#opensinsurance presentation by INNOPAY for Holland Fintech event on December 2. With sneak preview of Open Insurance Monitor

1. The journey towards Open Insurance
INNOPAY Team – December 2020
Holland Fintech Online Event – Open Insurance – 2 December 2020
Maarten Bakker – Lead Open Insurance & Data Sharing - INNOPAY

2. 2 Title – subtitle. Author(s) - date in full. © Innopay BV. All rights reserved.Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.2
• Founded in 2002
• 60+ consultants
• Strategy, product development and execution
• Strong track record in facilitating collaboratives in
creating Schemes and Trust Frameworks
• Offices in Amsterdam, Frankfurt and Berlin
• Focus on EU but global footprint (e.g. Australia, US)
• Founding member of HollandFintech
INNOPAY, expert in digital transactions…
2
Amsterdam
Frankfurt
Berlin

3. 3 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
… and ‘thought leader’ in this domain of digital transactions:
Payments, Digital Identity, Open Banking / PSD2 & Open Insurance
And more
INNOPAY Innsider INNOPAY Innsider
Think hard before
outsourcing your new
onboarding process
Digital consent
management is key for
data opportunities
INNOPAY Innsider
What is happening in open
banking?
INNOPAY Innsider
How openness change
insurers pricing strategies
How a new kid on the
payments block is
outclassing other banks
INNOPAY Innsider INNOPAY Innsider
Insurance and the Open
Banking wave: seven use
cases
INNOPAY Innsider
Seamless, Uber-like
payments, brought to your
bank account
Open Banking Monitor: how
the masters in openness
create value
Note to insurers: Silence
does NOT imply consent
INNOPAY +
Payvision paper
How to reduce the complexity
Payment Service Providers
face in a global e-commerce
market
INNOPAY Innsider
Quantum computers will
revolutionize
cybersecurity. Here’s why.
INNOPAY Innsider
June 2018 December 2018 November 2017
July 2018
April 2018 March 2018
INNOPAY Innsider
November 2018 December 2018
Open Insurance, a new
mindset for the insurance
sector
INNOPAY
June 2016
Everything
transaction
December 2018
About data, trust and the
unprecedented
opportunities of the
transactional internet
INNOPAY Innsider:
October 2018 March 2018
December 2018
Management
boek
of the year
(2019 NL)

4. 4 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
Exploding growth of digital transactions will grow new digital
ecosystems and we are not ready for it… except the major platforms
Source: Cisco, Gartner, IHS, Siemens, PWC, WorldPayments Report, INNOPAY analysis, 2018
1
Onboarded
people
Sharing
economy
(P2P)
Internet of
Things
2
3
A
Interactions
become
transactions

5. 5 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
Data Access is the key for insurers to capitalize on new ecosystem
opportunities which are emerging
AirBnB
Booking.com
Hotels
Car
Nest
Wealth
Management
Telematica
Train
Uber
NH hotels
Musea
Theaters
Airline
Google
maps
Share
Fire
detector
MortgageSecurity
Binck
Bank account
Travel
insurance Insurance
Home
insurance
Insurer
Consume
external data
Expose
external data
Ecosysteem
Consent
manager
Source: INNOPAY analysis
Financial
assistant
Smart home
services
Healthy living
coach
Mobility as
a Service
Travel and
vacation services
Personalised
pricing
Fraud
detection

6. 6 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
In order to fulfil this role, INNOPAY envisions a transition to an open
insurer
Mine data it IoT, PSD2
and other environments
using APIs
CONSUME EXPOSE
Internal APIs
connecing internal
systems
Consume services from
partners and third
parties using APIs
OPTIMIZER
DATA DIGGER
CAPABILITY
BUILDER
OPEN
INSURER
1
2
4
5
7
TRUST
FACILITATOR (platforms, trust
frameworks, schemes etc.)
6
3
Insurance- and
customer data sharing
to third parties to
exchange services
DATA
PROVIDER
Whitelabel products in a
B2B2C model in open
ecosystems
PRODUCT
PROVIDER
Services (e.g..
acceptation, claims
management)
SERVICE
PROVIDER
Source: INNOPAY analysis

7. 7 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
KLM offers customer the
possibility to retrieve active
products
Customer is redirected to mobile
banking environment for
authentication and consent
Customer receives confirmation
that personal data is shared with
KLM
Use case: Bank authenticates customer and retrieves active
insurances in Airline’s (KLM) channel
Indicative
1 2 3
Source: INNOPAY analysis

