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1、 NOVEMBER 2022GALLAGHER RE GLOBAL INSURTECH REPORT Q3 2 02 224.INSURTECH BUSINESS MODELS AND CASE STUDIESFull-stack insurerFWDDistributionCover GeniusB2B/technology providerAppMan B2B/technology providerInsureMODEAL OF THE QUARTERZopper32.A REGIONAL SPECIALISTS VIEWGeorge Kesselman,ZhongAn Tech INDU
2、STRY VIEW ON INSURTECH Ted Ohkuma,Tokio Marine40.46.BROKERS HOUR Mark Morley,Gallagher ReTHE ROLE OF THE INSURTECH ECOSYSTEM India InsurTech Association;Prerak Sethi,Shwetank Verma and Subhajit Mandal52.60.THE DATA CENTREThis quarters data highlights4.PREFACEby Dr.Andrew Johnston16.INTRODUCTIONGeogr
3、aphy in focus APAC36.This report is a collaboration between Gallagher Re,Gallagher and CB Insights.CO N T E N TS I N S I D E T H I S E D I T I O N.32PREFACEWhile many hundreds of InsurTech businesses are not directly involved in risk origination themselves,a significant number of InsurTech businesse
4、s are offering services,products and solutions that either support incumbents to originate and manage risk or are themselves directly in the process of pricing,risk selection and portfolio optimisation(support)usually as Managing General Agents,(MGAs).The MGA model has become extremely attractive fo
5、r a whole host of InsurTech businesses that believe they have the edge over incumbents,whether it be with a differentiated product,better access to risk-indicating data,a better understanding of an underserved demographic etc.But not least,it is a model that is extremely capital light,is less of a r
6、egulatory headache and,most importantly,passes written risks(and their associated losses)onto somebody else.With revenue margins of up to 30%of the underlying gross written premium,and relatively small capital holding requirements(tying up capital that can be used for growth and development),the MGA
7、 model has been a growth sanctuary for many InsurTechs in the past couple of years.While risk partners may have been prepared to carry the burden of losses as InsurTech equity valuations were rising and companies were growing,the current environment has turned some very important tables.The MGA mode
8、l for new businesses is in fact a very sensible one,especially for those who do have a demonstrable edge that will differentiate and scale over time but which do not have access to tens of millions of dollars in the short-term.It is an opportunity to perfect the underwriting,establish yourself in th
9、e market,develop a brand and help risk partners to grow organically(which can in turn lead to very deep reinsurance relationships further down the road).The model effectively allows for outsourcing all balance sheet requirements,allows a company to stay balance sheet light,and allows for limited/no
10、restrictions on risk-based capital charges.In theory,MGAs can write unprofitable business in the short-term,and survive in a way that is not true if you have a balance sheet.The MGA model is certainly not new but has been given a lot of prominence by the InsurTech phenomena we have observed now for
11、approximately a decade.It lends itself well to those wanting to break into the industry.It is not,however,a place to become positioned for(too)long in this current environment,if the MGA in question is not adding additional value to the pendulum that swings between risk selection and capital matchin
12、g.Is the accelerated jumping pattern from the InsurTech MGA model to the InsurTech full-stack insurer model the clearest indicator that we truly are at an inflection point in global InsurTech?DR.ANDREW JOHNSTONGlobal Head of Gallagher Re InsurTech,Global InsurTech Report EditorIt(the MGA model)is an
13、 opportunity to perfect the underwriting,establish yourself in the market,develop a brand and help risk partners to grow organically.PREFACE54Stepping stones of risk origination/referral progressionProduct Provider/Referral Mousetrap/Broker1Functioning Managing General Agent(MGA)2Full-Stack(End to E
14、nd)Licenced Insurer 37PREFACEPREFACEThe prominence of the MGA model has not just been driven by the desires of InsurTech companies to run capital-light businesses in isolation;their existence was also(and in some cases continue to be)welcomed by reinsurers who were/are keen to go direct into some ma
15、rkets,supporting a variety of products that they may not otherwise have had ready(direct)access to.Particularly between 2017 to 2019 it was not unusual to see quota shares ceded into a single reinsurer that assumed 100%of the originated risk from InsurTech MGAs.In a handful of cases,the reinsurer wa
16、s also an equity investor and even provided the fronting paper to provide the MGA everything they needed to run their business.Similarly,investors saw the relative positive valuation differential between MGA businesses and traditional balance sheet insurers and understandably wanted to get their Ins
17、urTech portfolio setup in a way that could maximise their street value,while not requiring a significant amount of cash to be locked into a balance sheet(as an example,an established insurer might be valued at 1.5x tangible book value,where a tech-driven MGA can command valuations north of 15x and g
18、rowing MGAs can achieve 20 x).Needless to say,there are/were many parties who had a vested interest in getting InsurTechs with products and underwriting capabilities into the MGA model.The MGA model is also a natural stepping stone as a one-up from simply supplying products or referring business.It
19、is deal-flow maintaining and managing.While the MGA market has been more profitable than the overall P&C business for many years,largely due to the overweight of low margin commodity products in the P&C market,the reality for most InsurTech MGAs is that they are not writing(net)profitable business,a
20、nd in some cases charging up to 15%net fees for their services.In an environment where investors and risk partners are now reevaluating their tolerance and appetite for business that may or may not one day(ever)become profitable,there is a drying up of willing risk partners prepared to support Insur
21、Techs who are themselves not willing to partake in any risk bearing.In parallel to the growing number of InsurTech businesses who have expanded the numerous use cases of the MGA model,a number of fronting companies have also come into being and prominence.In some cases,fronting companieswho themselv
22、es were not bearing riskhave been charging a fee for their balance sheet(4%-7%of the gross written premium).All this to say,the ultimate risk bearer has been shouldering a disproportionate amount of the load to support InsurTech MGAs.Many of these fronting companies are ahead of the game,and are now
23、 bearing parts of the risk,in part to better understand the risk that these InsurTech MGAs might be writing(particularly in cases of new products,and new geographies).In some cases,it has become a necessity to ensure reinsurer risk participation.During this process,most hybrid fronting companies hav
24、e become extremely sophisticated and adept at selecting the right MGAs to work with.The pressure is now on InsurTech MGAs to do the same and get into the game of risk.In the abstract,it is a normal evolutionary path and trajectory for some MGAs to ultimately become risk bearers.The insurer/balance s
25、heet model gives underwriters and insurance entities much greater command of their own destinies,and in instances of accurate pricing,a much greater share of a healthy profit margin.While it may have been the plan all along for a number of InsurTech MGAs to become insurers,we are now observing a spe
26、eding up for them to do soboth from existential market pressure,but also a(more)conservative approach being held by incumbent risk partners and a fairly fixed economy of profitable risks in the current global reinsurance markets.While the global reinsurance market is not a zero-sum game(by any means
27、),MGAs cannot keep doubling in number indefinitely and expect traditional liquidity markets/risk partners not to become increasingly punitively priced.InsurTechs do not have a great track record in prising away better risks from incumbent household named insurers.While there has been some fantastic
28、innovation in the InsurTech liquidity space(for example Vesttoo),this has certainly not kept pace with the number of InsurTechs looking to originate new or differently priced risks.From a differentiated pricing and risk selection perspective,the dawn of the data age has not been as transformative fo
29、r a number of these InsurTechs as they might have hoped.In wishing to step across the river quicker,InsurTechs who have a new product or a distribution mousetrap that they want to capitalise upon,the move from MGA to full-stack risk bearing insurer is now accelerating in 2022.There is a run-on balan
30、ce sheet acquisition(particularly in the U.S.)as many InsurTech MGAs look to make the leap.This,in objectivity,is all straightforward.In reality,however,in an environment where many InsurTechs will once again look to outside capital to help them meet their regulatory requirements(for balance sheet c
31、apital),this is proving tricky.Ideally,MGAs will use their own revenues and reserving to at least begin this process,but much of the profit,if there ever was any,has been spent on staff hires,wild growth aspirations and brand building.This really is one giant leap for InsurTech-kind in this conserva
32、tive macro-economic environment.What will be particularly interesting,if this moving up the ladder really does take hold,is how the regulators will respond.Will InsurTech MGAs making the leap be placed under increased scrutiny as they look to get rated?Are regulators and rating agencies equipped to
33、accurately assess the needs and interests of technologically-empowered risk originators who may bring different things to the table?To date many InsurTechs have made this leap,including Hippo,Buckle,Lemonade,Root,Openly,Beam,Next,Oscar,ZhongAn,Clover,Ottonova,Alan,Singapore Life,Players Health,Devot
34、ed Health,Acko,Bright Health,Friday,Digit,Gryphon,Zego,Coya,Cowbell,Bowtie Life,Deutsche Familienversicherung,Collective Benefits,Element,Ensuro,Hellas Direct,Hedvig,Igloo,Marshmallow,Noblr,OneDegree and Wagmo(non-exhaustive list).Compared to this list of 34 companies,we estimate that there are at l
35、east 450(true)InsurTech MGAs globally.76Those InsurTechs who are successful in this evolutionary process will,and do,face new paradoxesthey will need to start hiring again rapidly,but quite different types of personnel.They will also need to become accustomed to being less capital light,not ceding a
36、ll/any risk to others,and be comfortable with focusing on(for some a novel idea)pricing risks profitably and taking the claims handling process a little bit more seriously.Being able to use AI to deny a claim,or pay a claim in a matter of seconds is only impressive if the claim should be paid in the
37、 first place,and in no way an act of fraud.For many InsurTechs who have already made this leap,it really has proven to be a sink or swim exercise,but for many companies the next few years will force this issue.This may no longer be the luxury of choice,rather necessity.Many InsurTechs are going to h
38、ave to start taking on risk if they have any hope of surviving in the long-term.While this may sound like a very daunting task(and it is),the potential upside is also enormous.It is often said that incumbent reinsurers will truly feel the heat of disruption when InsurTechs figure out distribution.In
