“The insurance industry talks a good game about InsurTech but the follow is still so last century But InsurTech is changing that Shifting the focus away up or delivery isn’t always there But it needs to be as this great profession of from legacy operations, Insurers are adopting new tech and innovative ways ours is facing a genuine existential crisis Our traditional ways of working and to engage digitally with customers and their ecosystems The InsurTech Book servicing our customers are becoming increasingly irrelevant The insurer that is the first, definitive compendium of the rapid evolution that is touching every will survive in the long term is the one that behaves more like a retail business; aspect of this global insurance industry It’s a must read for anyone remotely pre-empts consumer demand; interacts with customers in the way they want; interested in technology enabled insurance.” and views innovation and tech as an opportunity rather than a threat So it is Rick Huckstep, Chairman, The Digital Insurer encouraging to see so many people engaging with the necessity for change in this book There are many views, opinions and priorities laid out here and it is “This book is a much awaited cornerstone to holistically connecting insurance that debate that we need to bring out of print and into our daily conversations and technology The bar is raised and a cogent precedent is set for all the and thinking.” existing and upcoming professionals globally, that this era is the era of Amanda Blanc, Group CEO, Axa UK InsurTech A must read.” Nameer Khan, Digital Strategist “InsurTech is on the brink of changing our industry, from the inside and the outside Never before has it been more important to understand the ideas, trends and drivers behind the insurance digital revolution The InsurTech Book has a big role to play in helping us build our knowledge base and expand our sense of the possible So much of ‘the future’ is already with us in some shape or form and this book will help us build our understanding of our fast-changing insurance world.” “The wealth of ideas, the creativity, the new ways of working that entrepreneurs bring to the table, whether they come from the world of Tech or Insurance, is truly inspiring Over the last few years, I have been in the front seat to witness how such partnerships can transform the industry – and it has been an exciting journey though it is only just starting To keep moving forward and lead change, we have to publicise the work InsurTech experts Huw Evans, Director General, Association of British Insurers “In a sector with intense pressure on turnover and margins, and with hungry new players capitalised and circling ready to seize new opportunities, legacy insurance sector players are more oil tanker than yacht Insurance is an industry where players must ‘get fit or fail’, but fitness cannot be surface deep – are doing, along with insurers We need to tell their stories and that of their ideas We can’t possibly talk enough about what’s currently happening in our industry and this is why I welcome this book, a set of articles from the very minds that are making it all happen This book will interest some, inspire others and undoubtedly will scare more!” Paul Jardine, Chief Experience Officer, XL Catlin an oil tanker can’t simply morph into a yacht by attaching a sail to its funnel The industry must seek, embrace and absorb change Opportunities for competitive advantage can be brought to life by blending data from otherwise unthinkable sources which can be collectively massaged to provide underwriters with a richness of knowledge only dreamed of before Predictive analytics can fuel predictive risk control and, in turn, predictive underwriting – calling the fire brigade before the fire has started, allowing insurers to manage risks proactively as never before This book will challenge, and make you think.” Julia Graham, FBCI, FCII, Chartered Insurance Risk Manager; Deputy CEO and Technical Director, AIRMIC “Insurance has finally woken up! It’s been decades since the birth of the Internet and yet the one industry the global economy could not operate without “This fantastic InsurTech book brings together some of the brightest global insurance and InsurTech minds to share some of their best thought-provoking ideas and proposals If you allow those ideas and proposals to open your imagination, these authors can magically bring great new thoughts to infiltrate your company positively and help take it to the next level My recommendation is to let change and new ideas happen because the insurance industry is about to transform in a way that will render it unrecognizable in a few years’ time These great InsurTech authors can help guide and inspire you through these fantastic times to come; they certainly inspired me to think further into the future.” Spiros Margaris, Venture Capitalist and Advisor “This important book explores InsurTech, from its definition and its current InsurTech This book guides you, in a very smart way, through different aspects status to its future impacts While many have predicted a digital revolution, new of InsurTech and prepares you for the future trends.” programming routes such as blockchain (supporting and enhancing trust and the ability to fully use and apply data) have transformed the financial services sector in ways that most people are unaware of The insurance industry has embarked on a process of radical transformation through creativity and sustained digital innovation, with great potential for rapid business growth – or for company failure Only those able to grasp new opportunities will be able to reshape their mission and business model to take advantage of InsurTech innovations That is why this book is an essential read for those leading, managing and working in the industry and those studying to enter it, if they are going not only to understand these far-reaching industry changes but also to be part of them.” Professor Lynn Martin, Entrepreneurship and Innovation, Anglia Ruskin University and Founder, HRI “By 2020 we estimate that the percentage of insurance customers interacting with carriers through digital platforms will double to 80% Clearly, insurers must embrace digitization to extend capabilities and address this future inevitability I strongly encourage you to read this book and prepare for the future digital inevitability It will give you insight into strategy, process, organization and technology imperatives to support improved positioning.” William Pieroni, President and CEO, ACORD Sylvain Theveniaud, Allianz Accelerator, Founder and MD “In 2014 through my work at AXA, I realized that there was a new market emerging called InsurTech, and called it as such Three years on, the most innovative ideas in InsurTech are still at seed stage because InsurTech investing is still in its earliest days, or to years behind Fintech in terms of timeline and investing trends Despite suffering from an early stage equity gap, InsurTechs are continuously coming to market with very interesting products, platforms and propositions to address fundamental issues within the fabric of Insurance, enabling insurers to partner and enter new markets For those of you still wondering why InsurTech is happening right now and looking to grasp some of the key trends affecting the insurance industry, I would urge you to read this book.” Minh Q Tran, Managing Partner and Co-Founder, Proptech Capital “Insurers and the whole insurance value chain has woken up to what digital related services and products can for them and their customer However, this desire for change has not permeated through to all layers within insurers and significant resistance remains to changing processes for new product development, new partnerships, new claims methods, and new