october 26, 2017 innovation executive board · executives and startups together • a three month...
TRANSCRIPT
STATE OFINSURTECHTim Hoying
October 26, 2017INSURANCEINNOVATIONEXECUTIVEBOARD
UPDATE ON INSURTECHINVESTMENT
145 151
442
312
852
1,302
1,630
1,052
-
200
400
600
800
1,000
1,200
1,400
1,600
1,800
2010 2011 2012 2013 2014 2015 2016 H1 17
$U
SD
, in
mil
lio
ns
THE INSURTECH LANDSCAPE IS GROWING WITH CLOSE TO $7.1 BILLION INVESTED TO DATE
The invested amount has not been disclosed for 158 deals out of 722 (22% of the database)
Excludes Zenefits ($500M) and Zhong An ($931M)
H2 17 TBD
17 36 49 63102
139
214# OF DEALS
102
VC FUNDING OF INSURTECH COMPANIES, IN MILLIONS $USD
• 2016 is the second consecutive year that the amount of investment was above the $1bn threshold(even when excluding Zenefits and Zhong An)
• The number of deals has increased more than tenfold between 2010 and 2016
Source: Accenture Research based on data from CB InsightsCopyright © 2017 Accenture Security. All rights reserved. 3
NORTH AMERICA REMAINS THE LARGEST MARKET FOR INSURTECH INVESTMENTS
Geographic Split2010-2017
North America219 companies485 deals$5.0b
Europe93 companies144 deals$690m APAC
37 companies56 deals$1.3b
RoW20 companies37 deals$43m
- The bubble size reflects the total invested volume between 2010 and H117.- The invested amount has not been disclosed for 158 deals out of 722 (22% of the database)
Top 10By $ invested to date
US
CHINA UK&I
Copyright © 2017 Accenture Security. All rights reserved. 4Source: Accenture Research based on data from CB Insights
THE LARGEST AMOUNT OF VC INVESTMENT IS IN DISTRIBUTION & MARKETING
UNDERWRITING & RISK MANAGEMENT
DISTRIBUTION & MARKETING OPERATIONS & CLAIMS
Peer-to-peer brokers, digital advice, user-friendly customer experiences
Underwriting optimization, intelligent automation, underwriting analytics
Predictive claims and risk analytics, intelligent claims automation
EXAMPLES OF 2016 TOP INVESTED INSURTECHS AND THEIR VALUE CHAIN FOCUS
$1,028 ,
63%
$241 ,
15%
$280 ,
17%
$76 ,
5%
2016 SHARE OF VC FUNDING ACROSS EACH STEP IN THE TRADITIONAL INSURANCE VALUE CHAIN($USD, in millions)
2016 VC FUNDING
Distribution & MarketingUnderwriting & Risk
Management
Operations & Claims
Cross Value Chain
Source: Accenture Research based on data from CB InsightsCopyright © 2017 Accenture Security. All rights reserved. 5
$802 , 49%
$559 , 34%
$268 , 17%
$350 , 34%
$262 , 25%
$434 , 41%
INVESTMENTS IN LIFE AND MULTILINE ARE GROWING, ESPECIALLY IN 2017
-
100
200
300
400
500
600
700
800
900
2012 2013 2014 2015 2016
$U
SD
, in
mil
lio
ns
Health P&C Life & Multiline
2015 excludes Zhong An’s $931M
(P&C), Zenefits $500M (Health) and Ins110.com $83M (Travel).
2016 H1 17
WHILE HEALTH AND P&C HAVE HISTORICALLY BEEN THE LARGEST SECTORS TO RECEIVE INSURTECH FUNDING…
…THERE HAS BEEN CONSIDERABLE GROWTH IN LIFE & MULTILINE INVESTMENTS
Health P&C Life & Multiline4-year CAGR
Health P&C Life & Multiline
36% 60% 83%
Insurance sector, total and share of VC funding ($USD, in millions)
Insurance sector, VC funding ($USD, in millions)
Copyright © 2017 Accenture Security. All rights reserved. 6Source: Accenture Research based on data from CB Insights
INTELLIGENT AUTOMATION AND AI INVESTMENTS ARE GAINING MOMENTUM
IOT/Connected Insurance
Analytics/ Big Data
Intelligent Automation/ Artificial Intelligence
INSURANCE SECTOR, VC NUMBER OF DEALS
▪ The number of VC deals in IOT/Connected Insurance and Analytics/Big Data has dropped significantly in H1 2017 in comparison to previous years
23
15
8
31
65
27
20
47
11
10
24
6
2014 2015 2016 H1 2017
▪ The number of AI/Intelligent automation deals in H1 2017 has already surpassed the total for 2015 and is on track to surpass 2016
Copyright © 2017 Accenture Security. All rights reserved. 7Source: Accenture Research based on data from CB Insights
Copyright © 2017 Accenture Security. All rights reserved. 8
WHEN IT COMES TO STARTUPS, INSURERS LAG BEHIND RETAIL BANKS
Insurtech is not a silver bullet – the real challenge for insurers is to become more innovative in their everyday business. This means not holding new technologies at arm’s length, and not taking a piecemeal approach to innovation…
70%
56%
32%
32%
38%
26%
14%
17%
Retail Banks
Insurers
% of firms that work with startups or universities on digital initiatives
% of firms that provide monetary or non monetary (e.g. coaching) support to digital startups)
% of firms that host incubators (e.g. provide office space or facilities) for digital startups
% of firms that have an in-house venture capital fund (or similar) that focuses on digital
Source: Accenture Research, “The Rise of InsurTech” (May 2017). Activities of more than 200 insurers and 80 retail banks worldwide
INTRODUCTION TO OUR INSURTECHINNOVATION LAB
Copyright © 2017 Accenture Security. All rights reserved. 10
OVER THE PAST 7 YEARS, ACCENTURE’S4 FINTECH LABS HAVE MENTORED 135 STARTUPS
LONDON (EST. 2012)
• 23 partner banks / 5 associate banks• 36 alumniSample alumni:
NEW YORK CITY (EST. 2011)
• 16 partner banks / 13 associate banks• 38 alumni
Sample alumni:
DUBLIN (EST. 2014)
• 8 partner banks• 12 alumni
Sample alumni:
HONG KONG (EST. 2014)
• 12 partner banks / 8 associate banks• 15 alumniSample alumni:
260+ PoCs initiated
$535M Capital Raised post
FinTech
475+ Jobs created post
FinTechOUTCOMES
Copyright © 2017 Accenture Security. All rights reserved. 11
OUR INSURTECH LABS BRINGS SENIOR EXECUTIVES AND STARTUPS TOGETHER
• A three month accelerator program, bringing senior executives together with InsurTech start-ups
• The program is designed to help start-ups mature their offerings and build valuable relationships with decision makers and investors within the industry
• The objective of the lab is to progress offerings from proof-of-value to proof-of-concept
• The program has a series of structured activities to create engagement between the start-ups and senior executives from our partners, banks and insurers.
