INSURTECH 2021 EXECUTIVE INSIGHTS SERIES - How insurance technology can help meet the demands of a post-pandemic world - Vertafore
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EXECUTIVE INSIGHTS SERIES INSURTECH 2021 How insurance technology can help meet the demands of a post-pandemic world
FEATURES
INSURTECH 2021
INSURTECH
2021 How will insurtech transform the insurance ecosystem
in 2021 and beyond? IBA spoke to the leaders of
four innovative companies to find out
FOREWORD
FOR DECADES, the insurance industry has been riddled with following report, which is focused exclusively on technology in the
paper-driven manual processes, often creating inefficient workflows insurance industry.
and poor customer experiences. And then, almost overnight, This report examines all aspects of insurtechs – where they’ve
COVID-19 changed everything. For many agencies and carriers, the been, where they currently are and where they’re going – and
pandemic amplified inefficiencies in their existing business, forcing provides valuable insight for our industry. Agents, brokers, carriers
them to take a hard look at their processes and the technologies that and software providers should use this resource to learn the land-
underlie them. In fact, the adoption of new technology, driven by scape and decide what kinds of technology to adopt to create greater
remote working, grew at a tremendous rate, with years of digital value for their business and enable a more efficient and connected
catch-up happening in mere months. insurance ecosystem for all stakeholders.
In this rapidly changing environment, the insurance ecosystem
must embrace technology like never before to become more Taylor Rhodes
productive, intelligent, simple and valuable. For these reasons, we CEO
at Applied felt it was important to support and promote the Applied Systems
18 www.ibamag.com
IN LAST YEAR’S insurtech report, IBA solve these problems,” Dr. Andrew Johnston, themselves in the driver’s seat, able to meet
predicted that the COVID-19 pandemic global head of insurtech at Willis Re, wrote in traditional needs while pushing the bound-
would force the industry to adopt new tech- Willis Towers Watson’s Quarterly Insurtech aries of innovation.
nology to deal with lockdowns and remote Briefing for the fourth quarter of 2020. As IBA recently reported, tech leaders have
working arrangements – and it did. As a “Many insurtechs probably feel vindicated identified several emerging trends in insur-
result, insurtech investment surged: By the that our industry has been forced to realize ance technology this year, including:
end of 2020, insurtech had gathered a record the value of technology; their issue now,
• shifting to digital channels for everything
$7.1 billion in global investments, according however ... is to survive months (possibly
from writing signatures to identity recog-
to Willis Towers Watson. years) of market uncertainty.”
nition to meet high consumer demand for
“While our industry is facing extreme
remote services
issues [relating to COVID-19], we also have What’s ahead in 2021?
an unprecedented level of access to tech- With $2.1 billion in funding from the last • using no-code or low-code development
nology and technologists who can help us quarter of 2020 alone, today’s insurtechs find tools to facilitate the rapid launch of new
user interface features
MEET THE EXPERTS • leveraging AI software to automate
processes such as risk assessments, fraud
identification and underwriting
Dan Moore Amy Zupon • using the Internet of Things (IoT) to
COO CEO gauge policy pricing
QBE North America Vertafore • forging new partnerships between
insurtechs and insurance providers to
leverage strategic advantages
As COO for QBE North America, Dan The CEO of Vertafore since 2016, Amy
• deploying blockchain technologies to
Moore serves as head of claims, Zupon has two decades of experience in
protect against cyberattacks
technology and operations and oversees the B2B software industry and a passion
communications and branding, with the for providing an exceptional experience • providing tailored digital services to
goal of strengthening QBE’s customer- and products that deliver real value and increase policy sale probability
centered approach as an integrated performance for Vertafore’s customers.
At this point, confidence in digital capabil-
specialist insurer. Moore has more than Her approach drives Vertafore’s vibrant
ities has grown, and nearly all companies have
20 years of experience in the insurance company culture, which inspires
implemented a business continuity plan that
and consulting industries. He was employees to innovate and be creative to
relies on advanced technology. Both insur-
appointed interim COO in January 2020. solve customers’ ever-changing needs.
ance companies and consumers have seen the
benefits of the digital world as a vast majority
maintain some level of remote living and
Taylor Rhodes Jason Liu working capabilities. Employees recognize
CEO CEO the importance of even a basic content
Applied Systems Zywave management system (CMS). Agents and
brokers have embraced the latest technology,
such as streamlined commercial quoting
As CEO of Applied Systems, Taylor Jason Liu joined Zywave as CEO in 2018, systems, to survive. And consumers expect the
Rhodes is responsible for the company’s charged with overseeing daily operations best digital experiences.
overall strategy and operational and driving the company’s long-term All of these factors combine to make for a
execution. Rhodes joined Applied in 2019 vision and strategy. Liu has more than 20 bullish insurtech market over the next few
after serving as CEO of SMS Assist, the years of experience leading organizations years. But what’s in store for the next 10?
leading cloud-based software platform across the world, from the US to central
for multi-site property management. Europe and back. Prior to joining Zywave, Science fiction to science fact
Prior to that, he was CEO of Rackspace, he served as CEO of SAVO, UC4 Software According to a recent report from McKinsey
where he led the company’s growth from and Univa UD. & Company, many of today’s emerging tech-
a cloud pioneer to an industry leader. nologies will have fully developed by 2030.
