InsurTech

Auto Added by WPeMatico

aetna, amazon, Blockchain, cigna, cvs, ecosystem, health care, humana, insurance, InsurTech, ping an, walmart

US Health Care: The $2.8 trillion opportunity

US health

 

Reposted from April 2018, as it is Chinese New Year for Zarc Gin, our regular Insurtech Expert based in China.

A couple of weeks ago, there were rumors of Walmart purchasing U.S. Health Insurer Humana.

I’ve written about the U.S. healthcare market a few times and thought this news was rather interesting.

As I started researching this topic,  I decided to take a look at the U.S. healthcare market a bit more broadly.  

During my research on Walmart and Humana, I uncovered some interesting facts and figures which help to further shape my opinion on the opportunities I see in the future of the U.S. healthcare industry.  

While the initial sections are numbers focused (be prepared for a lot of numerical data!), I do touch on technology as well later on.  

As such, I have structured this week as follows:

  • Getting a bigger slice of the $3,300,000,000,000 pie
  • What do all these (potential) mergers mean?
  • How Technology can help
  • Amazon vs. Walmart – which ‘category killer’ will it be?

Getting a bigger slice of the $3,300,000,000,000 pie

There have been a number of large potential mergers in the U.S. Health Insurance & healthcare space, including:

Albertsons and Rite Aid also happened this year which, according to this article, included 2,569 pharmacies (the other 1,932 of which were transferred to Walgreens as part of another deal.)

As I read more and more about these various deals, both qualitatively and quantitatively, it became more clear what was going on.  

And then, I read in this article, the following quote from Walgreens Chief Medical Officer Dr. Patrick Carroll:

“Why not use those locations as a strategy for healthcare?”

Then it all made sense.  Allow me to share.

According to the Center for Medicare and Medicaid Services (CMS) National Health Expenditure Data (NHE), NHE grew 4.3% to $3.3 trillion in 2016, or $10,348 per person, and accounted for 17.9% of Gross Domestic Product (GDP).

Healthcare expenses are $3.3 trillion in the U.S. alone.  That’s $3,300,000,000,000, folks.

I was curious as to what that $3.3 trillion broke down into, so I started digging deeper.  

Included in the CMS link above are tables that have a number of ways to analyze this expenditure data (24 different ways to be exact).  

If you are interested, please look for this link on the page:

Screen Shot 2018-04-16 at 4.17.39 PM

Table 4 in the Zip file had some really interesting data:

2016 NHE

Zooming in on that data, I found some even more interesting numbers:

Screen Shot 2018-04-16 at 4.55.00 PM

Of the $3.3 trillion being spent on Health related expenses, $2.8 trillion was being spent on Personal Health Care ($2,800,000,000,000).

That’s a lot of money.  

And of that $2.8 trillion, $2.2 trillion is being funded through Health Insurance.  

That doesn’t tell the whole picture though.

What do all these (potential) mergers mean?

In addition to the research I found above, I found some more stats which painted a much broader idea about the conclusions that I was beginning to draw.

US Health Insurer market share

According to Health Payer Intelligence, in 2016, the top 5 health insurers payers in the U.S. are:

  1. United Health Group – with $184.8bn in revenue and 70 million subscribers
  2. Anthem – $89.1bn in revenue and 39.9 million subscribers
  3. Aetna – $63.1bn in revenue and 23.1 million subscribers
  4. Humana – $54.3bn in revenue and 14.3 million subscribers
  5. Cigna – $39.7 bn in revenue and 15 million subscribers

With a population of 326m people in the US, these 5 companies have coverage for 162 million people (or 49.7% of the population).

Pharmacy market share

In terms of prescription revenues, the pharmacies in the US are split as follows:

Largest_US_Pharmacies_by_Total_Prescription_Revenues-2017

And in terms of number of pharmacies, the top 10 can be found here (according to SK&A Pharmacy Data):

Screen Shot 2018-04-16 at 6.50.01 PM

Pharmacy Benefit Manager market share

Pharmacy Benefit Managers (PBMs), according to Wikipedia, are third party administrators that ‘are primarily responsible for developing and maintaining the formulary, contracting with pharmacies, negotiating discounts and rebates with drug manufacturers, and processing and paying prescription drug claims’ and ‘As of 2016, PBMs manage pharmacy benefits for 266 million Americans.’ (that’s managing the prescriptions for 81% of the population…)

According to Statista, in 2016, the market share is as follows:

Screen Shot 2018-04-16 at 6.57.03 PM

Pulling it all together

Looking back at the potential mergers mentioned in the first section, we have a high possibility of:

  • Walmart (#4 in terms of number of pharmacy locations and #5 in terms of total prescription revenue), partnering with Humana (#4 Health Insurer in terms of revenue and # of subscribers, and which also happens to be the 4th largest PBM).  
  • Aetna (#3 Health Insurer in terms of revenue and # of subscribers) partnering with CVS (#1 in terms of number of pharmacy locations, prescription revenue and the largest PBM)
  • Cigna (#5 Health Insurer in terms of revenue and # of subscribers) partnering with Express Scripts (#3 in terms of prescription revenue and the largest PBM, tied with CVS).