WHAT WE DO
Copyright © 2017 Accenture Security. All rights reserved. 12
THERE ARE FOUR CORE COMPONENTS OF OUR INSURTECH LABS
FINANCIAL INSTITUTION & VC MENTORSHIP
Mentors from at least three of the participating financial services firms’ technology teams
Access to users / business units within the financial services firms for product feedback
EXECUTIVES IN RESIDENCE
Current or former executives with backgrounds in various disciplines (e.g., technology, business, regulatory)
May also include members of the academic community (e.g., data science, Artificial Intelligence)
LEADERSHIP PROGRAM
Access to speakers on issues relevant to early stage companies
Regular interaction with senior executives from the financial services community
ENTREPRENEURS NETWORK
Mentorship from the participating VC firms
Opportunities for one-on-one mentoring sessions with FinTech and InsurTech entrepreneurs
Copyright © 2017 Accenture Security. All rights reserved. 13
WE LAUNCHED OUR FIRST INSURTECH LAB IN LONDON WITH 13 PARTNER COMPANIES
Copyright © 2017 Accenture Security. All rights reserved. 14
IN YEAR 1, WE RECEIVED 102 APPLICATIONS FROM A DIVERSE RANGE OF OFFERINGS
17%Unique Commercial
15%Analytics
10%P2P
7.5%LP&I
7.5%On Demand / Push Insurance
7.5%Smart Contracts + Blockchain
Breakdown of Total
InsurTech Applications
27%Other 5%
Social Media
5%CRM Application
5%Mobile Platform
5%Telematics
5%APIPlatform
2%Chatbot
Breakdown of Other
InsurTech Applications
Copyright © 2017 Accenture Security. All rights reserved. 15
FIVE INSURTECH FIRMS MAKE UP OUR 2017 COHORT
TELEMATICS PLATFORM
Kabzy provides the facts
surrounding road accidents by
capturing live data to create a
3D reconstruction of the event.
API PLATFORM
Kasko offer an insurance API to
quickly digitalise and integrate
insurance products within
websites and apps
RENTAL INSURANCE ECOSYSTEM
InsureStreet replace rent
deposits with an insurance
product, costing a 5-10% to
deposit value, based on micro
risk and pricing.
SOCIAL MEDIA
Digital FinePrint turns social
media data into insurance data,
allowing customers to ‘Autofill
with’ Facebook or LinkedIn.
CHABOT
SPIXII is a smart Chatbot for
selling insurance that adapts
the way it communicates
depending on who it is talking
to.
Copyright © 2017 Accenture Security. All rights reserved. 16
WE ARE IN THE PROCESS OF ROLLING OUT AN INSURTECH LAB IN NEW YORK CITY
LondonFinTech Lab
Launch
Dublin & Hong Kong
FinTech Lab Launch
New YorkFinTech Lab
Launch
LondonInsurTech Lab
Launch
2011 2012 2014 2017
New YorkInsurTech Lab Launch
• Areas that will be of interest include: • Leveraging new data sources for underwriting and
claims • Applying artificial intelligence to the underwriting
and claims process• Facilitate a benefits marketplace• Develop new products for microbusiness and large
employers• Tackle core infrastructure tools (cybersecurity,
cloud enabling)
PARTNERS
SPOTLIGHT ON INSURE TECHSTARTUPS
Copyright © 2017 Accenture Security. All rights reserved. 18
AppBus is a platform that securely integrates enterprise applications on consumer devices over the public internet without a VPN or requiring changes to the underlying application code.
Airware provides everything enterprises need to collect, manage, and analyze aerial data. Our customers use our enterprise drone solutions to translate aerial data into actionable business intelligence.
DemystData’s innovative data gateway unlocks financial services as scale. Access, match, and structure a myriad of data into a single platform to make the right customer decisions in real-time.