The report envisions “Scott,” an imaginary
www.ibamag.com 19
FEATURES INSURTECH 2021 character who leverages the latest advance- landscape and the impact of technology on ments in technology to optimize his return on the insurance industry at this point in history. insurance. Scott hops in a self-driving car, where his personal digital assistant and mobility insurer map his route and recom- Insurtech funding bounced mend a path based on accident likelihood and back in the second half of car traffic distribution, instantly revising his 2020 after a rough start to monthly premium accordingly. At the same the year. Where does the time, his pay-as-you-live life insurance policy landscape sit now, and what recalculates as well. Both adjustments are are the key developments in debited or credited to Scott’s bank account. the space? After a minor accident, the car’s internal diagnostics determine the damage. Scott’s Taylor Rhodes: While insurtech funding assistant recommends he take pictures of was low for the first half of 2020 due to a the area. Almost immediately, the claim is variety of reasons, with the pandemic as a approved, and a mobile response drone is major one, the second half of 2020 and the dispatched to the site for further inspection. beginning of 2021 have shown that investors “While this scenario may seem beyond the are becoming more confident again. Now horizon, such integrated user stories will that businesses have put their business conti- emerge across all lines of insurance with nuity plans in place and are operating in the increasing frequency over the next decade,” new normal, investors see that the insurance the report’s authors wrote. “In fact, all the market is ripe for opportunity. As more “Insurtechs that control and enhance distribution are the kinds of companies that investors will be investing in” Taylor Rhodes, Applied Systems technologies required above already exist, people work remotely and need digital tech- and many are available to consumers. With nology to connect to their organizations and pandemic, the second half of the year hit the new wave of deep learning techniques, their customers, the appetite to invest in record levels of investments, and we are seeing such as convolutional neural networks, artifi- technology rises. an increase in investment, M&A and, more cial intelligence has the potential to live up to According to Deloitte, insurtechs that recently, SPAC activity. With significant capital its promise of mimicking the perception, control and enhance distribution are the still on the sidelines, and given the size of the reasoning, learning and problem-solving of kinds of companies that investors will be insurance prize, there will continue to be the human mind. In this evolution, insurance investing in. This makes sense, as we have significant activity surrounding firms that are will shift from its current state of ‘detect and seen how remote working has exacerbated seeking to enable better decisions, improve repair’ to ‘predict and prevent,’ transforming challenges caused by traditional paper-laden outcomes and enhance customer experiences. every aspect of the industry in the process. workflows of agent-insurer distribution. To Amy Zupon: There’s no question that the The pace of change will also accelerate as this end, insurtechs, insurers, investors and first half of 2020 was rough all around, for brokers, consumers, financial intermediaries, software houses, such as Applied and IVANS, just about every industry and business sector. insurers and suppliers become more adept have come together to digitally transform But in the second half of the year, we saw a at using advanced technologies to enhance the agency-insurer distribution channel to truly remarkable shift in the insurtech decision-making and productivity, lower increase connectivity, reduce expenses and funding landscape. It didn’t just defy the costs, and optimize the customer experience.” enhance end-customer experiences. circumstances of the pandemic – in some With the full capabilities of the future in Dan Moore: COVID-19 posed an initial ways, it even outpaced what we’ve seen in mind, IBA spoke to a panel of insurtech challenge for the insurtech marketplace. previous years. experts to provide an overview of the current While there was a slight decline due to the In the latter half of the year, a number of 20 www.ibamag.com
opportunity insurtech represents, the appetite number of players looking to find innovative
of customers – both agency and carrier – and ways to streamline the current tedious manual
the interest of investors in this space. processes and connect agents and carriers.
COVID-19 ultimately highlighted a few things Another key development in the space is
to those investing in the insurtech space. First, integrations. Insurtech companies are finding
it accelerated the push for agencies and ways to work together to enable brokers to use
carriers to invest in the right digital solutions the solutions they want but keep their tech
to meet customer and employee expectations. stack connected to help eliminate redundant
After the initial contraction, many indepen- data entry and improve efficiency.
dent agencies and carriers quickly turned to
technology to ensure business continuity and
to continue to service their clients. How has the mass shift to
That being said, 2020 also showed that remote working impacted
there’s still a lot of opportunity for technology the insurtech landscape?
innovation and adoption for both carriers and
insurance agencies. When it comes to agencies Jason Liu: The abrupt transition to remote
especially, now that many of them have gotten work has positively impacted the insurtech
a taste for modernization, we’ll see more open- landscape by requiring many more agents
ness to change – and even excitement about and brokers to embrace technology. Many
emerging solutions. That’s going to continue to insurance professionals, prior to having to
drive opportunity for investors who bring solu- work remote, relied on old-school methods to
“Now that many [agencies] have gotten
a taste for modernization, we’ll see more
openness to change – and even excitement –
about emerging solutions”
Amy Zupon, Vertafore
marquee insurtech carriers received some tions with real value to the channel. perform their jobs. This included in-person
very large infusions, and that was coupled Finally, the pandemic really proved out meetings, which now can be conducted
with some big rounds on the back of successful the stability of the insurance industry. Many remotely, anywhere, any time. That flexibility
IPOs. In addition, we saw a lot of investment players in the insurance channel reported has enabled many brokers to write new busi-
in seed-stage companies that are looking to strong outcomes – and even substantial ness outside their typical geographic areas.
bring new solutions to the insurance industry growth – in 2020. Investors saw that and The adoption of technology due to remote
– particularly around data and analytics, arti- responded in kind. work has also positively impacted agencies by
ficial intelligence and machine learning, and Jason Liu: Insurtech proved to be very requiring them to implement other tech-
sales and service technology for brokers. resilient to the challenges created by the nology like content management systems to
As we look to 2021, that’s a dynamic we can pandemic. As agents and brokers pivoted to enable employees to access all their required
expect to continue. Investors and entrepre- remote work, they looked to technology to resources in one centralized platform. Previ-
neurs are really interested in investing in help with this transition. Those who quickly ously, the content agents needed lived in
ideas. The caveat to that trend is that the embraced and adopted insurtech solutions various disparate locations.