Not to mention the fact that United Health Group (#1 Health Insurer in terms of revenue and subscribers) owns Optum Rx (third largest PBM).  They have upped their health care presence in the past few years by buying MedExpress Urgent Care, which has 203 locations.

One may think that Anthem (#2 Health Insurer in terms of revenue and # of subscribers) is missing out, but maybe they have some benefits to sitting on the sidelines and it’s no wonder there is some chatter relating to potential antitrust violations within these deals.

If I look at all of these facts and figures, it looks like these companies are aiming to build mini ecosystems for their customers, in an effort to start getting a bigger piece of the $3.3 trillion mentioned before…most specifically, the $2.8 trillion being spent on personal health care.

After all, if these companies can offer it all ‘in-house’; meaning prescriptions, simple doctor visits through their in-store clinics and a mechanism to have it paid for through Insurance benefits, then consumers may only need to go to hospitals for specialist visits and more serious ailments.  This should ultimately lower the cost of health care, while also shifting some of that $2.8 trillion to some different hands.

How Technology can help

Technology will play a key role in enabling this to happen.

Ecosystems

In an article a few months ago, I wrote about what I thought CVS and Aetna could learn from Ping An, which I consider to be offering the ‘gold standard’ in terms of healthcare Ecosystems.

From that article, I analyzed the Online to Offline (O2O) capabilities within their Ecosystem:

Online through use of the Good Doctor app, a policyholder can:

  • Search for, and book doctors.  This can be either online consultations or in-person (i.e. offline)
  • Have an online consultation with a doctor
  • Purchase medicine
  • Get access to information about various health topics – either general or specific to me
  • Monitor their own health plan

Offline, Ping An has developed a network of hospitals, physicians, pharmacies and more, which will allow the policyholder access to services they can’t get through the online platform

All of these players are aligning the essential businesses in order to build these ecosystems. The Insurers already have relationships with the hospitals as well, which should help in bringing it all together.

IoT

Florian Graillot, Insurtech influencer and partner at astorya.vc recently wrote a great article in Coverager on Digital Health.  A few points he mentions:

  • Wearables – ‘Technology started to enter in our lives with several players developing wearables focused on fitness, sport and wellbeing.’
  • Data – ‘By trying to collect more customers’ data, they (insurers) hope to better understand their needs and increase the level of engagement they have with them by adding numerous touch points.’
  • Teleconsultation – ‘To increase number of touchpoints and offer additional services, teleconsultation is now a must-have for most of insurers and mutuals’
  • Data Privacy and sharing – ‘To better predict and prevent diseases, technology requires a huge amount of data to be relevant, and we see many startups monitoring behaviors on a real-time basis. This raises the first challenge for both insurers and startups: make people agree to share their personal data.’

Having more information on customers and being able to ‘track’ their health, will help to fuel the ecosystem.  This will enable all the participants in the value chain (doctors, pharmacies and Insurers) to know more about their customers on a real time basis, hopefully helping with more preventative measures and ultimately bring costs down.  As Florian states, ‘Insurers need to develop an ecosystem of technologies and startups around them to address their current challenges: increase number of touchpoints with customers ; understand behaviors to better prevent risks ; and reduce costs of healthcare.’

I highly suggest reading the full article.  

Blockchain

Health Insurance probably has the most amount of data being transferred than other lines.  This is due to the numerous amounts of players involved in the process as well as the amount of information on a customer that can be available.

Further, Health Insurance data is the most personal of personal data.  

As such, something like blockchain, to help with the transfer and security of data seems like a solution that can help.

A Blockchain Health Alliance including Humana, Quest Diagnostics, Multiplan, and UnitedHealth Group’s Optum and UnitedHeathcare units has formed recently in an effort to ‘improve data quality and reduce administrative costs associated with changes to health care provider demographic data’.

Further, CB Insights has done a study on ‘5 Blockchain Startups Working To Transform Healthcare’.

Which ‘category killer’ will reign supreme (if at all)?

When it comes to ‘category killers’, two of the biggest and most famous are Walmart and Amazon.

We have been focused on Amazon coming into Insurance so much.  I wrote about this earlier this year, when Amazon, JP Morgan & Chase and Berkshire Hathaway teamed up to announce that they would be ‘partnering on ways to address healthcare for their U.S. employees, with the aim of improving employee satisfaction and reducing costs’.

I am still bullish on the prospects of this venture and I know Amazon knows a thing or two about building an ecosystem and how to use data.  However, the potential of Walmart buying Humana does have me very intrigued.

They have a massive head start to Amazon in terms of building their healthcare ecosystem.  After all, it was only 3.5 years ago that they announced the goal ‘To Be The Number One Healthcare Provider In The Industry’.  This includes:

Further, earlier this week, Walmart announced a redesign of its website and Amazon ‘put a pause on its plan to sell prescription drugs to hospitals’.

Summary

OK, are you still with me?  I know this has been a long article.

