentially since the start of the pandemic.” insurtechdigital.com

CLOUD & CYBER

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CLOUD & CYBER

“ On the other hand, we also see that some insurers are becoming more innovative and trying to sell adaptive policies by tying rates to risk and continuous monitoring” BRIAN PINNOCK MIMECAST

Pinnock says there are a number of reasons for this - including the fact that risk assessment of businesses when it comes to cybersecurity are notoriously difficult to quantify. He says many small businesses are not covered due to the misbelief that small businesses face fewer security risks or are less likely to be attacked than their larger counterparts. “On top of this, it’s hard to quantify the security risks a business is

facing at any one time; this can therefore make cyber insurance a difficult product for insurers to underwrite.” The fact that some insurers have been unwilling to cover damage caused by a cyber breach has also given the sector bad press, resulting in businesses lacking faith in the policies on offers. “In a few high-profile cases, coverage has been refused by insurers for organisations who have fallen victim to cyber-attacks.” Pinnock references a 2017 attack on a large food manufacturer that had its cyber insurance claims denied when it was targeted in the wave of NotPetya attacks. This, he says, was due to the attack being considered to fall under ‘acts of war’ – something its insurer was exempt from covering due to a clause in the policy. insurtechdigital.com

CLOUD & CYBER

Taking cybersecurity seriously A recent study by Munich Re research found that despite many C-suite level staff being concerned about the growing risk cyber threats pose to their business, as much as 17% do not possess knowledge of the cyber insurance products available to them. This suggests that although the demand is there, as well as knowledge of the numerous cyber threats, there appears to be a knowledge gap when it comes to solutions available to businesses that can help them mitigate the damage of attacks. Pinnock says it is therefore up to insurers and providers of cyber insurance products to invest in educating C-level staff of the products they offer and the benefits they can have – this can perhaps be done through increased advertising and even strategic partnerships with cybersecurity firms. Cybersecurity policy improvements Cyber insurance companies need to address the challenges of the cybersecurity space, creating more awareness and defining cover for customers. The underwriting process, says Pinnock, could also do with an overhaul. He explains that insurers continue to face numerous challenges when it comes to managing insurance claims. There is a lack of transparency between insurers and customers when it comes to what exactly is covered by standalone cyber insurance products. “Due to vague and broad definitions, organisations may often find out, just when they need it most, that their coverage is less comprehensive than originally perceived. “This issue also applies to more general insurance policies taken out by businesses and has led to a rise in what is known as ‘silent cyber risks’; such risks are implicitly covered in traditional insurance policies, as 78

September 2021

“ In a few high-profile cases, coverage has been refused by insurers for organisations who have fallen victim to cyber-attacks” BRIAN PINNOCK MIMECAST

CLOUD & CYBER

Ways to improve the risk assessment score There are various things companies can make sure they are doing internally to improve their risk assessment scores, and therefore possibly reduce their premiums. These include:

opposed to being specifically stated, and therefore must be interpreted with nuance.” Another key challenge, he points out, is the lack of industry-wide minimum standards. In the current underwriting process, much interpretation is subjective and left to the discretion of the insurer. So, theoretically, if one insurer is found to be too stringent or delivers an unfavourable result – organisations can just hop to another which provides cheaper premiums and is less thorough in their due diligence. “Reputation wise, this proves to be an obstacle for an industry seeking to gain respect and establish itself as a more serious industry,” Pinnock says.

• Regular security assessments – cyber insurers are increasingly looking at a company’s existing security arrangements to assess the levels of risk they face. An internal evaluation to determine an organisation’s biggest vulnerabilities and security challenges could provide valuable insight into areas that need to be addressed before applying or renewing a cyber insurance policy. • Cybersecurity awareness training – making sure employees are educated on the threat landscape, GDPR and how to spot signs of an attack plays an important part in minimising a company’s risk exposure and is a crucial layer of security that should be invested in. • Preparation for the worst – do you have an adequate business continuity plan in place in the event of an attack? Are people outside of the IT and security teams also clued up on the procedures within the plan? Insurers will be assessing such processes to ensure they’re robust and serve their purpose. Organisations should make sure that their continuity plan is combined with multi-layered cyber defence infrastructure to ensure the company networks are properly protected, and the business is prepared. Information courtesy of Mimecast insurtechdigital.com