8. 8 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
Use case: Customer authorises Bank to activate selected insurance
product
KLM shows most suitable option
and possibility to directly
activate product
Customer authorises bank to
activate insurance product
Customer is informed of
insurance activation within KLM
channel
Customer can manage his
insurance products in his
banking app
4 6 7 8
5
Indicative
Source: INNOPAY analysis

9. 9 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
INNOPAY supports its clients in the journey towards Open Finance
with in-depth research and benchmarks
Open Insurance Monitor
INNOPAY tracks
developments of parties
(insurers, fintechs and
banks) offering insurance
APIs
Radar with European
overview of licensed
TPPs which are building
Open Banking
propositions
Title – subtitle. Date in full. © INNOPAY GmbH. All rights reserved.22
RichAPIscope
Starters in Opening-up
Functionalscope
Developer experience
Basic experience Comprehensive experience
LimitedAPIscope
Masters in Openness
Leaders in Experience
Innovators in Functionality
*Grey logo indicates limited portal accessibility, thereby complicating full assessment
SE
BAL
UK
ES
Source: INNOPAY analysis
Open Banking Monitor
INNOPAY tracks Open
Banking API efforts across
the globe via the INNOPAY
Open Banking Monitor
187
164
29
AIS
PIS
AIS/PIS
AIS: 3
AIS/PIS: 10
AIS: 7
AIS/PIS: 12
AIS: 11
AIS/PIS: 25
AIS: 3
PIS: 1
AIS/PIS: 3
AIS: 13
PIS: 3
AIS/PIS: 10
AIS: 106
PIS: 12
AIS/PIS: 55
PIS: 2
AIS/PIS: 5
AIS: 3
AIS/PIS: 3
AIS: 6
PIS: 1
AIS/PIS: 2
AIS: 1
PIS: 2
AIS/PIS: 2
AIS: 1
PIS: 3
AIS/PIS: 6
AIS: 5
AIS/PIS: 1
AIS: 3
AIS: 1
PIS: 1
AIS: 3
PIS: 1
AIS/PIS: 4
AIS: 1
AIS/PIS: 1
AIS: 11
AIS/PIS: 6
AIS: 5
PIS: 1
AIS/PIS: 3
PIS: 1
AIS/PIS: 2
AIS/PIS: 2AIS: 1
AIS/PIS: 6
AIS: 1
AIS/PIS: 1
AIS/PIS: 1
AIS: 2
PIS: 1
AIS/PIS: 5
September 2020
Low standardisation
High standardisation
Market initiates Regulator enforces
Australia
Europe
United Kingdom
Hong Kong
Regulator as
strategic formulator
Market as
scheme builder
Regulator
as leader
Market as
formulator
India
United States
Mexico
New Zealand
Japan
Singapore
Open banking activity in the market
Some signals
Market-wide
Early-adopters
TPP Radar Ecosystem Frameworks
Embedded Insurance
Lighthouse
INNOPAY tracks Open
Banking and Open
Insurance (Trust)
frameworks across the
globe, driven by market
players or regulators
Global lighthouse of
innovative Embedded
Insurance propositions
including technology and
business model used

10. 10 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
Since 2018 the Open Banking Monitor features banks worldwide
providing open APIs via developer portals
OPEN BANKING MONITOR FEATURES
300 Banks observed
with live developer
portals (78% PSD2 only)
60+ Assessment
features which contribute
to a Comprehensive
(Developer) Experience
Categorised into
186 main groups of
API functionalities
66 Developer portals
assessed with an
Open Banking offering
(beyond PSD2)
1891 Individual
API functionalities
58 Different countries
worldwide with banks
active in Open Banking
Source: INNOPAY analysis

11. 11 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
Most recent Open Banking Monitor update shows banks extending
API portfolios and establishing strong developer experience (1/2)
Source: INNOPAY analysis
PSD2 only