This topic interests me because it has been the single most mind-boggling item for me to deal with since moving back to the U.S.  I can’t believe how complex the system is here as well as how expensive it is.

It is really an area that needs a lot of help.

I know some of these mergers as well as Amazon’s foray into the larger picture of U.S. Health Insurance are still hypothetical.  However, they are important to monitor for the future of healthcare for people living in the U.S.

In addition to these events from the large Health Insurance incumbents and tech players, I also wouldn’t discount some of the work that Oscar are doing, as well as AXA, which has recently entered an agreement with Oscar and also acquired Maestro Health.

Now that I have looked at the breakdown of spending a bit more, I do believe the companies spearheading these large mergers are aiming to provide their customers with preventative measures, ‘offline’ one-stop shops (clinic plus pharmacies) and online facilities (teleconsulting and pharmacy refill/delivery).  

This will ultimately help them with getting a bigger piece of the $2.8 trillion.

Let’s hope all these efforts also help to reduce that actual dollar amount from a consumer spend perspective.

Image Source

Stephen Goldstein is an experienced Insurance executive and Insurtech dealmaker with a core focus on growing revenue, launching go to market initiatives and advising industry leaders.

Get fresh daily insights from an amazing team of Fintech thought leaders around the world. Ride the Fintech wave by reading us daily in your email.

catastrophe, cyber risk insurance, cybersecurity, InsurTech, Uncategorized

Cyber Risk Insurance translates Nerd-Speak to Boardroom-Speak

 

Cyber Risks Extra Extra

Reposted, as it is Chinese New Year for Zarc Gin, our regular Insurtech Expert based in China.

Why do Banks exist? That is not some deep, philosophical question about the role of money in society. Banks exist to protect your assets from thieves. Because they do a good job of this, they can make a lot of money lending some multiple of what they store in the vaults. The only difference now is that the modern version of Butch Cassidy and the Sundance Kid are getting monitor tans as they cyber-attack the vaults from their computers.

Money is one asset to protect. Data is another. So is data about assets. In the digital age, it is all about data. And data is easy to steal.

All the good things that we write about on Daily Fintech – all that agility/productivity enabled by data and connectivity – also benefit Butch Cassidy and the Sundance Kid.

Cyber Risk is one nerdy subject that gets Board level attention because the risk is so high. Global 2000 companies can lose $ billions from a single hack. The problem is that cyber security is also an intensely complex subject technically.

One reason that so many influential leaders subscribe to Daily Fintech is that we are good at translating Fin to Tech and Tech to Fin. So we are attracted to the challenge of translating Cyber Security Nerd-Speak to Boardroom-Speak. It is one of the toughest translation jobs around. Even with a lot of technical experience, Cyber Security can be daunting. Even with a lot of business experience, understanding how a Global 2000 Board thinks can be daunting. Both are tough on their own. Translating between the two is even tougher, because they could not be further apart.

That translation, though hard, is ultra-critical. The Board has to really understand Cyber Security and they are currently failing at this task. This article on LeadingBoards describes the problem very well

Cyber Security technology = big budgets & bigger risk

The global cybersecurity market reached $75 billion in 2015 and is expected to hit $170 billion in 2020 (source, Forbes).

This is one market where the “you never get fired for buying (insert Big Tech vendor)” mantra breaks down. In most other enterprise technology markets, the big vendors tend to win because the Boardroom does not really care who is picked. So the senior IT managers making the decision go for the vendor that is competent enough to do the job and big enough that if it all goes wrong they can say “but all our well-respected peers made the same decision”.

That defence breaks down in Cyber Security because the risk is so high. Nor can a Board simply say “the CISO who made the decision has already been fired”. The Board has to take direct responsibility. Which means the Board has to understand Cyber Security.

How is the Board supposed to understand something as nerdy as Cyber Security?

We take a lot of briefings on cyber security technology, because we know how important it is. Listening to all these super-smart tech guys explaining the latest cyber security teaches us that a) it is hugely complex and b) there is no silver bullet.

We use a simple mental map that translates Cyber Security to the analog world:

  • Perimeter Security is where most money is spent. Think fences, guards, dogs. The fundamental problem is that somebody will always get through. The bad guys also benefit from Moore’s Law and can use SMAC (Social Mobile Analytics Cloud) to collaborate and share (what has been dubbed Crime As A Service). You can be the biggest bank or the biggest government and you still get hacked.
  • Digital ID. Think body part scanners (finger, eye, voice etc) that determine who can get into the building. We have written a lot about Digital ID technology and it is improving at a remarkable pace. The problem is collusion with a trusted inside-person who is part of the crime gang; the person with perfect Digital ID is a criminal.
  • Protect from the inside. This assumes that both Perimeter Security and Digital ID is imperfect. One way to protect from the inside is process controls (for example needing more than one person to send a wire). This also suffers from the collusion problem, but it is better as it is harder for criminals to corrupt the two individuals in a process. Another way is to write code that is secure. The problem is that both better process and better code hit the agility/efficiency problem. Banks have to move fast and efficiently to beat competition AND be secure. One alone is not enough. For example, Banks want to use high level languages and tools that enable rapid time to market even if that means the developers are not thinking much about security.
  • Protect when data leaves the vault. This assumes that all three methods above will fail. The analogy here is marked banknotes used in a kidnap ransom. Again, the bad guys have very sophisticated technology to get rid of these markings, so this is yet another arms race.