data techniques While this is understandable in that no-one wants their cozy lives disrupted, the reality is that there is no alternative It really is, adapt the new or face an uncertain or terminal future This book outlines, from a variety of “I had the pleasure of partnering with the Startupbootcamp InsurTech perspectives, the nature of these changes It provides a broad primer for those Accelerator and to run a number of mentorship programmes and events There’s who are central drivers of the needed changes but also a rallying cry to get on something truly rewarding about having tech folks and insurance experts around with the job Insurance is lucky in that it does have money and the capability – the table This book takes you through the journey of some of the projects that all it lacks is time This book is all about ‘hurry-up’.” are currently shaping the InsurTech scene and I am certain that you will, while Rob Wirszycz, Executive Chairman, Questers Group and Chairman, RightIndem reading it, experience that excitement and feel inspired to innovate.” Hélène Stanway, Digital Leader, XL Catlin “InsurTech is rising and will irrevocably transform the insurance industry, forcing incumbents to adapt But to adapt we first need to know and “For many years, the insurance industry has remained at a standstill understand the ecosystem – which is why The InsurTech Book is required InsurTechs have appeared out of the blue and are revolutionizing the way reading Ecosystems matter Partnerships are the key It’s the future of insurance companies work The rationale behind such a change is based insurance The book understands that the InsurTech startups are the on major drivers, including the advent of new technologies and evolving agent of change needed in transforming our business models For me, the consumption patterns and customers’ needs; requesting real-time and interoperability of the incumbent is key, both the interoperability of the tech on-demand ways of doing things Insurance learns very fast and will certainly, stack but also the interoperability of our industry’s talent.” in the near future, reshape and transform itself as the new standard of Zia Zaman, Chief Innovation Officer, MetLife Asia The InsurTech Book This edition first published 2018 © 2018 FINTECH Circle Ltd Registered office John Wiley & Sons Ltd, The Atrium, Southern Gate, Chichester, West Sussex, PO19 8SQ, United Kingdom For details of our global editorial offices, for customer services and for information about how to apply for permission to reuse the copyright material in this book please see our website at www.wiley.com All rights reserved No part of this publication may be reproduced, stored in a retrieval system, or transmitted, in any form or by any means, electronic, mechanical, photocopying, recording or otherwise, except as permitted by the UK Copyright, Designs and Patents Act 1988, without the prior permission of the publisher Wiley publishes in a variety of print and electronic formats and by print-on-demand Some material included with standard print versions of this book may not be included in e-books or in print-ondemand If this book refers to media such as a CD or DVD that is not included in the version you purchased, you may download this material at http://booksupport.wiley.com For more information about Wiley products, visit www.wiley.com Designations used by companies to distinguish their products are often claimed as trademarks All brand names and product names used in this book are trade names, service marks, trademarks or registered trademarks of their respective owners The publisher is not associated with any product or vendor mentioned in this book Limit of Liability/Disclaimer of Warranty: While the publisher and author have used their best efforts in preparing this book, they make no representations or warranties with respect to the accuracy or completeness of the contents of this book and specifically disclaim any implied warranties of merchantability or fitness for a particular purpose It is sold on the understanding that the publisher is not engaged in rendering professional services and neither the publisher nor the author shall be liable for damages arising herefrom If professional advice or other expert assistance is required, the services of a competent professional should be sought Library of Congress Cataloging-in-Publication Data Names: VanderLinden, Sabine, editor | Millie, Shân M., editor | Anderson, Nicole, editor | Chishti, Susanne, editor Title: The insurtech book : the insurance technology handbook for investors, entrepreneurs and FinTech Visionaries /       edited by Sabine VanderLinden, Shân M Millie, Nicole Anderson and Susanne Chishti Description: Chichester, United Kingdom : John Wiley & Sons, 2018 | Includes index | Identifiers: LCCN 2017057073 (print) | LCCN 2017059018 (ebook) | ISBN 9781119362241 (pdf) |      ISBN 9781119362203 (epub) | ISBN 9781119362210 (pbk.) Subjects: LCSH: Insurance | Insurance—Technological innovations Classification: LCC HG8051 (ebook) | LCC HG8051 I6165 2018 (print) | DDC 368—dc23 LC record available at https://lccn.loc.gov/2017057073 A catalogue record for this book is available from the British Library ISBN 978-1-119-36221-0 (paperback) ISBN 978-1-119-36224-1 (ePDF) ISBN 978-1-119-36220-3 (ePub) ISBN 978-1-119-44456-5 (Obook) 10 Cover Design: Wiley Cover Image: © pkproject/Shutterstock Set in 10/13pt Helvetica LT Std by Aptara, New Delhi, India Printed in Great Britain by TJ International Ltd, Padstow, Cornwall, UK The InsurTech Book The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries Edited by Sabine L B VanderLinden Shân M Millie Nicole Anderson Editor in Chief Susanne Chishti Contents Contents vi Preface viii About the Editors xi Acknowledgments xiv Disrupting Car Insurance – Drivies App Makes Driving More Fun, and Insurance Fairer Genomics 101 – The Search for a Better Life Expectancy Predictor Leads GWG Life to a Science Lab 75 80 What is InsurTech? InsurTech Definition as Its Own Manifesto Why is Insurance Failing? Digital Transformation in Insurance – Four Common Factors from Other Industries InsurTech – Problem or Solution for Agents and Brokers? The Best InsurTech May not be InsurTech “Real” InsurTech Startups it Differently! 13 17 21 24 InsurTech Now and Next A Cartographer’s Dream – Exploring, and Mapping, the New Unknown 32 Where Does InsurTech Leave the People who Work in Insurance? 35 InsurTechs – Magical Thinking and Other Secrets of Success 40 “INSoT” – The Insurance of Things and the Proliferation of Protection 43 From Insurance Premium to Discrete Event 47 Seamless Insurance: The Time is Now 50 The Potential of a Pension Dashboard Infrastructure for UK Pension Savers 53 Six Mega-trends that Will Take Insurance Back to the Future 57 InsurTech – Not a Zero Sum Game 61 The Founder’s Journey Not too Big to Learn not to Fail? Insurance Expertise, Family, and Integrity – The Story of SPIXII’s Founding Team 68 71 Internation­alizing InsurTech Internationalizing InsurTech – A Global Phenomenon in Different Markets Increasing Access to Insurance in Developing Countries Insurance in China Seven Things Insurers and InsurTechs Need to Know about the German Insurance Market InsurTech in Turkey – Challenges and Opportunities InsurTech in Latin America – The Promise of Insurance for Everybody? InsurTech Trends – Why Regionalization Matters 88 91 95 98 102 106 108 Collaborative Innovation: Observe – Partner – Invest The Corporate Collaboration Opportunity in InsurTech 117 Competition vs Coopetition in the Insurance Market 121 Incumbent and InsurTech Collaboration via Open Innovation Strategy 124 A Collaborative Approach in the InsurTech World – One Platform in One Click 129 Dating InsurTech Startups 134 Altered Attitudes, Altered Outcomes – Collaborating for a Better Future 137 Think InsurTech Culture Before InsurTech Adoption 140 You Said Tech A Four-Step Practical Guide to Build InsurTech Value Chain Ecosystems 148 Sell Your Insurance at the Right Time – Consider Micro Policies 153 InsurTech: Refreshingly Different – Like Lemonade! 