12. 12 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
Six key domains in which banks explore new API propositionsExampleAPIs
Sell Through Sell To
Source: INNOPAY analysis
%ofAPIsWhat
Get money in Get money out Move money Share data & identity Whitelabel capabilitiesManage data & account
Leverage existing business to
ensure deposit influx through
Bank product originating via 3rd
parties
Capitalize on strong balance
sheet and ability to lend that is
embedded seamlessly into
commerce journeys within 3rd
party platforms
Leverage payments capabilities
and ability to move money
embedded at the point of
interaction and need
Secure sharing of data and
service provisioning to primary
domain suites and that can be
commercially leveraged
End-to-end product orgination
and control features offered
whitelabel to 3rd parties to
underpin own financial products
and experience
Origination APIs
• Checking account
• Savings account
Origination APIs
• Business loans
• Consumer loans
• Transactional finance (buy
now, pay later)
• Credit card
• Mortgage
• Investments
Money movement APIs
• (Instant) account to account
payments
• (Variable) recurring
payments
• (virtual) card payments
• Bill payments
• Refunds
• Pre-authorisation
Data & identity APIs
• Account information and
details on various account
types
• Bank verified identity
attributes (incl. KYC/KYB)
• Bank authentication as a
service (federated login)
Whitelabel APIs
• Money movement
• Deposit account
• (virtual) Credit Card
• Lending
• Investment
• KYC/KYB as a service
• Instant account & ownership
verification
1% 10% 30% 35% 4%20%
Embed control features into 3rd
party environment to facilitate
for data & account
modifications
Manage data & account APIs
• Payments & cash withdrawal
limit management
• (Credit) card control &
management
• Account operations &
settings
Divided across 15 banks1 Divided across 37 banks1 Divided across 60 banks1 Divided across 62 banks1
Divided across 61 banks1 Divided across 16 banks1
1Analysis included a total of 66 banks with 1891 API functionalities. 2Example banks with an API offering within these API domains
API DOMAINS
Banks2

13. 13 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
INNOPAY supports its clients in the journey towards Open Finance
with in-depth research and benchmarks
Open Insurance Monitor
INNOPAY tracks
developments of parties
(insurers, fintechs and
banks) offering insurance
APIs
Radar with European
overview of licensed
TPPs which are building
Open Banking
propositions
Title – subtitle. Date in full. © INNOPAY GmbH. All rights reserved.22
RichAPIscope
Starters in Opening-up
Functionalscope
Developer experience
Basic experience Comprehensive experience
LimitedAPIscope
Masters in Openness
Leaders in Experience
Innovators in Functionality
*Grey logo indicates limited portal accessibility, thereby complicating full assessment
SE
BAL
UK
ES
Source: INNOPAY analysis
Open Banking Monitor
INNOPAY tracks Open
Banking API efforts across
the globe via the INNOPAY
Open Banking Monitor
187
164
29
AIS
PIS
AIS/PIS
AIS: 3
AIS/PIS: 10
AIS: 7
AIS/PIS: 12
AIS: 11
AIS/PIS: 25
AIS: 3
PIS: 1
AIS/PIS: 3
AIS: 13
PIS: 3
AIS/PIS: 10
AIS: 106
PIS: 12
AIS/PIS: 55
PIS: 2
AIS/PIS: 5
AIS: 3
AIS/PIS: 3
AIS: 6
PIS: 1
AIS/PIS: 2
AIS: 1
PIS: 2
AIS/PIS: 2
AIS: 1
PIS: 3
AIS/PIS: 6
AIS: 5
AIS/PIS: 1
AIS: 3
AIS: 1
PIS: 1
AIS: 3
PIS: 1
AIS/PIS: 4
AIS: 1
AIS/PIS: 1
AIS: 11
AIS/PIS: 6
AIS: 5
PIS: 1
AIS/PIS: 3
PIS: 1
AIS/PIS: 2
AIS/PIS: 2AIS: 1
AIS/PIS: 6
AIS: 1
AIS/PIS: 1
AIS/PIS: 1
AIS: 2
PIS: 1
AIS/PIS: 5
September 2020
Low standardisation
High standardisation
Market initiates Regulator enforces
Australia
Europe
United Kingdom
Hong Kong
Regulator as
strategic formulator
Market as
scheme builder
Regulator
as leader
Market as
formulator
India
United States
Mexico
New Zealand
Japan
Singapore
Open banking activity in the market
Some signals
Market-wide
Early-adopters
TPP Radar Ecosystem Frameworks
Embedded Insurance
Lighthouse
INNOPAY tracks Open
Banking and Open
Insurance (Trust)
frameworks across the
globe, driven by market
players or regulators
Global lighthouse of
innovative Embedded
Insurance propositions
including technology and
business model used

