Presented during the Svenska Dagbladet (SvD), Insurance Summit by October 2018. TRENDSPANING The future Insurance landscape – best cooperation practices between Startups and Insurance companies • The pathway towards InsurTech - how we got here • The landscape of Swedish InsurTech • What customers want: 8 key developments within innovative insurance companies • Examples of the best practices from the Swedish InsurTech scene

1. THE FUTURE
INSURANCE LANDSCAPE
MICHAL GROMEK
RESEARCHER ON FINTECH
SWEDISH HOUSE OF INNOVATION
#GOOD TO SEE YOU
#SVDINSURANCE
BEST COOPERATION PRACTICES
BETWEEN STARTUPS AND
INSURANCE COMPANIES
+ POTENTIAL FUTURE SCENARIOS
EXTENDED VERSION OF THE PRESENTATION

2. INCUMBENT FIRMS SEE STRATEGY THREATS AS THEY
COME. THE CHALLENGE IS HOW TO ADDRESS THEM
AND DO THIS SUCCESSFULLY.
PROF. MAGNUS MÄHRING,
HOUSE OF INNOVATION, SSE
(SEPTEMBER 26th 2018)

3. # HOW DID WE GET HERE?
OBJECTIVES FOR THE PRESENTATION
TODAY
# WHERE ARE 'WE' AS
THE REGIONAL INSURTECH
ECOSYSTEM TODAY?
# HOW COULD
WE MOVE FORWARD?
# POTENTIAL DEVELOPMENT
WITHIN THE FINTECH &
INSURTECH CENTER
# WHAT DO WE KNOW
ABOUT THE ECOSYSTEM?

4. # Researcher on FinTech (SSE)
Effects of end-users trust or distrust
on technology adoption in information systems
Stockholm School of Economics
Swedish House of Innovation
Contributor for Forbes Magazine - Fintech & Blockchain
#GOOD TO SEE YOU
Previously:
# 7 years as FinTech executive
# Head Int. Financial Services - FundedByMe.com
# Country Head - FinTech Rocket Internet
# Trainer Securities Commission Malaysia
## Travel Book author (in the future :)

5. #INSURTECH IN SWEDEN
SOURCE: ADOPTED FROM MC GAHAN, HBR, 2004 (ALTERNATE MODEL)
"I FORESEE AN
INCREASE IN:
Data
Proliferation
EMERGENCE CONVERGENCE COEXISTENCE
E
MERGING INDUSTRY
ESTABLISHED INDUSTRY
DOMINANCE
OCTOBER 2018
TIME
SALESVOLUME

6. #WHERE COULD GET INSURTECH IN SWEDEN?
SOURCE: ADOPTED FROM MC GAHAN, HBR, 2004 (ALTERNATE MODEL)
"I FORESEE AN
INCREASE IN:
Data
Proliferation
EMERGENCE CONVERGENCE COEXISTENCE
E
MERGING INDUSTRY
ESTABLISHED INDUSTRY
DOMINANCE
OCTOBER 2018 - COOPERATION, FEAR OR LACK OF URGENCY?
TIME
SALESVOLUME
INSURTECH

7. # Stockholm FinTech Report 2015 - June 2015
# Chasing the Tale of the Unicorn - May 2016
# Stockholm FinTech Report (Update) 2016 - June 2016
# The Next Wave of FinTech - RegTech & InsurTech - Dec 2017
# Stockholm FinTech Report 2018- January 2018
# The Rise and Development of FinTech, Accounts of Disruption
from Sweden and Beyond - Book - March 2018 (Open Access)
# There is a need for a deeper insight into the Insurtech
Ecosystem
#FIRST GOAL: INCREASE THE KNOWLEDGE ABOUT
THE DEVELOPMENT OF THE ECOSYSTEM

