FNO: InsureTech

“We try to not just focus on the measurement piece of it, but the context piece as well.” - Andy Greff (click to tweet) For property claims, the outside is much easier to assess than the inside. Whether it’s via drones or actual adjusters on site—pulling information from the exterior of a property requires very little when compared to the demands for the interior. To assess the interior requires going inside the property, stepping into someone else’s space, and potentially interrupting someone else’s day. This set of demands calls for a technology solution. That’s why on today’s episode of FNO: InsureTech, we are joined by Andy Greff to discuss his application PLNAR that uses SmartPicture technology to swiftly and accurately process the information inside a property. Tune in to this episode to hear Andy’s insights on everything from insuretech to Series A funding. “In startups, there’s a lot of high-highs and a lot of low-lows.” - Andy Greff (click to tweet) The FNO: Tips Augmented reality is when there is a different overlay on top of the real world Carriers are often concerned with the real-time status of a claim Speed of delivery eliminates the customer’s ability to be curious Carriers have the most issues when the control of the claim starts to slip away Not many people are going into the adjuster world because frankly—it’s a tough job Software companies need a relatively small amount of money to get off the ground The most important thing to consider for a startup is staying on the playing field Smarter technologies empower lower-skilled data collectors to give desk adjusters exactly what they need Fourseventy Claim Management www.470claims.com        

“At its core, HOVER is a machine-learning technology that transforms smartphone photos of a home into a scaled, interactive 3D model.” - Kevin Reiley (click to tweet) Every company strives for a great customer experience. But often times, being a customer can be a pain. From calling support to scheduling an appointment—the tasks required to be a customer can, more often than not, feel like work. But what if in today’s technologically-driven economy—there is a shifting customer experience? That, by empowering the customer to actually do some of the work, you make their experience better overall. This is what the HOVER team has uncovered in their service. That the customer is fully capable and motivated to use their technology, much more so than going through the archaic motions of assisting adjusters on site. On today’s episode of FNO: InsureTech, we are joined by Kevin Reiley and Justin Hancher from the HOVER team. HOVER is a 3D technology company that creates fully measured, customizable 3D models. Tune in to this episode to hear Kevin and Justin discuss what they’ve learned about the modern-day consumer, so you can apply those teachings to your product or service. “The insured wasn’t aware of how the settlement number was being derived.” - Kevin Reiley (click to tweet) The FNO: Tips HOVER can benefit other industries outside insurance (ex: home inspections, mortgage financing, real estate, etc.) There is a rising trend of 3D modeling technologies enabling the policy holder to take pictures and thus—assist in the claims process Nearly 90% of homeowners are adopting this technology Creates transparency - homeowner sees all the measurements firsthand Homeowners are also able to use the 3D model for other projects Millennials would rather take pictures themselves than spend time on the phone or have someone on site Accuracy is most important: decreases cycle times and reduces both known and unknown costs Empowering the homeowner to participate actually produces more detailed information of the interior Inaccuracy in the underwriting industry is due to carriers using public data sets 3D modeling technologies like HOVER output into any CAD program, saving any professional time from the get-go Fourseventy Claim Management www.470claims.com        

“Elevate is where business gets done.” - Dustin Barrington (click to tweet) On today’s episode of FNO: InsureTech, we are joined by Dustin Barrington, Director of Product Marketing at Xactware Solutions, to discuss the upcoming conference Elevate. Tune in to this episode to hear about everything from the conference itinerary to what Rob and Lee will be presenting about! You can learn more about Elevate here  Fourseventy Claim Management www.470claims.com    

“Claims are a linear process. They move from A-Z, but they don’t always take the same path to get there.” - John Hall (click to tweet) If you spend any time in the insurance world, you’re bound to hear the sentiment that a vehicle claim is distinctly different than a property claim. But is this true? It turns out that while a property claim has more information to fill in, there are still the same questions being asked. The customization of a property is no different than the drilling down to what part needs fixing inside a vehicle. That’s why on today’s episode of FNO: InsureTech, we are joined by John Hall, President at Audit Services Inc. to discuss how claims fit into the auto insuretech space, where we see technology driving their position, and why they are no different than property claims. Tune in to this episode to hear John’s insights, so you can speak both the languages of property and auto claims. “As more and more things become automated—those claims that are an exception to the automation process need to go somewhere.” - John Hall (click to tweet) The FNO: Tips Even with all the technologic automation, there still exists the need for human labor In automobiles, innovation yields safer cars but higher costs to repair Studies show that a new auto technology takes 30-40 years to make its way through the fleet of U.S. vehicles In general, rate of change is slower than people think Contrary to popular belief, most vehicles accidents occur in the city (not the highway) Understand that the average home loss is small Many carriers are prioritizing automation over accuracy The most successful carrier partnerships are the ones born early in the process Follow up with all parts of your workflow to find where the gaps are There will always be a need for in-person claim adjustment Fourseventy Claim Management www.470claims.com        

 “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