Matteo Carbone, Author at Insurance Thought Leadership



Matteo Carbone

Matteo Carbone

Matteo Carbone is founder and director of the Connected Insurance Observatory and a global insurtech thought leader. He is an author and public speaker who is internationally recognized as an insurance industry strategist with a specialization in innovation.

He has advised many international insurance companies and has wide experience that includes setup of industrial and commercial plans, growth strategy definition and support in the startup of initiatives, digital strategy development, insurance products development, channel strategy and commercial model definition, startups mentorship and M&A advisory.

Before creating the Connected Insurance Observatory, he spent 11 years in Bain & Co.’s financial services practice.

Recent Articles by Matteo Carbone

5 Questions for Matteo Carbone on Smart Homes

As part of this month’s ITL Focus on smart homes, we spoke with Matteo Carbone, the founder and director of the IoT Insurance Observatory, about how far the technology and adoption have progressed and where the market goes from here. ITL: Let’s start with a status update. You’ve focused on telematics for a decade and […]

Past, Present, Future of Telematics, UBI

Insurers have spent the last 20 years exploring the potential of telematics with alternating curiosity, commitment and disillusionment. Last year, 8.2 million U.S. auto policyholders shared their driving data with an insurer, according to the IoT Insurance Observatory, a global think tank. Insurer participation in the telematics space has been consistent for the past several […]

From Risk Transfer to Risk Prevention

Recent developments in technology and the corresponding availability of data can improve risk prevention. A key driver is the Internet of Things (IoT), the growing network of connected devices ranging from consumer wearables to industrial control systems. According to a recent report by Kaspersky, 61% of enterprises already use IoT applications. So, nearly two-thirds of […]

Pioneering Use Cases for IoT in Insurance

We are living in a hyperconnected world, and the presence of IoT devices has already been more pervasive than many of us have realized. Mobile phones in our pockets are full of sensors. Their software is updated over the air. And, when we lose them, we can remotely track their position. Meanwhile, restaurants are using […]

The Intersection of IoT and Ecosystems

Traditional, end-to-end business models are breaking down in every industry, including insurance. In the digital era, it is increasingly difficult for any single firm to deliver the seamless experience that customers expect. More insurers are leveraging digital ecosystems to reinvent their products and services, providing better risk management, reduced claim cost and new sources of […]

A Quarantine Dispatch on the Insurtech Trio

Since the first “Five Dispatches from InsurTech Survival Island,” I’ve been partnering with Adrian Jones and in recent months with Sri, to analyze quarterly statutory statements of the most relevant U.S. P&C full-stack insurtech carriers. The principal goal has been to influence the dialog, debate and deliberations in the insurtech space debate, and to promote a […]

The New IoT Wave: Small Commercial

Q2 Progress at Root, Lemonade, Metromile

We have previously evaluated and discussed the financial performance and operating results of the insurtech trio Lemonade, Root and Metromile. Based on the analysis of the last available data, we think that: There is a pricing war The trio is missing an edge and story with respect to gaining a sustainable competitive advantage At first […]

An Insurance Policy With Some ‘Magic’

A few years ago, it was estimated that in a normal day another 127 devices are connected to the internet each second. This trend toward an Internet of Things is growing exponentially. Many global insurance companies are working on integrating IoT-based services into their insurance offers. Unfortunately, how to use this technology has been largely […]

Start-up Financials Show Progress in 2018

The three P&C venture-backed U.S. insurtech start-ups — Lemonade, Metromile and Root — finished 2018 with pretty good results. Quarterly growth was the slowest ever, but all three paid out in claims less than they collected in premium. All three start-up carriers have more work to do to achieve sustainable financials. A year ago, when […]

Finally, an Insurer Proud of Agents

The debate on insurance innovation has been dominated recently by comments generated as a result of the State Farm TV ad where this insurance giant celebrates the superiority of its thousands of human insurance agents compared with the AI-based chatbots. Lemonade — a smart U.S. insurtech startup — has credited itself as the target of […]