8. # To illuminate the growing landscape of InsurTech
and RegTech companies that operate on the
Swedish market and arrive at recommendations
for three groups:
> Incumbents > Startups > The Regulator
# Landscape mapping 40+ companies
# 11 Case studies and interviews
# 70+ pages of insights
and lessons learned
# There is a need for a study focusing on best practices
of cooperation between traditional insurance companies
and new incumbents, demographics of the Insurtech etc.
#THE NEXT WAVE OF FINTECH - REGTECH & INSURTECH

9. #MAPPING SWEDISH INSURTECH:
WHAT IS INSURTECH AND WHAT IS NOT?
SOURCE: OPPORTUNITIES AWAIT: HOW INSURTECH IS RESHAPING INSURANCE,
GLOBAL FINTECH SURVEY, PWC, JUNE 2016
SOURCE: THE NEXT WAVE OF FINTECH: INSURTECH & REGTECH (2017)
~~ PRESENTATION: 3:30 PM HENRIK ALLERT - ITELLO

10. #1 DISTRIBUTION CHANNELS:
FROM DIGITAL FIRST TO ONLINE ONLY
SOURCE: CAPGEMINI, WORLD INSURANCE REPORT (2018)
CAPGEMINI FINANCIAL SERVICES ANALYSIS (2018)
CAPGEMINI VOICE OF THE CUSTOMER SURVEY (2018)
0%
15%
30%
45%
60%
Branch / Broker CC / Phone WWW / Website Mobile App
IMPORTANCE OF CHANNELS FOR CUTOMERS % (2018)

11. #1 DISTRIBUTION CHANNELS:
FROM DIGITAL FIRST TO ONLINE ONLY
SOURCE: CAPGEMINI, WORLD INSURANCE REPORT (2018)
CAPGEMINI FINANCIAL SERVICES ANALYSIS (2018)
CAPGEMINI VOICE OF THE CUSTOMER SURVEY (2018)
0%
15%
30%
45%
60%
WWW / Website Mobile App WWW / Website Mobile App
IMPORTANCE OF CHANNELS FOR CUTOMERS, BY DEMOGRAPHIC SEGEMTNS, % (2018)
Tech-Savvy Y Generation
{
{

12. #2 MULTI-CHANNEL CLIENT SERVICE:

13. #3 USER EXPERIENCE:
The trend is towards more personalized design,
content and user experience.
We need to both ask and listen to what
the customers’ expectations are.
Torbjørn Lomelde
Head of Marketing
Tryg

14. 0
10
20
30
1 2 3 4 5 6
0%
0.965%
1.93%
2.895%
3.86%
1 2 3 4 5 6
#3 USER EXPERIENCE:
SOURCE: CAPGEMINI, THE DISCONNECTED CUSTOMER (2018).
+4.7 NPS points
+9.4 NPS points
+14 NPS points
+18.7 NPS points
+23.4 NPS points
+28.1 NPS points
+0.64%
+1.29%
+1.93%
+2.57%
+3.22%
+3.86%
Extraamountcustomerswouldbewillingtospend,%
IncreaseinNetPromoterScore®,points
Increase in DCX Index, points

15. #3 USER EXPERIENCE:
0%
10%
20%
30%
40%
50%
0%
10%
20%
30%
40%
CUSTOMERS WITH POSITIVE EXPERIENCE BY INDUSTRY & DEMOGRAPHIC SEGMENT, % (2018)
SOURCE:CAPGEMINI,WORLDINSURANCEREPORT(2018)
Banking Industy Insurance Industy
Tech-Savvy
Non-Tech-Savvy
Overall
Gen-Y
Non-Gen-Y
28.6%
35.7%
32.8%
25.7%
36.9%
34.8%
42.2%
39.3%
32.6%
43.0%

