Tag Archives: clark

The New Insurance Is No Insurance

Insurers are aware that technology will help to reduce claims drastically and therefore finally run premiums down to unsustainable levels.

Time to move on

“Insurance is a cornerstone of modern life. Without insurance, many aspects of today’s society and economy could not function. The insurance industry provides the cover for economic, climatic, technological, political and demographic risks that enables individuals to go about their daily life and companies to operate, innovate and develop.” Source: Insurance Europe

I fully support this, but the way this cornerstone fits into modern life needs attention. It’s time to move on.

See also: Insurance Coverage Porn  

The Third Wave

Twenty years ago, I set up the first digital insurance. Ten years ago, I set up (again the first) mobile insurance Now we’re heading for the third wave: connected insurance.

Real connected insurance with the new opportunities that technology brings is what I (with a few former colleagues) believe in and have been working on for some time now.

Of course: “IoT,” “data science,” “AI,” “customer-centric” and “on-demand” are the buzzwords. But let me add two: “holistic” and “transversal.”

“Holistic” refers to the complete modern household with a connected lifestyle and “transversal” to the consumer who is completely not interested in our industry verticals.

Insurance has to stay but with an overall and fresh approach. Hundreds of insurtech initiatives are currently taking pieces and add sometimes compelling features. See the Sherpa-Neos-Interpolis-Trov-CBien-Metromile-Vitality-Clark-Knip-PolicyGenius-Lemonade-Inshared-like initiatives.

The real challenge is to bring it all together to a compelling, simple, transparent and engaging full service offer to the customer.

Focus on prevention

The new insurance is no insurance — meaning the focus should not be on pushing insurance products but on offering prevention services.

For this we developed an international concept for smart protection called InConnect, with the household as hub connecting all smart devices, vehicles and wearables and with technology and data used to improve prevention.

Safety and Peace of Mind

Unbiased personal risk management tools (Primes) help reduce insurance to what is really needed in one universal personalized policy without redundancies and gaps, dynamically adjusted to the actual situation and needs with:

  • On-demand add-ons
  • Built-in loyalty and reward system
  • Ready connections for sharing cars, rides and homes
  • Easy combining or splitting households
  • Privacy and cyber risk recognized

and backed with a one of a kind insurance and claims IT platform.

Startup

The overall concept is quite ambitious. Although we’ve successfully done ambitious businesses before and have qualified people and technology on our side, we’ll start on a controllable scale. A startup will kick off in three European countries with home, motor and travel.

As soon as we’ve completed our search for the right partners, we’ll start proving the concept, do the learning and keep you posted. Of course we’re always looking for enthusiastic and good individuals. Feel free to give me a buzz.

See also: The Insurance Model in 2035?  

Finally

Insurers are experts in risk and capital management, and that is what they should keep doing, but in a different perspective. Deploy that expertise in the new environment of connected lifestyles.

Asia Will Be Focus of Insurtech in 2017

Asia will be the key pillar in the coming revolution of insurance and in all likelihood will become the hottest market for insurance technology (insurtech) globally. It’s no longer just a pipe dream, as this time all the stars are aligning. Take the sheer population size and rapidly emerging tech-savvy middle class, together with low effectiveness of traditional insurance distribution. Combine that with a destabilizing wave of political populism, making its rounds across much of the developed world, and you’ve got most of the ingredients for a region that will take on a leading global role for insurtech.

So what, if anything, is missing to really ignite insurtech in Asia? It turns out that while the region is ripe for insurtech, the actual quantity and quality of startups in Asia is nowhere near that of other regions… at least not yet.

Share of investments in insurance startups can be used as a good proxy to the overall level of insurtech activity around the world. According to the figures, the U.S. takes 63%, with Germany (6%), U.K. (5%) and France (3%). China is at 4% – which doesn’t account for Zhong An’s massive investment in 2015 — and India at 5% (Source: CB Insights).

See also: The Future of Insurance Is Insurtech  

So the logical question is, why aren’t there more startups in Asia, considering the substantial opportunity and funding that exists in the region? Is it due to a shortage of experienced entrepreneurs, difficulty of starting a business, lack of access to investment or something else? The answer is that it’s likely a combination of a few factors, including a weaker early-stage entrepreneurial ecosystem, which doesn’t yet effectively support startups, and a cultural aspect of lesser tolerance for failure. Both of these are changing fast, though, and entrepreneurs across Asia are starting to identify and test innovative insurtech solutions.

The following are just a few recent notable insurtech startup examples across Asia that have already reached beyond Series A funding: Zhong An (an $8 billion Chinese insurtech startup), Connexions Asia (Singaporean flexible employee benefits platform with a U.S.$100 million valuation), and two large insurance aggregators out of India– Policybazaar and Cover Fox.

So why am I convinced that Asia insurtech startups will not end up dominating their regional home turf ?

Probability and “Survival of the Fittest”

The lack of critical mass of startups in the region means that they will not enjoy the same quality filters and network effects of the larger entrepreneurial ecosystems of the U.S., Europe and to a somewhat lesser degree China.

