There are currently more than 550 InsurTech start-ups with approximately USD14bn in investment – equating to a 55 percent increase in capital since 2016 when the sector was USD9bn across 200 start-ups. Paul Mang, Aon’s Global CEO of Analytics, will today outline in his keynote speech how the industry can take advantage of this investment to become more efficient and expand into emerging risk markets. He will focus on three key forces that will shape competitive advantage in the future:
1. New sources of behavioral data through the Internet of Things to enhance pricing and risk selection
2. Time based products and services to offer speed and flexibility in an on-demand economy
3. Adapted insurance products to cover the new risks of digital networks and platforms which are beginning to have increased commercial influence over more traditional corporations
Paul will explain how by “innovating how it innovates" the industry will meet the challenges and opportunities posed by digital entrepreneurs. Paul says: “Opportunities presented by ‘disruption’ vastly outweigh the threats, and we encourage insurers to build capabilities in what we term ‘open architecture’ innovation models. This could include partnerships with even the most entrepreneurial start-ups that some have labelled disrupters. We can help new technologies and new business models be adopted faster by reducing risk and volatility.
“Analytics, coupled with technological innovations, will enable us to address stubborn industry challenges and open new growth opportunities for the sector to tackle evolving risks such as cyber, pathogens and casualty catastrophes.
“The true transformation of our industry will happen as we re-imagine risk management altogether, exploring the synergies between evolving societies and technology. Entrepreneurs will have a major impact on our sector, but the largest impact may be indirect, as they strive to create new business models around retail, manufacturing and entertainment. This will inevitably create entire new opportunities and needs for risk management,” Paul added.
One organisation that is transforming its business to meet this changing competitive environment is Suncorp. Speaking at the Conference, Suncorp CEO & Managing Director, Michael Cameron, shared an update on the company’s transition to a new operating model that places the customer at the centre of their business.
“We are creating the ‘Suncorp Marketplace’, a destination where customers can choose from a broad range of brands, products, services and solutions that meet their needs, including those from third parties,” Mr Cameron said. “One of those third party partnerships is our collaboration with Trov. We know the millennial generation wants new kinds of services that are on-demand. With Trov Protection, we provide instant access to insurance for individual items such as cameras, tablets and laptops through a mobile app.”
The collaboration is a great example of how Suncorp is partnering with innovative organisations to deliver a better experience for customers.
Over 300 delegates are attending Aon Benfield’s two-day conference, representing one of the largest gatherings of hazard risk professionals from both academia and the re/insurance industry. The conference is exploring ways to improve risk management in an increasingly complex world.
Speakers and panelists this year will provide perspectives spanning how to reinvent financial services, managing the ‘human capital blind spot’, cyber re-imagined and the advertising industry’s view on the insurance industry.
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