can have a positive effect on expenses, and it
can also have an effect on claims. “In terms of
underwriting we have all kinds of different tools
that carriers are trying to implement in terms of
predictive technology,” he said.
If insurtech can actually help you shave
off a point of the combined ratio, this would
be amazing, Flandro said. On the premium
side, insurtech will help to find new growth
opportunities which include predictive
modelling and saliency analysis.
Frank Reichelt, Swiss Re market executive
Germany & Nordics, noted that for him
insurtech is synonymous with reinventing the
insurance industry. Its emergence serves as a
warning to the traditional sector, and the latter
has understood and is reacting to the message.
New technology is coming on board and a lot
is around claims, but it actually covers the whole
value chain, Reichelt said. While most of the
innovation is happening on the insurance side, this
will affect the reinsurance sector as well, he noted.
Blockchain is a platform that will bring
insurers and reinsurers together, but reinsurers
such as Swiss Re are partnering with their
clients to develop new products and growth
opportunities through technology.
“We need to be aligned there. If we can’t
support our clients in reinventing their business
models we will fall apart as well,” Reichelt said.
An eye on the competition
Johannes Bender, insurance ratings director
EMEA at S&P Global Ratings, said the way the
agency is looking at insurtech developments is to
find out whether they might represent a threat
to the traditional reinsurers it rates in terms
of disruption, and if there is new competition
forming that may make them obsolete.
So far, it seems that reinsurers are “well
advanced in terms of partnering with insurtech
companies,” Bender noted. “When you look at
Lemonade, most of the capacity comes from
existing reinsurance companies,” he added.
While reinsurers appear to be well placed at
this time, smart sensors and the internet of things
are offering quite sound growth opportunities for
reinsurers towards targeting the protection gap
and growing the business, Bender said.
Adrian Jones, head of strategy & development
at SCOR Global P&C, said that a few years ago
venture capitalists had discovered insurance as a
great new field. “We have noticed that this trend
is starting to come down this year,” he said.
There is very little record in the re/insurance
industry of any sort of long-term disruption, he
noted. One example of disruption may have been
the retro market, the lowest barrier of entry in the
market. “On the insurance side there is very little
history of anyone being able to disrupt the market
without being in a partnership,” Jones said.
Alkis Tsimaratos, head of EMEA at Willis
Re, suggested that companies are starting to get
their heads around what they want to do with
“The word disruption is fading away. We
clearly see an insurtech agenda within virtually
every client at the moment,” he said.
Local national companies are using
insurtech to differentiate themselves from
competitors. Larger multinational groups are
transforming their business models, and this
is likely to result in cost reductions. “We are
starting to see opinions formed over insurtech
which are more realistic compared to a year
ago,” Tsimaratos said.
Massimo Reina, CEO of Continental
Europe and MENA at Guy Carpenter, said
that insurtech and technological advancement
represent major opportunities for the industry
and will affect the cost line, claims, operations
and client acquisition.
It will also affect underwriting. With the data
insurers now have they can achieve significant
improvements in profitability.
“It’s a great opportunity,” Reina noted.
The biggest challenge the industry will face
when adapting to technological advancements
and the new operating environment may be
the culture in the sector, which might differ
significantly from the mentality in the insurtech
sector. “That will be a big challenge,” he said.
On the reinsurance side of the business,
blockchain will speed up claims and enable
them to be closed much more quickly. But
overall, the claims process is becoming an
increasingly interesting target in the value
chain for insurtech companies. Claims are a
very important part of the client interaction.
Reducing the time spent running claims gives
re/insurers more airtime to provide other
services to clients, Reina said.
“Insurance companies will transform into
service providers as digitisation progresses,” he
www.intelligentinsurer.com | www.bermudareinsurancemagazine.com DAY 2: Tuesday October 24 2017 | BADEN-BADEN TODAY | 21