Presentation at the ANZIIF New Zealand Insurance Conference on the topic of Insurtech: NZ in the global context. Key topics were: 1. What is insurtech? 2. What are the trends and activities 3. What can insurers and re-insurers do to respond Brenton Charnley is the Lead and Co-founder of Insurtech Australia and Founder of Alpha39 Innovation and Insurtech Advisory.

1. INSURTECH:
NZ IN THE GLOBAL
CONTEXT
BRENTON CHARNLEY
FOUNDER, INSURTECH AUSTRALIA
7 SEPTEMBER 2017

2. OVERVIEW
ACTIVITY
SO WHAT?
WHAT YOU CAN DO
SUMMARY

3. BRENTON
CHARNLEY

4. 4

5. 5

6. 6
CHANGED THE GAME

7. 7
WHAT GAME ARE WE PLAYING?

8. OVERVIEW
ACTIVITY
SO WHAT?
WHAT YOU CAN DO
SUMMARY

10. INSURANCE
(INDUSTRY)
TECHNOLOGY
(INNOVATION)

11. INSURTECH: A DEFINITION
the application of technology innovation in the
insurance industry value chain to solve known
challenges, and discover unknown
opportunities, in order to deliver value for
customers
“
”

12. Business Model
Operating Model
New
Applications
Risk mitigation
INSURTECH
Partnerships
Improvements
New products Platforms
Distribution
MORE THAN TECHNOLOGY

14. WHAT IT’S NOT
ONLY
DISTRIBUTION
JUST
STARTUPS
5YEARS
AWAY
SOMETHING
TO IGNORE

15. INSURTECH ON THE RISE
2014 2017

16. NZ NOT YET ON THE MAP
1 Singapore
5 Germany
6 United Kingdom
11 Australia
20 United States
0 New Zealand
*GOOGLE TREND ANALYSIS

17. BUT, IT’S A GLOBAL CHALLENGE
Insurers are challenged by the
rise of “insurtechs” and a
structural transformation of
their customer base, forcing
them to adopt new
technologies more
quickly.
“
”http://www3.weforum.org/docs/Beyond_Fintech_-_A_Pragmatic_Assessment_of_Disruptive_Potential_in_Financial_Services.pdf

18. OVERVIEW
ACTIVITY
SO WHAT?
WHAT YOU CAN DO
SUMMARY

19. INVESTMENT RISING
http://www.oliverwyman.com/content/dam/oliver-wyman/v2/publications/2017/jun/Oliver-Wyman-Policen-Direkt-Global-
InsurTech-Report-2017-Final.pdf

20. MOVING UP THE VALUE CHAIN
Today more than ever, some of these
intermediaries run the risk of getting
disintermediated sooner rather than later
because they are unable to adapt their
business model, disruptors are penetrating
their markets, or technology is changing
the entire industry.
“
”Walter Kielholz, Chairman SwissRe
2016

21. REINSURANCE DEALS
http://www.oliverwyman.com/content/dam/oliver-wyman/v2/publications/2017/jun/Oliver-Wyman-Policen-Direkt-Global-
InsurTech-Report-2017-Final.pdf

22. https://www.cbinsights.com/research/reinsurance-tech-startup-moves/

23. INVESTMENT ALL OVER
https://www.linkedin.com/pulse/my-four-ps-insurtech-matteo-carbone

24. INSURTECHS - MODULARITY
http://www3.weforum.org/docs/Beyond_Fintech_-_A_Pragmatic_Assessment_of_Disruptive_Potential_in_Financial_Services.pdf

25. INSURTECHS – USAGE ON DEMAND
http://www3.weforum.org/docs/Beyond_Fintech_-_A_Pragmatic_Assessment_of_Disruptive_Potential_in_Financial_Services.pdf

26. INSURTECHS – EMERGING RISKS
http://www3.weforum.org/docs/Beyond_Fintech_-_A_Pragmatic_Assessment_of_Disruptive_Potential_in_Financial_Services.pdf

27. INSURTECHS – REINVENT LIFE
http://www3.weforum.org/docs/Beyond_Fintech_-_A_Pragmatic_Assessment_of_Disruptive_Potential_in_Financial_Services.pdf

28. INSURTECHS – CLOSER TO HOME
Flare HR is a company delivering value in
the ‘HR tech’ services sector. Similar to
the business model of the multi billion
dollar company Zenefits,FlareHR provides
software that manages the on-boarding
of new employees, other human
resources functions and payroll.
It generates revenue by also delivering
financial services and products, such as
superannuation and life insurance, to
employees.
New distribution channels
Cover Genius is a global distributor of
insurance products for online businesses.
It is one of the fastest growing fintech
startups to have emerged from Australia.
Cover Genius’ first brand to launch was
RentalCover.com which sells insurance
for car rentals from its own site and also
through the largest online travel agents
globally. As a full stack startup they
control all facets of both their partner
relationships and the customer journey.
Digital distribution platform

29. TECHNOLOGIES TO WATCH

30. ENABLING NOT JUST DISRUPTING
http://www.mckinsey.com/industries/financial-services/our-insights/insurtech-the-threat-that-inspires

31. OVERVIEW
ACTIVITY
SO WHAT?
WHAT YOU CAN DO
SUMMARY

32. 32
WILL IT HAPPEN TO US?

