On today’s episode of the Denim Rivet podcast, we’re joined by Mark Breading. Mark is the Chief Researcher and a Partner at Strategy Meets Action. He has worked in the insurance and technology sphere for over 30 years, spending a lot of his career at IBM. As a Global Insurance Strategist, Mark worked with all kinds of insurance companies across all lines of businesses and countries. He has been with Strategy Meets Action for 8 years and has focused on understanding the future of the insurance industry, a future he sees integrally tied to emerging insurtech.

What will have a bigger impact on the insurance ecosystem, IOT or Digital Distribution?

With the current maelstrom of activity in distribution with visible partnerships and activities that are making a difference today, Mark believes that digital distribution has an advantage at the moment.

Tracking Startups

Mark is tracking over 1,100 insurtech startups at Strategy Meets Action from all across the globe. He hasn’t seen this kind of energy flood into the industry over the span of his whole career. The most exciting aspect for Mark is that these startups haven’t cropped up in a vacuum. Insurers have recognized that the world is changing. Customer agent expectations have changed. The risk landscape is being redefined and leveraging tech for operational efficiencies has become ever more important. Insurtechs are the vessel delivering the innovative solutions the industry needs to keep up with the changing ecosystem.

Mark has noticed that the maturity of the startups is one of the biggest changes he has seen. In the early days, an insurtech startup might openly admit they didn’t have much working knowledge of the industry’s intricacies. Now, industry veterans are advising or founding insurtech startups of their own which brings a huge boost in understanding the needs and values the industry has now.

The Commercial Landscape

Mark has seen that very few startups are specifically targeting commercial lines. Out of the 1,100 or so they are tracking, 400 have the capability to be relevant for commercial lines. In the distribution arena, about 75 insurtech companies are focused on commercial lines to help them in digital spaces and utilize new technologies.  Next are the Connect the World Solution companies. These insurtech companies look at connected vehicles, telematics, smart homes and commercial property. These companies can make a huge impact on commercial lines, as there is a lot of activity now in the fields of connected fleets, smart buildings, and even smart cities focusing on public safety. There are a number of insurtechs that have solutions that don’t specifically address a problem, but can be applied in different spaces. Drones are a great example of this, as they can be used in inspections, underwriting, and also claims.

Companies Mentioned

Ask Kodiak

Bold Penguin

Bunker

Viewspection

Cape Analytics

Kount

InsureMyTrans