industry will look for concepts that really were more successful. Currently, investment In general, the shift to remote work
bring value and efficiency to the distribution is high, with carriers, VCs and PEs pouring has increased the adoption of insurtech by
channel and then get behind them with the money into the space to help drive growth many agents and brokers. Technology is now
dollars to enable them to come to fruition. and innovation. seen as essential by many more insurance
Ultimately, the surge in investment we saw Many of the developments are centered professionals. This has led to growth for
in the second half of 2020 is a testament to the around commercial quoting, which has a insurtech providers, and insurance profes-
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FEATURES
INSURTECH 2021
sionals are looking to insurtech as more of an able to meet with their agents in person tion efforts will be successful.
essential partner. and digital-first interactions became a main- Amy Zupon: Each year, Vertafore surveys
Dan Moore: While insurers have tradi- stay, agents turned to insurtech to create independent agents about the state of the
tionally been viewed as slow to adapt, digital customer experiences to better serve insurance workforce, and this year, upwards
COVID-19 required firms to quickly adopt their policyholders. of 70% of agency employees said they transi-
new processes and technology in order to According to KPMG, the insurtechs in the tioned to some amount of remote work
continue serving customers and support part- ‘enabler’ category – those that provide B2B during COVID-19. The good news for agency
ners and employees during this period. Many point solutions that are designed to improve owners: Most employees said they had the
insurtechs were well positioned to assist the an aspect of an insurer’s or broker’s value technology they needed to be effective while
industry to step out of its comfort zone and chain, such as data algorithms or mobile apps working from home.
leverage technology in new ways and at a pace – stand to win if they closely align with That being said, the almost immediate
they had previously not thought possible, current priorities. An insurtech like Indio is a shift to remote working forced every agency
which bodes well for the future of change. good example of an enabler insurtech that – but especially smaller agencies – to speed
Taylor Rhodes: Remote working has saw a need in the market – to digitize a tradi- up their adoption of technology and modern-
accelerated digital transformation for the tionally paper-laden manual task like appli- ization strategies to find new ways to stay
entire industry, especially insurers. Insurers cation management and submission – and engaged and connected to their clients. For
have looked to insurtechs to fuel their inno- found success through acquisition.
vation and accelerate efforts to modernize
technology infrastructure, improve data
Another type of insurtech laid out by
KPMG that is expected to do well thanks to “Many insurtechs
capabilities and create digital experiences
for their employees, agency partners and
remote working is the ‘partner’ insurtech –
those that typically go to market together
were well positioned
end customers.
Agents, too, have fast-tracked their digital
with traditional insurers. As insurers are
investing heavily in their digital transforma-
to assist the industry
strategies to adopt technology that will tions to enable a more connected experience to step out of its
enable better connectivity throughout their for their employees, agency partners and
organization, such as hosting their business policyholders, partner insurtechs that are comfort zone and
in the cloud. As customers were no longer focused on accelerating digital transforma-
leverage technology
in new ways and
at a pace they had
previously not
thought possible”
Dan Moore, QBE North America
some, the transition was seamless, and for
others, it has been a real challenge. The
abrupt change to working from home also
highlighted that the best, most valuable tech-
nologies are user- and client-centric as well
as interconnected. No matter how innovative
a new technology might be, it is ultimately
worthless if it is not intuitive to its intended
user and does not connect with the other
systems agencies rely on.
In many ways, the pandemic increased
the tempo of business and fundamentally
changed the expectations of consumers. For
22 www.ibamag.com
insurtech providers, it is more essential than investment in RiskGenius, which applies
ever for us to build solutions that reduce fric- artificial intelligence to insurance policies so
WHAT IS INSURTECH,
tion in the distribution channel to facilitate we can evaluate an entire portfolio of insur-
ANYWAY?
that new speed. ance policies for emerging risks in seconds.
First emerging around 2010,
But just as importantly, technology Amy Zupon: So often in the tech world,
insurtech is the software/IT/
providers need to ensure users have the someone will build a really slick, exciting new
technology ecosystem that’s
resources they need to make the most of their technology – a shiny new object. And the
focused on optimizing services and
solutions, no matter where they are. Early on technology could be great and the design
solutions for the insurance industry.
in the pandemic, we took a look not only at beautiful, but ultimately, is it creating value
Examples of insurtech solutions
our product development, but also at our for the customer? That’s a question we invoke
include online policy comparison
customer success program to determine how often at Vertafore to make sure we’re devel-
services, AI-enabled claims
to best assist our customers through new oping solutions that really meet the needs
processing and digital platforms
needs and challenges. Regardless of a of the insurance distribution channel. And
that are modernizing legacy
customer’s size or where they are on their insurers need to posit that same question in
insurance companies.
path to modernization, it is on us to ensure relation to tech experiences for both their end
they are able to get every ounce of value out of insureds and independent agent partners.