Insurtech: Mo’ Premiums, Mo’ Losses

Our three U.S. venture-backed nsurtech carriers have mo’ money, mo premiums’ and mo’ losses. Around the time their losses became notorious, there were some signs of improvement, but not enough to prove viable business models. It’s still early. No 2Pacalypse is imminent, as the startups have tons of cash. But forget about East Coast/West Coast […]

The Dazzling Journey for Insurance IoT

When Chloe steps out the door of her apartment on her way to work in the morning, her vehicle automatically unlocks its doors while the navigation system maps out the best route based on the latest weather and traffic conditions. Simultaneously, her home’s thermostat resets, and her security system arms. During her commute, Chloe decides […]

UBI Is Not Usage-Based–Sorry!

Usage-based pricing is a fascinating topic for insurers. A technology that allows persistent monitoring of risk exposure during the coverage period could potentially enable insurers to price each risk at the best rate. The potential, however, is not the reality. In 2017, 14 million policies sent telematics data to insurers around the world, of which […]

Are You Tapping Your Innovation Energy?

The insurance industry is facing seismic and unprecedented shifts on multiple dimensions. From increasing client expectations to new emerging risks, from the emergence of robo-underwriters to the ever-present question regarding the role of traditional channels, insurance carriers have multiple fronts on which to re-think, re-look and address innovation challenges and opportunities. The culture of the […]

Second Quarter in Insurtech Financials

Summary Growth rates remain robust but may be slowing a bit – are there issues on customer acquisition, or are carriers focusing more on underwriting profitability? Gross loss ratios are generally stable or improving slightly but still unsustainable Industry veterans are outperforming the newbies on loss ratio but not premium growth. It will still take […]

The First Quarter in Insurtech Financials

The three independent U.S. insurtech startups whose 2017 full-year results we profiled — Lemonade, Root and Metromile — continue to grow rapidly in early 2018. But so far that has meant more red ink: Results that are bigger and blacker remain elusive. We’ve again analyzed publicly available financial results called statutory statements. The same caveats from […]

5 Dispatches From Insurtech Island

This article was written with Adrian Jones, a #traditionalindustry guy and insurtech investor who writes in his personal capacity. The authors’ opinions are solely their own, and only public data was used to create this article. *** “All the insurance players will be insurtech,” as Matteo titled his recent book, but some insurtechs have chosen to […]

Will Amazon Disrupt Insurance?

In the last months of 2017, I wrote – together with my friend Andrea Silvello – “All the Insurance Players Will Be Insurtech,” and the book was published in the first days of 2018. See also: Is Insurance Really Ripe for Disruption?   I included all the foundations of my insurtech thoughts; the elaboration of many […]

Insurers Will Be Even More Relevant

The insurance sector is now seeing the same dynamics many other sectors have already experienced — startups and other tech firms are innovating one or more steps of the value chain that traditionally belongs to financial institutions. Insurtech has seen extremely important investments in the last years, and the word “disruption” is coming out frequently […]

UBI Has Failed, but Telematics…Wow!

Insurance telematics has been out there for more than 20 years. Many insurers have tried to play with the technology, but few have succeeded in using the data available from connected telematics devices. The potential of this technology was misunderstood, and best practices have remained almost unknown, as it was not common in the insurance […]

Insurtech: How to Keep Insurance Relevant

In the age of the fourth industrial revolution, risks are changing. The advent of technology has made digital assets more valuable than physical ones. In this scenario, the insurance sector has been increasingly left to deal with technological change and disruption and is having to reconsider the way it defines itself. Having had the opportunity […]

Telematics Has 2 Key Lessons for Insurtechs

Connected insurance represents a new paradigm for the insurance business, an approach that fits with the mainstream Gen C, where “C” means connectivity. This novel insurance approach is based on the use of sensors that collect and send data related to the status of an insured risk and on data usage along the insurance value chain. […]

It’s Time to Act on Connected Insurance

It is not a secret that I’m an insurtech enthusiastic; I have shared my view about the need for any insurance player (insurer, reinsurer, distributors, etc.) to become an insurtech-player during the next several years. This will mean: organizations where technology will prevail as the key enabler for the achievement of the strategic goals. It was […]

