BDMA Conference 2019

1. Innovation: the only insurance against irrelevance
October 2019
Confidential - © Rainmaking Innovation Limited 2019. All rights reserved
THE IMPACT OF DISRUPTIVE TECHNOLOGIES ON
THE FUTURE OF INSURANCE
Manjit Rana: MD Corporate Innovation (InsurTech)

2. Average company lifespan S&P 500 index
Years, rolling 7 year-average
Source: Innosight analysis based on public S&P 500 index data sources
Companies valued at $1 billion or more by venture-capital firms
Valuations as of January 2019
Confidential - © Rainmaking Innovation Limited 2019. All rights reserved
2
Average S&P 500 company lifespan is shrinking
In the 1950s, the average S&P 500 company lived based on the index
a lifespan of 61 years. Today, that lifespan is down to 18 years.
Some predictions state half of the companies on the S&P 500 index
today will be replaced over the next 10 years. At, the same time some
of the most valuable companies in the world today didn’t exist 20
years ago.
Such trend will continue to increase and create uncertainties for
those businesses that do not embrace the current change we face.
PwC’s recent audit and risk committee forum survey further identified that
44% of insurance directors think that "most existing insurers will not
survive, at least in their current form”

3. 3
TRADITIONAL PLAYERS
VS
VS
VS
VS
Rarely has major disruption to an industry come from within the industry
itself. Digital first and adjacent industry players are challenging and
reconfiguring sectors. What will this look like for insurance sector?
Large organizations, operating in comfortable
regulated environments, rarely focus their
resources and effort on disrupting their own
businesses or propositions.
After all these incumbent businesses are running
well-oiled revenue generating operations
reasonably efficiently, where most are
incentivized to continue with the “as is” to fulfil
short term profitable growth targets.
Confidential - © Rainmaking Innovation Limited 2019. All rights reserved
DISRUPTOR

5. Solving REAL business problems
NORTH
AMERICA
42%
2%
LATAM
30%
EUROPE
19%
ASIA
4%
OCEANIA
3%
AFRICA
Our current InsurTech world
USA – 38%
Canada – 4%
UK – 14%
Germany – 3%
France – 3%
India – 6%
China – 5%

7. Changing consumer behaviour

8. Prevention NOT Cure
Guardian Angel
NOT
Safety net

9. Disruptive Technologies

10. Artificial Intelligence
(A.I.)

13. On Demand Workforce

17. “There are 17 people in your
home – 12 of which we don’t
recognise”

18. “Your Hotpoint washing
machine is about to break
down”

21. $500m investment from
Softbank Vision Fund
Root Insurance now valued at
$3.65 billion after a $350 million
funding round – The 3-year-old
auto insurer, has raised a
cumulative $523 million in VC
Telematics providers are building up vast
datasets and changing driver behaviour

26. Let’s create the future together.
Manjit Rana
MD Corporate Innovation
Global Insurance Sector
manjit@rainmaking.io

27. Confidentiality Statement
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The following notice shall be reproduced on any copies permitted to be made.
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