Bitesize InsurTech: Digital Insurance Agenda (DIA) 2017
November 17, 2017 Greg Brown
Digital Insurance Agenda (DIA) took place in Munich on 15 and 16 November 2017. We share initial views on what we saw at the event.
1. Digital platforms: build it and they will come?
Based on a simple straw poll, around 40% of startups at DIA were B2B digital distribution platforms (possibly unsurprising given the conference name). The platforms fall into two categories:
- Pure distribution, where the platform’s primary focus is the distribution of insurance products e.g. Vlocity and Neosurance
- Digitised risk management services, where platforms help customers manage and mitigate risks e.g. Leakbot (a platform to reduce risk of flood claims powered by sensors) and Drivies (which uses telematics and gamification to reduce risk of motor accidents)
The key challenge we see with these offers is getting consumer adoption. We believe the winners will be those that conquer the marketing and distribution challenge, rather than those which employ the most advanced technology or in app experience. Clearly insurers need to tackle the digital challenge but must avoid the simplistic assumption that ‘build it and they will come’.
2. Claims automation: reducing costs and improving customer experience
Claims was a significant focus at DIA. Startup propositions clustered around three areas:
We have noted before (e.g. our research note for RBC Capital Markets) that we believe claims will become an increasing focus of InsurTech over the next 12 months. Long term, claims automation could have some very dramatic consequences for claims departments, particularly high-volume lines such as motor.
3. (Still) limited traction in life and health
Life and health had some coverage at DIA. Notable examples are Ladderlife, Sureify and Dacadoo. Despite this life and health is still underrepresented in InsurTech.
4. Growth of ecosystems
We often talk about (re)insurers needing to build flexible ecosystems, picking the best of breed technology as opposed to monolithic systems. We are starting to see this ecosystem mindset take hold within the InsurTech community, for example startups coming together to build ecosystems. At DIA, Sureify and Sentiance collaborated to provide a health insurance platform that uses customer behaviour data from smartphone sensors. Another example is BrightMaven and FRISS coming together to provide a solution for recovering stolen vehicles. Watch out for more collaboration in the next 12 months.
5. Established players on the offensive
As InsurTech startups grow in scale we see the established players make a more concerted effort to respond to this new wave of innovation. Players like Guidewire and Fadata are at DIA boasting about new digital capabilities to match those of their nimbler counterparts.