“Surviving” U.S. and European startups have to fight their way across a lot more competition to reach scale in their home markets. Hence, where a weaker startup in Asia could get repeated life support simply because there aren’t that many others to invest in, natural selection weeds out the weaker models in EU/U.S. much quicker in favor of more robust ones. Stronger startups then get to attract the best talent from the entrepreneurial ecosystem, including talented entrepreneurs whose models didn’t work as well, further reinforcing successful EU/U.S. startups.

Home Market Advantage

Success in a large home market like the U.K., Germany or a few U.S. states gives a substantial boost to any startup. It provides both credibility and cash flow to allow a much more aggressive expansion into other regions. This also gives a startup flexibility to develop the necessary adjustments to the business model to adapt it for Asia.

The U.S. and EU have a deep domain level of insurance expertise, which gives EU/U.S. startups from those regions a further edge to tap advisory expertise locally, because most of the largest global insurers are based in these two regions.

Lastly, considering that most startups adopt a collaborative approach with insurance companies, having a relationship that originates close to the top decision maker at headquarters gives an added advantage to EU/U.S. startups when they are looking at expanding to new regions. I’ve personally experienced examples of relationships developed in Europe that later carried over in creating a pre-warmed partnership with the insurer’s operations in Asia.

Regulatory Complexity

Asia is made up of a large number of countries, where each has its own insurance regulator, who possess views on how things should be run. This means an additional potential growth hurdle for Asian startups.

For example, a startup out of Singapore will need to figure out how to navigate the neighboring Asian country regulatory regimes pretty early in its growth cycle. Thailand, Malaysia, Indonesia and Vietnam markets all have diverse regulatory requirements. This lands the Singaporean startup at a disadvantage vs. a more mature startup out of EU/U.S. – which not only has experience dealing with regulators in its home market but also possesses a proven track record and a larger resource pool that it can use to overcome any regulatory issues.

Meet Future Leaders of Asia InsurTech

Here are  35 insurance startups from across the U.S., Europe and China that have a real shot at collaboratively shaping the future of Asia’s insurance . Granted that not all of these startups will successfully adapt their models for Asia, a few would and will go on to successfully dominate Asia’s insurtech landscape in the foreseeable future.

Credit: George Kesselman

Credit: George Kesselman

The future of insurance in Asia is coming fast, and it’s looking pretty exciting!

See also: Insurtech Has Found Right Question to Ask  

Below are links/brief description of each of these 35 ventures.

U.K.

  • Guevara – People-to-people car insurance
  • Bought by Many – Insurance made social
  • Cuvva – Hourly car insurance on-demand
  • SPIXII– AI insurance agent
  • Gaggel – A better alternative to mobile phone insurance.
  • ClientDesk – Digitizing the insurance industry
  • Insly – Insurance broker software

Germany

  • SimpleSurance – World’s leading e-commerce provider for product insurances
  • Friendsurance – The future of insurance (P2P)
  • Getsafe – One-stop digital solution for all your insurance matters
  • Finanz-chef24 – Germany’s largest digital insurance for entrepreneurs and self-employed
  • Money-Meets – Save money and improve finances
  • Clark – Insurance as easy as never before
  • MassUP – White-labeled platform for online insurance sales
  • FinanceFox – Your insurance hero

USA

  • Metromile – Pay-per-mile insurance (usage-based auto insurance)
  • Oscar – Smart, simple health insurance.
  • Zenefits – Online HR Software | Payroll | Benefits – All-In-One (EB distribution)
  • Policy Genius – Insurance advice, quoting and shopping made easy
  • Embroker – Business insurance in the digital age
  • Slice – On-demand insurance for the on-demand economy.
  • Trov – On-Demand insurance for your things
  • Cover Hound – Compare car insurance quotes from top carriers
  • Insureon – Small-business insurance
  • Bunker – The marketplace for contract-related insurance
  • Lemonade – Peer-to-peer renters and homeowners insurance
  • Cyence – Comprehensive platform for the economic modeling of cyber risk

China

Fire Up Your Firm Through Storytelling

“Symbols, dramas, stories, vision and love–these are the stuff of effective leadership, much more so than formal processes or structures. When you involve people, they feel ownership and perform up to 1,000% better.”

Tom Peters, A Passion for Excellence

The speed of change in today’s world is so disorienting that people are struggling to maintain their equilibrium and sense of wellbeing. In times of chaos, and especially when basic needs are threatened, strong leadership is more important than ever. Because people are looking to the workplace now for all their needs — professional development, social activities, onsite health care and child care services — strong leadership is especially critical. Business leaders need to reassure employees that they will continue to receive the support they need, even as the organization continually adapts to the chaotic marketplace so that customers’ rapidly changing expectations can be met.

