Fintech Finance presents: The Insurtech Magazine 04

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PLATFORMIFICATION It’s enabling owners to get much more engaged and involved in preventative measures. So, you’re absolutely right, you can affect behaviour, or actions, and that will start to reduce risk. But there are still going to be acts of god, and other random things that will happen, where insurance will play a very important role in protecting and providing that safety net. I think there will be a trend for insurers to work more closely with the customer, to influence their behaviour and reduce the risk of a claim. It will help, but there will still be claims that need dealing with in a more frictionless fashion. If you look at Lemonade, for example, which has the philosophy that ‘we’ll look at your claim, and aim to settle it within three seconds’,

Cloud vision: There are psychological barriers as much as technical ones

it’s redefining claim management and removing the friction so that customers feel they’re getting what they need at that point in time. Lemonade is highlighting how every insurer in the world could operate and behave, because the technology and the processes that go with that are actually available. They’re ready to go. That’s one of the things we promote when we’re talking to our clients and prospects. INSTANDA enables you to behave like Lemonade. TIM: Lemonade, of course, is a lot younger than most insurers and so doesn’t have a legacy problem. Do you think legacy technology and the associated issues, such as organisational culture, are holding the larger insurers back?


TheInsurtechMagazine | Issue 4

TH: At INSTANDA, we’re saying you don’t have that excuse any more! Companies can use our platform to embrace Lemonade-like behaviour. You may claim to be held back by technology, but there are solutions like ours out there that enable you to do the things consumers are asking you to do, better. I used to be a CIO, so I know this argument only too well. You still have the technology teams who’ll say ‘well, yeah, but I’m managing things that have been built in the last 10, 20, or even 30, years. These systems are very, very old, and they’re very, very difficult to change, because they contain a lot of our historical information, our customer data. They are

We now have an abundance of data at our fingertips to feed the technology, which helps to fuel collaboration that drives new solutions our system of record and we can’t just move them aside’. Now that may be true, however, what you can do is start talking to those older systems with new, modern ones. Integration usually becomes the next stumbling block, so we’re in the process of setting the industry a challenge on integration, because we know from our experience that there are multiple ways to solve that particular challenge. We’ll be revealing more about this project shortly.

TIM: How do you then avoid your own INSTANDA platform being the legacy technology in 20 years’ time? How do you make sure that it will continue to be part of an evolving ecosystem? TH: I’ve been in the technology space for quite a while and I’ve seen a lot of changes. The good news is that we now have an abundance of data at our fingertips to feed the technology, which helps to fuel collaboration that drives new solutions. When we were designing INSTANDA, we took the view that we need to be working in collaboration, in cooperation, with multiple other applications and data sources. For example, we recently integrated with Cytora, a great company that specialises in risk algorithms and data source capture. These guys take a bunch of datasets, run algorithms on it and give you a risk score. If you were to buy your house insurance policy, for example, you could use Cytora to do all the analysis on flood, subsidence and all other risks. Old-world, monolithic systems need structured data, but new-world platforms like INSTANDA should always be able to work in combination with others to harvest multiple open data sources and provide the right insight. That’s the key difference. TIM: Finally, looking at your expanding customer base, there are a lot of very large companies in there. Have you seen a lot of neo-insurers start to come your way now, too? TH: We’re very fortunate in that we’re seen as one of the companies that progressive insurers of all shapes and sizes should make the effort to go and talk to. There’s no shortage of ideas in the industry; there’s no shortage of ambition and enthusiasm for doing things differently and that’s a positive sign. But there’s still some reticence, at board level in many companies, of course. There’s this psychology about being prepared to commit significant parts of a business to a modern platform. It’s therefore important to have a sensible conversation about how we could add value to a business. We’ve got to be able to stand in front of our prospects and our clients and be confident about the strength and flexibility of our proposition. I feel that we can now do that with any insurer in the world, which is very exciting for us, and very exciting for the industry.