If you cannot measure it, you cannot manage it

That is one of the oldest truisms of business. If you listen to the pitches of any Cyber Security vendor, you will hear that they have the solution. The problem – as any reasonable attentive business person can observe – is that even companies with all this smart technology still get hacked. The empirical evidence is that there is no silver bullet.

Insurance has historically worked on statistical models. This works fine – until it no longer works. When something fundamental changes, the models become deeply flawed. We have tracked this as it relates to catastrophes created by climate. The use of data and connectivity by cyber-criminals is analogous. The risk went up in unpredictable ways. It is no longer good enough to rely on historical models. Cyber Risk is like Climate Risk – the historical models do not predict the future accurately enough.

What companies want is something as simple as a cyber security safety rating. Insurance Companies have the right motivation to give an honest rating (unlike credit rating agencies that are paid by the seller). Insurance Companies won’t award a AAA cyber security safety rating to a BBB company, because they will pay in claims for getting it wrong.

That means Insurance Companies need to turn into cyber security experts. A tech vendor may say “we have the secret sauce” to change your rating from BBB to AAA and thus lower your premiums. The Board will say “sure, if you can convince our Insurance Company that this will lower our premiums, we have a deal.”

Startups in this risk metrics space include Cyence, BitSight and Security Scorecard.

Cyber Risk Insurance is a data game and that is a problem

Cyber Risk is one of the fastest growing parts  of the Insurance market, accounting for over $3 billion in premiums.

Banks are in better shape than others. Protecting against thieves has been a core competency for longer.

Cyber Risk Insurance people differentiate between Micro and Macro. The latter is the news-worthy hacking between governments (cue image of the nerdy young Q in recent James Bond movies). Our concern is the more boring Micro Cyber Risk Insurance – exciting enough as this is about whether huge companies can lose $ billions from a single hack. The Micro could become the Macro if a number of Micro hacks led to a crisis of confidence in the financial system akin to September 2008.

Talking to experts in this relatively new field it is hard to get a lot of on the record quotes. That indicates a market that is nascent enough that the solutions are not obvious. To entrepreneurs that signals opportunity.

Image Source

Bernard Lunn is a Fintech deal-maker, investor, entrepreneur and advisor. He is the author of The Blockchain Economy and CEO of Daily Fintech.

Check out our advisory services (how we pay for this free original research).

To schedule an hour of Bernard’s time for CHF380 please click here to send an email.

 

allianz, china, emerging markets, india, InsurTech, Vietnam

Insurtech Front Page Weekly CXO Briefing – Emerging markets

emerging_markets

The Theme last week was about Online Insurance Marketplace.

The Theme this week, is about emerging markets. Emerging markets are about hopes, potentials and future growth. When a market grows huge enough, it could evolve into something better.

For more about the Front Page Weekly CXO Briefing, please click here.

Incumbents embracing InsurTech is a common theme in our posts. This time, it’s about customer engagement.

 

Story 1: Global reinsurance giant drops “emerging market” label for China

Extract, read more on Asia Insurance Review:

“Global reinsurer Swiss Re no longer places China as an emerging market, but instead views the country as a important strategic market, according to Mr John Chen, head of Reinsurance China and China country president for Swiss Re.”

What is an emerging market? According to Wiki, an emerging market is a country that has some characteristics of a developed market, but does not satisfy standards to be termed a developed market. And according to Insurance Information Institute, China’s insurance market by annual premiums has been top 2. It’s safe to say China was huge enough to graduate from the identity of emerging market.

 

Story 2: Allianz launches reinsurance business in India

Extract, read more on Verdict:

“Allianz Global Corporate & Specialty (AGCS), part of German insurance group Allianz, has set up reinsurance operations in India after securing regulatory nod.

The new reinsurance branch will be located in Mumbai. It will provide facultative, proportional, and non-proportional reinsurance solutions for property, liability, marine, financial lines, construction and engineering, as well as energy.”

India, despite of the biggest population, is more like an emerging market than China. According to IRDA, India’s premium income in 2017 is 98 million USD which can’t make top 10 worldwide. But the population is in place, therefore the potential.

 

Story 3: Allianz to Enter Vietnam Insurance Market via Joint Venture with IT Firm FPT Group

Extract, read more on Insurance Journal:

“Allianz announces its intention to enter the general insurance sector in Vietnam through a digital joint venture (JV) to be set up with the FPT Group – driving long-term success in the market and expanding Allianz’s footprint in Asia.

FPT Group, as the strategic technology partner, will support Allianz in the fast-growing Vietnamese insurance market to develop innovative digital insurance products and services to meet the protection needs of local customers.”