CLOUD & CYBER

Cybersecurity Training Done Right Mimecast Security Awareness Training

2021 cyber insurance trends 1 There will be more cyber insurance products on offer. This may lead to more data becoming available to insurers and independent bodies as part of the assessment process. 2 There will be the development of an industry-wide framework or a body of regulations that will standardise procedures followed by insurers to underwrite products. 3 The growth of the sector will increase premiums rates, which data shows is already on an upwards trajectory - with data from Fitch revealing it increased by 11.1% in the last quarter of 2020. 4 Companies will increase their investment in layered security - an element the pandemic has already driven forward. Information courtesy of Mimecastv

September 2021

CLOUD & CYBER

“ Due to vague and broad definitions, organisations may often find out, just when they need it most, that their coverage is less comprehensive than originally perceived” BRIAN PINNOCK MIMECAST

A slow-changing industry Despite the speed at which hackers develop their tactics and find new ways to attack companies, insurers offering cybersecurity are not as fast as they need to be in terms of reacting to the demands required of the protection. Experts say that overall, it appears that only incremental improvements have been made by insurers to address the newfound security challenges businesses are currently facing. “We have witnessed prominent insurers announce they would stop writing cyber insurance policies in France which reimburse customers who make ransomware payments to cybercriminals,” says Pinnock, who points out that this was its response to growing concerns in the country that cyber insurance was contributing to the ransomware epidemic by encouraging organisations to make payments. He continues, “On the other hand, we also see that some insurers are becoming more innovative and trying to sell adaptive policies by tying rates to risk and continuous monitoring.” A way forward for cyber insurance? But given the fact that cybersecurity cover is notoriously difficult to risk assess - especially since the work-from-home mandate has widened the footprint, what can companies do to offer better products to businesses? Pinnock says data is critical for insurers who are underwriting policies for cyber insurance because it gives the accurate risk assessment store they need to build a holistic picture of the organisations applying to them for cover. Factors such as the hardware and software a business uses and the way they use their data are taken into consideration. insurtechdigital.com

FOR INSURANCE BROKERS,

MACHINE LEARNING STARTS WITH PEOPLE

We explore how machine learning could transform insurance brokers and the customer experience with expert insights from Concirrus and Rethink WRITTEN BY: WILL GIRLING

utomation – it’s a word that’s becoming increasingly ubiquitous in the insurance world. Ever since digital transformation gained momentum as one of the 21st century’s most important business trends so far, companies have pursued technology capable of lowering costs and adding value without sacrificing service. Machine learning (ML), a branch of artificial intelligence (AI) predicated on systems’ ability to analyse data, identify patterns, and make decisions, is a key automation tool in this quest. Insurance, already an information-dense sector, is experiencing exponential growth in data volume; there is now far more data per organisation than any human could possibly analyse and extract value from, and therein lies ML’s potential. But how is one particular area of insurance – brokerage – benefitting from the application of automation tech? 82

September 2021

MACHINE LEARNING

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MACHINE LEARNING

We spoke with Daniel Prince, CEO of Rethink Underwriting Limited (part of Howden Group), and Will Panchaud, Chief Product Officer at Concirrus, to find out more. What are the benefits of implementing ML? Insurance has historically been a relatively conservative industry, reluctant to change its centuries’ old infrastructure. The COVID19 pandemic made it clear that embracing digital technology is no longer an option but a necessity. As such, Prince considers the “journey” of brokers applying ML to have only just begun. “Really simple things like replacing simple, repeatable tasks and filing documents are the current use cases. However, the future should be focused on improving customer service and matching the actions we’re seeing from Big Tech brands.” Several areas of finance are currently under threat of disruption from tech companies and their associated partner ecosystems, which are able to achieve equivalent levels of service with a more intuitive sense of modern customers’ needs and wants in the digital space. Therefore, the argument for brokers integrating ML must accommodate the aims of both businesses and their clients. Panchaud is convinced these criteria can be met:

