The InsurTech Landscape 2017: Business Models and Disruptive Potential

Transcription

1 The InsurTech Landscape 2017: Business Models and Disruptive Potential ELSA/BVZL Investor Summit 2017 September 12, 2017 London Dr. Florian Schreiber

2 Agenda The InsurTech Landscape Introduction 2. The I.VW-HSG InsurTech Study 3. Selected Empirical Results 4. A Brief Insight Into the Blockchain Technology and Bitcoin 5. Summary 2

3 1 Introduction

4 These days FinTech and InsurTech are omnipresent! 4

5 InsurTech Cockpit 2017: Media, Startups, Geography, Funding InsurTech in the Media Number of Startups Geographical Distribution Financing Statistics Funding Rounds Investments by (Re)Insurers 5

6 2 The I.VW InsurTech Study

7 The I.VW InsurTech study (in cooperation with Swiss Re) InsurTech: What Do Do We We Know? Know? The Current InsurTech Landscape Navigating the the InsurTech Landscape Disruptive Potential and and Incumbent Responses Responses Empirical Analysis 7

8 Which business model patterns are inherent in InsurTech startups? Employing the ITEM-HSG business model navigator Comparison Portals Layer Player E-Commerce Benefitting from specialized know how Digital Brokers Affiliation E-Commerce Your success is my success Insurance Cross Sellers Cross Selling White Label E-Commerce Killing two birds with one stone P2P Insurance Peer to Peer E-Commerce Enable transactions between individuals On-Demand Insurance Pay-per-Use Aikido E-Commerce Pay as you go Digital Insurers Digitization Cash Machine Direct Selling E-Commerce Digitizing physical products Big Data Analytics / Insurance Software Subscription Layer Player Taking a season ticket to services Distribution 8 Internet of Things Leverage Customer Data Layer Player Making use of what you know Risk Carriers Blockchain / Smart Contracts Licensing Subscription Commercializing intellectual property Technology

9 3 Selected Empirical Results

10 In particular reinsurers and brokers are alarmed 10

11 but for opposing reasons 11

12 InsurTechs consider most incumbents as cooperation partners 12

13 4 A Brief Insight Into the Blockchain Technology and Bitcoin

14 Blockchain as one of the hottest topics in today s FinTech/InsurTech Barclays Financial Times Deloitte Handelsblatt The Economist Wirtschaftswoche Die Zeit WEF Capital UK Government Source: Allianz,

15 Blockchain activities and financing operations are on the rise Blockchain Deals Investments and Investors Investments by Financial Institutions Geographic Breakdown Source: CB Insights; Allianz,

16 But, what is that Blockchain animal? The two main components of the Blockchain Asymmetric Cryptography + Distributed = Network Blockchain Immutuable Records Verifiability Secure Transactions Peer-to-Peer Network Computing Power and Data Storage from participating nodes Chain of Blocks (=Transactions) Transactions with timestamps Source: Allianz,

17 Symmetric vs. asymmetric cryptography Symmetric Asymmetric Key Public Key unencrypted encrypted unencrypted encrypted Key Private Key 17

18 Centralized vs. decentralized networks Centralized Decentralized ( Peer-to-Peer 18

19 Physical vs. digital transactions Physical Digital (without Blockchain) Decentral Real-time settlement (change of ownership) Paper money as element of trust Anonymous Central Trust in central authority required Transaction fees for central authority Complex processes Source: Allianz,

20 Bitcoin: the very first Blockchain application Goal Problem The Bitcoin inventor wanted to create digital cash Digital assets don t know scarcity double spending problem 20

21 Bitcoin solves the double spending problem Solution Blockchain achieves the replication of the advantages of a physical money exchange transaction to a digital transaction: Decentral Real-time settlement (change of ownership) Paper money Cryptography as element of trust Anonymous 21

22 Blockchain s features that are interesting for the insurance industry What is disruptive? Source: Allianz,

23 Today s impact on the value chain of the insurance industry Source: Allianz,

24 Contact Details Dr. Florian Schreiber Institute of Insurance Economics University of St. Gallen Tannenstrasse St. Gallen Switzerland 24