157 Forget Peer-to-Peer, the Future of Insurance is Invisible and Parametric 161 Behavioural Design and Price Optimization in InsurTech 165 Data Changes Everything 171 Beware of GDPR – Take your Cyber Risk Responsibility More Seriously 175 Why Claims Sharing? Innovating within the Businessto-Business Insurance Claims Handling Ecosystem 179 Reinsurers Need Backward Innovation 182 Becoming Tech-First – Why Adopting a “Tech-First” Mindset is Non-Negotiable 227 Practical Robotics in Insurance – The Future is Here Already 231 Frictionless Insurance in a Land of Utility 236 The Smart Journey – From Contract Hype to Insurance Reality 240 InsurTech and AI – You Can Run but You Cannot Hide from the Future 244 Blockchain Startups – Unlikely Heroes for the Insurance Industry? 247 Alexa, Can You Get me an Insurance? A Structured Approach to the Hyped Technology of Voice-Based Assistants 250 InsurTech’s Big Questions – Why the Customer is Still Always Right 254 ClaimsTech – The InsurTech’s Action List 257 Technology is Not Enough 260 Business Models Business Model Innovation – From Incremental to Disruptive The Future of Insurance – From Managing Policies to Managing Risks Seeing through the Hype – A Closer Look at Key Smart InsurTech Business Models Assessing the Long-Term Viability of the Insurance Peerto-Peer Business Model You Said … Sharing Economy? From Claim Settlement to Claim Prevention – How Insurers Can Make Use of Predictive Analytics to Change their Business Model True Business Model Innovation – a Credit-Based Approach From Event-Focused Insights to Coaching 190 195 199 202 206 211 215 218 InsurTech Futures Digital Transformation and Corporate Innovation Management – an Incumbent’s Action Plan 268 The New World of the Connected Customer – The Future of Microinsurance? 271 Personal Asset Liability Management System 274 Social Media in Insurance 277 InsurTech and the Promise of “Property Value Hedging Technology” 280 Insurance 2029 – Life Backup Companion 283 List of Contributors 288 Index 303 vii Contents The Value Chain Preface Preface viii The FinTech Book – the first globally crowdsourced book on the financial technology revolution – was published by Wiley in 2016 and has become a global bestseller It exceeded all our expectations, and, in the meantime, the book is available in five languages across 107 countries both in paperback, e-book, and as an audiobook More than 160 authors from 27 countries submitted 189 abstracts to be part of the book About 50% of all contributors were chosen to write for the final book When we launched The FinTech Book during 2017 across the world, our authors and readers had many opportunities to meet in person, sign the books together at global book launch events, and deepen our FinTech friendships worldwide In 2017 we decided to extend our FinTech Book Series by writing three new books on how new business models and technology innovation will change the global asset management and private banking sector (“WealthTech”), the insurance sector (“InsurTech”), and regulatory compliance (“RegTech”) We followed our approach of crowdsourcing the best experts for you to give you the most cutting-edge insight into the changes unfolding in our industry The InsurTech Book is the first book taking this approach globally – a book that provides food for thought to FinTech newbies, pioneers, and well-seasoned experts alike Let me introduce you to our contributors and authors The reason we decided to reach out to the global FinTech and InsurTech communities in sourcing the book’s contributors lies in the inherently fragmented nature of the field of Financial Technology applied to insurance globally There was no single author, group of authors, or indeed region in the world that could cover all the facets and nuances of InsurTech in an exhaustive manner What is more, by being able to reach out to a truly global contributor base, we not only stayed true to the spirit of FinTech and InsurTech, making use of technological channels of communication in reaching out to, selecting, and reviewing our would-be contributors, we also made sure that every corner of the globe had the chance to have its say Particularly those that have very distinct views as to where InsurTech is going and the unique challenges it faces due to the inherent building blocks on which insurance grew Thus, we aimed to fulfil one of the most important purposes of The InsurTech Book, namely to give a voice to those that would remain unheard and to spread that voice to an international audience We have immensely enjoyed the journey of editing The InsurTech Book and sincerely hope that you will enjoy the journey of reading it, at least as much More than 250 authors from 25 countries submitted 244 abstracts to be part of the book We asked our global FinTech and InsurTech communities for their views regarding which abstracts they would like to have fully expanded for The InsurTech Book Out of all these contributors, we selected 75 authors who have been asked to write their full article, which has now been included in this book We conducted a questionnaire among all our selected authors to gain greater insight into their background and expertise More than 70% of our authors have postgraduate university degrees (see Table 1) and strong domain expertise across many fields (see Table 2), and 77% of our authors had their articles published before Table 1:  What is the highest educational qualification of our 75 authors? Table 2:  List all areas in which our authors have domain expertise; multiple choices were possible Which is your highest educational qualification? In which areas have you got domain expertise in (multiple responses possible)? 80.00% 90.00% 80.00% 70.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% ix Preface 70.00% ) t t s e n y ion n ics e g ing ie dels in rit t en en nc tio oT t nk ank em ura ula em ecu ova kch aly chin s (I renc o a M g r a oc An ag Ins Reg nag ers Inn tB eB il Bl ata e/M Thin tocu ess b / a ta en ivat Man e y e n e c s i p f i m C D en R nc sk M st Pr set pr t o Cry Bus g ia er ve Bi ellig rne pl Rl nt In As t m / rm e t E n e tfo In Co lI at la ia or c P i p f r ti Co Ar g kin High School Degree Undergraduate University Degree Postgraduate University Degree Tables and show that 35% of our authors are entrepreneurs working for InsurTech startups (many of them part of the founding team), 40% come from established financial and technology companies, and another quarter from service providers such as consulting firms or law firms servicing the financial services and insurance sectors More than a fifth of our authors work for startups with up to five people and another 35% for startups/small or medium-sized enterprises (SMEs) up to 50 people Twenty-two percent of our authors are employed by a large organization of more than 1,000 employees In summary, we are very proud of our highly qualified authors, their strong expertise, and passion for InsurTech by being either entrepreneurs or often “intrapreneurs” in large established organizations who all are committed to playing a significant role in the global FinTech and InsurTech revolution These remarkable people are willing to share their insights with all of us over the next pages n Ba Table 3:  Authors selected the type of company they are working in Where you work? 40.00% 35.00% 30.00% 25.00% 20.00% 15.00% 10.00% 5.00% 0.00% Startup Established Financial Services Company Established Technology Company Service Provider by the global FinTech community, as well as the final authors whose insights you will be reading shortly) In addition, we would like to thank our editors at Wiley whose guidance and help made sure that what started off as an idea, you are now holding in your hands Table 4:  Size of companies our authors work for What is the size of the company you are working in? 40.00% 35.00% Finally, I would like to thank the fantastic editors, Sabine VanderLinden, Shân M Millie, and Nicole Anderson Editing a crowdsourced book naturally takes several months and it was always a pleasure to work with their strong domain expertise and vision for the future of InsurTech globally! 