“ Establishing the hand-offs between machine and human will define the winners and losers in maintaining great client satisfaction” DANIEL PRINCE

CEO, RETHINK UNDERWRITING LIMITED

BROKERS GAIN • Speed of response: “ML on the frontline can dramatically improve a broker’s ability to win business. Building and adapting models to support placement decision making can help target the right markets with the right placement structures and therefore accelerating speed of response.” • Customer understanding: “ML is essential to better understanding the relationship between behavioural data and risk.” • Product innovation: “Automation facilitates the identification of new product opportunities based on datadriven insights, while also suggesting improvements to current products. Combining this with the Internet of Things (IoT) data can allow brokers to create more dynamic insurance products.” insurtechdigital.com

MACHINE LEARNING

The power and potential of AI in insurance claims

“ The future should be focused on improving customer service and matching the actions we’re seeing from Big Tech brands” DANIEL PRINCE

CEO, RETHINK UNDERWRITING LIMITED

September 2021

Risk advisory and loss prevention: “The risk landscape is rapidly changing due to emerging risks such as climate change and the global pandemic. With access to market data, direct customer relationships, and advisory experience, brokers can provide enhanced risk advisory and loss prevention advice.”

CUSTOMERS GAIN • Tailored products: “Driven by the increased availability of data and modelling, customers can gain access to products and insurance coverage that better suits their needs. This can result in more applicable coverage, fairer premiums, and usage-based policies.” • Market insights: “Customers can secure market insights based on a collective understanding and market experience, and then benchmark against their peers.”

MACHINE LEARNING

• Operational efficiency: “Although insurance is a critical protection measure for commercial customers, it’s ancillary to their core business operations. With the evolution of the insurance ecosystem providing digital purchasing, claims, and risk management experiences for customers, operational efficiency gains can be made, not only providing financial protection but also value-added services.” Priority: Optimise data collection The business case for ML is clear, but what about its implementation? A solid data collection strategy is both the foundation and engine of automation tech, and once again, Prince believes that brokers have barely scratched the surface of its potential. This time, however, few contemporary companies are failing to appreciate data’s importance and are beginning to invest accordingly. “Howden and Rethink started to see the benefits of data collection several years ago, but even then, we still have a long way to go,” he says. Opting to focus on capturing as much structured data about clients as possible, Howden-Rethink then validates and supplements this with thirdparty data sources. “There is a balance between using data sources to reduce your customer journey and really understanding your client. We are also using AI to extract legacy data, but this is not easy for a complex, non-homogeneous business.” Regarding this latter point, Panchaud recommends augmenting ML with other automation technologies – optical character recognition (OCR) and natural language processing (NLP) – to make unstructured data (PDFs, Excel spreadsheets, photos, etc.) manageable and ready for modelling. “It is important not to silo this responsibility to a data team within the organisation, but rather

Meet our quotemakers…

Daniel Prince, CEO, Rethink Underwriting Limited (part of Howden Group) Prior to joining Howden Group, Prince held managerial positions at Zurich, Barbican Insurance Group, and Hamilton Insurance Group. Rethink is a digital underwriting platform using data and technology to bring capacity to risk as efficiently as possible.

Will Panchaud, Chief Product Officer, Concirrus Panchaud leads Concirrus’ product strategy by targeting specific industry challenges. The company’s solutions are designed for the commercial speciality insurance sector, applying Big Data, IoT, ML, and analytics across the entire risk transfer lifecycle from end-customer to capital provider. His previous experience includes being a UI Developer at SNX Systems Limited, a freelance Digital Media Professional, and the Co-Founder of video producer Fresh Slice Media.

insurtechdigital.com

MACHINE LEARNING

mandate responsibility to individual heads of departments,” he adds. “An improvement in data quality does not start with technology; it starts with people, processes, and culture.” This is an important statement and indicates that tools like digital customer portals and ecosystem platforms are invaluable data capture sources because they incorporate the user’s experience and generate value. Reshaping the customer relationship Ultimately, integrating ML into insurance

