Call to action for InsurTech startups


#1

Who will win the Medici TOP 21 Insurtech award? Click to view

Which category do you expect will show the most interesting new comers:

  1. Awareness?
  2. Choice?
  3. Purchase?
  4. Usage?
  5. IoT?
  6. P2P?
    https://dailyfintech.com/2016/03/10/30000-foot-look-at-insurtech/

#2

Hi @matteo.carbone

As an InsurTech startup, we are looking into this award. However, we have tempered expectations as we’re unapologetically not trying to win any popularity contests. Instead, we are solving real balance sheet problems (the problems I faced as risk officer and key member of local and regional ALCOs) and our focus is the boardroom. Capital management is, in my opinion, the heart of insurance and so far I haven’t really seen another InsurTech focusing on this important aspect so we may not fit into any predefined buckets. Nevertheless, we’re making good progress and believe that when we do get traction, we’ll be talking 8-figure valuations and optimistic that capital management becomes part of the InsurTech conversation.

With or without us, the Medici TOP 21 looks like a very cool initiative and wish you the best of luck with it!

Cheers,
Eric


#3

Interesting angle, definitely you have to join! I desire to know more!
If you increase the return for the investment for sure you bring a benefit on profitability, so you are performing well on my Profitability kpi.
Probably you can emerge better than the overrated P2P :wink:

Only one question for you, the angle you are addressing looks like similar to the activities other startups do on investment management.
Can you explain where is the difference in your insurance specialization?


#4

Hi @matteo.carbone,

Thanks for the encouragement :+1: Being an entrepreneur is rough with lots of ups and downs so we take what encouragement we can get :slight_smile:

Only one question for you, the angle you are addressing looks like similar to the activities other startups do on investment management.
Can you explain where is the difference in your insurance specialization?

A word that has recently come up as we refine our story is “robo capital management”. Briefly, a key to good ALM is the ability to project a complex balance sheet. This requires a number of pieces such as

  1. Investment strategies (with asset pricing)
  2. Product strategies (with product pricing)
  3. Statutory capital models (per country)
  4. Economic capital models
  5. Economic scenarios

On a technical level, what I believe makes us special is that we take insurers from raw data in the form of asset holdings/transactions and policy-level data straight through to reserving and risk-based capital metrics on both current and projected bases through internal economic scenario generation and prescribed ALM strategies ending with state-of-the-art business intelligence in form suitable for consumption by the ALCO. We do this in a seamless matter that I believe the users will actually enjoy (you may be shocked to see how low engagement scores are for highly-skilled actuaries and risk officers due to lack of appropriate tools and mundane error-prone manual processes), i.e. I am building the tools I wish I had.

On a business level, this means better management decisions. When you’re in an ALCO and your CFO asks how to increase income, rather than kicking off weeks of frantic analysis, it can now be done on the fly, in real time even during the very same ALCO meeting. This is great for ad hoc “what if” analysis.

Also, since we focus on making things super fast, the faster you can project a balance sheet, the more projections you can make. We’ve been able to project complex balance sheets 100s of thousands of times in a matter of hours for our clients. This, in itself, generates a LOT of data. So when you’re handed a ton of data, be it simulated or historical, you can let loose all kinds of cutting edge technology on it. For instance, we are exploring the use of machine learning/AI to develop robust ALM strategies. Hence, the recent term “robo capital management”.

If you increase the return for the investment for sure you bring a benefit on profitability, so you are performing well on my Profitability kpi.

True. We are targeting profitability through productivity. As a startup, we are aggressively looking at 100x productivity compared to traditional approaches. But its not just about better investment, but a better approach to ALM.

Hope that helps! Happy to discuss offline as well :slight_smile:

Cheers,
Eric


#5

Really interesting! :new:

So you are managing in your ALM models all the regulatory constraints by country and the different duration of each the liabilities!
The complex group frequently miss a standard system across the countries, did you connect with each local legacy?

Did you already approached the topic of tresory optimization at holding level?


#6

Hi @matteo.carbone

Really interesting!

Thanks! :slight_smile:

So you are managing in your ALM models all the regulatory constraints by country and the different duration of each the liabilities!

Yes. In Asia, each country has their own local regulatory regime so we need country-specific regulatory models (some might call it “RegTech”), but those models are generally too weak to actually manage risk by, so they serve as constraints but you still need economic capital which captures the… well “economics” and generalizes across countries (for things like duration matching among other things).

The complex group frequently miss a standard system across the countries, did you connect with each local legacy?

Initially, we do need to take some inputs from local legacy systems, but our goal is definitely to replace them entirely and have a completely self-contained platform that works as well for someone sitting in a group role as it does for local capital management.

Did you already approached the topic of tresory optimization at holding level?

Yes, if I understand your question. From the beginning, we’ve approached this from the perspective of a group treasury/capital management function overseeing capital across multiple disparate business units, e.g. dividend upstreams, capital injections, etc., which is where I come from.


#7

Really interesting, definitely!