39、 many cases,they have.What they have not been able to do is scale their underwriting intake because of restraints put upon them by the risk partners.If the latter part of this equation is no longer a constraint,then we could see the entrance of an entirely new breed of InsurTech business.In some cas
40、es,this is already happening,particularly in cyber insurance.It will be fascinating to observe whether or not the few InsurTechs who can not only make the leap,but can then swim,will be able to ingratiate themselves into our industry for the long-haul.There will also be those InsurTechs who currentl
41、y originate risk,who go on to choose to focus their energy on offering their technology as an underlying source of support and capability to our industry.These types of pivots are likely to become more and more common.The pressure on those InsurTechs in this model remains the samethe outcome needs t
42、o be a commercially appropriate one;not technology for technologys sake,or a solution looking for a problem.While much has been made of those risk-bearing InsurTechs who have already gone public,and their respective market value(s),it is quite possible that this new conservative,and frankly realisti
43、c view of risk-originating InsurTechs may well be in their favour.Many have already made the required leap and have had a two-year head start on fine-tuning their pricing and risk selection process.One cannot help but feel that they are perhaps jets who have already taken off from the sanctuary of t
44、he aircraft carrier,endured the initial dip down,buffeted by the wind,but are now rising back up into the sky and will actually soar above line of sight over time.There is not an endless pool of talent,nor is there endless supply of profitable business to be written,or access to sympathetic growth-o
45、riented risk capital.For many,removing the chocks is now a necessary precursor to survival.Many of the loss-supporting aircraft carriers who were once safe havens for InsurTechs are starting to retreat.The other feature of the value associated with those full-stack InsurTechs that is often not discu
46、ssed(beyond public investors behaving very differently to true venture capitalists)is very simplepublic full-stack InsurTechs have to publicly disclose their financial results.Once an InsurTech is a regulated insurance company,it is required to make annual and quarterly filings,providing detailed re
47、sults about its business performance,including revenue,loss ratios,surplus ratios,capital ratios and contracts with partners.Might we view/value some non-public InsurTech MGAs differently if we were able to scrutinise their numbers to the same degree?While balance sheet InsurTechs have typically had
48、 lower valuations than their MGA cousins(in part,as we discussed VC appetite not to tie up capital into a regulatory facility balance),we expect to see this trend begin to change over timeat least for certain businesses.The sheer number of InsurTech MGAs currently in existence cannot exist over the
49、long-term without a significant number beginning to take risk(which will force them to reevaluate the risks they bind,how they are priced,how claims are handled etc.).There will naturally always be a demand for some InsurTech MGAs to stay as MGAs.In instances where MGAs are handling all duties(bindi
50、ng coverage,underwriting and pricing,appointing regional agents,and settling claims effectively)while simultaneously providing risk partners access to great risks,great demographics and great geographies,the fee charged by InsurTech MGAs is very rationalisable to an overall offering.Similarly,where
51、MGAs are offering risk partners access to niche distribution channels,or providing them with niche service offerings through existing complementary capabilities,there is a huge amount of value for all parties.There are also those larger-scale MGAs who provide insurers with access to regional agents
52、in an area the insurer would like to target.We do not see many true InsurTechs playing in this space,however.Where there is pressure to change is where InsurTech MGAs are not adding enough value to their ecosystem partners to justify their expense with no risk bearing.Furthermore,where a risk partne
53、rs balance sheet capital has been used to grow MGA businesses but not deliver on the promise of long-term risk profitability,there is now a growing issue.If we look at the total amount of funding committed to full-stack InsurTechs,it pales into insignificance when compared with distribution-oriented
54、 InsurTechs(5%of the$50 billion invested,compared with the 50%invested into distribution InsurTechs).We anticipate that this trend will have to change over time,although it may well be the case that an MGAs last funding round will be to provide spring into the leap(and will therefore not be captured
55、 as full-stack funding given the business model at the time of the raise).We want to remind readers that this view is both an early-stage temperature check that we are beginning to observe(although in instances where the wheels are in motion,it is very real),but also certainly does not apply to many
56、(even most)InsurTech businessesjust those that are stuck in the position of not really adding a lot of additional value as an MGA.Over time,they will lose their competitive valuation advantage,and even the likelihood of ever being acquired given that any acquisition by larger carriers in particular
57、will be dilutive to their overall proposition(as InsurTech valuations will continue to outpace relative incumbent valuations for the foreseeable).We will continue to track those MGAs and insurance agencies/exchanges that make the leap into the full-stack arena with keen interest,as per our earlier h
58、ypothesis.In conjunction with funding numbers,this accelerated evolution may be the clearest bellwether we are observing as InsurTech once again goes through a key cornerstone inflection.Many InsurTechs are going to have to start taking on risk if they have any hope of surviving in the long-term.PRE
59、FACEPREFACE98In conclusion,there are many instances where InsurTechs are on the lookout for clean balance sheets and even with history.The incumbent legacy reinsurance market is so big that successful InsurTechs should,in theory,still be able to sell the liabilities to the right market.It will be in
60、teresting to observe how InsurTech MGAs with no experience of running an insurance company look to put in place all of the required functions;e.g.,staffing the firm,dealing with accounting,regulatory requirements,rating agency support,actuarial,audit,tax protocols,new systems for regulated entity an
61、d so on.For InsurTechs looking to make this leap into this brave new world,this is a whole new game.But there are investors willing to run,buy and manage these balance sheets with exclusive access to MGAs.There are also instances where savvy InsurTechs are putting into place a dual structure of a fr
62、onting/MGA function,in addition to owning a balance sheet.Running two structures,where profitability can be maximised is for some InsurTechs the best of both worlds.As we have alluded to before,however,this does require substantive knowledge of our industry.Optimising return metrics and profitabilit
63、y,no matter the structure,is the lifeblood of the future for most InsurTechs in the risk origination game,and the current bottom line.Globally,reinsurers are ultimately holding too much of the risk and they are not getting paid for it.We are observing that new deals for start-ups that would have bee
64、n completed say three years ago,are now struggling to get off the ground.The launch of new InsurTech MGAs may slow given the reinsurance markets,unless the MGA in question has a good management team with a track record.Not to seem repetitive but,InsurTechs have now got to add value.Innovation for in
65、novations sake,and the days of endless loss-propping capital now seem firmly in the reflection of rear view mirrors.This particular inflection point places enormous spotlight,and subsequent pressure,on those businesses that have sold the idea of endless growth in a bid to secure equity capital.The e
66、xtent to which some founders truly believe(d)their own growth projections will always be up for debate but the need to rush and justify growth for growths sake,at the expense of managed and deliberate decision-making(particularly as it relates to profitability),is a chapter coming to a close.We are
67、actively seeing a reduction in the hubristic rhetoric around disruption,and a growing humility around the realisation that profitable carriers(no matter how outdated),intermediaries and traditional markets are to be supported,not displaced.Disruption in a genuine sense has been extremely limited(des
68、pite almost$50 billion of global investment into InsurTech),and success has been isolatedtypically only in areas where incumbents have been embraced and respected.We are actively seeing InsurTechs pay more attention to the cautionary tales that experts are telling them,and not proving out self-elect
69、ed hypotheses with questionable evidence from echo chambers to validate their decision-making.If we look historically at the truly disruptive innovations that we have seen over the past 20 years(Uber,Netflix etc.),we should remind ourselves that they are so rareand require such a community to suppor
70、t their implementation and adoptionthat the likelihood of success in sailing against the tide in a lone vessel is almost zero.Before diving into this quarters data,we just want to spend a moment recounting some observations from Q2s data set.As a reminder,funding was up by 8%on the prior quarter bri
71、nging Q2 funding in at an impressive$2.4 billion suggesting that there is still no shortage of investment capital looking for InsurTech grey matter.Deal flow count was down by(only)11 deals,and the average deal size was up by(only)$3.4 million.Needless to say,the investment numbers between Q1 and Q2
72、 of this year on the face of things were not dramatically different.Compared with the prior year,which may come to pass as the height of InsurTech investments,they are obviously down,but they are at least reasonably consistent.The two biggest takeaways from our perspective,however,was the huge reduc
73、tion in early stage funding(down 45%comparing Q1 and Q2)and the surge in staff lay-offs.This could be interpreted as a reduction in activity of investment from arguably less-confident industry investors/fewer attractive nascent business opportunities,and a growing realisation that InsurTechs need to
74、 continue to be lean and cost-conscious(covered in depth in our prior briefing).2022 Q3 Data HighlightsFunding for InsurTech decreased by 2.5%quarter on quarter,from$2.41 billion in Q2 to$2.35 billion in Q3.P&C InsurTech funding gained in an otherwise downturn of funding,driven by$1.2 billion in meg
75、a-rounds.Early-stage InsurTech funding soared 48.1%quarter on quarter,the second-highest deal quarter ever.(Re)insurers made 24 InsurTech investments in Q3,projected to reach a three-year high in 2022.Average InsurTech deal size for this quarter also decreased quarter on quarter,falling 7.6%from$22.
76、11 million in Q2 to$20.42 million in Q3.The funding decrease is attributable to a 36.9%quarter on quarter drop in L&H InsurTech funding,from$917.85 million in Q2 to$579.19 million in Q3.Average deal size for L&H InsurTech also decreased quarter on quarter,falling 38.6%from$24.81 million in Q2 to$15.
