EFFECTIVE COLLABORATION LESSONS FROM THE INSURTECH WORLD

Sabine VanderLindenManaging DirectorStartupbootcamp InsurTech

Sabine VanderLinden18 years of expertiseManaging Director of

@SabineVdL@sbcInsurTech

Sabine VanderLinden

Top 20 InsurTech Influencer

Berlin

SingaporeMexico

New York

BarcelonaInternet of

Things & Data

FinTech

AmsterdamE-Commerce / Smart Cities

CopenhagenMobile

Smart Transportation &Digital Health

FinTech

We ACCELERATE corporate & startup success

LondonFinTech & InsurTech& Internet of Things

MiamiDigital Health

MumbaiFinTech

FinTech

IstanbulMENA Region

FinTech + InsurTech IoT (data)EcommerceTransportationSmart City Digital Health…

15 programs globally11 cities (growing) 150+ partners1,000+ investors3,000+ members

Since 2010, 350+ Startupbootcamp teams from 30+ classes have raised over €150 million with a combined valuation of more than €650 million

400Startups

35Cohorts

5Exits

73%Funded

81%Active

Delivering recognizable results

Hands on mentorship and support – pilots – investment

100 to 150 startups to be graduated per year

Global PartnersInsurTech Partners

Working with innovative brands as partners

TRUST IS AT THE CORE OF EVERY RELATIONSHIP

Only 27% of consumers trust their insurance providers whilst less than 50% actually turning

to them for advice

RECONNECTING WITH CUSTOMERS

“There are many InsurTech startups doing a great job out there!”

Model 1: Understand The

Problem at Hand

Today, many corporations interact with the start-up community and do things they had never done

before

1) Changing customer behaviors2) Speed of digitization3) Exploding product innovation

Why?

No Red-Tape No Cubicle No suit

Own schedule Autonomy Flexibility

“Many corporate leaders understand that innovation comes from inside and outside the walls of their corporation.  That’s why

many big companies want to engage with emerging ones.”

The InsurTech Ecosystem – 6 Key Trends

Product Sales andMarketing Distribution Underwriting Claims Customer

Service

Meet changing customer

needs with new offering

Enhance interactions & build trusted relationships

Initiate strategic

relationships

EcosystemCustomer Leverage data & analytics to generate risk

insights

New approaches

to underwrite risk &

predict loss

Sophisticated operational capabilities

Source: PwC Analysis, Startupbootcamp InsurTech & PwC Data

Insurers were asked in which areas they saw the most important

impact to their business from start-ups & Start-ups were categorised

accordingly

Focus areas for startups based on applications

1 ENHANCE INTERACTIONS AND BUILD TRUSTED RELATIONSHIPS 35%

2 ENABLE THE BUSINESS WITH SOPHISTICATED OPERATIONAL CAPABILITIES

21%

3 MEET CHANGING CUSTOMER NEEDS WITH NEW OFFERINGS 20%

4 LEVERAGE EXISTING DATA & ANALYTICS TO GENERATE DEEP RISK INSIGHTS

15%

5 LEVERAGE BROADER ECOSYSTEMS 6%

6 DELIVER NEW APPROACHES TO UNDERWRITE RISK AND PREDICT LOSS

3%

Insurers’ point of view

4 ENHANCE INTERACTIONS AND BUILD TRUSTED RELATIONSHIPS 45%

5 ENABLE THE BUSINESS WITH SOPHISTICATED OPERATIONAL CAPABILITIES

38%

1 MEET CHANGING CUSTOMER NEEDS WITH NEW OFFERINGS 75%

2 LEVERAGE EXISTING DATA & ANALYTICS TO GENERATE DEEP RISK INSIGHTS

65%

6 LEVERAGE BROADER ECOSYSTEMS 27%

3 DELIVER NEW APPROACHES TO UNDERWRITE RISK AND PREDICT LOSS

54%

1. Meet changing customer needs with new

offering Introduction of flexible and personalized offerings

Micro-insurance (9%) Peer to peer insurance

(7%) Sharing economies Lifestyle based insurance Robo-advice

These ventures are challenging traditional business models

Source: PwC Analysis, Startupbootcamp InsurTech & PwC Data

2. Leverage existing data and analytics

Search for more meaningful insights from data sets to increase the sophistication of analyses and decision making Connected car / telematics Connected Health Remote data capture &

