On Tuesday June 21 we were invited to attend the Global Summit for Insurance Innovation, organized by INESE. In this second edition, which took place in Hotel Eurostars Madrid Towers, the main goal was to discuss the latest trends in the insurance industry and share experiences and best practices with professionals in the sector.
How can insurance companies drive innovation?
This post is also available in Spanish.
Technology is the best aid for insurance companies to boost innovation
The first part of the event discussed the digital transformation that the insurance sector is going through, and the new technologies that could disrupt the industry.
First, Jordi Bueno explained how Nationale Nederlanden faced this challenge and what was his role as CIO (Chief Information Officer). From the need to redefine many of their business processes to become more digital and including the concept of “flexible working”, mobility has been a key concept in this new era. Today consumers demand the ability to actively manage their accounts from anyplace and anytime, from their smartphone or tablet.
Jordi Bueno´s main recommendation is to “involve the entire team and consistently communicate goals to successfully undertake new changes”: all the way from the CEO to department executives until the key people in the company must be aligned. In Nationale Nederlanden´s case, they created a Transformation Committee that, for a year and half, met regularly to discuss united efforts to the different challenges encountered.
José Luis Calvo, head of the Technology Innovation Center in MAPFRE, suggests to look further in the future and discussed the different technologies that could transform the industry:
- Artificial Intelligence - The most disruptive element that not only the insurance sector will have to face, but the whole economy will have to confront. Examples: From IBM´s Deep Blue computer to Google Cars. Question: is it possible to assure something that is impossible to happen?
- Internet of Things - The challenge of managing the new volume, speed and variety of data that we will receive with all of the connected devices, so that they become intelligent devices. The clearest example in the insurance sector are wearables, the connected car and the smart home.
- Blockchain - Technology designed to ensure the security and integrity of transactions and which is also applicable to smart contracts, that will provide the ability to launch insurance coverage automatically in a not too distant future.
- Virtual Reality - Devices such as Oculus Rift to the new HTC Vive could be used to simulate the effects of possible traffic accidents to better calculate appropriate compensations.
- Biotechnology and Neuroscience - Disciplines applied to improve life expectancy and conditions.
His message was very clear: with these models of exponential change that we are facing and the accelerated pace of adoption, innovation is no longer an option but a necessity, even an imperative for the industry.
Reinventing the insurance sector: what can we learn from startups?
The second part of the event was aimed at explaining the new players that have recently appeared in the sector, called Insurtech. To help clarify, Jesús Pérez, President of the Spanish Association of Fintech and Insurtech, moderated a roundtable discussion with representatives from the sector including Sabine VanderLinden, Managing Director of Startupbootcamp InsurTech and Jean-Claude Sudre, Insurtech Expert.
Hesus Inoma, the founder of WeSavvy, gave an inspiring presentation about the Millennial generation and how the new startups that have emerged in the sector are providing a better service, adapting to their needs. From his point of view, one of the main problems of the insurance industry has been a lack of transparency in prices and the risk assessment carried out on customers. For this reason, they suggest a new way of relating to and rewarding good practices to the insured-- for example, leading a healthy life.
Roundtable discussion on insurance in the collaborative economy.
The collaborative economy in the insurance sector
A roundtable discussion with different startups in the collaborative economy closed the event. Startups such as Relendo and Wazypark explained their current needs and the lack of insurance products that suit their respective business models.
Juan Antonio Martínez-Gijón and Elena Quesada, from AXA España, explained their success cases from collaborating with BlaBlaCar and SocialCar. The main challenge they faced from the insurance side was the risk of cooperating with a collaborative model which had no reliable historical data, one of the main sources of information used to calculate risks.
We want to thank INESE for the invitation to participate in the second edition of the Global Summit for Insurance Innovation and we are looking forward to be present in the next event, providing our knowledge and experience in the insurance sector.
This post is also available in Spanish.