30.00% 25.00% Preface x 20.00% 15.00% 10.00% 5.00% 0.00% 1-5 people 6-50 people 51-100 people 101-1000 people 1001+ people Thus, this project would not have been possible without the dedication and efforts of all contributors to The InsurTech Book (both those who submitted their initial abstracts for consideration Susanne Chishti Co-Founder, The FinTech Book Series Editor in Chief, The InsurTech Book CEO and Founder FINTECH Circle and the FINTECH Circle Institute Twitter: @SusanneChishti @FINTECHCircle @InsurTECH_Book LinkedIn: FINTECH Circle Group See abstract: How to pivot from B2C to B2B and why it’s necessary See abstract: AI in InsurTech – Opportunities and regulatory challenges Vasyl Soloshchuk Tony Tarquini CEO and Managing Partner, INSART www.linkedin.com/in/vsolo/ www.twitter.com/vsoloINSART List of Contributors 300 Director of Insurance, EMEA, Pegasystems Limited www.linkedin.com/in/tony-tarquini-2b92a/ www.twitter.com/TarquiniTony See chapter: InsurTech Trends – Why Regionalization Matters See chapter: Practical Robotics in Insurance – The Future is Here Already Christophe Spoerry Tobias Taupitz Co-founder, Euler Hermes Digital Agency www.linkedin.com/in/spoerry www.twitter.com/@spoerry See abstract: Reinventing a 100-year-old Insurance Service with APIs Catherine Stagg-Macey Founder, Executive/ Team coach, Belgrave Street www.linkedin.com/in/staggmacey www.twitter.com/@staggmacey See abstract: Why an unexamined life is the downfall of a founder Laimonas Stoncius Founder and CEO, ClaimsControl www.linkedin.com/in/stoncius/ www.twitter.com/claims_control See chapter: Why Claims Sharing? Innovating within the Business-to-Business Insurance Claims Handling Ecosystem Gabriel Swift Senior Marketing Adviser, NTT Data Inc www.linkedin.com/in/gabrielswift/ www.twitter.com/GabrielSwift1 See abstract: Swinton Insurance – search optimisation and interaction design Tokio Marine tests new blockchain-based insurance policy Eunice Tan Local Principal, Baker McKenzie Wong & Leow www.linkedin.com/in/eunice-tan-9232417/ See abstract: Singapore racing ahead to become the InsurTech hub Co-Founder and CEO, LAKA www.linkedin.com/in/tobiastaupitz/ www.twitter.com/tobsnt See chapter: True Business Model Innovation – a Credit-Based Approach Stewart Taylor Head of London Market Modernsation and InsurTech, HFG www.linkedin.com/in/stewarttayloruk/ https://twitter.com/stewarttayloruk See abstract: Why DINO-insurers will be killed off by the InsurTech meteor Sylvain Theveniaud Managing Director, Allianz Accelerator www.linkedin.com/in/sylvaintheveniaud www.twitter.com/sylvainth See abstract: Accelerating start-ups: From interactions to shaping frameworks for success Periklis Thivaios Partner, True North Partners LLP www.linkedin.com/in/periklisthivaios/ See abstract: Insurance is not a Business Model InsurTech Could be Denis Thomas Associate Director, KPMG www.linkedin.com/tdenisk www.twitter.com/tdenisk See chapter: Competition vs Coopetition in the Insurance Market Brian Tang Neil Thomson www.linkedin.com/in/brian-w-tang-7131293 www.twitter.com/CapMarketsProf www.linkedin.com/in/neil-thomson-b92b379/ www.twitter.com/_NeilThomson Managing Director, Asia Capital Markets Institute Strategic Sales Director, Freelance InsurTech Consultant See chapter: InsurTechs – Magical Thinking and Other Secrets of Success Jean-Charles Velge Tuan Trinh www.linkedin.com/in/jean-charles-velge-4345131/ www.twitter.com/velgejc www.linkedin.com/in/tuan-trinh-b81b3419 www.twitter.com/trinhanhtuan247 See chapter: Forget Peer-to-Peer, the Future of Insurance is Invisible and Parametric See abstract: On the Creation of an Online Social Insurance Platform Tobias Troendle Management Consultant, Diconium Strategy www.linkedin.com/in/tobias-troendle-07413890/ www.twitter.com/TobiasTroendle See chapter: Alexa, Can You Get me an Insurance? A Structured Approach to the Hyped Technology of Voice-Based Assistants Shwetank Verma Managing Partner, Leo Capital www.linkedin.com/in/shwetankv/ www.twitter.com/shwetankv See abstract: Cs of Opportunity Koen Vingerhoets Blockchain Adviser, KBC Steve Tunstall www.linkedin.com/in/koenvingerhoets www.twitter.com/IthronKoen www.linkedin.com/in/stevetunstall www.twitter.com/inzsure1 See abstract: Blockchain: A matter of life and death See chapter: Why is Insurance Failing? Gerben Visser Richard Turrin www.linkedin.com/in/gerbenvisser www.twitter.com/fincon CEO and Co-Founder, Inzsure Artificial Intelligence | FinTech WealthTech | InsurTech Professional and Chief Innovation Officer, Singapore Life www.linkedin.com/in/turrin/ See chapter InsurTech and AI – You Can Run but You Cannot Hide from the Future Founder, FinTech Consortium See abstract: Into South East Asia's InsurTech Ecosystem Henrique Volpi Author, InsurTech Entrepreneur and Co-Founder, Kakau Igor Valandro www.linkedin.com/in/henriquevolpi/ www.twitter.com/VolpiIT www.linkedin.com/in/igor-valandro-1010b16 See chapter: Seamless Insurance: The Time is Now CEO, Air See abstract: Enabling Usage Based Pricing: Airs Business Model Sabine VanderLinden CEO, Startupbootcamp InsurTech, Rainmaking Innovation InsurTech, The Proposition Circle www.linkedin.com/in/sabinevanderlinden/ www.twitter.com/SabineVdL See chapter: You Said … Sharing Economy? See abstract: The New Customer Reality: AI Is Everywhere Igor Volzhanin CEO, DataSine www.linkedin.com/in/ivolzhanin/ See abstract: Serving Customers Benjamin Von Euw Enterprise Architect, iA Financial Group www.linkedin.com/in/benjaminve/ See chapter: From Event-Focused Insights to Coaching 301 List of Contributors Founder, InsurTech Consulting Partners Co-Founder, Qover Nigel Walsh Paul Wilson www.linkedin.com/in/nigelwalsh www.twitter.com/nigelwalsh www.linkedin.com/in/mymarketer www.twitter.com/paulwilson Partner, Deloitte See chapter: Frictionless Insurance in a Land of Utility John Warburton List of Contributors 302 Founder, Konsileo www.linkedin.com/in/johnwarburton1/ www.twitter.com/broking_john See chapter: Where Does InsurTech Leave the People who Work in Insurance? MIchael Weinreich Venture Partner, Finleap GmbH www.linkedin.com/in/michael-weinreich-35038b12 www.twitter.com/@MWFintech See abstract: Solving the ‘unsolvable equation’ – decrease cost yet increase customer satisfaction Insurance Digital Marketing Technologist Lead, Capgemini See abstract: Using Behavior-Modification Gamification to Bring Insurers into the Connected World Selim Yazici Co-Founder, FinTech Istanbul and Professor, Istanbul University www.linkedin.com/in/selimyazici/ www.twitter.com/SelimYazici See abstract: Digital Transformation in Insurance and the State of InsurTech in Turkey Dorota Zimnoch Founder and MD ZING Business Consulting, Strategic Advisor, The Heart www.linkedin.com/in/dorotazimnoch www.twitter.com/D_Zimnoch See chapter: Incumbent and InsurTech Collaboration via Open Innovation Strategy Ronald Weissman Michael Zoelzer www.linkedin.com/in/ronald-weissman-36a3841 www.linkedin.com/in/michaelzoelzer www.twitter.com/michaelzoelzer Partner, Circini Innovation See abstract: UBI: The New Paradigm Disrupting Auto Insurance Today and Other Lines Tomorrow Co-Founder and COO, WearHealth