《韦莱韬悦(WTW):2020年第二季度全球保险科技简报(英文版)(41页).pdf》由会员分享,可在线阅读,更多相关《韦莱韬悦(WTW):2020年第二季度全球保险科技简报(英文版)(41页).pdf(41页珍藏版)》请在三个皮匠报告上搜索。
1、Quarterly InsurTech Briefing Q2 2020 July 2020 Technology Spotlight 48 Willis Towers Watson and e2values Structure Insurance Score for determining property replacement cost Thought Leadership 44 Desmond Carroll on the high hurdle for InsurTechs in property catastrophe insurance Foreword 2 The unlike
2、ly drivers of change Case Studies 24 - Openly 26 - handdii 27 - Arturo 28 - Hometree 29 - Insurdata 30 Introduction 8 The global property InsurTech world Transaction Spotlight 52 - States Titles US$123 million Series C 54 funding round - Hippos acquisition of Spinnaker 55 Insurance Company The Data
3、Center 56 This quarters review of global InsurTech investments The Art of the Possible 32 Principal at American Family Ventures, Kyle Beatty, on InsurTech Incumbent Corner 38 TypTaps Paresh Patel and Kevin Mitchell on technological innovation in the flood market Contents Quarterly InsurTech Briefing
4、 Q2 2020 1 Foreword 2 Quarterly InsurTech Briefing Q2 2020 3 “The best-laid plans of mice and men often go awry.” Robert Burns The past few months have set our industry back and forward, simultaneously. We are in both pause mode and fast-forward mode. The industry is facing unprecedented historical
5、losses, and yet the value of (re)insurance has never been clearer. The strength and reliance on technology has never been greater, and yet poor market investment performances and focus on COVID-19-related priorities could see a downturn in technology investments from (re)insurance industry players o
6、ver the next few years. In this foreword, we will examine the possible short-, medium- and long-term impacts of COVID-19 on our industry and more specifically on the role of InsurTech. This examination of COVID-19 looks only through the lens of its commercial and spatial impact to our industry. We a
7、re, however, acutely sensitive to and aware of the loss of life and human distress that COVID-19 has caused so many. To say that we are in uncharted territory would be an understatement beyond measure. For (re)insurance, (re)insurance firms and their staffs, (re)insurance markets, investable markets
8、 in general and individual InsurTech vendors/start-ups, most “best- laid plans” for 2020 have probably been put on hold (or scrapped altogether). And yet as the world around us seems unfamiliar and strange, perversely from a technological perspective at least, we are achieving the goals that we have
9、 been opining on for decades at a lightning-quick pace. We have gone “digital.” Businesses in our industry are now either fully floating on the digital rafts they have been inflating for years or digitizing increasingly and relying more and more on remote systems (increasingly cloud- based) that can
10、 support electronic quoting, policy binding and issuance, and claim paying technology, to name but a few functions. It may be trivial to state, but now more than ever there seems to be so much truth in the expression, “Necessity is the mother of all invention.” If a (re)insurer is still unable to di
11、gitally/remotely procure Foreword business, quote business, distribute product and service a living policy up until the contract ends or a claim is made, then it is leaving itself vulnerable to obsolescence. A contemporary cartoon (that has been widely distributed) illustrates a “COVID-19” labelled
12、wrecking ball heading toward an office where those inside are discussing the role of technology in their business. A staff member boldly states, “Digital transformation is years away. I dont see our company having to change anytime soon.” The most important feature of the cartoon is that those discu
13、ssing the topic cannot see the wrecking ball for the bricks and mortar of their offices. As humorous as the cartoon is intended to be, many a true word is spoken in jest. Most firms will have had a carefully drawn-out technology agenda for slowly moving core systems over to cloud-based platforms ove
14、r a series of years. The luxury of time is no longer on our side. This all begs the question, will COVID-19 kill the term InsurTech once and for all? Even before the dawn of COVID-19, many had begun to question the ongoing validity of InsurTech as a stand- alone term. It was then, and continues to b
15、e, a valid question: If, in order to survive and remain relevant, a (re)insurers core operations are wholly supported by technology, and our industry becomes completely synonymous with technology, then what function does the term InsurTech serve? The answer to this remains multifaceted, but it essen
16、tially orbits around ones preferred definition of InsurTech to begin with. If one believes it to mean “the use of technology in the (re)insurance industry,” then the term InsurTech is arguably redundant. If, however, we understand the term to reflect more a cultural awakening of innovative technolog
17、y being developed, supported and funded by “nontraditional/industry” activists for the benefit of the (re)insurance industry (and its clients), then it still holds value as a term in its own right. Perhaps the best way to start dealing with the term is to bifurcate it into InsurTech and InsurTechs.