77、24 million in Q3.Despite the decrease in overall global funding,InsurTech saw a 6.1%increase in number of individual deal count quarter on quarter (from 132 deals in Q2 to 140 deals in Q3).In line with the correlatory impact that L&H deals had on overall funding(i.e.,its decrease),the deal count inc
78、rease is also attributable to L&H InsurTech(which saw 51 deals in Q3 compared to 40 deals in Q2).Funding for P&C InsurTech increased 18.8%quarter on quarter,from$1.49 billion in Q2 to$1.77 billion in Q3.Quarterly InsurTech Funding VolumeAll StagesQ1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3
79、Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 2000202021202210 7 16 89 15 14 1517 13 16 2111 19 15 2044 18 33 2916 17 6 1326 37 29 4517 32 21 1144 46 40 4124 27 17 2358 49 52 4029 20 31 3572 54 74 7524 20 30 28107119 80 10139 43 33 41106 92 8937 40 51P&CL&HDATA COUNT6,0005,0004,
80、0003,0002,0001,0000 Life&Health($M)Property&Casualty($M)28254592379234825523328801865376300($in millions)1110PREFACEPREFACE111013The average deal size also increased for P&C InsurTech quarter on quarter,from$20.7
81、3 million in Q2 to$22.97 million in Q3.The increase in funding is partly attributable to a doubling in mega-round funding for P&C InsurTech,from$605 million in Q2 to$1.21 billion in Q3.The number of P&C InsurTech deals did however fall from 92 to 89 quarter on quarter.This$1.48 billion was raised in
82、 seven mega-rounds in Q3,with 81.8%of funding going to P&C InsurTech.The graph below shows the grand total of average deal size(P&C and L&H combined).Average funding deals,total and early stage are reasonably consistent for the year thus far as the graph indicates.The number of mega-round InsurTech
83、deals increased quarter on quarter from 6 in Q2 to 7 in Q3.Mega-round deals for InsurTech in Q3 were as follows:Berlin-based wefox,$400 million in a Series D,Washington,D.C.-based Pie Insurance in a$315 million Series D,San Francisco-based Coalition in a$250 million Series F,Tel Aviv-based Hibob in
84、a$150 million Series D,Seoul-based Carrot General Insurance in a$145 million Series A,London-based YuLife in a$120 million Series C and finally India-based InsuranceDekho in a$100 million undisclosed round.Of particular note,with the exception of Carrot General Insurance(an insurer),every other comp
85、any to raise money in a mega-round fit the Lead Gen/Broker/MGA business category,i.e.,incumbent distribution support.Mega-round deals accounted for 63.0%of all InsurTech funding in Q3.It is clear from the graph above that for 2022,Q3s mega-round funding has had the largest impact with regards to the
86、 overall number being reported.If we look at non-mega round funding,this most recent quarter is in line with the amount of funding we last saw in Q3 2020,which was the most recent occasion that non-mega round funding failed to cross the$1 billion mark.Early-stage funding surged 48.1%quarter on quart
87、er,from$368.26 million in Q2 to$545.35 million in Q3.The substantial increase in early-stage funding was consistent across both L&H and P&C.L&H early-stage InsurTech funding increased 47.6%,from$98.83 million in Q2 to$145.84 million in Q3.P&C early-stage InsurTech funding increased 48.3%,from$269.43
88、 million in Q2 to$399.51 million in Q3.Nevertheless,Q3 early-stage InsurTech funding is still down 13.5%year on year.Early-stage InsurTech deal count increased 21.4%quarter on quarter,from 70 in Q2 to 85 in Q3.The increase is largely attributable to a 63.2%increase in early-stage L&H deals,from 19 i
89、n Q2 to 31 in Q3.Q3 2022 now holds the record for the most early-stage L&H deals compared to any other quarter.P&C also saw a slight increase from 51 to 54 early-stage deals quarter on quarter.Early-stage InsurTech deals also increased 49.1%year on year.Q3 2022 is now also tied with Q1 2022 for the
90、quarter with the second-most early-stage InsurTech deals(the most was Q2 2021,with 93 deals).$70$60$50$40$30$20$10$-Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3202220000212.9 3.026.71.63.91.53
91、.72.84.12.24.23.86.43.74.27.911.410.923.44.79.04.16.97.364.313.98.317.214.76.77.18.916.97.013.5 12.711.425.733.221.525.722.135.511.523.629.525.920.635.531.347.318.722.1$20.46.85.4 5.62.9 2.59.86.14.13.47.63.87.15.96.36.27.54.75.13.89.05.45.16.65.05.26.211.910.09.96.1$7.5Average Deal Size($million)Av
92、g(all)Avg(early)($in millions)Quarterly InsurTech Funding VolumeEarly StageQ1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q32000202021202253 10 66811813 79 1659 11 1635 9 25 216 10 3 1018 26 21 2511 19 13 732 31 22 2515 20 11 1536
93、 28 35 2020 11 19 1636 25 42 3413 6 17 1469 71 41 6116 22 16 1759 51 5416 19 31P&CL&HDEAL COUNT7006005004003002001000 Life&Health($M)Property&Casualty($M)Funding($M)Deals 100$M Funding($M)Mega Rounds 7659823420235500630635660368545Sha
94、re of Mega Round Deals in Funding per QuarterQ1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q420000216,0005,0004,0003,0002,0001,000032240302008254255
95、92379324102348Q1 Q2 Q32022PREFACEPREFACE12PREFACEPREFACE1514This particular report is focused on APAC-related InsurTech activity.Fifty-three and a half percent(53.5%)of all disclosed APAC funding this quarter went into India-based InsurTechs,whi
96、ch raised a very impressive$210.76 million.In total APAC-based InsurTechs raised$394.21 million in funding in Q3 2022 across 33 deals.Q3 was also the regions highest funding and deal count in 2022 year to date,with APAC-based InsurTechs having raised a total of$999.77 million across 76 deals.India-b
97、ased InsurTechs lead in total annual disclosed APAC InsurTech funding and deals,with$416.95 million in funding and 21 deals in 2022 year to date.Notable 2022 deals in the country include a$75 million Series C funding round for Zopper,which provides APIs to enable embedded insurance distribution(we w
98、ill go into much deeper depth for Zopper in our transaction of the quarter section),and a$120 million Series E funding round for Turtlemint,a digital insurance broker that sells personal lines insurance through a network of over 45 partners on its online marketplace.APAC countries with 2022 InsurTec
99、h deals:Australia,Bangladesh,China,Hong Kong,India,Indonesia,Japan,New Zealand,Pakistan,Singapore,South Korea,Thailand and Vietnam.(Re)insurer investment activity is on track to exceed both 2020 and 2021 levels.Q3 2022 saw 24 corporate InsurTech investments from(re)insurers.Q3 brings the 2022 total
100、to 85 investments,with an average of 28 per quarter through the year.2020 and 2021 saw 96 and 107 corporate InsurTech investments,respectively.If the quarterly average sustains through Q4,then 2022 may see 113 corporate InsurTech investments.A sure sign that our industry has not lost hope in the pow
101、er of what InsurTechs have to offer,despite so many of them struggling in this current environment.Comprising 29.2%of all investments,Q3 2022 also saw the highest percentage of seed or angel corporate InsurTech investments from(re)insurers since Q4 2015.By comparison,seed or angel deals comprised 17
102、.9%of all investments made by(re)insurers in Q2 2022.MassMutual Ventures led corporate venture activity among (re)insurers in Q3 2022 with six investments.Other(re)insurers that made multiple investments in Q3 were Allianz X,American Family Ventures,AXA Venture Partners,CNP Assurances,Northwestern M
103、utual Future Ventures and SiriusPoint.Notable partnerships from Q3 2022 between re/insurers and InsurTechs include Allianz and Broker Insights,Markel and PathPoint,Swiss Re and Cowbell Cyber and QBE and Zego.(Re)insurer investment activity is on track to exceed both 2020 and 2021 levels.Geography in
104、 focusthe Asia-Pacific region(APAC)INTRODUCTIONAs mentioned in our first report(Q1 2022),this years reports will have the prevailing theme of geographical regional idiosyncrasies and global trends.We wish to review which businesses have honed their offering to specific areas,and which businesses hav
105、e the prize of the global reinsurance industry in their sights.Given technologys transcendental nature,and increased globalisation,it is perhaps unsurprising that many InsurTechs are looking to offer their products and services worldwide.In this third quarter,we will look at Asia-Pacific(APAC).The A
106、mericasEMEAAPACINTRODUCTION171619APAC:A snapshot of regional InsurTechs As an entire region,APAC represents some 4.7 billion people,approximately 60%of the worlds entire population.APAC has InsurTech representation from 18 countries(as of Q2 2022).By the end of Q2 2022,the APAC-related InsurTech dea
107、l activity accounted for almost 17.71%of all deals that have ever been completedrepresenting some$7.77 billion across 447 deals.In the most recent round of mega-round funding conducted in H1 2022,APAC(as a region)had 18.18%of the mega-round deals(11).Those who track this space closely will know that
108、 in the top ten nations of InsurTech domiciliates,APAC has three nations represented,accounting for 13.99%of the total funding;with China in 3rd place,followed by India in 4th and Singapore in 9th place,respectively.As a region,the APAC InsurTech ecosystem has observed the least amount of funding wh
109、en compared with the Americas and EMEA(17.71%,to 54%and 28%,respectively).APAC does boast a higher participation rate of nations included in InsurTech contribution(funding and company generation),with 18 nations being represented to the Americas nine countries(EMEA is out in front by a considerable
110、margin with 41 nations).Despite being placed 3rd in capital raising,however,the APAC region has still observed an incredible amount of funding and has contributed significantly to the global total.In 2015,for example,44.5%of the total global InsurTech investments(by amount raised)was conducted in th
111、e APAC region.Development of APAC InsurTech Funding(2012 to Q2 2022)3,0002,5002,0001,5001,00050002012 2000022 L&H P&CGrand Total1969InsurTech Funding per Year61,2771,0962,3281,210Development of APAC InsurTech Funding(2012 to Q2 2022)3,0002,7502,5002,2502,0
112、001,7501,5001,2501,00075050020006420-22012 2000022 L&H P&C Relative YoY change1969 InsurTech Funding in Million U.S.-$Relative Insurtech Funding Year-On-Year Percentage Change5516061,2771,0962,3281,210463149Relative Development of Transactions Volume China
113、 and India vs Rest of APAC75.0065.0055.0045.0035.0025.0015.005.00-5.00 Relative Development China and India Relative Development Rest of APAC2000022Relative Developments of Transaction Volume(pegged to zero for 2013)INTRODUCTIONINTRODUCTION1918and has been reflected
114、in the relatively high infant mortality rate for InsurTechs and start-ups that is now almost a daily occurrence(or at the very least,mass staff lay-offs).Disruption in these markets is limited by domestic regulation,consumer acquisition costs,market penetration,capacity and legacy infrastructure con
115、straints.In particular,APAC-based InsurTechs are dominating in digital distribution and aggregators(as market places)for light touch,low margin lifestyle products.There are also a number of other digital propositions and InsurTechs focusing on life and health and microinsurance(specifically for agri
116、cultural products)appear to be the most influential in driving innovation in APAC to date.Within these business lines,digital distribution and aggregator technology have been particularly successful in bridging the gap between supply and demand.The distinct lack of legacy incumbents in many of these
117、 markets,coupled with increasing demand for more responsive and tailored insurance products,is creating strong opportunity for new entrants.APAC has also been an excellent hotbed for catastrophe modelling InsurTechs and geospatial InsurTechs.Two examples of these are FloodMapp and OroraTech.Perhaps
118、the most single-handedly unique feature of the InsurTech APAC regional ecosystem is the extent to which APAC InsurTechs have managed to actually integrate themselves into the broader incumbent reinsurance value chain relative to their EMEA and Americas-InsurTech cousins.InsurTech in APAC is not limi
119、ted to a handful of InsurTechs who have successfully IPOd,raised a lot of money and often the topic of conversationsome APAC-based InsurTechs are now significantly larger than some global incumbent reinsurance and traditional technology vendors.There are a number of potential reasons for APACs uniqu
120、eness in getting InsurTechs truly into the game;in short it is probably a combination of lower barriers to entry,fewer traditional players blocking their glide path and various demographics who are arguably more(in a relative sense)technologically-savvy,or at least technologically connected and comf