16. #4 PERSONALIZATION & #5 DATA ANALYTICS:
TOOLS FOR REAL-TIME CUSTOMER-DATA CAPTURE, % (2018)
SOURCE:CAPGEMINI,WORLDINSURANCEREPORT(2018)
TELEMATICS SO-ME PLATFORMS SMART HOME WARABLES SMART WATCHES OTHER DEVICES
FULL-SCALE
IMPLEMENTATION
MULTIPLE
DEPLOYMENT
FIRST DEPLOYMENT
PILOT WITH PROOF
OF VALUE
PROOF OF CONCEPT
USE CASE TESTING
IIDEATION

17. #6 ROBO-ADVISORY
NOMADS HUNTERS
QUALITY
SEEKERS
Willing to use automated
support for selection of
insurance coverage
How they seek advice
Most valuable source of
insurance advice
86% 64% 67%
52% 51% 38% 58% 35% 62%
29% 30% 33% 37% 25% 42%
ONLINE ONLINE ONLINEAGENT AGENT AGENT
AGENT AGENT AGENTONLINE
AGGREGATOR
ONLINE
AGGREGATOR
ONLINE
AGGREGATOR
SOURCE: ADAPTED FROM: ACCENTURE, THE VOICE OF THE CUSTOMERS:
IDENTIFYING DISRUPTIVE OPPORTUNITIES IN INSURANCE DISTRIBUTION (2017).
HIGHLY DIGITAL ACTIVE DEAL SCOUNTS

18. #7 COMPETITIVE OFFER:
PRODUCTS ADJUSTED TO CHALLENGES OF TODAY

19. #8 DISTRUST AGAINST BIG TECH
(APPLE, GOOGLE ETC.)
SOURCE: CAPGEMINI, WORLD INSURANCE REPORT (2018)
57.5% of customers expressed their concerns to Big
Tech's Privacy/Security standards while
47.6% admitted they have a lack of trust in big tech
players.

20. Gjensidge is an insurer working with Paydrive
from the beginning.
In November 2017 Gjensidge invested NOK 15 million
in the startup.
Similar models:
Telia & Folksam (Springworks)
Moderna Forsakringar (Enerfy)
#USE CASE NO. 1: PAY-AS-YOU-DRIVE
Paydrive is a digital broker offering a car insurance
based on a customer's driving style (pay-as-you-
drive). The company was founded in 2013 and now
its value is estimated for SEK 90 million.
#USE CASE NO. 2/3 : SEE > PDF PRESENTATION
PRESENTATION: 1:30 PM ANDREAS BROSTRÖM - VD PAYDRIVE

21. #USE CASE NO. 2: MOBILE DISTRIBUTION
IN EMERGING MARKETS
Bima distributes micro-policies in emerging countries.
INNOVATIONS:
Product: life, health and accident policies designed for
individuals/families living for less than $10 a day
Distribution: cooperation with mobile network operators;
purchased through custom-made mobile-delivered insurance
platform - no need for a signature or visiting branches/agents
Payment: pay-as-you-go; the fees are charged from user's mobile
credits
In December 2017 Allianz X bought Bima's shares in secondary
market for $60M and on top of that invested $32.6M in Round D.
PDF BONUS

22. #USE CASE NO. 3: LEAD GENERATION FOR INSURANCE
Insplanet is a comparison website and an insurance broker.
However, the core business is not insurance, but affiliate lead
generation.
Insaplanet cooperates with a number of insurers but
none of them is an investor nor a close collaborator.
In September 2018 the majority of shares was sold to Zmarta
(BauerMedia). Ca. 25% of all shares belongs to Bonnier.
Some other shareholders: Robur Insurance, Royal Skandia Life
Assurance, Banque Carneige Lux.
PDF BONUS

23. # HOW DID WE GET HERE?
OBJECTIVES FOR THE PRESENTATION
TODAY
# WHERE ARE 'WE' AS
THE REGIONAL INSURTECH
ECOSYSTEM TODAY?
# HOW COULD
WE MOVE FORWARD?
# POTENTIAL DEVELOPMENT
OF THE FINTECH &
INSURTECH CENTER
# WHAT DO WE KNOW
ABOUT THE ECOSYSTEM?