18、InsurTech as a term refers to the cultural shift of adopting technology throughout the entire (re) insurance vertical, that has been occurring (at pace) in our industry for the past decade. Recognizing that this has been driven by a significant number of nontraditional actors, coupled with a growing
19、 realization from incumbents that technology is a necessity, not a luxury. InsurTechs as a term refers more to the individual firms themselves that may test our traditional definitions of what we believed InsurTech to mean but are InsurTechs nonetheless. InsurTechs as a term also allows us to accomm
20、odate the inclusion of those self-identifying InsurTechs that existed before 2010. As we will demonstrate this quarter, there has certainly been no lack of global activity in Q2. While it is not for us to say definitively that the term no longer holds the same value as perhaps it once did, COVID-19
21、has undoubtedly achieved the aspirations that no single InsurTech firm, or InsurTech strategy, could have done alone. As we wrote in a previous Quarterly Briefing, the ability to define and examine the meaning of a word against its contemporary taxonomy is a vital aspect of truly gauging what is goi
22、ng on in a real sense in any evolving market. Dr. Andrew Johnston Global Head of Willis Re InsurTech, Quarterly Briefing Editor The unlikely drivers of change This quarters data highlights Global InsurTech funding recovers after a tough Q1 2020. In Q2 2020, global InsurTech funding saw a 71% quarter
23、-on- quarter increase to US$1.56 billion across 74 deals, as later- stage investors, and corporate venture capital (CVC) investors, recalibrate activity following a cautious Q1 2020. While this quarters deal count was 23% lower than Q1, the increase in funding came as a result of four mega-rounds (o
24、ver US$100 million) from Duck Creek (US$230 million), Oscar Health (US$225 million), Pie Insurance (US$127 million) and States Title (US$123 million). Running just shy of the mega-round status were Bought By Many (US$98 million) and Coalition (US$90 million). Share of L the fate of Lemonade could we
25、ll indicate where much of the investment future is heading. Rest-of-the-world deal activity gets a boost as uncertainty continues to loom in top markets. While the majority of activity continues to be concentrated to the U.S., U.K. and China, Q2 2020 saw deals across 25 countries a record number sin
26、ce this publication started recording. This included several new geographies such as Taiwan, Croatia and Hungary. In contrast, the previous quarter saw the least geographic diversity since Q3 2018 with only 15 countries represented. As the top markets continue to work toward recovery, investors may
27、continue to place bets in newer regions to diversify risk. As we are presenting, the InsurTech investment in Q2 is certainly an uptick when compared with Q1, but most of the underlying issues that affected Q1s downturn have not gone away. Whether Q2s surge comes from a handful of mega-deals or a gen
28、uine play by many investing in L legacy systems will have been jettisoned, and we will most likely observe a true convergence between technology and balance sheet activity. Technology will help to evolve and shape our industry, and InsurTech businesses will most likely be valued more realistically.
