The best of InsurTech Rising Europe

Shape the industry. Create connections. Challenge the future.

Despite widespread acceptance of the need to invest in InsurTech, we know that incumbents can still find it difficult to bring InsurTechs into the fold. This can be for a number of reasons - from the challenges presented by legacy systems, to internal cultures that are slow to change, to unclear partnership agreements.

One thing's for sure: nobody has quite found the magic formula for success. With debates ongoing as to how best to onboard innovation, it is perhaps no surprise that this was a recurring theme at the third annual InsurTech Rising Europe.

Start-ups are no longer being perceived merely as disruptors but more as equal players in a mutually beneficial partnership

This perennial issue was tackled first by the panel led by Reza Khorshidi, Chief Scientist at AIG, who was joined by Saadhvi Khullar, Munich Re Digital Partners, Sam Evans, Eos Venture Partners, Sam White, Pukka Insure and Dawid Glawdzin, Slice Labs. The panel discussed how the industry is starting to understand the need for collaboration and addressed some of the principal challenges the industry faces, from customer convenience and satisfaction, to the high costs of claims and operations. The panel also explored the fact that start-ups are no longer being perceived merely as disruptors but more as equal players in a mutually beneficial partnership.

Also high on the agenda were discussions around how AI, big data and automation are fast becoming the norm across the insurance industry. From the power of chatbots to improve the customer experience, to Machine Learning improving fraud ratios, underwriting decisions and claims processing, and data analytics allowing for more targeted product sales: there were many use cases discussed during the conference and during the AI Rising Summit.

Michael Natusch, Global Head of AI at Prudential, advised delegates to think small rather than big. “This isn’t about a big IT project, this is about starting small and building things, experimenting with them because in 2018, experimentation is cheap,” he said. “Just having the data, isn’t enough. Having access to a good model isn’t enough, and the user interface wouldn’t have anything to go on without the data and the model coming together. It is only when we put all three together that we have a workable combination,” he added.

Blockchain, one of the most controversial topics in the industry, divided the industry into two very passionate sides. Rickblock, buzzVault, Insureblocks, Black Insurance and Etherisc were amongst the thought leaders covering the debates.

Stephan Karpischek, Etherisc’s founder, argued that “a decentralised insurance application consists of smart contracts”. He explained that the benefits of decentralised insurance go beyond real-time payouts; that premiums are lowered “to almost a zero-sum game as smart contracts do not need to earn money. As a customer, you know you will get your money.”

The same question was asked again and again: beyond personal lines startups, what is happening on the commercial and SME side?

The blue room (and, it was actually blue!) saw discussions around the unprecedented amounts of data that the Internet of Things is generating, putting real-time insights in the hands of insurers to redefine risk and disrupting the industry, particularly in home, health, motor and even with drones! UNIQA has partnered with bsurance and Playbrush in the wearables space; Ergo has created ERGO Safe Home to enable homeowners to mitigate risk; and Flock is insuring flying robots using real-time data.

Across all the technology-focused sessions, the same question was asked again and again: beyond personal lines startups, what is happening on the commercial and SME side? Cytora and TrackMyRisks were on hand to offer solutions to SMEs’ problems. Cytora proposed a solution to tackling underinsurance for SMEs; meanwhile Matt Hodges-Long, the founder of TrackMyRisks, discussed a way to actively engage commercial customers in understanding and managing their risks, leading to behavioural changes and an overall reduction in risk and claims frequency.

Ultimately, a key factor needed to bring innovation into insurance is a diverse workforce: the industry needs teams that are lean, agile and willing to embrace change, in order for insurance to thrive in an environment of digital disruption and rising customer expectations. With that in mind, what’s the secret to attracting and retaining talent?

Theresa Farrenson, Technology Business Partner at Aon and the founder and co-chair of the LGBT Insurance Network, cited recent research by PwC which revealed that flexible working was a top priority for graduates when choosing which organisation to work for. Farrenson said that tackling the image problem in insurance and attracting the next generation requires real change, and “not just something we say to attract graduates.” She also highlighted the need to address the needs of working parents, given “how difficult this industry can be to return to after being becoming a parent, especially for women.”

Of course, 800 words can never do justice to three days of content, networking and great conversations – suffice to say, investors, incumbents and InsurTechs are also working more closely than ever before, and Insurtech Rising will be back in 2019 to show you what’s next. See you next year!

-Rocio Sarriegui Zulueta, Brand Editor for InsurTech Rising