See abstract: Merging claims data with data from wearables Harry Williams Moran Zur www.linkedin.com/in/harryewilliams/ www.twitter.com/_harrywilliams www.linkedin.com/in/moran-zur-46038057 www.twitter.com/@Safe_Beyond Business Designer, Fjord See chapter: Technology is Not Enough CEO, SafeBeyond See abstract: The World’s First Emotional Life Insurance Platform A acceleration  117, 119 accelerators  135, 148, 270 accelerometers 76 accessibility 91–94 accountability 216 acquisitions 136 ACRE Africa  93 action lists  257–259 action plans  268–270 active digital footprints  167 actuarial science  51 adaptation brokers 18–20 SPIXII 72–73 adjacent ideas  130 adjacent innovation  190–192 Admiral 277–278 adoption of InsurTech  140–142 adverse selection  110, 154, 192 advice technology  92, 106 affinity groups  148–149 affordability  62, 91–92, 154–156 Africa  93, 271–272 ageing process  80–81 agents  17–20, 93, 98 see also brokers; intermediary processes aggregation of data  173 aggregators 103 agile approach  8, 248 agricultural insurance  51–52, 62, 93 AI see artificial intelligence aims/means confusion  195–196 all-cause mortality  81 Amazon Alexa  251 analytics see claims analytics; data analytics; predictive analytics angel investors  281 anticipation  219–220 apathy  173 APIs see Application Programming Interfaces app-based solutions  75–79, 93, 180 Application Programming Interfaces (APIs)  136, 179 approximation trend  59 artificial intelligence (AI)  244–246 application of  88 business models  194 change and  228–229 constituent categories  231 employment and  35–36 seamless insurance  50–51 startups  254 asset inventories  209 asset liability management  274–276 asset sharing  194 asset under-utilization  207–208 asymmetry of information  165 attended RPA  233 attitude alteration, collaboration  137–139 attitude predictors  77 “attractive attributes”  38 augmented insurance  51 authenticity  210 auto-rating microinsurance  273 automatic pricing  276 automation process application of  88 business models  194 claims 50,  180 employment and  35, 36–37 robotics use  234 smart contracts  240 Aviva 169 B B2B Insurance see Business-to-Business Insurance B2C Insurance see Business-to-Consumer Insurance backward innovation  182–185 Baidu, Alibaba, Tencent, and Jingdong (BATJ) 95–96 banking activity  153, 277 banking crisis  182 BATJ see Baidu, Alibaba, Tencent, and Jingdong behavioural aspects  40, 53 behavioural design  165–169 big data  78, 110, 212, 245, 280 Big Five personality traits  166, 170 biometrics 109–110 BlaBlaCar 209 blockchain claims sharing  181 corporate collaboration  118 future potentials  255 international markets  90 regional trends  109–110 smart contracts  240 startups 247–249 The InsurTech Book:The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries Edited by Sabine L B VanderLinden, Shân M Millie and Nicole Anderson © 2018 FINTECH Circle Ltd 303 Index Index Index 304 bonuses 141 bot-led solutions  50–51, 172, 244–245 see also chatbot solutions; robotic brand personality  261 Brazil 106–107 brokers commercial insurance  37–39 manifesto for  39 online services  93, 106–107 problems/solutions 17–20 producer connection  14 “robo brokers”  191 role revisions  180–181 see also agents; intermediary processes bubbles and investors  34 budget restrictions  249 Bundesliga metaphor  100–101 bundling insurance  92, 191–192 business discrete events  48–49 business insurance  47 business lines  7, 202–203 business models data-driven 212 innovation  190–194, 215–217 long-term viability  202–205 P2P Insurance  202–205 predictive analytics  211–214 preparation of  132 smart InsurTech  199–201 startups  26, 159 voice-based assistants  251–252 business objectives, cooperation  127 Business-to-Business (B2B) Insurance  179–181, 197, 209 Business-to-Consumer (B2C) Insurance  13, 209, 251 business units  130 buy model, partnerships  125–126 buyers 208 Buzzmove startup  256 C C2C see customer-to-customer markets Camp, Garrett  254 capacity, startups  201 capital abundance, protection gap  63 capital funding  73, 119–120, 135 capital markets  182–184 captology 168 car insurance  75–79, 92–93, 126, 169, 200–201 cash flow analysis  275 CBien B2B Insurance  209 change inevitability  228–229 change management  140 change resistance  138–139, 142 change threats  68–69, 137 chatbot solutions  51, 233, 244–245, 259 Chen, Dr Brian  82 Chierici, Alberto  71 China  95–97, 110, 275, 279 Christensen, Clayton  134, 142 claim filing  280 claimant lawyers  138 claims analytics  258 claims data  180 claims fraud see fraud claims handling ecosystem 179–181 claims management  89, 157–158, 161 claims pooling  159 claims prevention  57–58, 211–214 claims process automation of  50 recovery support  45 streamlining 179–180 suppliers 258 claims risk  171–172 claims settlement  211–214, 215 claims sharing  179–181 claims surveying  181 ClaimsTech 257–259 Client Value Proposition (CVP)  141–142 Climate Corporation  25–26, 48 cloud-based policies  273, 276 coaching 218–220 cognitive computing  244 collaborative approaches  117–134, 137–139 hedging technology  282–283 international markets  88 pension savings  55 success and  41 collaborative consumption  206 collaborative economy see sharing economy commercial insurance  32, 33, 37–39, 48–49, 51–52 commoditization of insurance  37–38 commoditization risk  193 communication efficiency  141 communication gap  62–63 community-based insurance  97, 108, 207 company builders  270 company–customer gateway  250 company focus see supply-driven focus company operations  comparison websites  33, 103, 278 see also price comparison sites competition  46, 121–123, 214 crisis costs  178 cross-selling opportunities  122 crowdfunding 201 cultural challenges  140–142 cultural constraints  99–100, 136 customer benefits credit-based approach  216 voice-based assistants  252 customer centricity  63, 153, 254–256, 261–262 customer expectations  9, 101–102, 195 customer experience disruptive technologies  124 expectations of insurers  153–154 innovation and  38 startups 24 Customer eXperience (CX)  258 customer focus  15 customer needs goal-based insurance  245 startups 256 customer–producer connection  14 customer risk profiles  196–197 customer segments  72, 102 customer services  89, 157–158, 233 customer strategy  70 customer-to-customer (C2C) markets  21 customer transparency  13 customer value, startups  73 customer–voice-based assistant gateway 250 “customership” 58 customization see personalization; tailor-made products CVC see corporate venture capital CVP see Client Value Proposition CX see Customer eXperience cyber extortion  178 cyber insurance  110 cyber-physical systems  211 cyber products  22 cyber risk  175–178 cyber security  246 D data analytics apps 77–78 digital ecosystems  219 as enabler  129 identifying sources  212–214 micro policies  156 microinsurance 273 strategic advantage  100 telematics 109–110 use of  32, 62–63 data capture  259 data collection  171–173, 212–214, 218 data dependence  175 data-driven business models  212 data, knowledge and  219–220 data protection  242 data reliability  181 data security  251 data sources change and  171–174 pooling function  173 data structure, claims sharing  179 data surveillance  284 data ubiquity  194 databases 240 decentralized ledger technology  90 decision-making processes  140–141 “delighters” 38 demand-driven focus  15 demand-side insurance  274, 286–287 305 Index competitive advantage  122 complaints processes  257 complexity  260–261, 284, 286 compliance requirements, ideation  130 comprehensive personal assets  275 compulsory insurances  103 computerization impacts  36–37 conflicts of interest  215–216 connected customers  271–273 connected devices  163 consolidation activities  107 consumer discrete