Lighthouse #3
Curating the best insurance, insurtech, innovation and leadership content for you.
Ron Arnold
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I’ve not failed. I have just found 10,000 ways that don’t work.
Thomas Edison
Insurance
Future of Insurance: Traditional insurers are being challenged to accelerate the digitisation of their businesses as customers are turning to digital channels to fulfil their needs. According to this article digital attackers excel in the following four areas. Some hints here for the incumbents in any industry… DIGITAL: Primary source of customer acquisition. DATA, ANALYTCIS, AI: Drive insights and decisions. CLOUD: Enables quick adaptability. TALENT: Entrepreneurs may be better than corporate executives for digitisation. They also have flatter hierarchies for greater transparency into work outcomes, foster open discussions and encourage a willingness to challenge the status quo and embrace new ideas. Read more Source: McKinsey
Insurers Need to Change Their Focus: The insurance industry is going to have to get younger, more digitally savvy and come up with more versatile products. Oh, and employees will probably not be coming back to the office. Good insights from McKinsey. Read more
The IoT Opportunity: The insurance industry cannot ignore the rapid growth in IoT opportunities. IoT and insights from the generated data can enable new, positive customer experiences beyond the benefits that come with insurance, and the industry must define its approach to leveraging the technology’s abilities. Almost every part of the value chain can be improved. And a vast range of education, mitigation and recovery opportunities exist. Read more Source: Asia Insurance Review
Are Insurers Serious About Cyber Insurance?: Cyber insurance is a critical modern economy enabler as business & consumers continue their shift to digital. S&P forecasts this market will start growing by 20-30% pa. In my view we aren't seeing enough innovation & drive from Australian insurers in this space. There are great education, mitigation and insurance opportunities. Good article, good predications. Quote from the article “This is the beginning of a very fast-moving market in which alternative and cyber insurance products will become more prevalent. This will support further growth of the cyber insurance market by leveraging the development of the right products to fill market gaps and the additional required capacity.” Read the predications Source: Forbes
Top risks for the next 12 months: The Allianz Risk Barometer annual report identifies the top corporate risks for the next 12 months and beyond. For the Asia Pacific the risks are as follows: #1Cyber incidents (with 41% responses), #2 pandemic outbreak (with 39%), #3 business interruption (with 38%), #4 natural catastrophes (with 27%) and #5 Changes in legislation and regulation (with 22%). I am surprised where nat cats rank. See the report Source: Allianz
Great Claims Outcome by IAG: IAG has settled a motor total loss claim in 24 mins through the integration of artificial intelligence (AI) in the form of a predictive total loss solution. The approach predicts with over 90% accuracy whether the customer’s vehicle will be a total loss or not. This technology has seen IAG achieve a reduction in claims times for motor vehicle write-offs from two and a half weeks to just a few days by eliminating the need for the vehicle to be towed to a repairer prior to its assessment. Read more Source: Insurance News
Thought Leadership and Innovation
Innovation and top performing ASX companies: 'Innovation' is a dirty word in a lot of organisations. Many Executives just don't see the value and believe $$$$ are being squandered. Take note of this study by CSIRO and Uni of QLD that highlights the link between performance and innovation for ASX companies. The findings are consistent with the work we do with Exec teams. There is no doubt Corporate Innovation is hard. Many corporates fail to utilize a robust innovation scaffolding that guides how innovation works within the context of the corporation - its processes, practices, mindsets etc. Get the report
Problem Solving Mindsets for Uncertain Times: Love this article. This quote sums it up but is well worth reading. “The mindsets of great problem solvers are just as important as the methods they employ. A mindset that encourages curiosity, embraces imperfection, rewards a dragonfly-eye view of the problem, creates new data from experiments and collective intelligence, and drives action through compelling show-and-tell storytelling creates radical new possibilities under high levels of unpredictability. Of course, these approaches can be helpful in a broad range of circumstances, but in times of massive uncertainty, they are essential.” Read the article Source McKinsey
Making your analytics work: Is your company head-over-heels for analytics? If so, they ought to know that Analytics success isn’t just about data collection, it’s about data management and insight. Research conducted by Gartner found that only 20% of analytics insights will deliver business outcomes leaving 80% idle. That’s because most companies aren’t following a set of established best practices, operating instead from a mostly haphazard and unproven playbook. According to one expert, there are 3 bedrock practices and 7 general rules as guidance for a successful analytics journey. Good list of practical actions in this article. Find out more Source: MIT Sloan
Learning the hard way - some tips for Corporate Innovators: Corporate Innovation is hard, really hard. This article provides some really important tips spanning: Find Right Performers, Not High Performers; Don’t Let People Learn On the Job; Use (the Right) Partners; Beware of Over-processing and Over-planning; Paralysis by Analysis; Protect it, Structurally and Even Legally; Where There are Overlaps It Needs a Veto; Keep it Accountable to its Milestones; Avoid or Augment HiPPO Governance. Read the article Source: Medium