33. SPEAKING TOO SOON?
I am sure as hell not worried about
insurtech(s) disintermediating what I
do for a living. They’d better be good
at their jobs because I’m damn good
at sales.
“
”
Steven DeCarlo, CEO AmWINS
2017

34. DISRUPTION HAPPENS QUICK-ER
Neither Redbox nor Netflix
are even on the radar screen
in terms or competition.
“
”
Jim Keyes, Blockbuster CEO
2008

35. “
”
Olli-Pekka Kallasvuo, Nokia
CEO 2008
From a competition
perspective, the iPhone is
nothing but a niche product
DISRUPTION HAPPENS QUICK-ER

36. THREATS TO GROWTH
https://www.pwc.com/gx/en/ceo-survey/2017/industries/pwc-ceo-20th-survey-report-2017-insurance.pdf

37. THREATS TO GROWTH
https://www.pwc.com/gx/en/ceo-survey/2017/industries/pwc-ceo-20th-survey-report-2017-insurance.pdf

38. PLANS FOR GROWTH
https://www.pwc.com/gx/en/ceo-survey/2017/industries/pwc-ceo-20th-survey-report-2017-insurance.pdf

39. WHAT GAME ARE WE ACTUALLY
PLAYING?

41. RUGBY = INSURANCE
TEAMS = COMPETITORS
RULES = REGULATIONS
NEW PLAYERS = BETTER GAME
NEW TECH = IMPROVE THE GAME

42. 42
ENTERTAINMENT

43. WE’RE PLAYING A DIFFERENT GAME
Rugby
20th
AFL
4th
BBL
5th

44. HOW CAN YOU BE A GAME
CHANGER?

45. OVERVIEW
ACTIVITY
SO WHAT?
WHAT YOU CAN DO
SUMMARY

46. 7 STEPS TO INSURTECH SUCCESS
RESPOND DIVERSIFY
STRATEGY
EXPLORE EXPERIMENT
BE
READY
SEARCH
USE YOUR
CORE
GROW
TALENT
EXECUTE

47. RESPOND

48. IT’S AN INCUMBENT PROBLEM
http://www.mckinsey.com/industries/financial-services/our-insights/the-age-of-innovation
It’s hard for big carriers to innovate as
they have so much to contend with
already – industry headwinds, legacy
issues. But they need to be in the
game, right now.
“
”
Caribou Honig, Cofounder of QED
investors

49. Should we invest to protect the least
profitable end of our business, so that we
can retain our least loyal, most price-
sensitive customers? Or should we invest
to strengthen our position in the most
profitable tiers of our business, with
customers who reward us with premium
prices for better products?
INNOVATOR’S DILEMMA
“
”Clayton Christensen, Innovator’s
Solution

50. THE INNOVATOR’S DILEMMA

51. PAYING CLAIMS
CHANGING THE GAME
RISK MITIGATION
V

52. DIVERSIFY

53. Core Business
90% Better. Faster.
Cheaper
10%
Change
the
Game
0%
WHAT INVESTMENT IS OFTEN LIKE

54. CHANGE THE
GAME
100%
STARTUP INVESTMENT (x10)

55. Core Business
70%
Better. Faster.
Cheaper
20%
Change
the
Game
10%
TIME TO GET IN THE GAME

56. EXPLORE

57. TECHNOLOGIES TO ADOPT
https://www.munichre.com/topics-online/en/2017/04/it-trend-radar-2017

58. DISRUPTIVE INNOVATION
Clayton Christensen, Innovator’s
Solution
“
”
…disruptive technologies offer other benefits—
typically, they are simpler, more convenient, and
less expensive products that appeal to new or less-
demanding customers

59. EXPERIMENT

60. NEW PRODUCT DEV IS HARD
50-60%New product developments fail

62. BE READY

63. 5 STEPSTO BE STARTUP READY
NARROW
FOCUS,
GET BUY IN
PROCUREMENT
& LEGAL
INTERNAL
CHAMPION
MOVE FASTGET OUT THE
BUILDING

64. WHERE DO STARTUPS COME FROM?
IMPORT EXPORT
V

65. USE YOUR CORE

66. Core Assets
LEVERAGE CORE ASSETS
Customers
Brands
Data
People
CapitalPartners
Operations Market

67. GROW TALENT

69. OVERVIEW
ACTIVITY
SO WHAT?
WHAT YOU CAN DO
SUMMARY

70. SUMMARY
INSURTECH IS
HERE & THE
TIME IS NOW
RESPOND WITH
A FOCUSSED
STRATEGY
NOT JUST
TECHNOLOGY
LEVERAGE CORE
ASSETS & PARTNER
GET STARTUP
READY

71. www.brentoncharnley.com
www.insurtechaustralia.org
brenton@insurtechaustralia.org
+61 419 178 552
LET’S MAKE YOUR
IDEAS
HAPPEN