events  47–48 consumers personalization 149 rapid changes  17–18 consumption  206, 286–287 contactless cards  236 contract law  241–242 contract management  240 see also smart contracts cooperative insurance see Person-toPerson Insurance coopetition 121–123 core ideas  130 core innovations  190–191 corporate collaboration  117–120 corporate culture  136 corporate innovation  124–125, 268–270 corporate venture capital (CVC) 119–120, 135 cost reduction, product development  121 cost restrictions  109 coverage distribution models  154–156 pension dashboards  56 creative skills  207 credit-based business models  215–217 crime patterns  172 Index 306 demographic-based approaches  78–79, 98, 165–166 design solutions  260–262 Design Thinking Framework  132 desirability of ideas  130 deterministic smart contracts  241 developed countries’ innovation  110 developing countries  91–94, 110, 151–152 development costs  121 development partners  54–55 developmental aspects  40, 89 differentiated insurance  47, 260–261 digital customers  72, 153–154 “digital by default”  digital distribution  127 digital ecosystems  218–220 digital evidence, fraud  259 digital-first business models  203 digital footprints  167 digital health market  97 digital infrastructure  162–163 digital innovation  125 digital insurance  92–93, 268–269 digital literacy  207 digital media breach  178 “digital mutual” business models  192–193 digital revolution  124 digital technologies accessing 207 cyber risk  175 digital transformation  13–16, 59, 104, 128, 268–270 digitalization  16, 100, 117, 157, 227 direct insurance companies  direct producer-to-customer connection  14 discrete events  47–49 dispute threats  137 disruption effects  75–79, 157–163, 177 disruptive ideation  129, 130 disruptive innovation  134, 190–194, 268 Disruptive InsurTech startups  25, 27 disruptive technologies  124, 244 distributed ledger principles  109, 240 distribution channels  103–104, 126–127 distribution or experience process  68 distribution models/approaches  89, 92, 154–158, 162–163, 191–192 double manual entry work  180 driverless cars  200–201, 254, 256 Drivies app  75–79 due diligence  11–12, 232 dynamic pricing  51 E economic development  91 ecosystem business models  193 ecosystem concept  6–7, 103, 107, 148–152, 179–181, 218–220 ecosystem economy  139 ecosystem power players  95–96 education delivery  272–273 efficient innovation  123 embedded insurance  162, 164, 191–192 empathy  36–37, 39 employees robotics and  232 startups 249 tech-first mind-set  227–230 employment effects  35–39 enablers  36–39, 129, 162, 281 end-to-end transformation  229 engagement duration/intensity 135 high-intensity 136 social networks  58 entrepreneurial culture  136 entrepreneurship  41–42, 73, 207 entropy 122 environmental data  172 epigenetics 81 Ergun, Cansen  102–104 “escape hatch”, smart contracts  241 “escrow” accounts  161 ethical concerns  169 European Union (EU) business models 199–200 event-focused insights  218–220 evolutionary innovation  269 exclusions, smart contracts  241 execution  236, 238 experience process  68–69 expertise 71–74 exponential change  237, 268 external innovation management  270 F Facebook  167, 271, 277–278 facilitators 281 failure avoidance 68–70 insurance industry  9–12 reasons for  141, 249 family ethos  71–74 farming see agricultural insurance fast iterations  76–77 Fear of Failure (FOF)  69 feasibility of ideas  130 fee-based income  215 fines 178 FinTech  6, 21, 32–34 business models  215 challenges/opportunities 102 G GAME changing technologies  90 gamification techniques  75, 245 Gartner’s Hype Cycle  269 GDPR see General Data Protection Regulation Gen X  89 Gen Y  95, 228 Gen Z  228 General Data Protection Regulation (GDPR) 175–178 General Insurance  215–216 generic processes  234 Genomics  101 80–82 Germany 98–100 “giant risk carriers”  163 gig economy  194, 255 see also sharing economy Global Cyber Impact Report,  2016 175–176 global initiatives  60, 88–90 global positioning system (GPS)  76 goal-based insurance  245–246 good faith notion  241 Google’s Project Loon  271 governance structure, pensions  56 Government support necessity  56 GPS see global positioning system granularization of risks  193, 286 Greece 92–93 Guner, Erdal  102–105 GWG Life  80–82 gyroscopes 76 H health insurance  149, 151–152, 199 health market  97 hedge funds  194 hedging technology  280–282 Hellas Direct  92–93 HiPPO (Highest Paid Person’s Opinion) Syndrome 100 hiring strategies  72 historical data  130 home insurance  171, 200 home telematics  45 Horvath, Dr Steven  80–81 hub structure, claims sharing  179–181 human factor in success  234–235 human–machine interaction  244–245, 258–259 hype cycle topics  269 I IaaS see Insurance-as-a-Service ideation process  129–133, 140 IDF see Insurance Development Fund ILS see Insurance Linked Securities incremental change  159, 237 incremental innovation  190–194, 268 incubation  118, 135, 207 incubators 123 incumbent insurers action plan  268–270 current business models  195 German market  98–100 innovation difficulties  68–70, 192 open innovation strategy  124–128 opportunities 104–105 partnering startups  33, 248–249, 269–270 problems/challenges 21–22 startups enabling  24–26 technology trends  280 value chain  7–8 as winners  16 independent broker channel  18 Indian online brokers  93 individual approach  59 individualized offerings  214 Industrial Revolution  182 information assets  176 information asymmetry  165 307 Index culture 140 customer centricity  255 startups  134, 136 First Notice of Loss (FNOL)  179, 259 first party claims  257 FNOL see First Notice of Loss focus, business lines  FOF see Fear of Failure forecasting claims  258 founding SPIXII  71–74 fraud  58, 174 blockchain startups  247 claims sharing  181 data protection and  241 digital evidence  259 failure and  seamless insurance  50 fraud risk  202–205 freemium business models  193–194 freemium products  272 frictionless distribution  162–163 frictionless insurance  191–192, 236–239 Friendsurance  209, 278 full-stack insurers  21, 23, 25 funding  73, 119–120, 135 Index 308 information exchange  137–138, 139 information issues, smart contracts  241 information presentation  261 information sources, apps  77–78 information technology (IT)  11, 99 infrastructure development 162–163 ideation process  130 pension dashboards  53–56 injection technologies  233 innovation 22 B2B claims  179–181 barriers to  142 business models  190–194, 215–217 collaboration 125–126 customer experiences and  38 developed countries  110 disruption and  158–160 distribution or experience process  68 frictionless insurance  237 incumbents’ difficulties  68–70 open strategy  124–128 partnerships 125–126 pension dashboards  55–56 reinsurance 182–185 startups 134 technologies  6, value chain  157–158 voice-based assistants  250, 253 innovation centres  123 innovation management  130, 268–270 INSoT see Insurance of Things InsTech London  33–34 institutional asset management  275 insurance definition 218 future of  195–198, 231–235 Insurance-as-a-Service (IaaS)  162–163, 282 insurance bills  283 insurance consumers see consumers Insurance Development Fund (IDF)  63 insurance industry challenges 21–22 failures 9–12 growth 36 problems 21–22 trust  9–10, 57 Insurance Linked Securities (ILS)  182 insurance options  47–49 insurance penetration rates  11, 62, 91–92, 104, 106 Insurance of Things (INSoT)  43–46 InsurTech characteristics 129 definition 6–8 filling gaps  195 opportunities for  281–282 InsurTech startups  24–27 integrated insurance products  43–44 integrated loss prevention  44–45 integrated recovery support  45 integrity 71–74 intelligence systems  233–234 intelligent products  57–58 intelligent sales approach  155 intermediary processes  10 see also