FNO: InsureTech

 “There’s always going to be a place for the field adjuster.” - Matt Fatheree (click to tweet) Everybody wants the new, shiny object. And in the insuretech world, it’s no different. Each year—we see new technology solutions rising to the surface, and the conversation at conferences turning towards the next best thing. But is this really where our focus should be? When we integrate technology into our business, unexpected challenges get put in front of us. The quality of technology is in how effectively it can anticipate and deal with these roadblocks. Often times, the bells and whistles distract us from assessing this. On today’s episode of FNO: InsureTech, we are joined by Matt Fatheree—President, CEO of Fourseventy Claims—to discuss his experience integrating technology solutions into his company. Tune in to this episode to hear about the hurdles, so you know what to expect moving forward. “The problem now is—in our view of the world—the process doesn’t fit the new technologies that are emerging. We have a very old claims process.” - Matt Fatheree (click to tweet) The FNO: Tips There is no all-in-one solution that currently exists for the insuretech space More than drones, the smartphone has significantly impacted insuretech There are many hurdles to using drones: pilot licensing, data usage, upload limitations, etc. Tying new insuretech systems requires more labor than one would think The claims process is very outdated, typically operating in 7-day cycle times Accuracy is just one part of the equation—we have to pick up speed and reduce cost It’s easy to find the new technologies, but onboarding a labor force to be culturally bought in is challenging Dealing with data collection and processing always presents struggles - the technology should primarily make this process easier Innovation will force field adjusters to find work in the virtual assistance roles Fourseventy Claim Management www.470claims.com

“Claims is one of the ripe areas (particularly in the short and medium term) for application of technologies.” - Caribou Honig (click to tweet) There are distinct categories in the world of insurance. You have the incumbent carriers, the giant Googles and Amazons, and then the niche insuretechs like Hover and Lemonade. How these three species of company interact with each other is the dance we are witnessing today. That’s why on today’s episode of the FNO: InsureTech, we are joined by the godfather of insuretech, Caribou Honig. Caribou is one of the cofounders of the prominent conference InsureTech Connect, and brings his expertise of all things related to insuretech—from theorizing about Amazon’s most recent purchase of Ring to understanding how drones have impacted the claims paradigm. Tune in to this episode to hear Caribou’s perspective, so you can more accurately view the world of insuretech. “In the battle between the incumbents and the tech titans, watch what happens to the insuretechs. They may be what tips the scale in one favor or the other.” - Caribou Honig (click to tweet) The FNO: Tips Attend conferences where business gets done rather than just intellectual enjoyment Look at cloud computing, APIs, drones, and augmented reality as examples of technology infiltrating insurance An API enables the user to have both best-in-class and integrative options Look at the app Tomorrow as an example of a fintech-insuretech hybrid Many non-insurance companies want to be in the supply chain to serve insurance providers Keep an eye on the big moves Google, Amazon, and Apple are making to understand how they’re approaching the insurance industry Understand that carriers themselves want to adopt new technology faster they are Build muscles for both risk management and risk-taking   Fourseventy Claim Management www.470claims.com

“The claim is the moment where the insurance product or insurance company shines or fails.” - Brett Goldberg (click to tweet) Every company has a unique customer journey. In most cases, the touchpoints exist at the time of payment, and there are clear exchanges of value. But with insurance, the equation isn’t so simple. We pay our insurance so that in case something happens, we can get the help and coverage we need. That moment when a crisis occurs and we file our claim is the moment the customer truly interacts with the company. And that interaction may or may not have technology embedded in it. So today, on FNO: InsureTech, we are joined by Brett Goldberg, the CEO at Spex to discuss the intersection of claims and technology. Spex is a platform that enables adjusters to essentially replace their clipboards and graph paper to more accurately document property inspections. Tune in to this episode to hear Brett’s views on the what it takes to be a successful insuretech company, and where the future of insuretech is headed! “The more preventative data you have—the better off you’re going to be.” - Brett Goldberg (click to tweet)   The FNO: Tips Make sure your technology isn’t just tech for tech’s sake, but rather solving real problems At its core, the insurance industry operates as a financial institution, managing risk/reward Claims are the moment when the insurance company/product either shines or fails Solidify your company’s identity - product/service, technology, etc. Very few technology companies know what they’re getting into when entering the insurance space Attract strategic customers willing to get in front of the adoption curve with product benefits Look at Hippo and Lemonade as examples of newer, edgier carriers In property insurance, 80% of the claims volume is increasingly needing to be standardized in the way the data is captured Sensory technologies (ex: measuring flood levels) will become critical in the years to come   Fourseventy Claim Management www.470claims.com          

“Claims is always an emotional experience. And there’s opportunities to improve the human side and the process side.” - Dan Moore (click to tweet) A crisis occurs and we panic.   Flood, storm, tornado, you name it—our gut reaction is to crumble into the fetal position and worry about our future. When we finally garner the energy to file that insurance claim, we’re met by the carrier’s system. For the insurance side of things—this is the opportunity to provide a helping hand. How can you help the person get the help they need? On today’s episode of FNO: InsureTech, we are joined by Dan Moore—the SVP Head of Operations of QBE—to discuss what role technology and human labor plays during this pivotal moment.   Tune in to this episode to hear Dan’s insights about insuretech to have a more holistic understanding of the space. “Insuretech is the application of new technology to disrupt or modify all or parts of the insurance value chain.” - Dan Moore (click to tweet) The FNO: Tips Improvements to the claims process can be anywhere from first notice of loss to conclusion of the claim Most people in the claims world began as adjusters and worked their way up that ladder insuretech solutions should bring technology to better the emotional experience of claims Engagement is more important than duration in a claims process When you keep the customer informed, you are able to manage expectations which lowers stress levels Understand that everyone from the VC to startup will have a different definition of insuretech Some current technologies changing the claims space: smartphones, photo capture, drones, and AI A team must be able to pilot experiments and pivot with the often conflicting data that initially comes in Most insuretech companies have more of a  technology-focused background than that of insurance Watch out for consolidation of companies across capabilities     Fourseventy Claim Management www.470claims.com          

“So often we look at this technology and ask: how are we going to settle these claims quicker and more accurately.” (click to tweet) People need insurance. But people don’t need the often outdated systems surrounding traditional insurance systems. This is where Insuretech comes in—the sprouting industry sector that brings robust technologies to improve the sometimes boring, paperwork-filled experience of the insurance world. We’re talking drones, robots, cameras—those technologies that take what a human can do and multiply it by a thousand, ten-thousand, and even more. So today, on the FNO: InsureTech, we are diving deep into the world of insuretech. In this episode, we unpack the vision of our podcast—how we are going to explore the intersection of insurance technology and claims. Tune in to this inaugural episode to hear about many of the key players and where insuretech and claims intersect. There’s a tension in the air—both on the vendor and carrier side—because few people have a good picture of what this is going to look like 5-10 years down the road.” (click to tweet) The FNO: Tips The more a system adopts machine-learning, the less human labor is required When in doubt, follow what the tech giants are doing (Google, Amazon, etc.) Carriers are currently seeking out technology to mitigate the claim altogether Ex: Water flow detection devices to track water loss People theorize Insuretech—as an industry—is moving slower but the disruption will be greater Customers are happiest when there is no claim altogether Technological uncertainty has created a tension between the vendor and carrier Check out the companies: Hover and QBE to prepare for future episode   Fourseventy Claim Management www.470claims.com Hosted by Rob Beller and Lee Boyd