There are more than 3,475
their solutions. That means having support We know carriers need and want to know
insurtech companies globally,
staff dedicated to and really invested in our their end insureds better. They have tradi-
44% of which are located in
customers’ success. tionally relied on their agent channel to
the US
provide information about their end
customers, and while this view is important,
How can insurtechs help More than 1,500 insurtech
it can also limit their ability to develop the
insurers compete in terms companies have emerged in the
unique, tailored experiences that consumers
of the digital experiences last five years
expect. Insurtech can harness the power of
they offer customers, and data analytics to help insurers better under-
Insurtech companies raised
what are the operational stand their insureds and use that under-
$5.4 billion in venture capital
priorities insurers should be standing to build better customer journeys.
funding in 2020
turning to insurtechs for? When we talk about insurtech, people
tend to think first about the direct-to-
VC funding for insurtech
Dan Moore: The opportunities are endless. consumer model. The reality is that with
companies in the last decade
At QBE, our QBE Ventures arm invests in 36,000 independent agencies in the US
has grown at an average of
and builds alongside early-stage technology servicing millions of clients, the agent role in
89% yearly
companies that we believe have the potential insurance distribution is absolutely essential.
to reshape the insurance industry. We So carriers also need to understand their
There were 81 insurtech
leverage QBE’s market strength and exper- channel partners and how they can better
acquisitions in 2020 – the
tise and augment these with emerging support the agencies they work with – how
highest number on record
technologies to create new value for our can they be more responsive, provide better
customers, partners and the communities in agency experiences and be easier to do busi- Source: Porch Research
which we operate. ness with.
We like to look for insurtech opportunities Insurtech is key to facilitating the agent
that will instantly enable us to provide effi- experience to help carriers better connect
ciencies and/or enhanced customer experi- with their channel and to solve the common
ences. A great example of this is TextQBE, headaches around compliance, onboarding
which was developed using HiMarley. The and compensation. When carriers solve
artificial intelligence-based conversational those issues, they become a partner of choice
service platform provides an alternative and get more bites at the apple when it
channel of communication to improve the comes to new and renewal business in the
customer experience, reduce cycle time, and agency channel.
reduce expenses and indemnity dollars. That In addition, the right technology solutions
directly improves the customer experience. can equip insurers to provide more insights
An example on the efficiency side is our into tracking and process management for
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FEATURES
INSURTECH 2021
erated insurers’ digital strategies, directing
their attention to insurtechs for support as
they enhance distribution with their agency
partners, in commercial lines particularly.
Historically, commercial lines distribution
methods have been extremely manual and
time-consuming for both insurers and agents,
requiring back-and-forth communications to
complete and submit applications and then
requiring the agent to potentially wait weeks
to receive a quote.
Insurtechs like IVANS, Indio and others
are working together with insurers to create
more effective and efficient workflows for all
stakeholders. Through a single point of
connectivity, insurers can connect to the
largest network of agencies and other distri-
bution partners to market and distribute
their commercial lines products. The distri-
bution platform automates market appetite
communications directly to agency manage-
ment systems, digitizes submissions for both
simple and complex risks, and then sends the
submissions, more insight into the claims business. These portals can be a competitive submission data to underwriters. This ulti-
process, and help agencies upload informa- differentiator if they leverage them to offer mately increases the ease of doing business
tion into the carriers’ systems more easily. valuable information on topics like safety or and creates new business opportunities for
Ultimately, insurers should be looking at regulatory updates. Creating a digital plat- both agents and insurers.
insurtech that can enable them to move faster, form where policyholders can self-service and While it’s important for insurers to work
be more agile in terms of the products they educate can be a great area in which insurtech together with insurtechs to enable this seam-
deliver to market and be more responsive to can help. less distribution experience, it’s also critical
for more insurtechs to take part. Distribution
workflows are only as effective as the tech-
“Leveraging technology to support remote/ nology they connect to and enable. The more
digital work will be essential for the connectivity partners that sign on to provide
access to markets and integrate with manage-
foreseeable future. Many buyers of insurance ment systems and policy admin systems,
the more agents and insurers can participate
will remain remote or hybrid indefinitely” and efficiently distribute the best products
for policyholders.
Jason Liu, Zywave
agents – all of which goes to enabling agencies On the broker side, insurers need to enable How can brokers use
to meet the expectations of their clients and their agents to sell and service more effi- insurtech to their
making insurers a partner of choice. ciently and effectively. Offering a robust advantage? Are there any
Jason Liu: Policyholders expect a digital distribution management system can help key solutions they should be
experience when conducting business with streamline the way agents and carriers paying attention to?
their insurer. They pay premiums, file claims exchange information. Insurance requires a
and review their policy digitally. To support lot of documents and data, and providing a Jason Liu: Leveraging technology to support
this, carriers must offer a robust portal or way to make these seamlessly flow between remote/digital work will be essential for the
mobile application where their customers can the two parties can be assisted by insurtech. foreseeable future. Many buyers of insurance
engage with them and perform any insurance Taylor Rhodes: The pandemic has accel- will remain remote or hybrid indefinitely.
24 www.ibamag.com
Being able to support and sell to these audi- just-in-time information and content to their
ences will be critical – and leveraging clients. These technologies are helping agen-
INSURTECH’S PRIMARY
insurtech is vital for growth. cies of all sizes take client relationship-
AREAS OF DISRUPTION
Solutions that can support the commercial building into the digital realm.