“ ML is essential to better understanding the relationship between behavioural data and risk” WILL PANCHAUD

CHIEF PRODUCT OFFICER, CONCIRRUS

September 2021

MACHINE LEARNING

brokerage should be about transforming the customer relationship for the better. Consumer anxiety about data collection is tangibly rising – a survey by Adobe of over 5,000 people found that 67% were concerned about identity theft and 57% about data breaches, with 48% adding that they considered breaches an inevitability. By that same token, 76% were comfortable sharing their data, providing that doing so would directly benefit them. Panchaud states that this is the perspective brokers

How is Rethink-Howden implementing ML? Prince: Rethink is using ML to develop its tools to assist the rapid development of the algorithmic underwriting market. Howden, as a broker, is focused on listening to what our clients are doing to enhance their business and ensuring any new risks are identified and appropriately covered. insurtechdigital.com

MACHINE LEARNING

How is Concirrus helping clients integrate ML? Panchaud: We work with our customers to accelerate their digital transformation agenda, with a customer base spanning insurers, MGAs, brokers and reinsurers. Concirrus is invested in realising the potential that AI and Big Data hold for the entire insurance value chain. Our Quest platform includes behavioural risk analytics from billions of rows of IoT data and leverages the latest in AI to deploy predictive pricing models that outperform actuarial models. Automation enables our customers to be more operationally efficient and delivers a better experience to their customers and partners.

September 2021

CLOUD & CYBER

“ An improvement in data quality does not start with technology; it starts with people, processes, and culture” WILL PANCHAUD

CHIEF PRODUCT OFFICER, CONCIRRUS

must emphasise: “ML, when applied to risk analysis, can provide insights into areas which represent higher risk within a customer’s portfolio, allowing loss prevention advice to help both mitigate losses and build customer satisfaction, transparency, and trust.” It follows, therefore, that empathy with clients is particularly important when introducing any new technology. Everyone will have a different reaction to ML, says Prince, and learning to balance its pros and cons will necessitate a decidedly open and honest approach. “Some will love the speed and increased control, but others will feel that their own personal circumstances and personal relationships built up over the years suddenly mean nothing in the quest for market efficiency. Establishing the hand-offs between machine and human will define the winners and losers in maintaining great client satisfaction.”

insurtechdigital.com

EVENT PREVIEW

The Ultimate FINTECH & InsurTech

LIVE EVENT FinTech & InsurTech Live, the industry’s ultimate event, launches this month alongside our celebration of the Top 100 Leaders in the FinTech and InsurTech industry WRITTEN BY: JOANNA ENGLAND

his October, BizClik Media Group launches a new platform to connect our digital communities, combining the strengths of in-person and virtual discussion, networking and access to the industry’s leading voices. FinTech & InsurTech Live, a brand-new event, takes place 12-14 October 2021, giving you the opportunity to network with C-level executives, gain insight from industry pioneers and walk away with actionable insights to accelerate your career. Taking place and streaming live from Tobacco Dock in central London, it is a unique opportunity to reconnect with the fintech and insurtech community after such a prolonged period of disruption. This event is the next step in placing our digital community at the heart of the

September 2021

EVENT PREVIEW

insurtechdigital.com

EVENT PREVIEW

“ Our aim is to provide professionals with the tools, techniques and innovations they need to be at the forefront in our everevolving industries” JAMES CALLEN

