FilteredHQ attended ANZIIF’s inaugural Insurtech event held at Doltone House, Sydney, March 28, 2017.
Below are our notes and key takeaways from the event.
Martin Blake – Global Head of Fintech in Insurance, KPMG
- In 2016, 50% of Insurtech funding was in Seed or Series A.
- Comparison startups are getting the most funding globally.
- Millennials currently make up 22% of the population and in 5 years time will be 50% of the workforce.
- 60% of Google searches for insurance are on Mobile.
- 84% of millennials don’t trust traditional advertising.
- 23% of millennials are willing to buy insurance from a non-insurance company.
- 8/10 insurance executives say innovation is critical to long term future, however only 43% of insurers have a dedicated innovation budget.
- Recommends insurers to “continually scan market for new competitors and business models”.
Dr Amy Gibbs – Digital Insights Manager, ANZIIF
Amy Gibbs delivered a snapshot on interesting insurtech startups on her radar across Digital Broking, On Demand, Artificial Intelligence, P2P, Internet of Things and SaaS business models.
Internet of Things
George Kesselman – Founder, Insurtech Asia
George Kesselman caused a stir with his prediction that 90% of GWP will be returned back to the customer in claims when technology fully automates insurance by 2027 (up from approx. 55% today).
Lambros Lambrou – CEO, AON Risk Solutions Australia
- Biggest emerging risks are Geo-Political (Trump, Bexit etc) and Cyber
- Only 2% of Fortune 500 companies have found the right balance between “exploration and exploitation” (moving to next gen business models)
- “Doing nothing is not an option”, “innovate or die”, “disrupt or be disrupted”.
- Vision: Are we seeing the bigger picture?
- Keeping pace: Who are our future competitors?
- Future proof: Does our business model need to change?
- Opportunities: How can we leverage insurtech to win?
- Investment: Are we investing in the right ventures?
- Knowledge: Do we know what customers really want?
- Friendsurance members claim less due to the behavioural economics built into their business model.
- Flamingo’s AI chatbot “Rosie” automates the customer journey in financial services. Pings human when less than 80% confident of accuracy. Takes 200 cases before Rosie can understand “domain of questioning”, and keeps getting better with usage. Idea is to automate 80%+ of user journeys. Financial services are currently only converting 15% of transactions online. Flamingo through “Rosie” is working on getting that up to over 40%.
- Sureify taps into Facebook updates to trigger communications between customer and insurer when major life events that could impact coverage occur.
- PrinceInsure is a professional P2P insurance company. Small claims are paid out of P2P network, large claims are covered by re-insurer.
Chris Bayley – CEO and Founder, Cover Genius
- The future of insurance is owning the full customer journey and gaining insights to develop bespoke policies with dynamic pricing. Machine learning and AI will enable this.