121、ortable with technology.An issue for InsurTechs in EMEA and the Americas is that they are often forced to contend with decades worth of incumbent experience in the insurance markets in North America and Europe.The legacy market infrastructure in these regions has resulted in established protocols wh
122、ich newcomers to the industry invariably have to master or circumnavigate in order to insert themselves into the value chain.This hurdle proves too difficult for the vast majority In global InsurTech funding,China is placed comfortably 3rd with 6%of total funding recorded(only the U.S.(50%)and the U
123、K(9%)is higher).In joint 4th place is India with 3%of total funding captured(joint with Germany).Both nations,particularly between 2018 and 2021,have received the vast majority of InsurTech funding when compared with the rest of the APAC region.There has been,however,a meteoric rise of participation
124、 from other nations,in particular Singapore,Australia and Hong Kong.In combination,these three nations have seen over$1.5 billion raised for domestic InsurTechs.Southeast Asian nations have also contributed significantly to the region,with Indonesia,the Philippines,Thailand and Malaysia collectively
125、 contributing approximately$520 million.Arguably the largest and best capitalised InsurTech on earth is Chinas ZhongAn,first launched in 2013 by Alibaba and Tencent.We have also seen the rise and evolution of InsurTechs like Singlife which are now part of the Aviva group.Similarly,initiatives betwee
126、n incumbent carriers but centralised an InsurTech proposition are now also coming into the marketof note,AIAs partnership with Discovery groups vitality programme,Amplify health was launched recently.Despite the relative size of some APAC InsurTechs,however,many will note that geographically there a
127、re far fewer participating nations than for example EMEA.There are also far fewer InsurTechs in APAC in general(despite a significant number of them being extremely successful).We estimate that fewer than 15%of the worlds InsurTechs are based in APAC,despite the majority of the worlds population liv
128、ing in this region.APAC has been very active in trying to promote InsurTech.Examples of the steps taken include the Monetary Authority of Singapore(MAS),which has created a regulatory sandbox for InsurTechs(along with FinTechs),allowing new companies the opportunity to test their value propositions
129、in the sanctuary of a low regulation environment.Following this move by the MAS,Malaysia elected to establish a similar mechanism.These provisions are expected to drive a wave of transition to meet the needs of the large and growing,increasingly sophisticated online consumer base in Asia.With few di
130、gitally visible incumbents to challenge this phenomenon,we anticipate increasing opportunity for InsurTechs.Of all the APAC nations to participate in InsurTech,the InsurTech ecosystem in Japan is arguably the most interesting.Japanese reinsurers and investors have been enormously active in the Insur
131、Tech scenenot just investing,but also partnering and trialing InsurTech solutions in Japanese markets.What has not kept apace,however,is a prevalence of Japanese InsurTechs themselves.To date,only 14 Japanese InsurTechs have succeeded in raising capital(cumulatively around$260 million),in the third
132、largest reinsurance market on earth.To put this into further context,prolific Japanese InsurTech investors Softbank,Tokio Marine and MS&AD ventures have placed billions of dollars of investment into InsurTechs globallyTokio Marine has invested$136 million into ICEYE this year,MS&AD ventures put$250
133、million into NEXT Insurance in 2020,and$190 million into Accelerant this year.Softbank famously put$300 million into Lemonade in 2019.With no shortage of investment appetite,and one of the worlds most sophisticated reinsurance markets,why is it then that Japan itself has not produced as many InsurTe
134、chs as say the UK,the U.S.,China or Germany?We will explore this issue further down in the report.There are also those APAC markets that have historically lacked access to even basic insurance services,but the advent of smart technology has started to change this.It is estimated that over a billion
135、people in APAC do not have ready access to insurance services,60%of who do have access to cellular/smart technology.A further InsurTech revolution,made largely possible by the development and widespread ownership of handheld technology,is driving the creation of new market opportunities.Using innova
136、tive technology,companies such as BIMA,BanQu and Stonestep have been able to offer insurance to people who have previously had limited access to itproducts such as microinsurance,life,personal accident and hospitalisation.Similarly,new agricultural products have emergedmany of which are supported by
137、 parametric technology,which determines claims eligibility based on a third-party notification of a natural disaster.The provision and growth of these insurance products will help facilitate economic growth and improve standards of living.Where legacy infrastructure has not existed previously,modern
138、 technology is increasingly bridging the gap.Relative Development of Deal Count China and India vs Rest of APAC65.0055.0045.0035.0025.0015.005.00-5.00 Relative Development China and India Relative Development Rest of APAC2000022Relative Developments of Deal Count(peg
139、ged to zero for 2013)INTRODUCTIONINTRODUCTION202121We are now observing a situation whereby some consumers may never need to know the role of an agent or filling out a claims form.Where legacy forms are absent,technology can fill the void.In APAC,there is a real opportunity for innovative technology
140、 to shape the future of emerging insurance markets in the region.As markets become more globalised,individual capabilities or functions in the value chain(i.e.,the modular economy)are becoming increasingly portable between markets.For example,we expect to see successful portable technologies and dis
141、tribution methods,such as ZhongAns ecosystem partner-integrated digital distribution model,to be transferred to new markets after demonstrating success locally.Any InsurTech predicated upon a genuine solution-driven business model supported by product,geographic and financial agnosticism is likely t
142、o be replicable in other markets.While emerging APAC nations may be in its early stages of growth and development,the region may effectively serve as an incubator for InsurTechs that ultimately end up transforming more developed markets currently controlled by traditional incumbents.While geography
143、in general is the primary focus of this years reports,to give further precision to our review with regards to global trends versus regional idiosyncrasies,it is also worth spending a moment reviewing which business models are being funded in the different regions.We see the three main InsurTech busi
144、ness models as:Full-stack risk bearing insurance company Distribution(including lead generation,broking and MGA)Business-to-business support(including software sales,and further intermediation)In order to show the data that supports which geographies have which InsurTech models,we remind readers tha
145、t we are only presenting information as it relates to businesses who have successfully raised and declared investments.Furthermore,we are reporting the business model of the InsurTech as they were at the point of investment.That is to say,an InsurTech could now be a full-stack insurer but was an MGA
146、 during fundraising.And finally,InsurTechs can obviously play a role in multiple business models,but we are selecting one main business model for each company.As crude as this metric is,it is undoubtedly a good way of demonstrating which types of business models are catching the attention of investo
147、rs and demonstrating which types of models have the best chances of successes locally.For APAC specifically,a very interesting trend is observed if we split China and India away from the rest of the pack which represents this entire region.If we look only at China and India,there is an almost year o
148、n year growth of B2B/SaaS InsurTechs which is currently at 37%of all InsurTechs who have raised money in those two countries.Unlike the Americas and EMEA,this InsurTech model is actually growing(relative to the growth of the other two business models).The possible rationale for this is the sheer sca
149、le of the populations of these two nations,and the extent to which technology(particularly for distribution)is growing.In contrast,and even more interestingly,the rest of the APAC nation boasts something quite astonishingthe highest percentage of full-stack insurance company(balance sheet)models of
150、any other region on earth,with an incredible 11%of capital raised going into businesses with this model.This might suggest that InsurTechs in these 15 countries have cracked the art of profitable underwriting and tolerable customer acquisition costs.In some instances,there is a relative lack of trad
151、itional,or at least well-established insurance product selling,with a pronounced coverage gap(underinsurance if you will).It is quite possible that InsurTechs are filling this void with relative ease(given the lack of competition),and in fact leap-frogging years of legacy to provide insurance at the
152、 click of a button.Will these companies be at the vanguard to usher in reinsurance from global established players,allowing them to get more comfortable with regional business?Quite possibly.In our third report of the year,it is our pleasure to be able to show some real-life InsurTech examples of bu
153、sinesses who have caught the attention of the global InsurTech scene.Also to share the thoughts and experiences of some InsurTech specialists whose insights will paint a detailed picture of the art of the possible,and the reality of their own professional experiences.APAC InsurTech Nations Progress
154、CountryDeals 2022 Q3Amount raised 2022 Q320122022 Q2 funding(deals)New total funding(deals)New global position,by deal count (pre 2022 Q3 position)China6$14.15 million$2724.86 million(150)$2739.01 million(156)3(3)India10$210.76 million$2561.17 million(107)$2771.93 million(117)4(4)Singapore3$7 millio
155、n$709.3 million(44)$716.3 million(47)8(9)Australia1$0.41 million$514.16 million(31)$514.57 million(32)10(12)Hong Kong1$4.5 million$405.23 million(18)$409.73 million(19)17(18)Japan3$1.18 million$263.6 million(24)$264.78 million(27)13(14)Indonesia1$4.2 million$239.5 million(17)$243.7 million(18)18(19)
156、Philippines0n/a$122 million(3)$122 million(3)26(26)Thailand1n/a$86.3 million(9)$86.3 million(10)20(21)Malaysia0n/a$70.67 million(8)$70.67 million(8)22(22)South Korea2$145 million$43.73 million(17)$188.73 million(19)17(19)New Zealand1$4.51 million$11.76 million(3)$16.27 million(4)25(26)Vietnam3$2.5 m
157、illion$10.6 million(5)$13.1 million(8)22(24)Taiwan0n/a$1.55 million(1)$1.55 million(1)28(28)Bangladesh0n/a$1.5 million(3)$1.5 million(3)26(26)Brunei Darussalam0n/a$0.1 million(2)$0.1 million(2)27(27)Pakistan1n/an/a(4)n/a(5)24(25)Myanmar0n/an/a(1)n/a(1)28(28)APAC InsurTech nations progress so far rep
158、resented in the table below.China and India Deals by Business Model Type(20122022 Q2)B2B Insurer Lead Gen/Broker/MGA7%37%56%Rest of APAC Deals by Business Model Type(20122022 Q2)B2B Insurer Lead Gen/Broker/MGA11%26%64%2223INTRODUCTIONINTRODUCTIONINSURTECH BUSINESS MODELS AND CASE STUDIESREPORT PARTI
159、CIPANTS INSURTECH BUSINESS MODELS AND CASE STUDIES Full-stack insurerFWD FWD Group is a pan-Asian life insurance business with approximately 10 million customers across 10 markets,including some of the fastest growing insurance markets in the world.DistributionCover Genius An InsurTech for embedded
160、insurance that protects the customers of worlds largest online digital companies.B2B/technology providerAppMan AppMan is a software solutions provider that assists insurance companies with innovative AI and machine learning.B2B/technology providerInsureMO InsureMO is one of the largest middleware pl
161、atforms enabling large insurance ecosystems with a complete range of tools and assets.DEAL OF THE QUARTER Zopper In September 2022,Indian InsurTech Zopper raised$75 million in a Series C round.Zopper partners with its distribution channels across the entire lifecycle of their insurance strategy.Righ
162、t from product solutioning,API-driven tech integrations,sales enablement to claims management.A REGIONAL EXPERTS VIEW George Kesselman,ZhongAn Tech George Kesselman is a recognised InsurTech leader in Asia and among the top globally.George is a chief commercial officer at ZhongAn Tech and leads Insu
163、rTech Asia Association.George shares with us his extensive views on the APAC region.INDUSTRY VIEW ON INSURTECH Ted Ohkuma,Head of Tokio Marine Innovation Lab(New York)Ted shares with us his views on InsurTech,and his work at Tokio Marine,and observations on how large carriers are looking to InsurTec