14. 14 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
The Open Insurance Monitor features parties worldwide taking first
action in Open Insurance APIs via developer portals
INNOPAY OPEN INSURANCE MONITOR FEATURES (DECEMBER 2020)
100+ Insurers and
Insurtech observed for
availability of developer
portals
60+ Assessment features
which contribute to a
Comprehensive (Developer)
Experience
Categorised into
42 main groups of API
functionalities
18 Developer portals
assessed with an
(accessible) Open
Insurance offering
167 Individual API
functionalities
8 Different countries
worldwide with insurers active
in Open Insurance
Source: INNOPAY analysis
300 Banks (open banking
monitor) analysed for
presence of insurance API
Open Insurance Monitor V1.0 – December 2020
SNEAK PREVIEW

15. 15 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
First Open Insurance Monitor shows insurers building rich API
portfolios and establishing first developer experience
Source: INNOPAY analysis
Open Insurance Monitor V1.0 – December 2020
SNEAK PREVIEW

16. 16 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
Compared to banks, insurers have a more extended API portfolio,
but offer less developer experience
Selected InsightsOpen Insurance Monitor V1 (December)
Source: INNOPAY analysis
1
2
1
2
Insurers’ first efforts are aimed at
establishing a rich API portfolio with
insurance related services, with minimal
priority for developer experience
Due to their Open Banking efforts,
banks are more advanced in
developer experience compared to
insurers. Extending the API portfolio
of banks with insurance services
would further boost their
bancassurance model
3
3 Nationwide is first in heading for
Master in Openess by offering a
variety of insurance API and
establishing developer experience
through clear documentation and
sufficient developer usability
Open Insurance Monitor V1.0 – December 2020
SNEAK PREVIEW

17. 17 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
Insurers are exploring API propositions within four key areas of the
value chain
ExampleAPIs
Source: INNOPAY analysis
%ofAPIs1What
Offer personalised product
advice based on customer data,
such as current coverages and
personal data (eg, car or home
data)
Expand distribution channels
through product placement
within new third party channels
and efficient partner
management
0%
Parties2
Customer
advice
Sales &
distribution
Underwriting
Policy
servicing &
admin
Claims
management
Increase risk calculation
capability by leveraging
consumer data, allowing
efficient and competitive pricing
Facilitate efficient policy
servicing and administrative
support within 3rd party
platforms
Provide seamless customer
experience by integrating
claims management capabilities
within 3rd party channels
Customer advice APIs
• Not yet available
Sales & distribution APIs
• High level & detailed
product information (eg,
benefits, coverage,
premiums)
• Partner information &
partner account
management
Underwriting APIs
• Quote calculation, based on
retrieved customer data
• Insurance purchase & order
management
• Customer communications
& support
Policy servicing APIs
• Retrieval of policy details
(eg, policyholder details,
benefits, coverages)
• Policy amendment &
cancellation
• Customer information &
customer account
management
Claims management APIs
• Submit & manage claims,
including attachments
• Management of service
assignments
• Service provider invoice
management
8% 34% 31% 23%
Divided across 9 parties Divided across 15 parties Divided across 13 parties Divided across 7 parties
Open Insurance Monitor V1.0 – December 2020
1Analysis included a total of 18 parties with API functionalities. 2Example parties with an API offering within these areas
SNEAK PREVIEW

18. 18 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
Key take aways
• Digital transactions are growing exponentially. We are not ready for it, except
for the major platforms who facilitate these transactions
• To stay relevant and gain access to exteremly important data in digital ecosystems,
insurers need to transform towards Open Insurers
• In the banking industry, the trend towards open business models, Open
Banking, has been accelerated by the PSD2
• Although early days, insurance APIs are also starting to being exposed by
different parties (insurers, banks and insurtechs), where the Open Banking
bancassurance model seems to be the frontrunner because of developer
experience
• Trust enablers (schemes & trust frameworks) are needed to create new and
inclusive Open Finance ecosystems

19. 19 Holland Fintech Online Event – Open Insurance – 2 December 2020. © INNOPAY BV. All rights reserved.
Maarten Bakker
maarten.bakker@innopay.com
+31 6 10 98 14 31
Lead Data Sharing & Open Insurance
• Stay up to date by subscribing to the INNOPAY
newsletter
• And follow us on Twitter or LinkedIn
Follow me on LinkedIn