Mobile platforms
quoting process will be essential for the success When it comes to analytics, insurance has
Selling insurance on
of brokers. The commercial submission process always been a data-driven industry, and the
smartphone devices
is still too manual and time-consuming, and most exciting developments in insurtech
customers are starting to expect quote compar- almost always revolve around new and better
Connected home/office
isons faster. Insurtech can help, with a number ways to leverage that data to serve customers
Accessing data to understand
of solutions being made available to connect and manage risk. Over the past few years,
energy consumption or
agents and carriers directly to facilitate insurtech providers have delivered tools that
consumer behavior
customers’ quotes faster and more efficiently. can proactively predict which clients are at
Dan Moore: Much like the carrier world, the highest risk of leaving, sift through vast Connected car
brokers have a host of opportunities to pools of data to create coverage recommenda- Developing usage-based
leverage insurtech through technologies like tions, automate personalized client commu- insurance products
AI and automation, blockchain, and robotic nications and more. These tools are
process automation to more efficiently process harnessing some pretty advanced technology Sharing economy/
data, and Internet of Things devices and to make independent agencies of all sizes peer-to-peer
sensors to improve risk assessments. faster, smarter and nimbler. Covering new risks, developing
Amy Zupon: For brokers, it’s clear that in Taylor Rhodes: Agents should be taking temporary coverage and
many ways, the pandemic further validated advantage of those insurtechs that are providing new assistance
the key insurtech trends we’ve been investing designed to work with agents to make their services
in for a number of years: robust and efficient business processes more effective. It’s
agency management solutions, improved important to make sure agents are working Blockchain
connectivity between agents and carriers, with a management system that is open and Using blockchain-enabled smart
advanced analytics to unlock the power of the able to quickly integrate with third-party contracts to create a more
industry’s vast pools of data, and dynamic applications. The days of closed systems are seamless insurance process
digital experiences for the end insured. coming to an end, and technology must
At their core, these trends are intrinsically become more open and integrable, creating Connected health
linked to the outcomes most likely to improve flexibility for agents to harness its power to Increasing access to healthcare
an agency’s performance: increased efficiency, support their business as it evolves and services through advanced
higher client satisfaction and the ability to find changes over time. Software built on compo- cloud technology
new business opportunities. And the advan- nentized architecture with open APIs creates
tage of these outcomes is clear: Data from our simple ways to integrate the management Source: The Digital Insurer
thousands of customers shows agencies that system with other critical business applica-
invest in these insurtech categories grow faster tions and quickly get information in and out
and see higher profitability year-over-year in of the system of record.
comparison to industry averages. Indio is an example of an insurtech for
Brokers can expect innovations in all these agents with commercial lines business that
areas in 2021 but may want to especially keep enables more effective and efficient work-
an eye on emerging solutions in two areas: flows. Instead of having to pull specific appli-
the client experience and analytics. cations and supplemental forms from each
Clients have long expected outstanding insurer and then send them over to the
service with maximum efficiency, which is at customer to fill out, agents can use Indio,
the core of what insurtech helps agents which has digitized more than 10,000 insurer
provide. And the events of the past year have forms, to digitally collaborate with customers
only accelerated and deepened consumer to fill out a single online form.
expectations of being able to do business Indio uses information stored in the
when and where they want. We’re also seeing management system to auto-populate the
more agencies leverage communications digitized insurer form. The agent can then
platforms that allow them to deliver relevant, share the document with the customer
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FEATURES
INSURTECH 2021
through a portal to fill out the rest of the for customers and costly to the carrier.
fields. Once the digitized form is filled out, Claims handling and settlement is the largest HOW INSURTECH CAN
the structured data is submitted to the insurer cost for carriers and is often the only time a BETTER PROTECT
through IVANS, and the underwriter can customer deals directly with their carrier. CONSUMERS
begin the quoting process. This automated Changing customer expectations make
commercial lines solution shortens the this process obsolete, since many customers Using advanced technologies
typical data-gathering and submission time want 24/7 service, and they want to file such as blockchain-enabled
from two weeks to mere minutes, freeing up claims virtually. Technology is helping with smart contracts, artificial
agents to service customers and delivering a this, and some digital insurers offer claims intelligence, autonomous
premier digital customer experience. payments instantly, but this is typically for driving technologies and new
small routine claims like home and auto. cybersecurity methods to
Complex claims still require a great deal of protect consumer identity and
How is insurtech developing manual effort. cover new risks
in the claims space? Are The use of sensors in your car or home,
Delivering personalized and
there any key developments using drones to assess property damage, and
tailor-made coverage via
that have helped reduce using AI and photo apps to review claims
engagement with IoT, data
claims leakage, limit fraud or images are just some of the ways technology
analysis and mobile innovations
otherwise offer assistance? is improving the claims process. Insurers are
also using rule-based claims submission Leveraging the expertise and
Taylor Rhodes: A shift in customer experi- forms and virtual assistants to help claims get scale of strategic partners to
ence demands, brought on by large, digital- filed faster and more accurately. anticipate changing consumer
first companies like Amazon and Uber, has Amy Zupon: Claims are a key area of behaviors
driven insurtechs to transform how agents concern for carriers, and insurtech advances
and brokers serve their customers in claims. in this space exemplify how the industry is Providing customers with
Using technologies like machine learning increasingly leveraging data analytics to added services through their
and artificial intelligence, insurtechs have both improve efficiencies and uncover areas smartphone
redefined what was possible in placing and of opportunity.
Source: The Digital Insurer
tracking claims.
For example, Applied has collaborated with
Google to create an artificial intelligence- “Using technologies like machine learning
powered chatbot, allowing policyholders to
walk through a series of simple questions to and artificial intelligence, insurtechs have
answer. This is simulated to the customer as a
chat message with a virtual claims assistant, redefined what was possible in placing and
ensuring that all necessary information and
photos are stored within the management tracking claims” Taylor Rhodes, Applied Systems
system and then sent to begin the claim.
