The INSURTECH Book

The INSURTECH Book

by Sabine L.B VanderLinden, Shân M. Millie, Nicole Anderson, Susanne Chishti
Released July 2018
Publisher(s): Wiley
ISBN: 9781119362210

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Book description

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.

Table of contents

  1. Cover
  2. Preface
  3. About the Editors
  4. Acknowledgments
  5. 1 What is InsurTech?
    1. InsurTech Definition as Its Own Manifesto
      1. Three Enigmas: Who? What? How?
      2. The InsurTech Definition as its own Manifesto
    2. Why is Insurance Failing?
      1. The Challenge
      2. The History
      3. Connecting Risk, Insurance, and Systemic Failure
      4. Transparency and Due Diligence: Where Can the Industry go from Here?
      5. Notes
    3. Digital Transformation in Insurance – Four Common Factors from Other Industries
      1. From Non-transparent Markets to Customer Transparency
      2. Substitution of Middle Man – Direct Producer-to-Customer Connection
      3. From Many Scattered Players with High Margins to Few Scaled Players with Low Margins
      4. From Supply-driven (Company Focus) to Demand-driven (Customer Focus)
      5. Incumbents Will be Among the Winners
      6. Notes
    4. InsurTech – Problem or Solution for Agents and Brokers?
      1. The Rapidly Changing Insurance Consumer
      2. Rapidly Changing Technology – CanBrokers Keep up?
      3. Adaptive Brokers have a Fighting Chance to Win
      4. Notes
    5. The Best InsurTech May not be InsurTech
      1. The Problems and Challenges of the Insurance Industry
      2. Is it all Problem-solving or is There Real Innovation too?
      3. Where Does InsurTech Play a Part?
      4. InsurTech now and Going Forward
      5. Notes
    6. “Real” InsurTech Startups do it Differently!
      1. InsurTech Startups Take the Next Step
      2. Disruptive InsurTech Startups Take the Leap
      3. Look Out for More
      4. Notes
  6. 2 InsurTech Now and Next
    1. A Cartographer’s Dream – Exploring, and Mapping, the New Unknown
      1. Notes
    2. Where Does InsurTech Leave the People who Work in Insurance?
      1. Insurance, Technology, and the Future of Work
      2. Commercial Insurance Broking and Underwriting – Technology as Enabler to Excellence
      3. Manifesto for the Individual Broker or Underwriter
      4. Notes
    3. InsurTechs – Magical Thinking and Other Secrets of Success
      1. Notes
    4. “INSoT” – The Insurance of Things and the Proliferation of Protection
      1. Integrated Insurance Products
      2. Integrated Loss Prevention
      3. Integrated Recovery Support
      4. What’s Next?
      5. Notes
    5. From Insurance Premium to Discrete Event
      1. Evolving Insurance Options – Consumer Discrete Events
      2. Evolving Insurance Options – Business Discrete Events
      3. Notes
      4. Further reading
    6. Seamless Insurance: The Time is Now
      1. AI as Insurance PA
      2. PA as Tailor
      3. AI as the New UI
      4. What about Seamless Insurance for Commercial Insurance?
      5. The Time is Now
      6. Notes
    7. The Potential of a Pension Dashboard Infrastructure for UK Pension Savers
      1. The Pension Dashboard Prototype Project
      2. Collaboration as the Key Ingredient
      3. Transparency
      4. Innovation
      5. From Prototype to a Live Service by 2019
      6. Notes
    8. Six Mega-trends that Will Take Insurance Back to the Future
      1. Mega-trend 1: From Reactive to Proactive
      2. Mega-trend 2: From “Customership” to Membership
      3. Mega-trend 3: From Transactional to Social
      4. Mega-trend 4: From Approximate to Individual
      5. Mega-trend 5: From Analogue to Digital
      6. Mega-trend 6: From Local to Global
    9. InsurTech – Not a Zero Sum Game
      1. Time to Move Beyond the Current InsurTech Debate
      2. The Overlooked Multi-billion-dollar Market Opportunity
      3. Using Technology to Close the Protection Gap
      4. Notes
  7. 3 The Founder’s Journey
    1. Not too Big to Learn not to Fail?
      1. The Insurance Landscape: Introducing the Status Quo
      2. Why Innovation is More Difficult for Incumbents?
      3. A Mismatching Exercise
      4. Right under our Noses?
      5. How do we Learn not to Fail?
      6. Learning not to Fail
      7. Notes
    2. Insurance Expertise, Family, and Integrity – The Story of SPIXII’s Founding Team
      1. Defining the Target
      2. Establishing the Working Charter
      3. Our First Hires
      4. The Importance of Adapting, and Saying “No”
      5. So, How Can Startups Afford to Say “No”?
      6. Notes
    3. Disrupting Car Insurance – Drivies App Makes Driving More Fun, and Insurance Fairer
