The INSURTECH Book The Insurance Technology Handbook for Investors, Entrepreneurs and FinTech Visionaries

The definitive compendium for the Insurance Digital Revolution

From slow beginnings in 2014, InsurTech has captured US$7billion in investment since 2010 — a 10% annual compound growth rate is predicted until at least 2020. Three in four insurance companies believe some part of their business is at risk of disruption and understanding the trends, drivers and emerging technologies behind Insurance’s Digital Revolution is a business-critical priority for all growth-minded firms.

The InsurTech Book offers essential updates, critical thinking and actionable insight — globally — from start-ups, incumbents, investors, tech companies, advisors and other partners in this evolving ecosystem, in one volume. For some, Insurance is either facing an existential threat; for others, it is a sector on the brink of transforming itself. Either way, business models, value chains, customer understanding and engagement, organisational structures and even what Insurance is for, is never going to be the same. Be informed, be part of it.

• Learn from diverse experiences, mindsets and applications of technologies
• Discover new ways of defining and grasping growth opportunities
• Get the inside track from innovators, disruptors and incumbents
• Be updated on the evolution of InsurTech, why it is happening and how it will evolve
• Explore visions of the future of Insurance to help shape yours

The InsurTech Book is your indispensable guide to a sector in transformation.

SABINE L. B. VANDERLINDEN is the CEO and Managing Director of Startupbootcamp InsurTech, Europe's leading early-stage and independent accelerator for insurance technology startups, and Rainmaking's corporate innovation and growth venture focused on the insurance and InsurTech spaces.

NICOLE ANDERSON is a multiple time technology entrepreneur and an innovation thought leader who is passionate about technology business models that are challenging the status quo and provide greater inclusion for people globally, focused on emerging technologies and emerging markets.

SHÂN M. MILLIE is a Board Advisor, Business Coach and hands-on Growth and Strategic Communications Specialist. Highly-respected in UK General Insurance and InsurTech, she founded her own Growth consultancy Bright Blue Hare in 2016.

SUSANNE CHISHTI is the CEO of FINTECH Circle and the FINTECH Circle Institute, offering fintech online courses across InsurTech, WealthTech, RegTech, enterprise innovation, blockchain and cryptocurrency technologies. She is also the Co-Editor of the bestseller The FinTech Book and a guest lecturer at leading universities globally.

Preface viii

About the Editors xi

Acknowledgments xiv

1. What is InsurTech?

InsurTech Definition as Its Own Manifesto 6

Why is Insurance Failing? 9

Digital Transformation in Insurance – Four Common Factors from Other Industries 13

InsurTech – Problem or Solution for Agents and Brokers? 17

The Best InsurTech May not be InsurTech 21

“Real” InsurTech Startups do it Differently! 24

2. 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

3. The Founder’s Journey

Not too Big to Learn not to Fail? 68

Insurance Expertise, Family, and Integrity – The Story of SPIXII’s Founding Team 71

Disrupting Car Insurance – Drivies App Makes Driving More Fun, and Insurance Fairer 75

Genomics 101 – The Search for a Better Life Expectancy Predictor Leads GWG Life to a Science Lab 80

4. Internationalizing InsurTech

Internationalizing InsurTech – A Global Phenomenon in Different Markets 88

Increasing Access to Insurance in Developing Countries 91

Insurance in China 95

Seven Things Insurers and InsurTechs Need to Know about the German Insurance Market 98

InsurTech in Turkey – Challenges and Opportunities 102

InsurTech in Latin America – The Promise of Insurance for Everybody? 106

InsurTech Trends – Why Regionalization Matters 108

5. 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

6. The Value Chain

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

7. Business Models

Business Model Innovation – From Incremental to Disruptive 190

The Future of Insurance – From Managing Policies to Managing Risks 195

Seeing through the Hype – A Closer Look at Key Smart InsurTech Business Models 199

Assessing the Long-Term Viability of the Insurance Peerto-Peer Business Model 202

You Said … Sharing Economy? 206

From Claim Settlement to Claim Prevention – How Insurers Can Make Use of Predictive Analytics to Change their Business Model 211

True Business Model Innovation – a Credit-Based Approach 215

From Event-Focused Insights to Coaching 218

8. You Said Tech

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

9. 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

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