What are the main trends impacting the insurance industry in 2017?
In the UK Brexit uncertainty is writ large, as are the tight margins many players are operating under due to benign pricing and tough competitive/economic landscape.
Against this backdrop customers are becoming increasingly more demanding, creating an interesting dynamic in which the potential of digital has never been more pronounced.
About connected insurance, what are the opportunities for startups? Do they need a proprietary underwriting algorithm?
As mentioned above, ‘connected insurance’ does allow for greater customer interaction and risk insight which will be key in a move towards a ‘preventative’ model, rather than reactive one. How incumbent insurers embrace and reposition themselves to deliver these types of solutions will be interesting.
In terms of a proprietary model, I think the ‘connected’ value chain will be a dynamic collaborative one featuring everyone from telecoms and motor manufacturers to energy companies and insurtech/fintech start-ups.
The recipe for success will be choosing the right partners and best meeting the connected customer’s needs, without scarring them that they live in a ‘Big Brother’ society.
What are the advantages that InsurTech startups have over incumbents?
It goes without saying that legacies can hamper innovation within incumbents; but start-ups should also have advantages in terms of culture, attracting entrepreneurial staff and quick decision making.
What are the main challenges for InsurTech startups in order to gain traction in the market?
That said, the obvious challenges include raising capital, finding the right partners – including funders and underwriters, regulatory oversight and knowledge, marketing and building a brand/recognition.
How do you evaluate an InsurTech initiative?
Now that is the million dollar question.
How about this algorithm
Founder facial hair plus quality of coffee nearby multiplied by number of vinyl record retailers within 10KM radius of ‘basecamp’ divided by letters in the Start-Ups brand times ten, equals percentage chance of the business being the next Oscar…