24. # M&A NOT LIKELY TO HELP MUCH
SOURCE: SOURCE: FINTECH TRENDS TO WATCH IN 2018, CB INSIGHTS,
(ACCESSED; APRIL 30TH 2018)
12% OF (RE)INSURANCE PROFESSIONALS WITH KNOWLEDGE
OF THEIR COMPANY'S INNOVATION STRATEGY
PRIMARY
OUTLET FOR
INNOVATION
0%
10%
20%
30%
40%
50%
PARTNER BUILD BUY
ECOSYSTEM TRENDS: COOPERATION

25. # Exploration – savvy incumbents are actively monitoring
new trends and innovations
# Strategic partnerships – some incumbents partner with
start-ups and build pilot solutions to test in the market
# InsurTech involvement – incumbents’ involvement in
start-up programs such as incubators, acquistions etc.
# New product development – involvement in InsurTech
could help incumbents discover emerging coverage needs
and risks that require new insurance products and services
#CURRENT COOPERATION APPROACHES
SOURCE: OPPORTUNITIES AWAIT: HOW INSURTECH IS RESHAPING INSURANCE,
GLOBAL FINTECH SURVEY, PWC, JUNE 2016

26. # Exchange – of projects,
needs and challenges
# Knowledge building –
an increase of the insights
about the ecosystem
# Intra-silos support –
involvement of partners
across the value chain
# Nordic focus – offering
cross-border network
between partners
#BUILDING PUZZLE PIECES OF THE REGIONAL
ECOSYSTEM
ADAPTED FROM: ADAM STRANDBERG, FEBRUARY 2018
INSURTECH CENTER:
Traditional Providers
Startups
Regulators
Education
Nordic Network
Accelerator
Investors
Support

27. # VALUE CREATION – workshops
and ideas exchange
(upcoming Thursday)
# INT BEST PRACTICES – review
# FEEDBACK – to the needs of
the ecosystem
# EXAMINATION REGIONAL
OF SUSTAINABILITY – the creation
of potential objectives via
'Design Thinking'
# INCORPORATION OF RESEARCH
- intraorganisational cooperation
learnings (see PDF attachment)
#BUILDING PUZZLE PIECES OF THE ECOSYSTEM
PROGRESS STATUS
INTEREST

28. # Learning – what can we offer, how do we proceed
with learning, how can we reduce uncertainty between the
parties?
How can the InsurTech find the information on how to
partner up with us?
# Adaptation – how would we like to integrate or do we
want to integrate the technology at all?
(landline phone vs. smartphone)
# Learning – incumbents’ involvement in start-up programs
such as incubators, acquisitions etc.
# Trust and Commitment – do we plan for long term
commitment or short terms gains?
What is our long-term plan?
#Distance - reflect on culture and social distance and
try to diminish them
#INTRAORGANISATIONAL COOPERATION
SOURCE: FORD ET AL, 1998, P.18-25
PDF BONUS

29. # Increasing complexity – InsurTech companies increase their
complexity and offer lean approaches to at least eight key
developments. New cooperation approaches between large
and small companies are needed.
# Need for comprehensive knowledge – about the regional
ecosystem to enforce knowledge-based solutions to regional
challenges.
# InsurTech involvement – incumbents’ involvement in start-up
programs such as incubators, acquisitions might be
incorporated into a potential new Insurtech focused space.
#SHORT SUMMARY:
# presentation is already on SlideShare.com
# consider to use your resources to increase the knowledge on Insurtech
# connect via LinkedIn to follow the development
#STAY CONNECTED:

30. INCUMBENT FIRMS SEE STRATEGY THREATS AS THEY
COME. THE CHALLENGE IS HOW TO ADDRESS THEM
AND DO THIS SUCCESSFULLY.
PROF. MAGNUS MÄHRING,
HOUSE OF INNOVATION, SSE
(SEPTEMBER 26th 2018)