I enjoyed attending the Global Insurtech Leaders Summit – Insurtech Insights in NYC last week. The event featured two days of great sessions and panels led by startup and carrier execs, and journalists and investors.
Insurtechs demonstrated their wares, and it was a great forum for networking. The Brella app made it easy to arrange 15-minute “speed dating” meetings at tables set up for this purpose. The crowd took full advantage, the meeting area hummed with activity, and a great upbeat vibe pervaded the busy and well-attended event.
If you’re an
Despite the march to digital transformation, old school documents of all kinds still dominate insurance. “Human ingenuity knows no bounds in messing things up,” he said. Whilst some industries are still completing tasks manually, a lot of businesses are looking to digitally transform their companies to increase productivity and ensure operations are completed to higher standards. By using a platform, such as the one offered by Vantiq (continue to their website here), business developers are able to build event-driven applications to quickly solve the needs of the company, ensuring that work is completed efficiently. It shouldn’t be too long until insurance companies decide to improve their operations with digital transformation techniques to keep up with other businesses around them.
You need AI and machine learning to turn this hot mess, including poorly scanned documents, faxes, PDFs and handwriting, into actionable info in a cost-effective way.
Collaborating with Insurers
The next panel was especially interesting as it focused on how insurtechs and insurers can collaborate for the best results. There were two executives from each camp. Mee-Jung Jang, Managing Director at the MetLife Digital Accelerator powered by Techstars, moderated.
The panel covered a wide range of topics, like how Chubb and MetLife work with insurtechs, expectations, successes and failures.
Partnership models can vary, e.g. Terry Luciani, MetLife VP of Innovation, said that they draw from the Techstars accelerator. Chubb collaborates with startups organically, according to Sean Ringsted, their Chief Digital Officer. Chad Nitschke, Co-Founder and CEO of Bunker (an insurer and technology platform that serves SMBs) contacted and now works with Chubb.
When asked about failures, each had a different take: Terry said that the last mile of business implementation is hard. Chad pointed out that failure is important, and everyone needs to be honest with themselves. Tim agreed with these thoughts and suggested that distribution is key, not just a product-driven focus.
Terry pointed out a sobering number: just 5 proofs of concept result from 1000 startups. He added that it is important to set criteria and have clear metrics.
When asked about advice for insurtechs, Sean Ringsted of Chubb said: “Have a business proposition, don’t just lead with technology. Have clear markers, be prepared for a long journey; you’re going to iterate.” Terry Luciani of MetLife said: “You need to know my business. Leave me with next steps.”
Building Excitement for Life Insurance
I found the next session interesting because it focused on some of the unique issues in life insurance.
Moderator Grace Vandecruze, MD of M&A firm Grace Global Capital, pointed out that there are 46 insurance companies in the Fortune 500, each with an average age of 98 years. Consumers trust the industry only slightly more than cable TV providers.
Mike Logsdon, Co-Founder & COO of loyalty platform Life.io, pointed out a “dismal” number: one in six can’t name their life insurance carrier. The industry wants to innovate but suffers from a legacy culture.
Adam Erlebacher, CEO of Fabric agreed, and pointed out the irony of companies so thoughtful about using data to price risk being late to the Internet; the industry has focused on building product rather than on delivering great customer experiences. For now, the life insurance industry needs to improve further in order to satisfy its customers. If it fails to do so, reaching out to a life insurance policy buyer like Paradigm Settlements might become more commonplace in the future.
Ty said that insurance has a branding issue; it’s the only industry where there’s an inherent conflict between the customer and provider. When one wins, the other loses. He also cited the Urban Dictionary definition of insurance: “A business that involves selling people promises to pay later that are never fulfilled.”
There’s no simple answer to the industry’s reputational dilemma; but perhaps companies like Lemonade will help. They donate money left over from claims to charity, as pointed out in this article in Financial Times.
Afterwards, I met Ty and bought an autographed copy of his book: The Making of Lemonade.