Vietnam is one of the most promising emerging market in the world as it is likely to become a next world factory after China. Insurance, as a financial infrastructure, is an attractive treat for top insurers like Allianz.

 

Since the developed markets have a sophisticated operating system for insurance. Gaining old policyholders’ attention can be intense. The emerging market is a great new battlefield for international insurance superpowers. I think we will see more and more top insurers tapping into emerging countries in the years ahead.

 

Image Source

Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.

Check out our advisory services(how we pay for this free original research).

To schedule an hour of Zarc’s time for CHF380 please click here to send an email.

Grab, insurance marketplace, InsurTech, policygenius, wellthie, zhong an

Insurtech Front Page Weekly CXO Briefing – Online Insurance Marketplace

healthcare_marketplace-1

The Theme last week was about InsurTech accelerators.

The Theme this week, is about online insurance marketplace. This has been a popular sector since InsurTech Day 1. Starting with a marketplace, both incumbents and startups can build an ecosystem out of it.

For more about the Front Page Weekly CXO Briefing, please click here.

Incumbents embracing InsurTech is a common theme in our posts. This time, it’s about customer engagement.

Story 1: ZhongAn, Grab Form JV to create digital insurance marketplace in SEA

Extract, read more on Digital News Asia:

“ZHONGAN Online P&C Insurance Co, Ltd (ZhongAn or ZA Insurance), the first Internet-based insurer in China, announced on Jan 16 that its subsidiary ZhongAn Technologies International Group Limited (ZA International), and Grab Holdings Inc, Southeast Asia’s leading online-to-offline mobile platform, will establish a joint venture company (JV) to enter the digital insurance distribution business in Southeast Asia.

The JV will create a digital insurance marketplace that offers insurance products in a range of categories with fractionalised premiums, directly to users through the Grab mobile app.”

ZhongAn has delivered a great performance in 2018 with a 11.22 billion RMB (1.65 billion USD) premium income and an 88.4% growth. Now Zhong An is trying to build its influence in SEA, and an insurance marketplace built on a popular local platform with huge internet traffic is a perfect choice.

 

Story 2: Policygenius Adds Auto and Home Insurance to Online Marketplace

Extract, read more on Insurance Innovation Reporter:

“Policygenius, a New York-based national direct-to-consumer insurance broker, has announced that it is expanding its online insurance marketplace to offer home insurance and auto insurance with a personalized shopping experience that aims to be unique in the market.

“Our customers have repeatedly told us they love how easy we’ve made comparing and buying life and disability insurance,” comments Jennifer Fitzgerald, CEO and co-founder, Policygenius. “They wanted to know when we’d be expanding to help them with other types of insurance as well. Today, we’re happy to announce that we’ve added home and auto to our marketplace.””

Founded in 2014, Policygenius is a veteran in the online insurance marketplace sector. The offer expansion could bring its customers with a more comprehensive insurance shopping experience.

 

Story 3: Wellthie Launches Health Insurance Marketplace

Extract, read more on Coverager:

“Wellthie, the company that’s “modernizing the insurance shopping experience,” has launched a new health insurance marketplace for small businesses to search and compare health insurance costs and options.”

While most of the online marketplace is designed for individual consumers, Wellthie aims at small business owners. A relatively small market with less competition.

Online insurance marketplace is, in a sense, the alpha version of InsurTech. It could be as simple as e-commercialized insurance store. But behind the curtain, you also need to figure out a way to recommend policies which suit customers’ best interests. That would involve technologies and thinking in customers’ position.

 

Image Source

Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.

Check out our advisory services(how we pay for this free original research).

To schedule an hour of Zarc’s time for CHF380 please click here to send an email.

accelerators, Aon, GIA, Hartford, InsurTech, SBC

Insurtech Front Page Weekly CXO Briefing – Accelerators

The Theme last week was about cars and auto insurance.

The Theme this week, is about InsurTech acceleration programs. At the beginning of the year, new InsurTech programs are ready for a robust launch, so are the startups.

For more about the Front Page Weekly CXO Briefing, please click here.

Incumbents embracing InsurTech is a common theme in our posts. This time, it’s about customer engagement.

Story 1: Global Insurance Accelerator kicks off 2019 with 10 insurtechs

Extract, read more on Digital Insurance:

“The Des Moines, Iowa, Global Insurance Accelerator is starting up its next cohort on January 15. The fifth iteration of the insurtech development program features 10 early-stage companies that will participate in the 100-day program. Over the course of that time, startups will work with insurance company mentors from a range of sponsors to move their product to the demonstration stage, which will take place April 24 at the Global Insurance Symposium, also in Des Moines.”

I checked the cohort and found zero familiar names. Looking forward to their performance and what they can deliver to attract incumbents.

Story 2: 10 startups in second Hartford Insurtech Hub cohort

Extract, read more on Digital Insurance:

“The Hartford Insurtech Hub, one of a proliferation of insurtech startup accelerator and incubation programs to launch over the past several years, has announced the 10 startups that will participate in its second iteration. Selected from a pool of more than 200 applications, the companies will relocate to Hartford for the start of the three-month program in February. Corporate partners for the Hub include Aetna, The Hartford, Travelers and USAA.”