164、h to innovate.BROKERS HOUR Mark Morley,Gallagher Re Based in Singapore,Mark is the managing director of Gallagher Re,Asia-Pacific with responsibility for Gallagher Res Japan,Southeast Asia,Greater China,Australian and India operations.Mark shares his views on APAC and InsurTech from the perspective
165、of one of the worlds largest brokers.THE ROLE OF THE INSURTECH ECOSYSTEM India InsurTech Association,Prerak Sethi,Shwetank Verma and Subhajit Mandal We hear from the three founders of the India InsurTech Association(IIA),how it came to being,and the incredible work being done to support InsurTechs i
166、n India.We also hear from the founders how the Indian InsurTech is developing more broadly.THE DATA CENTRE This quarters data highlights 2524Established in 2013,FWD is focused on making the insurance journey simpler,faster and smoother,with innovative propositions and easy-to-understand products,sup
167、ported by digital technology.The companys philosophy is that insurance should be a source of empowerment to enjoy life,celebrate itand if anything happens,have the confidence that your insurance company has your back.The company recently reported its first half results for 2022.FWD Group continued t
168、o deliver strong organic growth,with its value of new business(VNB)reaching$405 million,up 25%compared to the prior year period.Its segmental adjusted operating profit before tax was$200 million,up 111%,or more than double the prior year period.Huynh Thanh Phong,Group Chief Executive Officer and Exe
169、cutive Director of FWD Group,said,“We continued our strong track record of consistently delivering organic growth,demonstrating that our strategy is working.In nine years,FWD Group reached critical scale and hit an inflection point.Our performance is even more impressive considering the headwinds th
170、at the industry and communities in Asia continue to face in navigating the COVID-19 pandemic this year.“We are changing the way people feel about insurance through our customer-led approach,which combines our digitally-enabled platform and trusted distribution channels.Life insurance in Asia is a ma
171、ssive and underserved market and we are well-positioned to capture the regions digitally-savvy,rising middle class with our proven ability to make insurance easy.”From buying a policy swiftly to enabling faster claims,FWD is investing in new digital technologies that empower its customers to take co
172、ntrol of their insurance.This includes expanding its investment in research and development and technology talent.As a result,the company has constructed a digital architecture that is standardised across the group.FWD Group is a pan-Asian life insurance business with approximately 10 million custom
173、ers across 10 markets,including some of the fastest growing insurance markets in the world.The company operates in Cambodia,Hong Kong SAR,Indonesia,Japan,Macau SAR,Malaysia,Philippines,Singapore,Thailand and Vietnam.Full-stack insurerFWDSandeep Pandey,Group Chief Technology Officer of FWD Group,said
174、“The best part of my job is getting to work alongside passionate people every day,creating fresh customer experiences and making protection accessible and affordable for customers.Being able to execute our technology and cloud-first strategy and enabling digital transformation allows us to directly
175、impact business growth,and more importantly,our customers happiness.”FWD views data as an enabler to get to know customers needs better,underpinned by a robust data management framework.Its proprietary digital systems and toolkitswhich span prospecting,purchasing,underwriting,claims and servicing fu
176、nctionsare powered by artificial intelligence and big data analytics.An integrated,cloud-based data lake captures a holistic customer view and informs every customer interaction and decision across business divisions in real-time.Ryan Kim,Group Chief Digital and Marketing Officer of FWD Group,said“A
177、t FWD,we see technology as more than just a tool,but an integrated way to better serve the business.Our strategy is to use cutting-edge technology to continually stay ahead of our customers evolving needs.Im excited to lead a dynamic team of change-makersa team that shows up every day with creative
178、solutions and innovative ideas,powered by speed,ease and convenience.”We are changing the way people feel about insurance through our customer-led approach,which combines our digitally-enabled platform and trusted distribution channels.Huynh Thanh PhongGroup Chief Executive Officer and Executive Dir
179、ector,FWD GroupDistributionCover GeniusThe InsurTech for embedded insurance that protects the global customers of the worlds largest digital companies.Cover Genius is the InsurTech for embedded insurance that protects the global customers of the worlds largest digital companies including Booking Hol
180、dings,owner of Priceline,Kayak and B,Intuit,Hopper,Skyscanner,Ryanair,Turkish Airlines,Descartes ShipRush,Zip and SeatGeek.Were also available at Amazon,Flipkart,eBay,Wayfair and SE Asias largest company,Shopee.Cover Genius vision is to protect all the customers of the worlds largest online companie
181、s through XCover,an award-winning global distribution platform for any line of insurance or warranty,with an API for instant claims payments that holds an industry-leading NPS of+65.Cover Genius and their partners co-create solutions that embed protection,aided by Cover Genius licences or authorisat
182、ions in over 60 countries and all 50 U.S.states.Cover Genius microservices architecture and fully configurable XCover API allows the worlds largest digital companies to embed any line of insurance or warranty to protect their global customers.The award-winning XCover platform can configure any part
183、of the sale and claim process to align with a partners unique business needs.Its frictionless claims process supports real-time payments in over 90 currencies,and enables instant claims payments via a range of convenient methods including bank transfers and store credits,e-wallets,credit cards and v
184、irtual prepaid cards.In the Embedded Insurance Retail Report,commissioned by Cover Genius and conducted by Momentive.ai,78%of U.S.consumers said they would spend more if offered warranties in the at point of sale,equating to 62%higher average order value,while 82%who bought warranties said they woul
185、d be repeat purchasers.A subsequent report,Embedded Insurance Leveraging Transaction Data To Expand Coverage In A Digital-First Market”,found 82%of Buy Now,Pay Later(BNPL)customers,77%of mobile wallet users,90%of accounting software users and 78%of business bankers were highly interested in offers b
186、ased on transaction data.The below findings from the report,“A consumer-focused survey on claims experience and embedded offers for the travel industry,”shows that 20%of travellers who made a claim for pandemic related reasons were not covered,despite obtaining a policy that had pandemic-related cov
187、erage.This gap shows that while travellers are desperately seeking peace of mind for their bookings,traditional one-size-fits-all insurance misses the mark.To improve satisfaction and bring forward a customer-centric model,theres a clear need for the industry to reconsider what protection means.68.3
188、%47.2%34.8%59.2%20%Of all those surveyed,what percentage of travellers got travel insurance?(n=10611)Of those who got travel insurance,what percentage were seeking pandemic-related coverages?(n=5008)Of those who were looking for pandemic-related coverages,what percentage needed to make a claim?(n=17
189、41)Of those who made a claim,what percentage made a claim for pandemic-related reasons?(n=1030)Of those who made a claim for pandemic-related reasons,what percentage were NOT covered despite purchasing the policy for pandemic protection?(n=206)INSURTECH BUSINESS MODELS AND CASE STUDIESINSURTECH BUSI
190、NESS MODELS AND CASE STUDIES2627Fifty-four percent(54%)of worldwide customers believe organisations should improve customer engagement and deliver innovative products and services.According to a Salesforce survey stated above,we must seek strategies to develop the digital experience in todays global
191、 market.AppMan creates a seamless digital platform that enhances the value of your customers experiences by combining diverse technologies.Our unique digital solutions assist you in creating a smart and productive workplace.The ready-to-use single-journey platform will meet the clients demands in a
192、reasonable timeframe while lowering costs,speeding up process,and ensuring security.The solutions are also designed for non-technical users and can be hosted in the cloud or on a server hosted on your premises.With these efficient tools,it will be easier for your organisation to quickly adapt to the
193、 fluctuating client demands.Create a seamless digital experience by integrating different technologies.Our ready-to-use single-journey platform will suit the clients expectations while reducing costs,speeding up process,and ensuring security.AppMan is a software solutions provider that assists insur
194、ance companies with innovative AI and machine learning.Providing a digital customer experience will accelerate the achievement of your organisations objectives and prepare it for the era of digital transformation.B2B/technology providerAppManAppMan has utilised AI and machine learning to develop a p
195、latform that facilitates the operation of insurance companies.Whether it is OCR technology that precisely supports both Thai and English.A complete E-KYC solution that makes onboarding new clients easier and quicker than ever before.Thanapoom ChareonsiriCEO,AppMan Co.,Ltd.APPMAN DIGITAL FACE TO FACE
196、 Real-time video call with screen sharing,data collecting,e-signature,e-documents,face recognition,and payment to close the deal within a single video call.AGENTMATE Electronic point of sale(EPOS)solutions that simplify the sales process for its intermediaries,or an e-claim on your smartphone,a fina
197、ncial needs analysis to plan ahead of the future needs of a household in Indonesia and Thailand.APPMAN E-KYC Knowing your customer(KYC)solution provides a great opportunity for all digital onboarding processes especially in Thailand.EASY ONBOARDING Transform your customers onboarding experience.DATA
198、 PROTECTION Comply with strict country regulations in the cloud or on-premise.TIME EFFICIENT Reduce time and cost,use OCR to eliminate keystroke processes.APPMAN OCR We keep developing our technology to support both English and Thai language,including numbers with the accuracy up to 97.8%.Our latest
199、 feature is Masking which can conceal sensitive data and collect only the necessary data.INSURTECH BUSINESS MODELS AND CASE STUDIESINSURTECH BUSINESS MODELS AND CASE STUDIES292829The operating system for insurance applications,APIs and ecosystemsInsureMO works with insurers,traditional and digital c
200、hannels,InsurTech and tech players who use InsureMO to build various use cases starting from core modernisation of PAS,distribution and connectivity and connected systems for ecosystems and verticals.The platform enables connected insurance for carriers across all product lines including life,P&C an
201、d health.InsureMO is also used by leading channels,such as telco,e-commerce,auto dealers,manufacturers,FinTech,banks,travel OTAs across geographies,carriers and products.InsureMO empowers insurers,channels and InsurTechs to create an infrastructure to build or products faster with any variation,for
202、any channel with maximum volume or any use case.This eliminates challenges involved in working with legacy platforms and systems enabling them to go-to-market in a short period of time and scale up-down elastically.InsureMO powers global,regional and local insurance businesses InsureMO is one of the
203、 worlds largest insurance infrastructure platforms in terms of scale and size of business it powers on its platform with over$20 billion in GWP and generation of up to 10 million policies per day.InsureMO is present in 40+countries with our global design time cloud in Singapore HQ and multiple run t
204、imes cloud instances in more than 20+countries running on a multi-cloud environment across AWS,Azure,Google,Aliyun,IBM etc.InsureMOs global HQ is in Singapore with teams that include operations,R&D,and business spread between Singapore,Australia,India,China and Brazil.B2B/technology providerInsureMO
205、Singapore-based insurance infrastructure platform.InsureMO is one of the largest middleware platforms enabling large insurance ecosystems with a complete range of tools and assets such as APIs,product templates,data pipes,integration adaptors and more empowering any insurance player to build and con
