Innovation and accessibility
In association with Swiss Re, Monte Carlo Today conducted a survey of senior industry executives ahead of and during the conference.
How can the industry make insurance more accessible?
Markets are intermediary-driven with no real mechanism to get closer to the customer without forward-thinking, risk taking on operating models and digitisation. Examples on the market with integration into general healthcare or wellness networks, fitbits, etc, are starting to build personal relationships with consumers and then develop relevant and simple products that meet their needs. We must become digitally relevant in the customer’s journey.
Houston Ross, COO and board member of NN Life Insurance & Pensions, Czech Republic & Slovakia
Through technology and innovation: an example is the schemes that are appearing offering parametric cover via mobile phones, such as flight delay or cancellation.
There is a multitude of insurtech startups out there right now all looking to disrupt the current industry model but my feeling is that although many will not take off, those that do will create lasting real change.
Gerry Tighe, head of Treaty, Matrix Insurance & Reinsurance Brokers
The speed of claims payment needs to accelerate, the products need to be more flexible, and some would argue that premiums should decrease for the market to expand.
The market is not ready to move on all of these items, but disrupters are beginning to unpick the traditional product in a manner that attempts to make insurance more accessible. Traditional insurance needn’t be the only way we close the protection gap: non-traditional products should be developed further for the modern buyer.
Adam Szakmary, director of underwriting, Hiscox
Is innovation in the industry moving quickly enough?
Like other large industries, the insurance industry has struggled to keep pace with the speed of technology-led innovation. In the UK, we’ve seen a steady progression powered through online channels, with the emergence of direct players, then price comparison sites, which have revolutionised the way insurance is bought.
We’ve now seen the next development, the connected home, and we are excited to be at the forefront of that. With the FCA’s Innovation Hub and progressive insurers developing venture funds, the signs are extremely positive.
Michael Postle, CFO, Neos
Amazon was founded 24 years ago. I love the adverts in airports saying ‘how many nights does it take to be an overnight success?’. Speed of innovation is irrelevant unless we can deliver. Nobody ever said they wanted to be driven around by a stranger yet the taxi industry has been revolutionised. It’s import that our industry knows that it needs to change.
‘If all else fails, acquire’ is an old saying. The cost of doing business increasingly means that scale is everything.
Jonathan Prinn, group head of broking, Ed Broking
When only 60 cents in the dollar is going to the underwriter, you have to say the cost of doing business is too high and innovation must change that; it will happen whether we like it or not. Look at what Amazon has done: the retail space will never be the same again.
None of the big players like Apple or Google has yet shown the appetite to take risk onto its own balance sheet—they want to sit in the middle. But if things don’t move, that could change.
Stephen Catlin, industry veteran, senior adviser with Aquiline Capital Partners and the chairman of the Insurance Development Forum