To be honest, the fields those 10 startups covering are not new. IoT, item coverage, claim enabler etc. But maybe they can provide a new perspective on existing concepts.

Story 3: SBC InsurTech teams up with Aon

Extract, read more on Finextra:

“Aon joins the SBC community as an industry partner for SBC InsurTech CoLab (CoLab), a themed-based innovation program for mature markets. CoLab aims to align the impact innovation can deliver with an organisation’s strategic imperatives and top priorities. Aon will be focusing on CoLab’s ‘Commercial and Specialty Lines’ sector, which will look at specific problems in key customer segments ranging from SME to large industrial insurance. This will enable the key gaps in the insurance value chain to be better understood and addressed through collaborating with growth stage startups.”

This one is about the other end of the chain – corporate partners. If startups are the source of energy for InsurTech programs, insurers as corporate partners can be appropriate tools to harness that energy.

Accelerators provide opportunities for startups to showcase themselves in front of potential partners or competitors. It’s about communications and idea sharing. Of course, most of the startups in those accelerators might mediocre, but sometimes there might be a gem hidden among them.

 

Image Source

Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.

Check out our advisory services(how we pay for this free original research).

To schedule an hour of Zarc’s time for CHF380 please click here to send an email.

 

auto cars, auto insurance, car insurance, connected cars, InsurTech, vintage cars

Insurtech Front Page Weekly CXO Briefing – Cars and Auto Insurance

1.10 connected cars

The Theme last week was a preview for InsurTech in 2019.

The Theme this week, is about cars and auto insurance. The auto industry is in the process of revolution with the emergence of connected cars and sharing economy. Sometime it concerns insurance, sometime it doesn’t. But I think insurers should always pay attention.

For more about the Front Page Weekly CXO Briefing, please click here.

Incumbents embracing InsurTech is a common theme in our posts. This time, it’s about customer engagement.

Story 1: Data Derived From Connected Cars Raise Concerns

Extract, read more on Claims Journal:

“Automakers are collecting valuable pieces of information thanks to the internet connections, cameras and sensors built into most vehicles in recent years. The online access makes it possible for cars to be unlocked remotely if the keys are lost. It’s how safety features can be upgraded wirelessly and maintenance schedules adjusted based on performance.”

The article mentioned that government in China has been collecting data from connected car. There have been reports in Chinese media as well, but it did not cause much stir. I have to say in China, people are blunt for privacy, sometimes they are even willing to trade privacy for conveniency.

Story 2: Insurers see value in digital vintage car-sharing

Extract, read more on Digital Insurance:

“Vintage cars are alluring. They represent the simplicity, or craftsmanship, or louche sleaziness of a bygone era. They are also—and I say this as the proud owner of four old vehicles—fussy, dangerous, and excruciatingly unreliable. Not everyone enjoys this kind of constant crapshoot in their daily drive.

Fortunately, a trio of “sharing economy” apps allow occasional access to well-maintained classics. DriveShare, Turo Inc., and Vinty Inc. all function like Airbnb, but each has a unique position. Owners list their vehicles, upload information and images, set a rental price, and provide guidelines on things such as mileage, security deposit, and delivery instructions.”

Out of three of them, DriveShare and Turo Inc. are both backed by national insurance company, Hagerty for DriveShare and Liberty Mutual for Turo. Vintage car sharing is a small market, but insurance can be vital for its healthy growth.

Story 3: Auto marketplace CarDekho grabs $110M to double down on insurance and financial services

Extract, read more on TechCrunch:

“CarDekho, an online marketplace for car sales in India, has pulled in a new $110 million Series C funding round from a clutch of existing investors to push deeper into financial services and insurance.

Sequoia India, Hillhouse and Alphabet’s CapitalG led the round, which also saw participation from Axis Bank, one of CarDekho’s financing partners.”

Service platform is a good place to nurture insurance habits. Since the platform can save the trouble of seeking potential customers, what insurer should do is to attract users with good policies.

Today’s post brought three different stories around cars and insurance. These intersections between insurance and another industry can breed a fair number of opportunities, and along with some problems as well.

Image Source

Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.

Check out our advisory services(how we pay for this free original research).

To schedule an hour of Zarc’s time for CHF380 please click here to send an email.

2019, InsurTech, Predictions, startups, Uncategorized

Insurtech Front Page Weekly CXO Briefing – Prospect, a preview for 2019

Prospect

The Theme last week was a review for InsurTech in 2018.

The Theme this week, at the beginning of 2019 is Prospect, a preview for 2019. What trends have the potential to impact future market? Which startups should you pay attention to? Let’s find out.

For more about the Front Page Weekly CXO Briefing, please click here.

Incumbents embracing InsurTech is a common theme in our posts. This time, it’s about customer engagement.