29、It will be less about finding the next unicorn and more about a search for appropriate technology that supports a firms core digital strategy. If we think back to the Gartner Hype Cycle, this is where the “trough of disillusionment” will bottom out and then rise again as technology continues to be a
30、n embedded feature, function and commodity of our industry. We are arguably at the peak of expectations with this latest initial public offering (IPO) with VC, CVC and now public interest capital all circling the pool of opportunity with very different expectations and differing financial relationsh
31、ips with InsurTech. When sympathetic industry capital is replaced by much more demanding public investors, there is likely to be a very rude awakening for InsurTechs that simply do not deliver financial performances associated with their valuation. Before we move on, it is worth noting that time and
32、 time again, our industry comes under fire for being slow and unable to “do the right thing” from a technology perspective, but take a moment and look at how so many (re)insurers have reacted to this COVID-19 situation. One of the most fascinating facets of COVID-19 is not so much that we had no oth
33、er choice but to go remote or digital, but that we could and can continue to do so. If COVID-19 had happened 100 years ago or even 20 years ago, many of us would have been forced to go back to offices and commuting because the economic pressures not to would have been unsurmountable. What COVID-19 h
34、as been, however, (again, this is through the commercial/functional lens; we acknowledge the impact at a human level for those affected) is an enormous experiment and validation of the technology that we have been investing in for over a decade. Many of the firms in our industry went remote because
35、it was a feasible (albeit intimidating) option. This Quarterly Briefings contents As mentioned in our prior briefing, this briefing will focus on property insurance as it relates to technology and InsurTech. Property insurance is the second-most dominant line of insurance business in P handdii, a di
36、gital platform that automates the property insurance claim process from first notice of loss (FNOL) to claim finalization; Arturo, an InsurTech that provides structured data observations and predictions for commercial and residential properties; Hometree, a provider of home cover contracts to homeow
37、ners and landlords; and Insurdata, a provider of high- resolution, accurate, risk-specific exposure data in real time. As a continuation of our newest feature for the 2020 Quarterly InsurTech Briefing series, we will be speaking to an investor directly engaged in the InsurTech investment space. This
38、 quarter, we speak with Kyle Beatty of American Family Ventures (AFV). We discuss AFVs investment focus and Kyles overall take on InsurTech in the world of property insurance. In this quarters Incumbent Corner section, Adam Schwebach, executive vice president at Willis Re, speaks with Paresh Patel a
39、nd Kevin Mitchell, creators of HCIs TypTap InsurTech initiative a solution for flood insurance. This quarters Thought Leadership comes from Desmond Carroll, executive vice president and head of catastrophe R we will focus on commercial insurance (including commercial property-related issues) in Q3.
40、Consequently, in this briefing we will be placing a loose fence around the term property insurance to refer largely to, and include, the following vectors: Coverage: Personal structures and personal contents Product: Homeowners, renters, apartment, personal item, flood, fire, earthquake and boiler P
41、eril: Open perils, natural catastrophes, weather, general damage and theft Listed events: All risk events/perils and named events/perils Insurance indemnification for coverage: Replacement cost, extended replacement cost and actual cash value We are therefore focusing mainly on property insurance as
42、 it relates to personal lines insurance for private residences and personal property. The history of property insurance The origins of modern property insurance can be traced to the Great Fire of London: In 1666 more than 13,000 houses in London burned to the ground, leaving many dead and approximat
43、ely 70,000 people homeless. The resulting insurance proposition came in the form of the first fire insurance company, The Insurance Office for Houses, founded in 1681. Upon its creation, 5,000 homes were insured. In the U.S., Benjamin Franklin supported the motion to make standard the practice of in
44、surance, particularly property insurance, to spread the risk of loss from fire. In 1752, he founded the Philadelphia Contributionship for the Insurance of Houses from Loss by Fire. From this point on until the mid-20th century, separate policies had to be purchased by property owners to cover perils
45、 such as fire, theft and damage to personal items. In the 1950s, “homeowners” policies, as we now know them, came into being, offering umbrella coverage for a broader set of risks as they pertained to the average persons home (and personal property). These products have been evolving ever since that
46、 time. At the peak of umbrella products for homeowners, most perils were covered, but increasingly these products were unprofitable (due in part to natural catastrophes causing enormous losses and the regulators desire to keep premium costs low). These products have slowly started to include fewer c
47、overages, and consequently, we have observed a growth in peril-specific products (e.g, flood). Homeowners policies have a deep penetration rate, especially in countries where applying for a mortgage is contingent on having some form of property insurance cover. It is estimated that in 2019, over 85%
48、 of all U.S. homeowners purchased a property insurance product, at the cost of approximately US$1,000 (the average claim cost was US$13,000). Jumping back in time once again to the early pioneers of property insurance, many (re)insurers were set up to be mutuals. In order to be approved, there were
49、prerequisite conditions. In Philadelphia, for example, in order for a property policy to be agreed upon, certain property specification criteria had to be met invariably meeting the “more fire resistant than the average structure” criteria (creating a self-selecting risk pool carved out from the general public). This typically required buildings to be constructed from stone. During that era, however, the majority of homes in early America were made of wood, as they also were in England. The global property InsurTech world This edition of the InsurT