Insights from - and for - the London Insurance Market


Insights from - and for - the London Insurance Market

Here follows some thoughts and comments based on the responses to the pre-event survey for TINtech London Market 2018. Wherever possible I have kept my intervention to a minimum and passed on the thoughts of your peers: as always with us, any authority we have to pass comment on the market is derived from our members, speakers and attendees.

The final agenda was launched last week, and this week Sollers Consulting have confirmed they will once again be main sponsor. Key themes are the collapse of the London market value chain, emerging tech (AI, Blockchain, RPA etc), digital transformation and ‘where next for market modernisation?’. Sollers will be chairing a panel on transforming the operating model, with the commercialising innovation panel facilitated by Virtusa, and the session on AI and Machine Learning chaired by Guidewire.

The pre event survey is intended to inform and shape the agenda, and this year the replies to our (deliberately) open ended “what should the event be about?” question ranged from the individual technologies: eBOT, Blockchain, digital transformation to the market wide: TOM, PPL, CSRP and DCS.

There were some old favourites the event wouldn’t be the same without:

"Incident Response Management (specifically Security but also general BCP) ‘Not if but when – and THEN what!"
"How not to be E*****x"
"Why patching is your priority"

It seems most of you are up to your necks in digital transformation, with 57% “deep” into one, 31% just starting, with the rest of you either making plans (laggards) or seeing “no need” (errrr…really??)

Perhaps these comments will sway those few remaining naysayers:

"Digital Transformation is needed to enable a robust, and financially prudent foundation to support a scalable business"

"Better operational efficiency is the main result but that in turn enables us to be more competitive and therefore enhance customer service, so the three are interlinked – but the end game is to enable the company to be more successful."

The discussion around AI and Machine Learning, its implications, the opportunities is forefront in many attendees’ minds, with 75% agreeing it will “reinvent our industry”. An impressive third of people felt they were already “using AI to reinvent what our company does”. Only 13% disagreed with my deliberately shameless question: “If you have not started looking into the opportunities AI presents then you have missed the boat”

Respondents were aiming to achieve a vast array of business objectives by investing in AI and machine learning, including, in rough order of ‘popularity’:

  • Achieving process efficiencies
  • Enabling better ratings
  • Better targeting of customers / better customer insight
  • More objective decision making
  • Reducing fraud

I thought this summed it up nicely:

“Great insight / analytics – if you have got automation sorted, you can get insight from the new joined up landscape”

Here were some of the biggest challenges people are facing when executing their AI strategy:

  • Cultural resistance; data identification; identifying the right technologies
  • Understanding of how it could be used and how deep its impact could be
  • Legacy systems and culture
  • Seeing its application
  • No strategy yet!
  • I need to understand AI strategy more
  • Investment in time and resources from the business at a very busy time
  • Finding a good business case for initial POC

The picture with the adoption of Blockchain, the other New Kid On The Block (pun intended), is unsurprisingly very different. More than half of you are “only investigating”, a third are doing nothing because you don’t see it impacting the business, and only TWO are “investigating and investing”. This may explain why we can’t find a sponsor for what will doubtless be one of the most popular sessions of the day…

…which brings us to the TOM, another session that will be no doubt be well attended on the day. The TOM and where it is taking us all is still provoking a wide range of responses, from the “still mystified”:

“Not clear on TOM yet and need to understand more and what we can do to capitalise on it”

…via the curious…

“How it will affect MGAs, and where they will sit in terms of interacting with the model?”

“A general overview of all points, and the progress made in the last 12 months”< “Implementation plans and progress” “How it affects the service my (IT infrastructure) team provides ie how we can support the changes in the business and what we need to do to prepare for that change?” “Progress with CSRP”

…and the dubious….

“What happens if it’s not successful?”

“What tangible benefits is TOM achieving?”

“How much take-up has there been? When numbers are shown of the number of policies processed, what % of the overall is this?”

“When they will involve MGAs and look at Cyber?”

…to the “frankly unimpressed”:

“All of it – it still feels fragmented and ‘unfair’ in so much that brokers get all the benefit whilst the carriers get all the bills”

“The value proposition still has not been clearly articulated to the service chain”

We did have an abstainer…

“Not really one for me as I am on most of the Steering Groups”

…but no champions I’m afraid, except perhaps

“It has brought some focus on consistent ways of working between lines of business (but needs to go further)”

At this point I can manage it no longer. I have to revert to type and implore you to BOOK NOW! Come and hear Shirine Khouri-Haq answer those questions about the future of the TOM; hear Brian Kirwan, Chief Executive of Allianz Global Corporate discussing the collapse of the value chain; listen to Giles Baxter, CIO – International at Arthur J. Gallagher and Vincent Branch, CEO of Accelerator at XL Catlin discussing RPA, and Justin Emrich, CIO at Atrium on commercialising innovation – the list goes on.

Thanks to all those who contributed to the survey, I look forward to seeing you at the event. And as I say, the rest of you should BOOK NOW, the first 50 places are going fast.

Jeremy Burgess, The Insurance Network, 28 Nov 2017

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Authored by myComply Co-Founder & Chief Operating Officer Neil Reddekopp and AXA XL Senior Construction Risk Engineer James Stengel