Story 1: 10 insurtech predictions for 2019: XL Innovate

Extract, read more on Digital Insurance:

“XL Innovate are watching all of the InsurTech developments and trends closely and expect to see a number of exciting changes occur in 2019. Here are 10 predictions for the coming year.”

Predictions include tech giants’ potential expansion in InsurTech, technologies like AI and blockchain going different directions, influences InsurTech gradually imposing on insurance etc.

Story 2: 10 insurtech start-ups to watch out for in 2019

Extract, read more on Bobs Guide:

“The global insurance market has remained more or less untouched by philosophical shifts for decades. Yet thanks to a flurry of recent tech innovations, an influx of investment from venture capitalists and sky-high demand for bigger, better and faster insurance products, the sector is now engulfed in a proverbial evolution.

That evolution has been driven largely by a fresh crop of insurtech start-ups racing to leverage a variety of blockchain technologies, machine learning techniques and revolutionary product lines in order to squeeze out savings that can be subsequently passed on to customers and create an ecosystem of more efficient insurers.”

Well-known names like Lemonade and Metromile are included in the list as well as relatively new ones such as CyStellar and Ins For Renascence.

Story 3: 5 Insurtech Questions for 2019

Extract, read more on Medium blog:

“The return of investment market volatility could make 2019 a year when what life and annuity issuers really want out of information technology is stability.

When the environment is calm, insurers may dream of fancy tech worlds of tomorrow.

When the ground is rolling like waves on the ocean, insurers may cling to any tech systems that can help them stay upright as banks, securities brokers, asset managers, and poorly anchored insurers blow past.”

The questions have been repeatedly asked since the emergence of InsurTech. Answers varied from different insurers and startups. You didn’t thrive because you made the right answer, you know the answer is right because you thrived.

Once again, it’s time to set yearly goals. Do you still remember your goal one year ago? Set your goals, share with us, consult us, let DailyFintech help you see the future more clearly and achieve your goals!

 

Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.

Check out our advisory services(how we pay for this free original research).

To schedule an hour of Zarc’s time for CHF380 please click here to send an email.

2018, amazon, InsurTech, review, top list, travelers, uber

Insurtech Retrospect, a review for 2018

Retrospect

The Theme last week was blockchain still alive in InsurTech.

A late Merry Christmas and an early happy New Year to dear readers of DailyFintech!

At the end of the year, we bring you the theme for this week: Insurtech Retrospect, a review for 2018. This is a tough year for investors and startups. The shadow of trade conflict between US & China and economic volatility have grave effects on business. How is InsurTech coping with that?

For more about the Front Page Weekly CXO Briefing, please click here.

Incumbents embracing InsurTech is a common theme in our posts. This time, it’s about customer engagement.

Story 1: Digital Insurance’s top 10 stories of the year

Extract, read more on Digital Insurance:

“What a wild year for insurance — or insurtech — or whatever you want to call it! 2018 will surely be remembered as a banner year for the industry’s transformation agenda. Carriers big and small, across lines of business, rolled out all sorts of next-generation technologies with the aim of getting the best ever-exclusive customer experience. And money flowed into insurtech, with more than 15 investment rounds of more than $40 million dollars going to some leading startups.”

Lots of stories happened in InsurTech community in USA this year. You can see Uber and Amazon are mentioned, and old school incumbents like Travelers embracing digitalization as well.

Story 2: Top 100 Insurtech: Quarter four update

Extract, read more on Insurance Post:

“It’s time for the final 2018 update on the Insurtech 100, the global index compiled for Post by Tällt Ventures. Here founder and CEO Matt Connolly rounds up the latest investment and partnership news.”

You can find most of the financing records of the year of InsurTech startups in this article, as well as partnerships, product launches, expansions, even personnel changes.

Story 3: Quarterly InsurTech Briefing Q3 2018

Extract, read more on Willis Towers Watson:

“In this edition of the Quarterly InsurTech Briefing, we look at event-based, or “parametric,” insurance offerings and ask ourselves whether event-driven cover is just a niche product or a Trojan horse that can simplify and fundamentally change the industry.”

Wills Towers’ 46-page quarterly briefing includes an industry theme for 2018Q3, startup profiles, transaction spotlight, thought leaderships and data center.

InsurTech has delivered a relatively better performance in 2018 than other sectors in technology and Internet industry. At least that’s the case in China. When economy goes down, people are more inclined to put money in insurance.

Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.

Check out our advisory services(how we pay for this free original research).

To schedule an hour of Zarc’s time for CHF380 please click here to send an email.

alibaba, ant financial, australia, Blockchain, InsurTech, state farm

Insurtech Front Page Weekly CXO Briefing – Blockchain not dead in insurance

Blockchain insurance

The Theme last week was Incumbents on customer engagement.

The Theme this week is Blockchain not dead in insurance. Blockchain, or cryptocurrency is dead for many investors, but it is still a promising future for insurance.

For more about the Front Page Weekly CXO Briefing, please click here.

Incumbents embracing InsurTech is a common theme in our posts. This time, it’s about customer engagement.