agents; brokers internal bias  248 internal collaboration  117 internal innovation  124–125 internationalization 88–90 Internet use  33, 271–273, 274 Internet of Things (IoT) claims and  57, 180, 259 effects of  43 examples 107 future potential  255 home telematics  45 opportunities 105 psychographics and  167 real-time B2B claims  180 regionalization 109–110 use of  88 intrapreneurs 70 investment partnership model  125 returns on  122, 232 startups  126–127, 270, 281 investors  34, 41–42, 73, 104, 107 invisible insurance  161–164 IoT see Internet of Things IT see information technology K Kano, Noriako  38 Kawakita Jiro (KJ) method  148–149 Key Performance Indicators (KPIs)  76–77, 141, 149 KJ (Kawakita Jiro) method  148–149 “Know Your Customer” (KYC) systems  245 knowledge and coaching  218–220 KPIs see Key Performance Indicators KYC see “Know Your Customer” systems L language processing  258–259 large organizations acquisitions 136 innovation  69, 192 startup relations  135 transformative innovations  192 M machine–human interaction  244–245, 258–259 machine learning  167 Maimbo, Sam  63 management opportunities  89 Managing General Agents (MGAs)  33, 193 margins, scalability  14–15 market economy platforms  208 market reality, reinsurance  182–183 market trading  182 marketing automation 19 on-demand insurance  110 value chain  89 markets Germany 98–100 global initiatives  88–90 non-transparency 13 overlooked opportunities  61 risk and  11 startups tapping into new  26 mass tailoring  286 means/aims confusion  195–196 measurement tools  233–234 mediation of disputes  137 medical-evidenced-based underwriting  80, 82 mega-trends 57–60 membership concept  58 messenger commerce  250 methylation sites  81 MGAs see Managing General Agents micro lenders  93 micro policies  153–156 MicroEnsure 92 microinsurance  108–109, 118, 151–152, 271–273 middle men substitution  14 millennials  89, 95, 106–107, 227–228 Millon, Renaud  71–72 mind-set innovation and  68–69 tech-first 227–230 mitigation technologies  110 mixing groups  41 mobile channels  110 mobile phones  62, 76, 92–93, 272 see also smartphones mobile wallets  272 mobility futures  194 monetization 252–253 mortality, all-cause  81 motor insurance see car insurance “mudas” 219 multinational companies  102, 139 Munich Re Digital Partners  117, 126 “must-be attributes”  38 mutual insurance  159, 192–193 see also Person-to-Person Insurance N Nagji and Tuff’s innovation framework  190 natural language processing  258–259 Net Promoter Score (NPS)  234 Netflix 278 network interruption  178 niche products  155, 278 “no” decisions  72–74 non-deterministic smart contracts  241 non-transparent markets  13 non-value-added (NVA) work  231 NPS see Net Promoter Score nudges 169 NuvaLaw case study  137–139 NVA see non-value-added work 309 Index Latin America  106–107 law attitudes to  137–139 contracts 241–242 see also legal frameworks leadership  70, 95–96 Leakbot gadget  256 lean methodology  76–77 ledger principles/technology  90, 109, 240, 255 legacy challenges  18, 35 legacy systems  41, 99, 227, 237, 248 legal frameworks  201 see also law Lemonade insurance company  157–160, 168–169, 261 liabilities personal assets  274–276 redistribution of  10 liability risk  178 licences to operate  104, 121 life backup companions  283–287 life-changing events  275 life expectancy predictors  80–82, 219 life insurance  129, 150 litigious insurance  137 local initiatives  60 long-term viability, business models  202–205 loss levels  61–62, 182–183 loss prevention  44–45 loss records  181 loyalty 19 O Index 310 offerings, ideation process  130 OKChexian InsurTech  96–97 on-demand insurance  59, 88, 110, 191 “one-dimensional attributes”  38 One Platform, One Click  129–133 one-stop shops  98 online accessibility  207 online insurance services  93, 95–97, 106–107 online sales channels  273 online world, customer experiences  153 Open API hub  179 open innovation strategy  124–128 open platform business models  194 operating models  216, 252 operating systems  251 operational partnerships  135–136 operational resilience, robotics  232 optimization 285–286 oracles, smart contracts  241, 242 organizational culture  140 organizational impacts, cyber risk  176 organizational responsibilities  177 Osterwalder’s business model  252 ownership, reduced need for  207 P P&C see property and casualty insurance P2P Insurance see Peer-to-Peer Insurance; Person-to-Person Insurance PaaS see Platform-as-a-Service pace  236, 238 pain points  72 parametric insurance  161–164 parametric payments  96 parametric policies  48 partnerships CVC 119 digitalization 117 innovation drivers  125–126 protection gap  63 sharing economy  208 startups/incumbents  33, 69, 248–249, 269–270 types 134–135 Pasqualotto, Alberto  71–72 passive digital footprints  167 pay-per-use insurance  59, 109 payment innovation  89 payment online  273 payment platforms  151 Peer-to-Peer (P2P) Insurance  58, 90, 97, 108, 110 business models  192–193, 201, 202–205, 209 conflicts of interest  216 as disruptive  161 pooling model  150 as revolutionary idea  159–160 sales/distribution 157–158 Pension Dashboard Infrastructure  53–56 performance orientation, innovation  269 Person-to-Person (P2P) Insurance  201 see also mutual insurance; Peer-to-Peer Insurance personal asset liability management  274–276 personal lines insurance  33, 36 personality traits  166–167, 170 personalization AI and  51, 246 digital customer experience  153 health insurance products  149 price optimization  165 services provision  173–174 see also tailor-made products persuasive technologies  168 Ping An Insurance  97 Platform-as-a-Service (PaaS)  282 platform-based ecosystems  139 platform-based risk trading  184–185 platform models/approaches  193, 194, 208, 229, 277 Plug and Play Insurance (PPI)  119, 154 policy-driven business model  196–197 policy-holders data collection  171–172 obligations 172–173 risk actions  171–172 specific data  171–172 policy management  89, 195–198 policy purchase  280 policy transformation, smart contracts  242 policy wording  191 Ponemon Institute  175–176 pooling claims 159 data sources  173 P2P business model  202–205 risk management  10 pooling models  150 post-sales processes  168–169 post-sales risk profiling  165 power of utility  284–285 PPI see Plug and Play Insurance pre-sales processes  165–167 predictive analytics  211–214 preference predictors  77 premium cap  26 “premium model”  253 provider-centric approach  50 Prudential Insurance Co v IRC 241–242 psychographics 165–167 Pugh Matrix  149–152 “pull-based” sales approach  155 “pull” insurance  191–192 purchase process characteristics  10–11 “push” approach  155 Q Quality Function Development (QFD) Matrix 149–150 R R&D see research and development random events  218, 220 RDA see Robotic Desktop Automation reactive trends  57–58 real-time B2B claims  180 recovery support  45, 280 redistribution function, risk management 10 referral agreements  135 regionalization 108–110 regulatory environment China 95 credit-based approach  216 cyber risk  175–178 developing countries  94 frictionless insurance  237 ideation process  130 information exchange  139 insurance industry  21 microinsurance 109 reinsurance  182–185, 281 relationship-focused value proposition  19 relationships, startups  134–136, 149 reputational damage  177 research and development (R&D)  118, 123 resistance to change  138–139, 142 resource wastage  99–100 retail industry  153 retention of customers  158 return-on-equity (RoE)  184 returns on investment  122, 232 revenue generation  206–207, 252 revenue models  252–253 risk actions/characteristics  171–172 risk assessment  77–78, 110, 194, 196–197 risk aversion  141 risk carriers  25, 163 risk culture  142 risk, cyber risk  175–178 risk