206、nect any APPs or any System of Record(SoR).InsureMO is in the midst of a significant connected insurance wave which presents a lot of opportunities as well as poses a lot of challenges at the same time for the global insurance industry.Moreover,with the boom of internet players and super APPs,we see
207、 a massive need for embedded/connected insurance across traditional and digital channels.While there is growth potential with such a massive opportunity,it also poses significant technical challenges for insurers as well as the digital players who understand the complexities,primarily due to complex
208、ities and costs of working with incumbent systems.Solving the challenges of the 3VsVolume,Velocity and VariationThe insurance industry has key challenges we call the 3Vs.volume,velocity and variation.Without these 3Vs no insurance business can thrive in a highly competitive and demanding ecosystem.S
209、ome of the key questions being:How do we create and tailor products quickly for different digital channels?How do we launch through traditional and new channels quickly?How do we scale our servicing processes and systems to handle high-volume transaction spikes that could be created through various
210、digital channels?How do we integrate and utilise different solutions offered by FinTechs and InsurTechs?The building blocks for an Insurance Middle OfficeInsureMO was set up as an open platform in 2016 to bridge this gap of enormous global opportunity.InsureMO powers more than$20 billion in Gross Wr
211、itten Premiums(GWP)every year in over 40 countries working with 300+insurers and connecting more than 5,000 distribution partners and channels on the platform which runs billions of API calls on a daily basis.InsureMO is a middleware platform which is built on a microservices based architecture and
212、offers various consumable components that could be used independently as headless APIs or used to build a simple or complex insurance APP with the help of any third party APP provider or no code platforms.InsureMO platform comprises of four major building blocks1.Product library with more than 3,000
213、+product SKUs 2.Insurance APIsServices for any insurance policy lifecycle 3.Non-insurance APIs/Services and full stack middleware 4.Admin and utility function which has an inbuilt factory to create new products and APIs,devops,integration layer,data layer,etc.InsureMO contains more than 3,000+ready
214、to use insurance product SKUs which covers all LoB such as life,P&C,health,commercial,etc.and 1,000s of ready to use APIs natively built in InsureMO and APIs from various partners on InsureMO marketplace.InsureMO also has a huge partner ecosystem of more than 500+partners who leverage InsureMO to po
215、wer their APPs and host their APIs and APPs on our marketplace.InsureMO brings unprecedented capabilities to drive rapid innovation and speed to market for the overall insurance ecosystem.Rajat SharmaChief Revenue Officer,InsureMO3130INSURTECH BUSINESS MODELS AND CASE STUDIESINSURTECH BUSINESS MODEL
216、S AND CASE STUDIES3130Building the Insurance API Infrastructure Platform DEAL OF THE QUARTER Zopper was established in 2011 in India.Today,Zopper is one of Indias leading embedded InsurTech platforms,serving over 100 large ecosystem partners.Zopper partners with various distribution channels across
217、the entire lifecycle of their insurance strategy.Right from product solutioning,API-driven tech integrations,sales enablement to claims management,Zopper works hand-in-hand with their partners to drive successful outcomes.Deal of the quarterZopperZoppers vision is to enable their partners with all k
218、inds of insurance products with ease and efficiency.Zoppers aim is to provide partners with bite-sized insurance plans to help drive mass adoption,and also offer larger ticket products and plans in order to provide better and comprehensive coverage.Zoppers business model supports all types of major
219、insurance products.Currently,Zopper is focusing on the Indian market as it presents huge opportunity of growth.At the same time,they are open to international opportunities.Zopper is looking to enable insurance distribution at a zero marginal cost for their partners and aiming to help them create an
220、 additional revenue channel.This in turn is helping the overall insurance penetration of India.The business currently distributes around 300,000 policies per month across various partners and products,and are growing at an impressive 300%CAGR.Zoppers vision is to enable their partners with all kinds
221、 of insurance products with ease and efficiency.Multiple API Suites Onboarding API Underwriting API Payment API Claims API Deep Tech API Analytics and Predictive ModellingDemand AggregatorsInsurance CarriersLifestyle EcosystemFinancial EcosystemDigital EcosystemHealth and General InsurersLife Insure
222、rsDEAL OF THE QUARTER3332InsurTech will play a key role in increasing the distribution efficiency of insurance globally.Businesses with large captive audience are now embracing insurance as a value added offering.Zoppers InsurTech SaaS platform enables such businesses to enable insurance products fo
223、r their customers with ease.Surjendu KuilaCo-founder and CEO,ZopperZopper offers Intergrated Insurance Solutions to distribute partnersFull Service Player,Covering the Whole Nine YardsFundingZopper has raised a total of$100 million in funding through three funding rounds.In September 2022,they raise
224、d$75 million in a Series C round.The investment round was led by Creaegis,Bessemer Venture Partners,Blume Ventures and ICICI Ventures.Blume Ventures and Tiger were amongst the first investors in Zopper.The funding will be used to invest in technology and business development efforts,inorganic growth
225、 via M&A,and international expansion.Zopper is targeting an annualised Gross Written Premium(GWP)of$300 million by March 2023.In the next 5 years Zopper plans to be a publicly listed company.The company ambition is to build a business which will last generations.Zopper have partnered with Croma,Xiao
226、mi,Hitachi,Equitas Small Finance Bank,Cleartrip,Ola,Amazon,Chaitanya,Vaya,RapiPay and many others.The have also partnered with a number of large banks,Micro Finance Institutions,Banking Correspondents,NBFCs,and Rural Coop Banks also use Zoppers API Infra platform.Currently,Zopper is focusing on the
227、Indian market as it presents huge opportunity of growth.Products across retail,group and bite-sized segmentsBESPOKE PRODUCT&DIGITAL ACTIVATIONMicro-services based plug-n-play modelsAPI TECHIRDAI compliant distribution modelsCOMPLIANCEEnd-to-end handling of customer journey(NPS-70)CUSTOMER OWNERSHIP&
228、CLAIMS HANDLING3534DEAL OF THE QUARTERDEAL OF THE QUARTER3534 A REGIONAL SPECIALISTS VIEW George Kesselman is a recognised InsurTech leader in Asia and among the top globally.George is a chief commercial officer at ZhongAn Tech and leads InsurTech Asia Association.In addition,he advises several lead
229、ing organisations,including InsurTech Connect(ITC),Snr Insights platform,and executive search firm Eliot Partnership.George contributed as a co-author of“The InsurTech Book,”published by John Wiley&Sons in 2018.George holds an MBA from the Ivey Business School and a Computer Engineering degree from
230、the University of Manitoba.GEORGE KESSELMANChief Commercial Officer at ZhongAn Tech Will Asia take a global lead on InsurTech?In many ways,it is already happening,and InsurTech is booming in the Asia-Pacific(APAC),with start-ups,investors,and incumbents all recognising the regions immense potential.
231、APAC is a highly diverse region,home to nearly 5 billion people,which equates to 60%of the world population and covers a full range of market maturity.APAC is also home to two of the top three global insurance markets,China taking the number two spot and Japan as number three.Markets range in the de
232、gree of insurance maturity from mature Japan,South Korea,Singapore and Australia,to mega-growth markets like India,China and Indonesia.While its hard to generalise across such a diverse set of markets,we take a stab at surfacing some key trends shaping InsurTech in the region.One of the most strikin
233、g InsurTech trends in APAC is the bifurcation of InsurTech into two distinct growth vectors.The two are a distribution vector with both embedded and omnichannel insurance and a B2B solutions vector,which focuses on InsurTechs helping to transform insurers digitally.Embedded insurance is where an ins
234、urer(or a reinsurer)partners with InsurTech or a digital platform to distribute its products as an add-on alongside the core proposition.In contrast,omnichannel is a customer-centric strategy executed by an increasing number of InsurTechs.This model provides a seamless customer experience that takes
235、 the best of online and offline elements and morphs them together to create a seamless and highly efficient process for customers to access a variety of more comprehensive insurance.InsurTech is booming in the Asia-Pacific(APAC),with start-ups,investors,and incumbents all recognising the regions imm
236、ense potential.A REGIONAL SPECIALISTS VIEW3736From the early days,theres been geographically three InsurTech clusters in APAC:China took an early lead,with India and Southeast Asia following more recently.While the commonality for the three is large addressable markets with limited insurance penetra
237、tion and a rising tide of the digital economy,there are significant differences,especially in the regulatory and growth complexity aspects.The differences shape the types of InsurTechs that succeeded in growing and innovating.Southeast Asia has a unique challenge of nearly 700 million people across
238、highly fragmented 11 markets and regulatory complexity.Singapore is the most developed regarding regulation and insurance penetration;however,it is a relatively small domestic market with only 5 million residents.On the other hand,Indonesia is the largest at 300 million and the most populous Muslim
239、nation in the world,but with a low insurance penetration.The pacific part of APAC,Australia and New Zealand has seen several InsurTech ventures,the most notable example being Cover Genius.The story of APAC wouldnt be complete without mentioning the two large North Asia markets of Japan and Korea.The
240、se two markets with high insurance penetration and relatively developed IT capabilities,pre-InsurTech wave.The lack of domestic entrepreneurs resulted in limited investment in InsurTech to date.While weve seen rapid growth in the distribution InsurTech,compared to traditional insurance,digital insur
241、ance still accounts for a tiny sliver,not exceeding 2%in most markets within APAC.So,despite its rapid growth,InsurTech remains peripheral to most insurers and doesnt move the needle for most industry leaders.The InsurTech development is following the S-curve and is accelerating,which likely means i
242、t will soon become material to most insurance companies.In the second dimension,we look at InsurTech models,which are likely ahead of the rest of the world due to the significant under-penetration of insurance.For many consumers,this is the first time they encounter insurance.APACs three:models are
243、embedded,omnichannel,and B2B.Embedded InsurTech,while new and hot in Europe,has seen tremendous growth over the last four years in APAC and has achieved an initial maturity,with most large internet platforms across the region embracing it among their top three strategic priorities.The evolution of t
244、he embedded is progressing towards unicorn platforms becoming insurers themselves,as weve seen in the example of Grab setting up their Captive in Bermuda,Shopee with the acquisition of GI and life insurance licences in Indonesia and the Philippines,and Carro with setting up an insurer in Thailand.So
245、me of the numbers are simply staggering.Grab,one of the clear embedded insurance leaders in Asia,did nearly 200 million insurance policies last year,an about 100%increase from the previous year.Grab has achieved this via a successful JV with ZhongAn Tech,which provided the tech and initial insurance
246、 expertise to design and iterate insurance products to find product/platform fit.The main hubs for embedded are China,India and Singapore.Omnichannel InsurTech is still at an early stage of development,with several start-ups experimenting actively in the space while gaining scale.The omnichannel mod
247、el is becoming highly relevant for Asian customers who demand seamless offline-to-online(O2O)experience and are comfortable using multiple channels to purchase insurance.The Omni InsurTech start-ups are bringing in new customer acquisition channels for incumbents and innovating on the product front.