 

Story 1: Ant’s Alipay uses blockchain to process health insurance claims in seconds

Extract, read more on Ledger Insights:

“Alipay is processing health insurance claims within seconds using a blockchain system, state-owned Securities Daily reported yesterday.

Alipay runs a free health insurance product as part of its rewards system. When users pay offline with AliPay, they earn bonus points towards the health insurance product. The plan is run with one of China’s largest life insurers Taikang Insurance. Within a month of launching in April 2017, 13 million people had signed up for the rewards program which amounts to 11% of Taikang’s online users, according to Asean Today.”

Ant Financial is the Fintech arm of Alibaba and is known for its exploration spirits. They tried to launch a mutual insurance project in October this year, but was compromised due to a rumored and undisclosed conflict of interest. One fails, keeps going with another. They certainly still have faith in blockchain.

 

Story 2: State Farm turns to blockchain for subrogation

Extract, read more on Digital Insurance:

“State Farm is working on a blockchain application to assist in subrogation, leveraging open-source software and in partnership with at least one other insurer.

The company’s goal is to establish whether blockchain technology can make subrogation more efficient, in particular by preventing repetitive transfers of funds back and forth between insurers.”

Subrogation is a relatively new field for applications of InsurTech and State Farm is getting a first-mover advantage.

 

Story 3: Australia: National Transport Insurance Partners on Blockchain for Food Safety Trial

Extract, read more on Cointelegraph:

“Australia’s National Transport Insurance (NTI) has announced it will trial a blockchain system to improve supply chain integrity for beef exports abroad. The trial was reported by local transport industry magazine Fully Loaded ATN on Dec. 10.

NTI will reportedly be partnering with BeefLedger, an Australian “integrated provenance, blockchain security and payments platform,” which combines blockchain with Internet of Things (IoT) technology to bolster product credentials across the supply chain.”

Both NTI and BeefLedger are not well known in the InsurTech community. And the alleged application is not insurance-centered. However, it’s a trial involving trans-border business, origin tracing and liability monitoring. It can be enlightening for insurance, if it pans out.

2018 is a very bad year for blockchain enthusiasts, but on the bright side, we might have entered post-bubble era just like the early 2000s. With less hype, expectation and more commitment, blockchain can still find its appropriate values.

Image Source

Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.

Check out our advisory services(how we pay for this free original research).

To schedule an hour of Zarc’s time for CHF380 please click here to send an email.

aviva, chubb, customer engagement, dual price, Humania, incumbent, InsurTech

Insurtech Front Page Weekly CXO Briefing – Incumbents on customer engagement

Service Satisfaction Indicator

The Theme last week was InsurTech Upstarts at the Gate.

The Theme this week is incumbents exploring better customer engagement. Customer engagement can be improved with the combination of technologies and a human touch.

For more about the Front Page Weekly CXO Briefing, please click here.

Incumbents embracing InsurTech is a common theme in our posts. This time, it’s about customer engagement.

Story 1: Humania Assurance Launches 5575

Extract, read more on Coverage:

“Humania Assurance has introduced a new portfolio of online health insurance products tailored for Canadians aged 55 to 75 years old.

“When retiring and leaving their workplace, this population loses its group insurance advantages. It is then difficult for these people to cover all expenses relating to their health. This portfolio of products will allow them to reduce their financial stress and focus on taking care of their recovery.” – VP Sales and Marketing, Kim Oliphant.”

A gentle gesture to care for the elderly. Efficiency can be improved by technology, but the warmth of insurance still need to be delivered with a human touch.

Story 2: Chubb Life Launches New Digital Platform to Enhance Customer Experience

Extract, read more on Chubb media room:

“Chubb Life Insurance Indonesia (Chubb Life) has today launched an online platform called Chubb Life Customer Corner as part of its ongoing commitment to putting customers first and providing them with the best customer experience, anywhere and anytime.

Kumaran Chinan, Chubb Life COO said, ‘We are proud to launch the Chubb Life Customer Corner which will make it faster and more convenient for our customers to access important policy information, including the latest claims information, anywhere and anytime they choose to.’”

Insurance penetration rate is still low in Indonesia, and the Internet-savvy youths will soon become a major purchasing force of life insurance in next 5 years. Selling it in a digital way can help Chubb become the first insurer for many young users in Indonesia.

Story 3: Aviva aims to disrupt the market with new subscription-style product

Extract, read more on Insurance Age:

“Aviva has launched a subscription-style insurance product, which it said was designed to address consumer concerns with the industry such as dual pricing.

AvivaPlus is initially a direct product, which the provider stated offers flexible cover, monthly payments with no APR, no charges to cancel or change the policy and a renewal price guarantee.

It is available for home and car insurance, but Aviva noted that it was looking to extend it to more product lines in the future.”

Dual price happens when there is a lack of direct channels. Technology certainly can play a big role in building channels.

Engagement is about building trusts. By caring for the elderly, launching online platforms and addressing information asymmetry, incumbents are making friendly gestures.

Image Source

Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.

Check out our advisory services(how we pay for this free original research).

To schedule an hour of Zarc’s time for CHF380 please click here to send an email.