The New Paradigm of Connected Insurance

Connected insurance represents a new paradigm for the insurance business. This new insurance approach is based on the use of sensors for collecting and transmitting data on the status of an insured risk and the deployment of big data capabilities that transform raw information into actionable knowledge along the insurance value chain. The insurance sector, […]

The Future of Insurance Is Insurtech

The insurance sector has entered a phase of profound transformation. Numerous insurtech startups—around 1,000, according to Venture Scanner map—have popped up to challenge the traditional model. I believe that we will see a completely changed insurance sector in the medium term. But I’m convinced that insurance companies will still be relevant in the future, or will […]

Are You Ready for the New Paradigm?

Italians want connected insurance policies; they are not afraid of “Big Brother.” According to the Ania-Bain Observatory, insurtech can take off in the home and health sectors. Now is the time for both the model and management of connected insurance to be structured. As of today, 22% of Italian households that have no home insurance […]

My 4 Ps for Investing in InsurTech

The insurance sector, which is considered to be fairly traditional and resistant to change, is currently being overtaken by a macro trend of digital transformation. This is causing institutions with hundreds of years of tradition to rethink their insurance business models, by identifying modules within their own value chain that need to be transformed or […]

Secrets InsurTechs Need to Learn

The insurance sector is becoming more innovative. Various initiatives and projects launched around the globe are proof of that — from the classic “call for ideas” and corporate venture capital to innovation labs and accelerators that involve the largest insurance companies. According to CB Insights, InsurTech — which involves rethinking one or more steps of the […]

A Mental Framework for InsurTech

Digital transformation has become a major challenge for insurance companies all over the world. In Italy, this transformation is exemplified by the adoption of vehicle telematics. According to the latest IVASS data, black box became an integral part of 16% of new policies and renewals during the third quarter of 2015. The insurance sector is now seeing the […]

Key to Understanding InsurTech

Digital transformation has become a major challenge for insurance companies all over the world. In Italy, this transformation is exemplified by the adoption of vehicle telematics. According to the latest data from IVASS (Istituto per la Vigilanza sulle Assicurazioni, or the Italian Insurance Supervisory Authority), black boxes became an integral part of 16% of new […]

Innovation Trends in 2016

For the past few years, the innovation rate in the global insurance industry has run at peak levels, in good part because of digitization, which continues to be a pervasive influence—if not as disruptive as early projections. Initial expectations of a departure from traditional distribution channels turned out not to be the case. Clients preferred […]

How Connected Cars Will Change Claims

There is a long road ahead before the full potential of telematics is reached, but, from an international perspective, it is clear that the Italian market has already accumulated the greatest experience in the use of telematics within the auto insurance value chain. One of the key characteristics of the Italian experience is the capacity […]

The Future of Telematics Is… Italy

The black box used for telematics makes it possible for insurers to enrich their auto insurance value proposition by adding services built upon data. These services represent a way of de-commoditizing the car insurance policy and are also a source of income. In the medium/long term, such services will become more and more important as […]

Telematics: Now a ‘Movie,’ Not ‘Snapshot’

The traditional underwriting of an auto policy is based on a snapshot of certain static variables that belong to the client and his vehicle – the impact and weight on the pricing is determined by the analysis of the claims historical series of the company – and the renewal comes after taking the same type […]

5 Value Levers for Auto Telematics

Telematics could be one of the most relevant digital innovations in the insurance industry, directly affecting results. Worldwide diffusion of telematics-based motor insurance policies is currently at an early stage, but the best practices achieved levels of penetration higher than 20% of the motor portfolio. The diffusion is growing fast, with well-recognized benefits for the […]

Will Fintech Disrupt Health, Home Firms?

The integration of technology in the insurance company’s value proposition is turning out to be one of the main evolutionary trends in the sector, and digital initiatives have been for a couple of years now one of the priorities of insurance groups. Until today, though, they have brought only limited improvement when it comes to […]

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