Communication is the key to accomplishing this goal, and the most effective approach is to develop an authentic story — and tell it effectively. A company needs to develop a story so bright and so right that its target audiences (employees, customers, stockholders, affiliates, suppliers, etc.) are drawn to the flame. This story needs to be told — and retold with new twists — at every opportunity. By reminding everyone affiliated with your organization of where you’re going and how you plan to get there — and most importantly, how each person can contribute — you will strengthen the culture and boost morale.

Stories have been the glue connecting people with their cultures and with one another throughout human history. In ancient cultures, and even relatively modern tribes, the oral tradition was the vehicle for passing tribal practices and history down through the generations. The designated tribal storyteller was responsible for ensuring that each member of the group understood the importance of his role in continuing the traditions upon which the very survival of the tribe depended. The storyteller also served as an entertainer, retelling familiar tales around the campfire and engaging the imaginations of all those in the circle.

Why have stories always been so central to human interactions? Because stories reach people at a deeper level than a litany of facts and figures, and stay with people longer. As the high-tech elements continually become more dominant, people hunger for high-touch interactions.

Stories in Corporate Cultures

Corporate cultures are no different from ethnic cultures or any other special-interest group in their need for, and dependence on, stories about themselves, which help to create a culture as well as keep it alive. While in our modern culture we often think of a story or myth as a fabrication, storytelling is, in fact, the primary tool we all use to communicate. “How’s your day going?” “What’s the status of your project?” “What’s the latest news on the company’s new product?” Each of these commonly posed questions is answered in story form, whether or not the speaker is aware of being a “storyteller.” Awareness, however, is essential to the process of identifying an organization’s core story.

“All you can do is relate the successful experiences you’ve had within the company. What else have we got besides stories? That’s what really hits home with people; it’s what brings meaning to the work we do…. A picture is worth a thousand words, and a story told appropriately is priceless. Telling one of our stories speaks volumes about our philosophy and our values.”

Jim Sinegal, co-founder and CEO, Costco Wholesale

From Around the Corporate Campfire: How Great Leaders Use Stories to Inspire Success, C&C Publishing, 2004

To reach key audiences, an organization’s story must be authentic; it must be based on corporate values and guiding principles. An authentic story reveals the true personality of the company. It reflects, in essence, the heart and soul of the organization. As such, the core story must be told by people in leadership roles in a consistent manner and on a regular basis to ensure that they control it. When a leader articulates the core story effectively and consistently, people at all levels of the organization are captivated by the vision and begin “singing from the same page.” This level of company-wide consistency and commitment enables an organization to cut through the clutter of the marketplace to reach its targeted audiences and draw them into the inner circle.

Team-Building Through Personal Stories

The storytelling approach also has proven to be a highly effective teambuilding system, which is especially fitting for a retreat. Work teams often choose to apply the process in telling their own personal stories before beginning the joint work of developing the organization’s story. In doing so, they experience two key aspects of working together:

  • Self-discovery is exciting.
  • Self-disclosure leads to trust.

Their excitement is contagious! As participants discover shared personal values, they begin building ties with co-workers with whom they formerly believed they had nothing in common.

“If I wanted to predict behavior, I could still predict it better with the stories told around the company than I could with any mission statement or five-year plan.”

Robert Shapiro, former chairman and CEO
Monsanto Corp. and Nutrasweet Group

In one memorable case some years ago, the storytelling process overcame what had seemed insurmountable barriers between an entrenched manager in a small municipal outpost and the new, sophisticated urban manager who had been brought in to replace him. The atmosphere, understandably, was tense as the first day of a two-day planning retreat began. Following a relaxing and playful creative exercise and the sharing of the team’s personal stories, however, the tension eased considerably. The two men warmed up to one another and continued their discussion over lunch. The rest of the retreat was extremely productive, with the outcomes far surpassing the expectations of everyone involved.

This experience demonstrates that the sharing of common values and a common mission helps people to

  • work together,
  • support one another and
  • serve the customer more effectively.

By incorporating storytelling as a part of your business practices and regularly including relevant stories on the agenda for meetings and retreats, you will propel your organization toward its goals. Red-hot stories will keep everyone fired up and eager to pass them along to everyone they encounter.

“Storytelling is the single most powerful tool in a leader’s toolkit.”

Howard Gardner, author and professor, Harvard University Graduate School of Education

Key Takeaways

  1. During times of rapid change and economic uncertainty, such as is present in the insurance industry, strong leadership is more important than ever. Business leaders need to reassure employees that they will have the support they need to navigate the shifting landscape, and the most effective way to do that is to communicate often.
  2. The most effective communication tool is storytelling. By reminding employees of the organization’s values and demonstrating through story how those values are best enacted, leaders can help employees understand how they can succeed, even in trying times.
  3. Stories have always been the glue that helps people stick together, whether they are part of a tribe, a family, a professional association, a circle of friends—or a corporate “tribe.”
  4. A rapidly growing number of leading companies have discovered the power of story as a communication tool. When stories are told consistently and systematically, everyone in the organization works together better, stays focused on the mission and remains productive, ensuring continued success in the midst of change.