      1. Emerging Usage-based Insurance
      2. Drivies: A New Approach to Usage-based Car Insurance
      3. Technical Differentiations
      4. Our Spanish Beta: Lessons Learnt 18 Months Post-Launch
      5. Product: The Value of Using Fast Iterations and Clear Key Performance Indicators (KPIs) to Optimize Performance
      6. Information Brings Unique Insights
      7. Conclusions
    4. Genomics 101 – The Search for a Better Life Expectancy Predictor Leads GWG Life to a Science Lab
      1. Notes
  8. 4 Internationalizing InsurTech
    1. Internationalizing InsurTech – A Global Phenomenon in Different Markets
      1. Introduction
      2. Key Value Drivers of InsurTech
      3. Uncovering Opportunities in the Insurance Value Chain
      4. Future Applications: GAME Changing Technologies to Further Scale InsurTech
      5. Conclusion
    2. Increasing Access to Insurance in Developing Countries
      1. The Role of Insurance in Economic Development
      2. Penetration of Insurance is Lower in Developing Countries
      3. Affordable, Accessible, and Appropriate
      4. Technologies Applied to Insurance in Developing Countries
      5. Examples of Technology
      6. Conclusion
      7. Notes
    3. Insurance in China
      1. InsurTech in China
      2. Why Can China Become the Leader in InsurTech?
      3. Early Regulatory Support
      4. Ecosystem Power Players: BATJ
      5. World Leader in InsurTech
      6. Other Chinese InsurTechs
      7. China’s Biggest Opportunity?
      8. Looking Forward…
      9. Notes
    4. Seven Things Insurers and InsurTechs Need to Know about the German Insurance Market
      1. 1. The German Insurance Market is a One-stop Shop
      2. 2. Incumbents in Germany: a Success Story with Underlying Problems
      3. 3. InsurTechs in Germany: a Success Story, but no Disruption – Yet
      4. 4. The Technological Legacy of Incumbents Binds Billions of US Dollars
      5. 5. Incumbents’ Cultural Constraint Wastes Uncounted Resources
      6. 6. Incumbents Have One Strategic Advantage, but They Need to Use it
      7. 7. Insurance in Germany is Like the Bundesliga
      8. Notes
    5. InsurTech in Turkey – Challenges and Opportunities
      1. Introduction
      2. Insurance in Turkey: The Industry Overview
      3. The Turkish InsurTech Ecosystem
      4. Main Challenges
      5. InsurTech Opportunities
      6. Conclusion: Unlocking the Potential
      7. Notes
    6. InsurTech in Latin America – The Promise of Insurance for Everybody?
      1. The InsurTech Movement in Latin America
      2. Other Actors Building the Latin American InsurTech Ecosystem
      3. Notes
    7. InsurTech Trends – Why Regionalization Matters
      1. Peer-to-Peer (P2P) Insurance
      2. Microinsurance
      3. Blockchain
      4. Telematics, Biometrics, and IoT
      5. On-demand Insurance
      6. Cyber Insurance
      7. Conclusion
  9. 5 Collaborative Innovation: Observe – Partner – Invest
    1. The Corporate Collaboration Opportunity in InsurTech
      1. Background
      2. Collaborative Digitalization
      3. Collaborative R&D
      4. Collaborative Incubation
      5. Collaborative Acceleration
      6. Collaborative Investment/CVC
      7. Conclusion
    2. Competition vs. Coopetition in the Insurance Market
      1. Competition vs.Coopetition
      2. InnovationCentresand Incubation
      3. Notes
    3. Incumbent and InsurTech Collaboration via Open Innovation Strategy
      1. Internal Innovation
      2. Driving Innovation via Collaboration and Partnerships
      3. Buy from Startups
      4. Partner with Startups
      5. Invest in Startups
      6. How to Respond and Choose the Right Strategy?
      7. Notes
    4. A Collaborative Approach in the InsurTech World – One Platform in One Click
      1. How Does this Model Work?
      2. How to Manage the Collaboration Platform for an Innovative Project?
      3. From Idea to a Project
      4. Conclusion
    5. Dating InsurTech Startups
      1. Dating and Relationships inInsurTech
      2. Notes
    6. Altered Attitudes, Altered Outcomes – Collaborating for a Better Future
      1. The Penny Drops
      2. Change is Slow and Difficult
      3. The Case Study
      4. How We Won Them Over
      5. Building a Future Based on Collaboration
      6. The Only Thing to Fear is Fear Itself
      7. Notes
    7. Think InsurTech Culture Before InsurTech Adoption
  10. 6 The Value Chain
    1. A Four-Step Practical Guide to Build InsurTech Value Chain Ecosystems
      1. Step 1: Conduct Startup-Storming
      2. Step 2: Organize Startups’ Themes Using the Kawakita Jiro Method
      3. Step 3: Scout for Relevant Solution(s) Using the Quality Function Development (QFD) Matrix