analysis Quantification of emerging

risks

93% of customers would welcome a device that monitor and keep their home safe

Source: PwC Analysis, Startupbootcamp InsurTech & PwC Data

4. Enhance interactions and build trusted

relationshipsLeverage Artificial Intelligence, Learning Machines, Robo-advisors to deliver unique customer experiences Omni-channel experience Aggregation and

comparison Targeted engagement Consolidation of cover Education & engagement

Brolly

Source: PwC Analysis, Startupbootcamp InsurTech & PwC Data

Model 2: Partner

From OBSERVING to COLLABORATING with start-ups

on real projects

However, often companies’ structures prevent projects to materialize or

move swiftly!

Startup world

Uncertain

Unforeseen risks

Highly dynamic

Corporate world

Process heavy

Rules & boundaries

Constrained

Designing the right innovation framework

CHECKLIST ONE

1. COULD YOU DESIGN A SMALL, BUT WELL DEFINED AND CONTAINED, PILOT WITH CLEAR SET OF OUTCOMES?

2. WHAT IS THE MINIMUM SET OF STAKEHOLDERS WHO COULD SIGN-OFF THE PILOT?

3. CAN THE CLIENT FUND THE PILOT?

4. WHAT ARE THE MINIMUM CONTRACTUAL TERMS NEEDED FOR THE PILOT?

5. HOW CAN YOU GO AROUND/ MINIMISE INTERNAL RED TAPE OR HURDLE THAT CAN PREVENT THE PILOT TO MOVE FORWARD?

6. WHAT WILL SUCCESS MEAN? HOW WILL YOU MEASURE IT?

7. IF THE PILOT IS SUCCESSFUL, HOW WILL YOU ENGAGE IN A LARGER ROLL-OUT?

Improving your likelihood of success

1. CLEARLY DEFINE THE OUTCOMES YOU WANT TO ACHEIVE

2. IDENTIFY AN INTERNAL LIAISON/ AN ADVOCATE WHO WILL MANAGE YOU WITHIN THE PROJECT ORGANISATION

3. ENSURE STRONG BUY-IN FROM SENIOR EXECUTIVES WHO MUST SEE BENEFITS FROM THE PROJECT

4. DEFINE CLEAR METRICS AND AN INCENTIVE SYSTEM WHERE ALL PARTICIPANTS ARE REWARDED FOR TRYING AND LEARNING

CHECKLIST TWO

Source: PwC UK, InsurTech Research, July 2016

How do corporates partner?

you tube video: https://www.youtube.com/watch?v=pXuLWnWminI

Model 3: Get funded

$4.74Bn invested in InsurTech across 470 start-ups deals since 2011... This increased six fold over the past three years

$1.4Bn invested across 126 deals between Q1 and Q3 2016

Source: CB Insights, FT.com, PwC

“100s global investors are pouring billions of dollars into InsurTech start-ups to give insurers a tech

makeover” Andreessen Horowitz Intel Capital Sequoia Capital Google Ventures Balderton Capital Canaan Partners American Family Ventures MassMutual Ventures ACE Group Holding Y Combinator .....

Source: CB Insights, Startupbootcamp Analysis

Investors are looking for start-ups able to: Reinvent the way people buy insurance Transform the way insurers manage risk Leverage sharing economy-led business models

The most imminent effects of disruption will be felt in the banking sector; however, the

greatest impact of disruption is likely to be felt in the insurance

sector

““

Source: WEF, The Future of Financial Services, June 2015

Over $1Bn committed … ... to head off disruptive threats

Smart Home Security

Heath MonitoringFinancial Mgt Cyber Security

Digital BrokerData & Analytics Digital Broker

Business InsuranceWellness Insights

Source: Startupboocamp InsurTech Research, July 2016

KEY QUESTIONS FOR YOU:

What will you do differently to ease engagement?

What will your priority be? What will your pilot be?

What metrics will you choose to drive value?

THANK YOU

For more information, you can reach me on: sabine@startupbootcamp.org

@SabineVdL@sbcInsurTech

Sabine VanderLinden