248、The main omnichannel hubs are India,China,and Indonesia.B2B InsurTechs are following a similar trajectory to their global peers.They are addressing specific areas of opportunity within the insurance industry and helping to transform,automate,and improve experience and efficiency.The main B2B InsurTe
249、ch hubs are India and Singapore,with Australia and Thailand emerging more recently.What is the near future of InsurTech in Asia?InsurTech is now at an inflexion point,with many large platforms becoming insurers and a new wave of O2O start-ups innovating on customer experience,products and channels.T
250、he next few years will bring a new crop of InsurTech innovation that will profoundly impact the industry,and we are seeing early glimpses of what that might look like.For example,digital platforms in China have started offering insurers to bid for places to provide consumers with insurance.This resu
251、lts in up to 13 billion daily quotes,a billion with a B via API,that insurer leaders in this space have to gear up for.The second trend is the migration of consumer trust from physical conversations to social media.Rather than sitting down with an insurance sales agent to build trust,the experience
252、moves to a highly efficient and delightful experience that may start with social media and seamlessly move into a sale assisted by a remote telesales agent and finally be completed entirely online.Full-stack InsurTech has been primarily present across a few markets in China:ZhongAn,ZA Life(HK),OneDe
253、gree(HK),Blue(HK),Avo(HK).India:Acko,Digit Insurance.Singapore:Singlife.Notable successes and exits in the region:Singlife(exit via a merger with Aviva Singapore),PolicyBazaar(IPO),ZhongAn(IPO),GrabInsure(IPO as part of Grab),Digit Insurance(upcoming IPO),Cover Genius(upcoming IPO),FWD(upcoming IPO)
254、,Bolttech(one of the most significant Series A).We see an early trend of EU and U.S.unicorns targeting APAC as their expansion region.This includes the likes of German-based wefox,and U.S.-based Unqork,which explicitly mention the region in their near-term growth plans.Finally,the signs are everywhe
255、re that the APAC InsurTech ecosystem is reaching an inflection point.The region recently saw its own dedicated InsurTech Connect(ITC)event in Singapore and its first InsurTech VC with a$215 million war chest,backed by a large European PE group.As APAC shifts into high growth gear following the reope
256、ning from the pandemic,there is increasing insurer momentum and entrepreneurial talent joining InsurTech as every market races ahead to the future of insurance.The InsurTech development is following the S-curve and is accelerating,which likely means it will soon become material to most insurance com
257、panies.A REGIONAL SPECIALISTS VIEWA REGIONAL SPECIALISTS VIEW3938INDUSTRY VIEW ON INSURTECH TED OHKUMA Head of Tokio Marine Innovation Lab(New York)6.1.Ted,it is wonderful to feature you in this Gallagher Re InsurTech report.Before we dive into our questions,can you please share with us your profess
258、ional background and an overview of your role at Tokio Marine?I have been working at Tokio Marine for more than 20 years.I started my career in P&C Marketing and Underwriting in Japan,then moved to Europe as Italy Branch Manager and Deputy Country Manager in Spain.My role in Digital Innovation start
259、ed in 2017 when I took the role of Deputy Head of Tokio Marine Innovation Lab in Silicon Valley.Then,I moved to the East Coast to open an Innovation Lab in New York.With this current responsibility,I am leading InsurTech sourcing in the U.S.East Coast and also working closely with Tokio Marines comp
260、anies in the U.S.in terms of their Digital Innovation.2.Tokio Marine is one of the largest P&C insurance companies in the worldwhat does it mean to innovate for such a large firm?And how do you do it?It is ultimately to continue providing customers with the best-in-class product and services.Having
261、about 150 years of history as an insurance group,we are really embracing the philosophy “To be a good company,”to live up to the trust placed in us.Society is digitalising and people are expecting more innovative services or solutions that will provide them with safety,security and peace of mind eve
262、n in the rapidly changing world.To keep up with or even to advance at the speed of this change in expectations,we really need outside support,and we are looking to technology driven partners to help with this.We obviously have great people in IT and in-house data teams to create what we need,but col
263、laborating with excellent partners with an Open Innovation mind can speed up and sophisticate our innovative initiatives.One more thing I should let you know about our innovationall global Tokio Marine group companies are closely working together to generate global synergy in terms of Digital Innova
264、tion by enhancing communication and sharing intelligence with each other.An example of this is our internal Digital Round Table,where all Digital Innovation leaders from across the globe come together for a discussion every few months.Ted conducts research on InsurTech driven by start-ups and tradit
265、ional financial institutions that are based on the East Coast of the U.S.,and looks to understand how technology transformation will impact on the insurance sector in the future.Having about 150 years of history as an insurance group,we are really embracing the philosophy“To Be a Good Company,”to li
266、ve up to the trust placed in us.INDUSTRY VIEW ON INSURTECH41403.Of all the technological innovation that you have been a part of and observed at Tokio Marine,what types of things(projects,solutions and technologies)have been the most successful?We are running several projects in various departments,
267、but if I need to raise one strong focus area,our innovative initiatives in claims come to mind.Claims operation is the insurance industrys unique aspect and I believe it is the most important operation for us because it is a crucial moment when our customers need our help the most.Therefore,Tokio Ma
268、rine has been focusing on this for the entirety of our 140 years company life,and now is the time to leverage innovative digital technologies to meet the expectations of customers of today and perhaps go beyond their expectation.One example for that is the use of satellite imagery data.We partner wi
269、th ICEYE which is the worlds largest constellation of miniaturised SAR satellites data company.This partnership allows our claims adjustor teams access visualised information about flood affected areas with granular insights like a water depth analysis,within 24 hours from occurrence.This enables ou
270、r claims operations to efficiently and quickly settle claims for customers that have been affected by a large flood.This would also be used for disaster resilience purposes or even for the prevention of secondary disasters like a landslide triggered by the flood at the community or government level.
271、4.Tokio Marine has really embraced InsurTech,with big partnerships,investments,pioneering conceptscan you please explain why InsurTech means so much to Tokio Marine?It is because the customers are expecting it.In other words,because the customers and society have changed their expectation towards a
272、more technology-driven world.More people are using smartphones to always stay connected,purchasing more products and services online,and communicating virtually.Why would insurance be the only industry that can remain unaffected from this trend?In that sense,we are always keen to not confuse ends an
273、d means here.We approach cutting-edge technologies,not with the sole purpose to just obtain it,but to leverage it to ultimately meet customers needs.In addition to that,not only our customers but also our business partners like brokers and agencies are requiring better Ease of Doing Business which a
274、re fully supported by the latest digital capabilities.The same thing is true with the expectations from our own employees.I think it is too much to say that technology is a prerequisite for insurance because the insurance has very wide range of categories and the customer needs are diverse.However,I
275、 believe that more people would consider and expect a more digitalised service and experience.This trend will generally not revert back to the way it was,the same way we keep using automobiles rather than going back to horse-drawn vehicles.5.Has Tokio Marines InsurTech strategy changed over time?It
276、has been more than 5 years since Tokio Marine Holdings established the Digital Strategy team and opened its first Innovation Lab in Silicon Valley.The team is continuing to grow and now we have seven Innovation Labs worldwide(Silicon Valley,New York,London,Sao Paulo,Taipei,Singapore and Tokyo),with
277、which we now have a broad coverage of global InsurTech ecosystem.We have started to explore cutting-edge technologies through the collaboration with several great partners including venture capitals and start-up accelerators,who have been guiding us on the right path to approach excellent InsurTech
278、start-ups with whom we explore collaboration opportunities to enhance digital initiatives.This partnership works really well and benefits us,but we are also taking another approach which is directly reaching out to InsurTech companies.A specific example is the launch of Tokio Marine Future Fund as o
279、ur Corporate Venture capital fund,which enables us to get in contact with early stage companies in a more efficient manner.Another aspect of our Digital Strategy transition is the collaboration with Tokio Marines highly unique and diversified group companies.Tokio Marine Group is Japan-based,but hug
280、ely globalised through several M&A in the international market.For example,we have seven group companies operating as carriers in the U.S.with great reputation.Each of these companies has exceptional talents who are keen on digital innovation;therefore,we have been working more and more closely with
281、 each other to share intelligence and good practice in terms of digital projects.This group-wise team approach is really powerful and generates our global digital synergy.One more thing I can mention as a strategical change is more enhancement of digital transformation of business model or products
282、and service.Our strategy tended to focus on corporate operations which means improving productivity and operational efficiency by automating or improving internal operation system with new technologies.However,we are currently more eager to utilise digital solutions to directly create new values for
283、 customers by enhancing distribution channels,developing innovative products to provide coverage for new and uncertain risks,and delivering new services to mitigate or prevent losses.Although it would be more challenging to achieve external deliverables such as new value-adding innovative solutions,
284、we believe we will step further into this area.6.What is the biggest lesson you have learned from InsurTech projects/partnerships that have not gone to plan?The speed of projects.For all the InsurTech start-ups we have collaborated with,speed matters.The incumbent players should understand that star
285、t-ups consider speed as a primary asset in product development and the partners are required to do the same.Moving faster may cause more defects,but these would be fixed or quickly improved.This agile approach really taught us how to reach a desired outcome.INDUSTRY VIEW ON INSURTECHINDUSTRY VIEW ON
286、 INSURTECH434243457.You are based in the U.S.yourselfwhy does Tokio Marine have U.S.based people working on InsurTech for a Japanese firm?It was natural to open the first Innovation Lab in the U.S.,as it has the worlds largest insurance market and as well as it being a place with digital competitive
287、ness.We put our first footprint in Silicon Valley,as it had a concentration of venture markets and advanced technologies including big tech companies.Then,we opened an Innovation Lab in New York to get involved into the InsurTech ecosystem in the U.S.East Coast.Currently,we have seven labs across th
288、e globe as I mentioned,and in addition to the labs,we have very diversified group subsidiary companies who are all making a collaborative effort to make Tokio Marine Group one of the top-level technology-driven insurance group.Therefore,I am just a piece of our broad team which is engaged in collabo
289、ration with InsurTech under Tokio Marines name.8.As a country,do you think Japan is itself a hotbed for InsurTech innovation?Yes,definitely.To be honest,the start-up market is still much smaller than the U.S.,but growing steadily.Prime minister positions 2022 as the first year for actively fostering
290、 the founding of start-ups,and his New Capitalism policies include the increase of investment to start-ups.Even before this governmental initiative,Japanese companies have been enhancing Open Innovation with technology start-ups during past decade as Tokio Marine has done.Existing unicorns have been