      4. Step 4: Select the Right Solution Using the Pugh Matrix
      5. Conclusion
      6. Notes
    2. Sell Your Insurance at the Right Time – Consider Micro Policies
      1. What is Expected of Insurers When it Comes to Creating an Effective Digital Customer Experience?
      2. Micro-policies or Short Duration Insurance: Approaches to Sell Timely and Distribute the Right Coverage at an Affordable Price
      3. Notes
    3. InsurTech: Refreshingly Different – Like Lemonade!
      1. Innovation along the Insurance Value Chain
      2. Innovation or Disruption?
      3. Is the Peer-to-Peer Insurance Model a Revolutionary Idea?
      4. Notes
    4. Forget Peer-to-Peer, the Future of Insurance is Invisible and Parametric
      1. First Fundamental: Distribution Will Be Invisible
      2. Second Fundamental: The Rise of Parametric Insurance
      3. Conclusion
      4. Notes
    5. Behavioural Design and Price Optimization in InsurTech
      1. InsurTech and the Role of Psychographics during the Pre-sale Process
      2. Behavioural Design in the Post-Sales Process
      3. Some Ethical Concerns
      4. Conclusions
      5. Appendix A
      6. Notes
    6. Data Changes Everything
      1. There is a Large Untapped Potential to Collect Relevant Data about Policy-holders and their Homes
      2. Helping Policy-holders Understand Actions or Characteristics that Put them at an Increased Risk of a Claim
      3. Validating that Policy-holders Understand their Obligations
      4. Resolving the Issues Related to the Collection and Aggregation of Significant Pools of Untapped Data Sources
      5. Conclusion
      6. Notes
    7. Beware of GDPR – Take your Cyber Risk Responsibility More Seriously
      1. Data Dependence Comes with a Price
      2. The 2016 Global Cyber Impact Report
      3. How do Organizations Transfer Cyber Risk?
      4. Ask your Organization These Key Questions
      5. General Data Protection Regulation (GDPR)
      6. Growing Responsibility for Organizations
      7. Power to the People
      8. Consequences Beyond Reputational Damage and Disruption
      9. So Why Did we Start our Argument Focusing on Cyber Risk?
      10. Notes
    8. Why Claims Sharing? Innovating within the Business-to-Business Insurance Claims Handling Ecosystem
      1. Streamlining Claims Processing
      2. Leveraging Apps and the Internet of Thing (IoT) for Real-time B2B Insurance Claims Data
      3. The Revised Role for the Broker
      4. Uberization of Claims Surveying
      5. Blockchain Technology for Reliable Data and Fraud Prevention
      6. Notes
    9. Reinsurers Need Backward Innovation
      1. A Story from the Industrial Revolution
      2. What about Reinsurance?
      3. Market Reality
      4. Reinsurance as a Service
      5. The Impact of InsurTechs on Reinsurers
      6. Emergence of New Risk Trading Platforms
      7. Notes
  11. 7 Business Models
    1. Business Model Innovation – From Incremental to Disruptive
      1. Notes
    2. The Future of Insurance – From Managing Policies to Managing Risks
      1. The End of the Current Model
      2. InsurTechs Fill the Gap
      3. Confusing Aims and Means
      4. A New Paradigm
      5. Making it Happen
      6. Conclusion – The Way Forward
      7. Notes
    3. Seeing through the Hype – A Closer Look at Key Smart InsurTech Business Models
      1. Smart Health Insurance
      2. Smart Homes and Property Insurance
      3. Driverless Cars and Car Insurance
      4. Person-to-Person Insurance
      5. Capacity and Specialization
      6. Notes
    4. Assessing the Long-Term Viability of the Insurance Peer-to-Peer Business Model
      1. Background
      2. Comparing Business Models – Common Elements
      3. Comparing Business Models – Differing Elements
      4. Key Advantages of the P2P Insurance Business Model
      5. Conclusion
      6. Notes
    5. You Said … Sharing Economy?
      1. Not an Insignificant Market
      2. Why is this Happening?
      3. What is the Sharing Economy?
      4. The Key to this Market Economy is the Platform
      5. So, What Does all this Mean for Insurance?
      6. Peer-to-Peer: Friendsurance
      7. Business-to-Consumer: BlaBlaCar
      8. Business-to-Business: CBien
      9. How to Thrive in this New World
      10. Notes
    6. From Claim Settlement to Claim Prevention – How Insurers Can Make Use of Predictive Analytics to Change their Business Model
      1. Enormous Potential for Insurance Companies to Gain Profitability
      2. Big Data Technologies Enabling Data-driven Business Models
      3. Identifying Sources to Collect and Analyse Relevant Data
      4. Individualized Offerings Based on Prevention Efforts
      5. Notes