This allows the customer to start a claim Many large carriers have already upgraded of 10 points. Fraud can account for up to 10%
at any time of the day, without having to call their claims management platforms, but we’re of a carrier’s claims cost every year, so better
and wait for their agent to help. Not only does seeing a number of insurtechs investing in fraud management could potentially close
this strengthen the agency/customer rela- platforms to meet the needs of mid-sized and that gap. A number of insurtechs are using
tionship, it also saves time by shifting interac- small carriers in particular. The goal is process predictive modeling and advanced AI to help
tions that have been historically facilitated by automation, efficiency and using analytics to carriers fight fraud. Analytics can spot anom-
agency employees to self-service. Because of get claims in the door, triaged – identifying if alies and identify claims that require addi-
these efficiency gains, customer self-service a claim is high-risk or simple – and routed to tional investigation, and integrating data
often delivers a return on investment in less the right adjuster as quickly as possible. from telematics devices can help quickly
than one year. The second area of insurtech and digital corroborate the details of a claim.
Jason Liu: Traditionally, the claims expe- investment in this space is in fraud detection. Third, we’re seeing analytics and Big Data
rience for customers has been risk manage- Research shows that especially in commercial at work to address claims leakage. Carriers are
ment, notification of loss, assessing the claim insurance, the profit difference between the developing relationships similar to healthcare
and settling. This process is often confusing top and bottom performers can be upwards providers, with pre-negotiated reimburse-
26 www.ibamag.comment for repairs. Analytics are enabling them
to better predict the cost of repairs while
accounting for variables like geography. That
predictability and cost control obviously has
benefits for both carriers and the end insured.
All of these advancements reinforce the ways
that the industry is increasingly leveraging
data and analytics and predictive modeling.
Many believe that insurance
has shifted toward an
innovation-focused digital
culture. In what areas does
it still need to improve?
Jason Liu: Insurance has definitely shifted
in this direction. Insurance customers pay
premiums, file claims, review policies, request
changes and more online. But they are still
looking to do even more digitally. The entire
buyer’s journey needs to be transformed digi-
tally, from lead generation to quoting to
servicing and supporting and accounting
activities. There’s still a lot of work to be done
to modernize the experience.
Dan Moore: It is still early days for
insurtech, and there is still room for improve- “It is still early days for insurtech, and there
ment across the full insurance value chain.
The best results will come from solid part- is still room for improvement across the full
nerships that leverage both tech innovation
and insurance industry expertise. insurance value chain” Dan Moore, QBE North America
While a lot of focus is on data, AI and
technology, we have to remember that insur- there are huge opportunities to build industry- ously mentioned, companies like Amazon
ance helps people in their darkest hour – it is changing solutions that analyze, manage and and Uber are setting expectations for how
the fulfillment of a promise sold long before mitigate risk like never before. consumers should be serviced, and it is time
the loss occurs. We’ll begin to see insurtech The litmus test of any new technology is that insurance accelerates adoption of these
advance supporting the human side of the “How does this solution drive value for the technologies as well.
equation – helping customers make better customer?” So, while focusing on new AI/ML Agents can adopt technologies such as
insurance purchasing decisions, providing engines that can better evaluate risk, monitor self-service portals and mobile apps to put
greater access for all participants and customer satisfaction, predict customer attri- the power in their customers’ hands. Using
enabling firms to empathically support tion, and create more personalized insurance digital tools like these enables insurance
customers throughout the life cycle. products and pricing are all exciting technol- customers to obtain proof of insurance,
Amy Zupon: I think insurance can seem ogies that can provide tremendous value, access insurance documents, make payments,
stagnant as an industry, but what people forget insurtech also needs to be sure it is focused report first notice of loss and track claims
is that this is an industry that was built on the on the basics of creating efficiencies and processing without ever having to contact
collection and leveraging of data. And data is improving customer experience. their agent. This provides customers the
the fuel that powers some of the most exciting Taylor Rhodes: While the insurance autonomy and digital experiences that they
new technologies – AI/ML, for example – so industry has made significant progress over have become accustomed to with other
insurance, especially on the carrier side, is well the last year, there is still work to be done to industries, ultimately enhancing loyalty and
positioned for continued innovation, and enhance the customer experience. As I previ- the agency’s competitive proposition.
www.ibamag.com 27FEATURES
INSURTECH 2021
BUYER’S GUIDE
providing exclusive data services that help
insurance professionals make smarter
business decisions throughout the sales
and customer life cycle. We are helping
our clients leverage the industry’s leading
content, which is essential for keeping
their organizations informed of the ever-
changing marketplace while positioning
them as expert business consultants to
their clients.
We are building our solutions with an
open-architecture philosophy to help create
greater connections with key stakeholders
throughout the insurance life cycle.
“There is so much
opportunity in the
insurance industry
for the entire buyer’s
journey to be truly
transformed digitally”
How does your technology benefit
agents and brokers?
ZYWAVE achieve business growth; and promote JL: Ultimately, all of Zywave’s solutions
Year founded: 1995 greater health, wellness, risk management tie back to profitability and growth –
Headquarters: Milwaukee, WI and safety. from marketing automation and lead
Leadership: Jason Liu, president and CEO generation to the industry’s leading
What’s your key area of focus in the content library to tools for enhanced
Tell us about Zywave. What do insurance ecosystem? customer service and retention.
you do? JL: Serving both carriers and brokers,
Jason Liu: Zywave leads the insurance Zywave provides the most comprehensive What tech innovations are you most
tech industry, fueling business growth offering of sales, marketing and manage- excited about for the future?
for partners with cloud-based sales ment solutions to fuel business growth. JL: There is so much opportunity in the
management, client delivery, content insurance industry for the entire buyer’s
and analytics solutions. More than How are you using technology to fix journey to be truly transformed digitally.