Insurtech
Lemonade continues to polarise opinions: The insurtech Lemonade is one of those businesses that has attracted a lot of interest, and many opinions. This is quite a brutal article that doesn’t hold many punches. Well worth a read. Go to the article Source: Friendly Bear Research
The Promise of Parametric Insurance: Parametric insurance is one of the most promising innovations in insurtech because it fulfills two key promises: operational efficiencies gained through technology and automation; and increasing demand-side opportunities to sell insurance. Extending parametric insurance to consumers provides insurers with an immediate, data-triggered option for claims payments. Good article covering the many dimensions of parametric: Read more Source: Property Casualty360
Telematics - an Untapped Opportunity in Oz? Globally, telematics/usage based insurance options are getting traction – be it through apps or plug in tech. To name a few:
Root Insurance Agency, a US app driven usage proposition; recently listed
Trōv continues to partner using its mobility platform – the latest partnership with UFODRIVE, a rental platform in London, UK
Vitality announced a partnership with Covéa Insurance looking to a Spring launch in the UK. Like its health model, policyholders get rewards eg for safe driving
By Miles, has just launched By Bits. A SaaS platform enabling insurers develop their own usage-based products
Traction in Australia has not been so strong – several attempts started & then stopped…AAMI, QBE. I believe there are some real opportunities - if approached the right way!
Security deposit insurance for renters: Rhino, the New York City-based insurtech company that pioneered security deposit insurance, has announced its recent $95 million funding round. Launched in 2017, Rhino tackles the housing affordability crisis in America by replacing cash security deposits with smart, affordable insurance. Renter’s insurance in Australia has not proven to be an overly strong product line. Maybe this is a better way into the renters market. Read more Source: Insurtech Insights
Beware of disruption from non-traditional sources: Grab raises $300 million for fintech arm from investors including Hanwha. This is the first external funding for Grab's fintech business, which has chalked out ambitious plans in insurance, lending, wealth management and payments. With credibility, massive customer reach and slick digital interfaces, businesses such as Grab represent credible competition for legacy financial services businesses! Read more Source: Money Control Asia
Chubb and Revolut partner: Chubb has announced the launch of a new insurance partnership with Revolut to provide a range of coverage for its customers such as purchase protection, refund protection, and ticket cancellation. Where a Revolut account is used the policy also offers coverage if a customer has a confirmed diagnosis of COVID-19 and is, therefore, unable to use event tickets purchased using their Revolut account. The initiative will be rolled out across 22 countries. More competition for insurers through non-traditional channels. Read more Source: Insurtech Insights
Ten fastest fintechs to reach $1b valuations: The world is now home to over 70 fintech “unicorns” — startups worth over a billion dollars. If nothing else, this highlights the continued hype around the fintech sector, with investors tripping over themselves to fund companies promising to disrupt banking and payments. The list plus some other interesting stats in the article. Read more Source: Sifted
#Diversity
#startup ecosystem diversity is a problem. Women get less than 3% of #vcfunding globally, yet they typically outperform their male counterparts (BCG). Access to capital, training to help build new skills & access to networks of power are key challenges. Here I share the stories of inspirational women in the start-up ecosystem and important educational pieces.
Trust in Female Leaders: This is a troubling article. Despite strides in women’s representation in powerful roles, a surprising number of people across the world still don’t trust women to lead effectively. These biases are deep-seated. This article highlights some of those biases and just how much further we have to go. While the article does not cover Australia I would be surprised if the issues are any different here. We all need to do more to face into these biases and take deliberate actions to make sure they remain part of the discussion at the top table (and everywhere else), and measurable efforts are made to change them. Key insights are:
The absence of progress in social attitudes towards equality for men and women
Young men are significantly less progressive in their views than young women
Younger people overall are less progressive in their views
Read more Source: BBC
Crowd Funding Working Well for Female Founders: Female-led startups raised 25% more on crowdfunding platforms in 2020, bucking the 'bias' of more traditional investors. Although a great outcome, it in no way makes up for the gross under funding from traditional sources where a whole range of biases seem to working against Female Founders, who get less that 3% of funding globally! Read more Source: Business Insider
Inspiring Female Founder: My latest article about an inspiring female founder - Christine Khor, CEO and Founder of Peeplcoach. Peeplcoach is a modular, customisable platform that makes 1:1 career & leadership coaching accessible to all employees. Read more Source: 11eight
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