    7. True Business Model Innovation – a Credit-Based Approach
      1. Status Quo
      2. Signs of Change
      3. A New Credit-based Approach
      4. Notes
    8. From Event-Focused Insights to Coaching
      1. Traditional Insurance Business Relies on Lack of Knowledge
      2. Digital Ecosystems Lead a New Era of Knowledge
      3. The One who Knows can Anticipate and Influence the Future
      4. Coaching, the Future of Insurance
      5. Conclusion
      6. Notes
  12. 8 You Said Tech
    1. Becoming Tech-First – Why Adopting a “Tech-First” Mindset is Non-Negotiable
      1. Creating the Right Workplace
      2. Attracting the Best Talent
      3. Change is Inevitable
      4. For the Greater Good
      5. Notes
    2. Practical Robotics in Insurance – The Future is Here Already
      1. When to Deploy Robotics in an Insurance Organization
      2. What are the Typical Benefits Robotics Can Deliver?
      3. The Different Types of Robotics and When and How to Use Them
      4. Identifying which Processes are Viable for Robotics
      5. Examples of Processes that Can be Automated with Robots
      6. The Human Factor and the Role it Plays in Success
      7. Summary
      8. Notes
    3. Frictionless Insurance in a Land of Utility
      1. So How Does all this Relate to Insurance Organizations?
      2. When I Look at Simplicity, I Often Refer to this Quote: “Perfection is achieved not when there is nothing more to add, but when there is nothing left to take away”
    4. The Smart Journey – From Contract Hype to Insurance Reality
      1. What is this Blockchain that Underpins the Concept of Smart Contracts?
      2. So What is a Smart Contract?
      3. The Issues with Semantic Information and Smart Contracts
      4. Deterministic versus Non-Deterministic
      5. Insurance Contracts: Opportunities for Smart Contracts
      6. The Next Steps to the Smart Contract Transformation of Insurance Policies
      7. But is it Still Insurance?
    5. InsurTech and AI – You Can Run but You Cannot Hide from the Future
      1. Cognitive Computing
      2. Chatbots Change how Humans Interact with Machines
      3. Artificial Intelligence and Goal-based Insurance
      4. The Next Generation of Insurance Will be Built on AI
    6. Blockchain Startups – Unlikely Heroes for the Insurance Industry?
      1. Does the Glove Fit?
      2. Working with Startups
      3. A Way Forward
      4. Notes
    7. Alexa, Can You Get me an Insurance? A Structured Approach to the Hyped Technology of Voice-Based Assistants
      1. Relevance of Voice-Based Assistants – From Touch to Talk
      2. Technology Snapshot – Players and theirStrategies
      3. Achieving the How To
      4. The Crystal Ball: Future Potentials of Voice-Based Assistants
      5. Notes
    8. InsurTech’s Big Questions – Why the Customer is Still Always Right
      1. Tomorrow’s Tech, Today’s Problems
      2. Where the Customer Leads…
      3. Savvy Startups
    9. ClaimsTech – The InsurTech’s Action List
      1. The Supplier Landscape
      2. CX in claims
      3. Analytics in Claims
      4. Robotics … Arise the Claim Machines
      5. IoT Applications in Claims
      6. Digital Evidence and Thwarting Claims Fraud
    10. Technology is Not Enough
      1. Design as a Problem Solver
      2. Design to Differentiate
      3. Design Beyondthe Design Department
      4. So, to Conclude
      5. Notes
  13. 9 InsurTech Futures
    1. Digital Transformation and Corporate Innovation Management – an Incumbent’s Action Plan
      1. Notes
    2. The New World of the Connected Customer – The Future of Microinsurance?
      1. Notes
    3. Personal Asset Liability Management System
      1. Notes
    4. Social Media in Insurance
      1. Notes
    5. InsurTech and the Promise of “Property Value Hedging Technology”
      1. The Insurance Value Chain
      2. Technology Trends
      3. Opportunities for InsurTech
      4. Insurance as “Property Value Hedging Technology”
      5. IaaS Will Propel the “Property Value Hedging Technology” Story
      6. IaaS is not Limited to the First Movers
    6. Insurance 2029 – Life Backup Companion
      1. Back in Time: Back to Reality
      2. The Power of a Utility
      3. Journey to the Future
      4. Insurance Value Stack: Quick Refresh
      5. First Phase: Optimization
      6. Phase 2: Product Redesign – Closer Mirror Risks and Needs
      7. Phase 3: Insurance as a Utility – Welcome to the Future!
  14. List of Contributors
  15. Index
  16. End User License Agreement

Product information

  • Title: The INSURTECH Book
  • Author(s): Sabine L.B VanderLinden, Shân M. Millie, Nicole Anderson, Susanne Chishti
  • Release date: July 2018
  • Publisher(s): Wiley
  • ISBN: 9781119362210