291、 moving on to exit and new ones are emerging in their stead,and this cycle will continue.InsurTech would definitely not be an exception.Furthermore,considering there is only one national insurance regulator market,it might be said Japan is an easier country for InsurTech start-ups to scale rapidly.W
292、e should take note that it is the third-largest insurance market in the world following U.S.and China.44 However,I should not only try to justify ourselves.In my opinion,there are also some challenges.Japanese corporates should embrace more diversity.I am not talking about just a gender D&I,but at a
293、 more fundamental level.Some situations of Open Innovation projects require us to overcome Not-Invented-Here syndrome which might be tougher for Japanese corporates.Another challenge could be our unique and beautiful Japanese language.I mention these challenges to give you the entire picture,but I d
294、o believe these could be solved to move forward.9.If you were to give a new start-up or InsurTech founder who is looking to break into our industry some advice,what would it be?Long-term perspective must be remembered.To be a part of insurance means to work as a reliable and trusted safety-net for p
295、eople and society.Insurance companies and the industry itself must never be fragile considering its huge impact and responsibility on customers.I am really proud of the fact that people have been supporting us for more than 140 years as an irreplaceable partner.Trying new things and improving anythi
296、ng continuously by leveraging innovative technologies are undauntedly beneficial for insurance customers,but further more than that,the fundamental promise made with customers and society is irreplaceable and must last forever as a trusted relationship.This essential philosophy of insurance should b
297、e taken into account when talking with either insurers or its customers.I would like to help the industry continue to grow by striving to support people and society to that take on challenges.I hope to share this philosophy with anyone,whether it be InsurTechs,incumbents,or even non-industry people
298、who are considering to enter into this exciting insurance world!Lastly,although it may be trivial,the involvement of people with an insurance background would add an innovative diversity in your InsurTech business.To be a part of insurance means to work as a reliable and trusted safety-net for peopl
299、e and society.INDUSTRY VIEW ON INSURTECHINDUSTRY VIEW ON INSURTECH.one of the key challenges remains the lack of(and continued subdued growth in)insurance penetration.BROKERS HOUR MARK MORLEYManaging Director,Asia-Pacific,Gallagher ReBased in Singapore,Mark is the managing director of Gallagher Re,A
300、sia-Pacific with responsibility for Gallagher Res Japan,South East Asia,Greater China,Australian and India operations.He remains involved in the coordination and development of the reinsurance programs of several of the leading insurance companies in Asia.1.Mark,it is great to be able to speak with
301、you about your experiences and observations of the evolving APAC region and associated markets.Before we dive into your insights,can you please describe for us your respective professional background and current role at Gallagher Re?I joined the reinsurance business of,what was then Willis Faber&Dum
302、as back in 1993 as a graduate trainee.I then had a series of secondments into the Asia region through the mid to late 90s and transferred full-time to Singapore in 1998.I ran the Willis Re ASEAN business until 2016 when I took on my current role as the managing director of Gallagher Re,Asia-Pacific
303、which for our business,stretches from China down to Australia and New Zealand and from India across to Japan.2.As a global reinsurance practitioner,what would you categorise as the most distinctive feature(s)of the APAC region?The sheer scale of geographic and economic diversity across the region ma
304、kes a generalised response a bit tricky.Certainly,in the emerging markets one of the key challenges remains the lack of(and continued subdued growth in)insurance penetration,where rates in some markets remain less than half that of the U.S./Europe.There are any number of socio-economic factors that
305、sit behind this state of affairs and whilst the industry has been increasingly active in supporting both sovereign and private sector initiatives across the region to tackle the protection gap,much work remains to be done.BROKERS HOUR4746 Nevertheless,progress is still being made;and despite the cha
306、llenging economic environment,several emerging markets across the region continue to grow,outstripping many if not most mature markets.In many ways the challenges of the protection gap serves to illustrate the sheer scale of the growth opportunity in the region.The continued transition of economic t
307、rade weight from west to east is well-documented and Asia-Pacific,already making up 27%of the global market(Swiss Re,Sigma 2022),is increasingly referred to as the growth engine of the world.3.Do reinsurance companies and markets in APAC face unique challenges?And if so,what would you say are the bi
308、ggest challenges that reinsurance and markets in the APAC region face?The limited number of domestic(and regional)reinsurers face the same fundamental challenges common to any national or regional carrier of trying to underwrite a stable and diversified portfolio with limited access to geographic sp
309、read.The additional challenges faced by the domestic reinsurance market in APAC is that we are located in a part of the globe that offers a spectacularly wide range of climatic and tectonic hazards which makes the construction of such a portfolio an even more challenging proposition.Those challenges
310、 are only exacerbated by the broader challenge of lower penetration rates and protection gaps where developments in InsurTech and the digitisation of the insurance distribution/value chain can hopefully help address the issue while aligning to changing customer demands and understanding.4.Over the l
311、ast decade,what have you observed to be the most significant changes that this region has experienced?The exponential growth in the range,availability and granularity of the analytics offering across the region would be toward the top of the list.There are very few portfolios that dont now have acce
312、ss to primary(and often secondary)peril modelling to evaluate their exposure,and financial modelling is now an integral part of the reinsurance decision-making/purchasing process in the majority of our client engagements.The improvement in the detail and consistency of underlying client data has als
313、o contributed to a far better understanding of individual portfolio characteristics.Where model gaps exist these are increasingly being filled by either vendor or proprietary capability,and were extremely proud that Gallagher Re and our predecessor companies have played,and continue to play,a major
314、role in their development across the region.In terms of product ranges and insurance services,these have tended to remain relatively narrow and homogenous across the region,however,forward-thinking regulators have encouraged change;for example,the trend in de-tariffication of motor and fire products
315、 across the region has resulted in product innovation and differentiation(albeit to varying degrees of success).Changes in consumer purchasing preferences in recent years have presented companies that rely on traditional distribution models with challenges given the emergence of mobile platforms and
316、 digital ecosystems(e.g.,GRAB)resulting in a partial shift to online origination(at least for certain commoditised products)however,complex purchases still tend to be intermediated via traditional channels.5.To what extent do you think APAC reinsurers have done a good job of innovating to meet and c
317、ombat these challenges?The market is clearly cognisant of the challenges and responding to these changes,but understandably progress differs by organisation(primarily)and market.At the very minimum,having a digital distribution channel is now a fundamental competence even in markets heavily agency o
318、r broker intermediated.Within each market there are certain carriers that are further along this transformation journey than others but the direction of travel is clear and there are outstanding examples of successful implementation in almost every market in the region.Ultimately reinsurers are look
319、ing to leverage the dramatic improvement in datasets,analytics and automation to achieve efficiencies and adoption(purchase)so far not seen through traditional channels.The opportunity represented by the personalisation and customisation of products,real-time and dynamic pricing,retention optimisati
320、on,and the integration of new tools and processes(e.g.,claims assessments and monitoring)through a more efficient digital medium is clearly significant and is reflected in the increased investment deployed across our client base.6.Do you see the entire region as a hotbed of opportunity for innovativ
321、e companies,solutions and products?(Or is it isolated to only a few areas?)There are of course,certain areas of focus.According to a 2021 Asia Insurance Review study(conducted in collaboration with CB Insights and WTW),China and India dominate a list of the top 25 InsurTechs in Asia by funding.Other
322、 countries that feature in the list are Hong Kong,Singapore,Japan,and Indonesia.However,it would be reasonable to assume increased activity in other countries;for example Singapore and Malaysia,where both the MAS and Bank Negara have recently approved digital banking licences and BNM is looking to l
323、icence digital insurers by 2023 are likely to be replicated throughout the region.7.In your observations,have the incumbents worked well with new technology firms?So far it seems that InsurTech firms in APAC have tended to work much better and find greater success with traditional/incumbent carriers
324、 when the distribution model they pursue favours collaboration over disruption or displacement.No doubt much of this driven by the view that wherever feasible,it is economically logical to work in partnership with established and successful distribution rather than build duplicate infrastructure.The
325、 exponential growth in the range,availability and granularity of the analytics offering across the region would be toward the top of the list.BROKERS HOURBROKERS HOUR4948 51508.Chinas life insurance premium is expected to surpass the U.S.market and become the worlds largest market by 2030,do you thi
326、nk that with that growth,APAC more broadly will also become the biggest market for innovation and cutting edge technology?(i.e.,is this rapid growth being supported by things other than social/demographic changes?).There is little question that Chinas growth has fuelled innovation,to what extent thi
327、s will permeate through the rest of the region remains an unknown but there is certainly some logic in that assumption.Outside of China,successful and highly innovative partnership models already exist in the world of health,finance etc.I think we can assume that this type of focus on lifestyle inte
328、gration will expand and continue to be a source of growth in other areas of insurance,(e.g.,embedded insurance within e-commerce platforms),however,cultural challenges will need to addressed for broader acceptance(for example telematics propositions in Asia have had limited success due to privacy co
329、ncerns).9.To what extent do you think that certain issues that prevent innovation in more mature markets occurring is bypassed in parts of the APAC region because they are not incumbered by legacy blockers and infrastructure?The pace of technological change means that insurers in APAC are similarly
330、hampered by legacy technology and platforms as their peers elsewhere in the world.These platforms were often designed to support transactional engagement rather than optimising customer experience and suffer similar limitations in data gathering and farming.The challenge remains whether to develop n
331、ew competence within an existing system or to engage with partners to integrate core systems and third-party applicationsboth of which are likely to require upgrading of infrastructure and investment.Notable exceptions to the above exist that may serve to provide a template or opportunity to leapfro
332、g ahead,especially in the world of microfinance e.g.,mobile phone penetration in Myanmar and the Philippines both of which facilitate the increased distribution and purchase of microinsurance.10.Do you think that innovation happens more rapidly in APAC because there is less historical bias among the
333、 purchasing demographic,and arguably a greater culture of adopting technology?Possibly.Asia is a fast-growing digital economy with high mobile penetration,increasing digital literacy,and affordable internet access,all contributing to a readier acceptance of new technology trends.This is especially true in emerging Asia where the demographics are skewed towards tech-savvy younger generations,set to