15,000 carriers, agencies and brokerages pain points in insurance? We are on the cusp of a monumental shift
worldwide – including all of the top 100 JL: We are automating workflows to in the way insurance organizations do
US insurance brokerages – use Zywave enable greater efficiencies and produce business, and it’s really exciting to be a
solutions to enhance client services; precise, predictable results. We are part of it.
28 www.ibamag.comTech Solutions
that Fuel Growth
We help you improve the entire process of how you do business.
Whether it’s finding and engaging with new prospects, quoting
new business with carrier-direct rates or continually educating and
servicing your clients – we find new ways to grow your business and
retain your existing clients.
Find out how at Zywave.comFEATURES
INSURTECH 2021
Alternative Markets How does your technology benefit
is the alternative brokers and agents?
distribution arm of TJ: Customers expect quick responses with
QBE North America, customized coverages. We look for innova-
composed of tive technology to support those needs and
programs, personal help them to manage their unique risks. The
insurance and more our innovations can influence that, the
Westwood Agency. happier our partners will be.
Our crop division
offers outstanding What tech innovations are you most
customer service excited about for the future?
to our agents and TJ: One of the most exciting advancements
farmers and is an in recent years has been the growth of
industry leader virtual desktop adjusting, particularly in
in innovative the property space for first-party claims.
technology. By leveraging specialized smartphone
Coverages include apps, our claims professionals can direct
crop hail, livestock, a customer in real time to survey their
multi-peril and property and take and upload pictures
named peril. of damaged areas. This capability forms
Our specialty the basis of their estimate and has been
and commercial division provides especially useful during COVID-19 and
coverages and services to support the created a situation where portions of our
specialized needs of a wide range of work can be done virtually.
industries, including manufacturing, real In a real-life example, we recently saw
estate, wholesale, financial institutions severe storm damage to the exterior of
QBE NORTH and aviation. a customer’s building. On the same day
AMERICA the customer reported the claim, we sent
Year founded: 1886
How are you using technology to fix instructions on how to self-inspect the
Headquarters: New York, NY
Leadership: Todd Jones, president and CEO,
pain points in insurance? damage using a specialized 3D modeling
QBE North America TJ: Communication will always remain app. Where previously using an independent
at the heart of claims service excellence, vendor to conduct an on-site inspection
Tell us about QBE North America. and technology can help us stay ahead of could take up to a week, our customer was
What do you do? customers’ evolving expectations. Today, able to complete the inspection the very
Todd Jones: QBE North America is a many of our customers in North America next day in under an hour.
global insurance leader focused on helping want to communicate via text/SMS, so we Another example is the migration toward
customers solve unique risks so they can recently added a service, TextQBE, that uses the implementation of a mortgagee address
focus on what matters most. We offer a AI to initiate and carry out routine messages change robotic desktop automation
broad spectrum of specialty, commercial, with these customers. Our claims team can solution in personal lines. The bot receives
program, personal and crop insurance still jump in at any time for more empathetic PDF information from lenders and instantly
capabilities. Customers can rest assured and complex discussions. Our customers updates internal systems with this data,
they are getting specialized advice from think it’s great. dramatically reducing the time to process
a true partner, underpinned by risk We also use technology to engage with these requests. This faster resolution for
mitigation, exceptional claims and caring customers even before a claim occurs. both our customers and agent/broker
service. Whatever the situation, QBE is For instance, we work closely with our loss partners helps reduce the amount of work
with you. control and catastrophe modeling teams to conducted by our employees.
identify customers in the path of a severe Technology has unlocked enormous
What’s your key area of focus in the storm or wildfire. We can then leverage potential, and we’re very excited about the
insurance ecosystem? technology to send a warning to those new possibilities for serving customers
TJ: We offer a broad program set customers with appropriate safety and better – not just in claims, but at every point
spanning three major markets. claims reporting information. in their experience with QBE.
30 www.ibamag.comPrograms
We’ll focus on
partnerships, so
you can focus on
Growing your business takes a strong strategy –
and even stronger relationships. That’s why QBE
offers distinctive expertise, global strength and
a focus on innovative technology, all backed by
trusted relationships with our program partners.
Discover QBE programs:
• Over $1 billion annual premium
• Deep underwriting and claims expertise
• Investing in technology for the future
• Ability to write multi-line and
mono-line coverage in all 50 states
• Personal, Commercial (P&C) and
Professional lines of coverage
Together, we’ll create the alternative risk,
management and service solutions you
need – so no matter what the future holds,
you can be sure that QBE is with you.
Read about some of the
innovative work we’re doing
or visit us at qbe.com/us
Alternative Markets Crop Specialty & Commercial
QBE and the links logo are registered service marks of QBE Insurance Group Limited. ©2021 QBE Holdings, Inc.
This literature is descriptive only. Actual coverage is subject to the terms, conditions, limitations and exclusions of the policy as issued.FEATURES
INSURTECH 2021
How does your technology benefit
agents and brokers?
AZ: Insurance is evolving, and independent
agencies are feeling the pressure to change
from factors like agency consolidation,
evolving client and employee expectations,
and emerging technologies. For agencies,
the key to staying ahead is investing
in the approach and tools that truly
support growth and client and employee
satisfaction. At Vertafore, we’re focused on
building solutions that both address the
industry’s core needs and that integrate and
work well together. That approach ensures
our agencies get the most out of their tools
because their technology is designed to
provide the maximum value and efficiency
for their investment.