granularization  193, 286 risk hedging  282 risk–insurance connection  10–11, 62–63 risk management  9–10, 157–158, 192, 195–198, 246 risk pools  202–205 risk profiles  165, 286 risk reduction measures  196 risk scenarios  121 risk trading platforms  184–185 risk transfer methods  176, 182 risk types, reinsurance  184 robo-advisory algorithms  275 “robo brokers”  191 Robotic Desktop Automation (RDA)  233 robotic process automation (RPA)  35, 50, 233 311 Index premium payments  280 premiums and discrete events  47–49 preventative approaches  22, 173, 192, 211–214, 220 preventative models 2.0  193 price comparison sites  13, 21, 106, 274 see also comparison websites price-driven messaging  75 price optimization  165–167 price setting  59, 154–156 pricing processes  51, 276 principal component analysis  241 privacy rights  177, 181 proactive trends  57–58 problem-solving  22, 260 process selection  234 producer-to-customer connection  14 product bundling  191–192 see also bundling product design  89 product development  59, 121, 162–163 product disaggregation  191 product innovation  22 product management  157 product redesign  286 product–service relationships  228 productivity 233 profit margins, claims settlement  215 profitability  122, 130, 211–212 project management  130, 132–133 property and casualty (P&C) insurance  158, 282 property insurance  200 “property value hedging technology”  280–282 protection gap  61–63, 91, 155–156 protection proliferation  43–46 protection promise, brokers  19 Index 312 robotics 231–235 AI and  88 benefits of  232 claims process  258–259 deployment of  231 types 232–233 viable processes  234 see also bot-led solutions RoE see return-on-equity Roell, Friedrich  72 role-level analysis, employment  36 RPA see robotic process automation S SaaS see Software-as-a-Service sales opportunities  89, 153–156, 157–158 see also selling process scalability  14–15, 90 Schwab, Klaus  35 scouting 269–270 seamless insurance  50–52 secondary markets  80–82 security AI 246 IT 11 “security-service-ecosystems” 15 self-driving cars see driverless cars self-serving insurance  38, 59 sellers, market economy  208 selling process  58 see also sales opportunities semantic information  241 sensors, transportation  45 sentiment analysis  245 service approach business models  199 design solutions  260 hedging technology  282 reinsurance 183 venture capital  120 voice-based assistants  250 service–product relationships  228 sharing economy  26, 139, 161, 206–210, 255 see also gig economy SHI see supplementary health insurance short duration insurance  154–156 Shrigley, David  42 simplicity  236, 238–239, 260–261 small farmers’ insurance  93 smart business models  199–201 smart contracts  90, 160, 240–243 smart factories  211 “smart insurance providers”  213 smart life insurance  150 smart technologies  138, 171–172, 197, 211 smartphones  155, 162 see also mobile phones social media  32, 167, 168, 277–279 social networks  58 Software-as-a-Service (SaaS)  118, 135, 282 solidarity principles  109 Spanish market  76, 78 speciality risks  205 specialization, startups  201 specific processes  234 speed factors, startups  248 SPIXII story  71–74 spreadsheets 258 stakeholders defining InsurTech  stand-alone solutions  154 startup-storming 148 Startupbootcamp 119 startups agile approach  8, 248 AI needs  254 blockchain 247–249 business insurance  47 capacity/specialization 201 car insurance  75–79 claims prevention  57 collaborative approaches  119 customer needs  256 forms of  33 ideation process  140 incumbent insurers collaborations  16 InsurTech differences  24–27 investment in  126–127, 270 micro policies  154 “no” decisions  73–74 open innovation strategy  127–128 opportunities for  281 organizing themes  148–149 partnerships  63, 69, 126, 248–249, 269–270 relationships 134–136 Turkey 102 value chain  152, 159 Stephany, Alex  207 strategic advantage  100 strategic alliances  198 streamlining claims processing  179–180 structured approaches/processes  139, 250–253 subscription business models  197 success celebration  70 success role, human factor  234–235 supplementary health insurance (SHI)  199 suppliers, claims handling  258 supply-driven focus  15 supply-side insurance  274, 286 T tacit knowledge  36–37, 39 tailor-made products  51, 286 talent attraction  227–228 Tapoly startup  256 target-defined insurance  71–72, 130 task-level analysis, employment  36–37 team diversity  70 team goals, tech-first  228 team role, startups  248 tech-first mind-set  227–230 technical differentiations, apps  76 technological enablers  36–39, 162 technological legacies  99 technologies affordability/accessibility 91–92 employment futures  35–36 examples 92–93 innovation  6, interaction 107 introducing 228 limitations of  140 penetration rates  11 protection gap closure  61–62 rapid changes  18 trends 280 telematics  45, 75, 77–78, 109–110, 141–142, 214 third party claims  257 time to value, robotics  232 timing factors, sales  153–156 TongJuBao InsurTech  97 TONIC product  92 touch technology  250–251 TRAMBID term  34 transactional relationships  11, 208 transactional systems  58 transformative innovations  190, 192–194 transparency  11–12, 13, 55, 210 transportation telematics  45 true personalization  51 trust digital trends  59 insurance industry  9–10, 57 peer-to-peer initiatives  58, 201, 205 pension dashboards  56 sharing economy  210 Turkey 102–105 Turtlemint broker  93 two-sided platform models  193 U Uber  254, 256 Uberization, claims surveying  181 UBI see Usage Based Insurance UK Insurance Act 2015  242 UK pensions  53–56 unattended RPA  233 underinsurance 155 under-utilized assets  207–208 underwriting asset management  274, 276 commercial insurance  37–39 development of  33 digital infrastructure  162–163 incumbents 69 manifesto for  39 medical-evidenced-based  80, 82 new businesses  89 reinsurance 183 standard techniques  88 suppliers 258 TRAMBID term  34 value chain  157–158 unicorns  96, 97 uninsurable risks  62–63 United Kingdom (UK) Insurance Act 2015 242 pensions 53–56 United States Dollars, binding  99 universal market competition  121–122 up-selling opportunities  122 US Dollars, binding  99 Usage Based Insurance (UBI)  43–46, 75–76 user-centric approach  7–8, 50 user interface, AI as  51 utility  236–239, 284–285, 286–287 V value chain digital insurance  268–269 ecosystems 148–152 evolution of  23 four-step building guide  148–152 incumbent insurers  7–8 innovation 157–158 insurance companies  280 on-demand services  88 reinsurance 183 uncovering opportunities in  89 value drivers, InsurTech  89 value generation  207 313 Index surges 257 surveying claims  181 syntactic information  241 systemic failure  10–11 Index 314 value propositions  75, 132, 252 value redistribution  286–287 value stack  285–287 values of founders  74 venture capital (VC)  73 corporate  119–120, 135 partnerships 270 startup investment  281 startup-storming 148 visionaries, startups  248 voice-based assistants  250–253 W weak solutions  141 wearable devices  274 white-label insurance carriers  14 Windus, Johannes  72 work futures  194 workforce intelligence systems  233–234 working charter, SPIXII  72 workplace creation  227 Z ZhongAn company  96, 279 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What is InsurTech? The InsurTech Book :The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries Edited by Sabine L B VanderLinden, Shân M Millie and Nicole Anderson... Companies of the New Silicon Valley Are Changing the World, Little, Brown and Company, 2017 The InsurTech Book :The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries. .. Padstow, Cornwall, UK The InsurTech Book The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries Edited by Sabine L B VanderLinden Shân M Millie Nicole Anderson Editor