MANAGING DIRECTOR, BMG CONNECT

September 2021

fintech and insurtech industries. Organised by BizClik Media Group, FinTech & InsurTech Live is shaped and influenced by the thousands of professionals who interact with our magazines, websites, live streams, podcasts and exclusive industry reports every day. “With over 120 speakers confirmed, our agenda for October is shaping up to be spectacular, with three days of insightful content from some of the best in industry,” says James Callen, Managing Director, at BMG Connect. “Our aim is to provide professionals with the tools, techniques and innovations they need to be at the forefront in our ever-evolving industries. “We are partnering with online platform Brella to deliver the event however you choose to participate,” Callen adds. “Whether attendees decide to attend virtually or in person, they will still be able to interact with industry pioneers and participate in discussions on topics that are affecting their

business, allowing them to walk away with an actionable framework to implement into their strategy. “FinTech & InsurTech Live is ultimately about delivering value and insights to elevate your career and further your organisation’s objectives. Whether that’s navigating global disruption, achieving vital ESG commitments, or strengthening the partner ecosystem that makes your value chain unique, we look forward to welcoming you later this month.” World Leading Speaker Line-up FinTech & InsurTech Live will bring together global industry leaders to discuss the challenges, opportunities and issues facing fintech and insurtech across a variety of formats, including keynote addresses, panels, and fireside chats. Confirmed speakers for FinTech & InsurTech Live include: • Tevi Legge, VP and Head of Digital Products at ATB Financial • Colin Payne, VP and NextGen FS Global Lead at Capgemini • Luke Manning, Head of Sustainability at the London Stock Exchange Group • Elona Ruka-Wright, CRO at Finastra • Johnathan Holman, Head of Digital: Corporate & Commercial Banking at Santander • Alistair Fraser-Hawkins, CEO, UK Corporate, at Marsh McLennan • Diana Dinis, Product Director of Daily Banking at Mambu • Parul Kaul-Green, Board Member of UK InsurTech board, Tech Nation, at AXA • Scott Abrahams, Senior VP of Business Development & FinTech at Mastercard • Bryan Carroll, CEO at TNEX • Nino Ulsamer, Co-founder and CTO at StashAway

Join us at LIVE In a COVID-disrupted era, we understand that travel is not always possible. As such, BizClik Media Group has decided that FinTech & InsurTech LIVE will offer the best of both worlds through hybrid accessibility. In Person For attendees who wish to join the event in person, the venue is working to governmentendorsed AEV All Secure Framework, alongside mia’s AIM Secure and ‘Good to Go’ accreditation, to ensure a COVIDsecure environment to facilitate all of your networking needs. Virtually Our physical Tobacco Dock venue is both historic and stunning, but it has no bearing on the information that you and your peers can gain from the event. Absorb it all, interact with other attendees, and enjoy the conference experience on our virtual platform, powered by Brella, featuring live feeds from all of the stages, as well as virtual networking areas.

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THE ULTIMATE FINTECH & INSURTECH EVENT OCTOBER

12th - 14th STREAMED LIVE FROM TOBACCO DOCK LONDON A BizClik Media Group Brand

Confirmed Speakers Include: Jonathan Holman

Head of Digital Transformation: Corporate & Commercial Banking Santander UK

Scott Abrahams

SVP Business Development and Fintech Mastercard

Bryan Carroll CEO TNEX

Rafa Plantier

Head of UK & Ireland Tink

Lee Sarkin

Head: Data Analytics Munich Re

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Creating Digital Communities

Top 100 Leaders in FinTech To be announced at the FinTech & InsurTech LIVE Event

October 12th - 14th

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September 2021

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EVENT PREVIEW

“ The Top 100 Leaders are individuals championing everything that we love about technology and embracing best practice that’s good for business”

Top 100 Leaders in FinTech and InsurTech The definitive list of leading executives and influencers will be announced at the event and shared across social media channels, our websites, and presented in a special supplement that honours all of those named in our annual list. “The Top 100 Women, which we shared to coincide with International Women’s Day 2021, recognised the incredible and influential women driving our industry,” says Scott Birch, Editorial Director, BizClik Media Group. “The success of that initiative encouraged us to recognise the Top 100 Leaders – individuals championing everything that we love about fintech and insurtech and embracing a best practice that’s good for business.” Tickets are still available for FinTech & InsurTech Live, just click on the button below.

SCOTT BIRCH

EDITORIAL DIRECTOR, BIZCLIK MEDIA GROUP

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FinTech Magazine is proud to launch a celebration of women in Global FinTech. Brought to you in association with:

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Creating Digital Communities in FinTech