“Everything we do is
about simplifying and
automating insurance
VERTAFORE efficient processes; empowers client
engagement and interactions; and
distribution”
Year founded: 1969
Headquarters: Denver, CO facilitates connections to their carrier
Leadership: Amy Zupon, president and CEO partners. For carriers and wholesalers, we’re What tech innovations are you most
giving them the right tools to be a partner excited about for the future?
Tell us about Vertafore. What do of choice within the independent agency AZ: Some of the most significant
you do? channel so they can get their products out innovations right now are in market
Amy Zupon: As North America’s to market. connectivity, especially for commercial
insurtech leader for more than 50 lines. The commercial submissions process
years, Vertafore is modernizing and How are you using technology to fix has been a longstanding pain point in our
simplifying insurance distribution so pain points in insurance? industry, and insurtech is on the verge of
that our customers can focus on what AZ: Our solutions are solving three critical solving that challenge. The client digital
matters most: people. Our solutions pain points in insurance distribution. First, experience is also a space to watch as
provide end-to-end connectivity; improve we’re creating more efficient connections the insurance distribution channel works
the client and agent experience; unlock – between systems, data and stakeholders to meet modern, real-time consumer
the power of data; and drive efficiency, – so that agencies and insurers can work expectations.
productivity and profitability for better together and better serve their end When it comes to agency management,
independent agencies, MGAs and carriers. insureds. Second, we’re using technology it is exciting to see more emphasis on open-
to automate and simplify processes and platform, API-enabled solutions that are
What’s your key area of focus in the workflows to give agents and carriers enabling agencies to engage with the tools
insurance ecosystem? more time to focus on their clients and they need to grow without replacing their
AZ: Everything we do at Vertafore is growth. Finally, through artificial intelligence core systems. Finally, our industry is sitting
about simplifying and automating and machine learning, we’re helping the on a treasure trove of data, and we’re seeing
insurance distribution for all stakeholders. distribution channel unlock the power some really remarkable advances that will
For agencies, that means delivering of the industry’s data to uncover new enable agencies and carriers of all sizes to
technology that leads to better, more opportunities and efficiencies. unlock the power of that data.
32 www.ibamag.comFEATURES
INSURTECH 2021
core promise of productivity, intelligence,
simplicity and value.
How does your technology benefit
brokers and agents?
TR: Applied technology automates
the exchange of information and data
throughout the insurance life cycle among
agents, brokers, insurers and consumers,
delivering a connected experience between
all participants in the insurance ecosystem.
This means greater connectivity with
insurer partners and insureds. When the
business of insurance is digitally connected,
all stakeholders benefit from superior
insurers perform better together, all while experiences, such as operational efficiency
APPLIED SYSTEMS providing intelligence that helps agents and and better customer service, across the
Year founded: 1983
Headquarters: University Park, IL insurers grow their business more efficiently entire insurance life cycle.
Leadership: Taylor Rhodes, president and CEO by turning data into actionable insights.
Our focus and commitment is to invest and What tech innovations are you most
Tell us about Applied Systems. What push forward to make the digital future of excited about for the future?
do you do? insurance practically helpful for the entire TR: I’m really excited to see our portfolio
Taylor Rhodes: Applied Systems is ecosystem and ultimately the end insured. transformation hit prime time as we
a leading global provider of software realize the opportunity to advance the core
that powers the business of insurance. How are you using technology to fix architecture and underpinnings of our
Recognized as a pioneer in insurance pain points in insurance? systems. Applied is focused on building
automation, Applied is the world’s TR: The insurance industry is historically technology that allows for greater flexibility
largest provider of agency and brokerage riddled with paper-driven manual and accessibility for customers – and even
management systems and a leader in data processes, often creating inefficient better, integration across our own product
exchange, seamlessly connecting insured, workflows and poor customer experiences. portfolio. We aim to deliver choice and
agency and carrier stakeholders. These challenges start in the internal automation with third-party integrations or
operations of the independent agency, shared APIs, whether through our partner
What’s your key area of focus in the including back-office processes such as program or with other providers that
insurance ecosystem? policy administration, accounting and the want to tap into the system. As a trusted
TR: Applied enables greater access to management of customer relationships. technology provider, we aim to create
information and streamlines workflows, When digital technology isn’t used, the ease of doing business for our customers,
allowing our customers to better connect inefficiencies extend to an agent’s insurer their customers and their partners while
within their business to their insurer relationships. Without the use of digital achieving the highest level of security.
partners and their customers. Applied’s technology, agents must individually contact To continue creating ease of doing
place in the insurance ecosystem lies in insurers and rely on fax and mail to complete business for our customers, Applied is
equipping and enabling the independent the policy purchase process. Finally, without continuing to focus on simplifying the user
agency channel by delivering integrated a customer portal, all communication with experience. Today’s employees come to work
automation from the back office to the the insured must be in person, over the expecting their productivity tools to meet the
front office. phone or via email, requiring insureds to same standard of user experience they enjoy
We empower agents to break out of contact their agent for everything. in consumer tools like Google, Facebook,
the broken processes and poor customer Applied technology enables agencies to Amazon or Apple. We want to deliver that
experiences to create simple online reshape their businesses with three core same easy interface that they’re used to so
interactions – from application to policy focuses: a foundational system to manage they can more easily train and onboard new
binding to servicing and renewals. We their entire business, omnichannel customer employees, create more productivity within
expand intelligent connectivity across the service, and a single network for market their daily workflows, and realize more time
insurance ecosystem to help agencies and access and service – all delivering on the for revenue-generating activities.
34 www.ibamag.comYou can also read
