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There’s an inexorable agnosticism running in the veins of INSTANDA – and it’s the fuel that powers the insurtech giant’s open-handed approach to partnerships. It all comes down to speed and simplicity, according to CEO Tim Hardcastle (pictured). Those are the two critical metrics for the success of any partnership, whether working with larger insurance incumbents or new startups.

INSTANDA relishes the opportunity it has to work with both sides of the equation, he said, and to exercise the premise at the heart of the business, that of being a “speedboat” helping other ships go faster. It has been a busy few months for the team who have recently been working with a number of healthcare providers looking to do things differently in the insurance market and create meaningful change for their customers.

“I think the common theme between all our partnerships is that the companies most attracted to working with us tend to be facing either a difficult problem to solve or a complex opportunity, depending on whether they’re a glass half empty or glass half full type,” he said. “What they find is that once they’ve done the right elements assembled for success – the regulatory approvals, the balance sheet, the capacity, etc. – then they look at the technology.

“But when you go around the market, you see that the technology available to solve complex problems or enable complex opportunities is few and far between. And the reason for that is simply that technology is very expensive to change. Changing technology takes time and money and when you’re a company trying to be more innovative, you need to make that change relatively quickly and relatively inexpensively.”

Hardcastle noted that there is a real appetite out there for cost-effective, time-efficient solutions that don’t require insurance firms to “bet the farm”, which is where INSTANDA is looking to make its mark. The hallmark of the way the insurtech’s platform works is that it is designed to embrace complexity and simplify it, he said, and, looking across the market, he can’t see many other tech firms able or willing to accomplish that without multi-million-pound price tags.

“The second common theme of our partnerships is that we work with teams that are trying to make the most of those complex opportunities,” he said. “[Our clients] tend to be very ambitious. They’re trying to break the mould and do something different. So, therefore, they can be a bit challenging, a bit demanding and we love that. We liked to be pushed, to be challenged, to be allowed to explore the boundaries of what we can do.”

INSTANDA’s approach to partnerships extends to the ecosystem it is building around itself by working with other companies to bolster its offering and reach. Touching on the latest partnership with UnderwriteMe that the firm is embarking on in the life and health space, Hardcastle highlighted how the right collaboration can eliminate complexity from the inherently complex insurance ecosystem as well as signposting to the wider market that INSTANDA is a trusted and respected brand.

“We’re not just only believers in partnership, we also created a marketplace for ourselves about four years ago which has 200 companies in it,” he said. “And we’re very prepared to be part of other people’s ecosystems, which I think is a hallmark of the respect we have for [the industry]. As a former CIO, I implemented, managed and ran systems that tried to be everything to everybody. They were very expensive and slow to change for that very reason.

“So, with INSTANDA, we went 180 degrees from that. We said, ‘remove the code so change becomes fast and inexpensive. And open yourself up to working with other firms and other technologies that are brilliant at what they do.’ We embrace that we can’t be all things to everybody, you have to accept that there are combinations where two plus two makes five. That’s our philosophy.”

At the end of the day, it all comes back to speed and simplicity, Hardcastle said, and looking across the wider market, it’s clear that the insurance industry is not alone in recognising and appreciating that speed and agility are paramount to success. Look at the history of any sector, and the winners are always the ones who found ways to get ahead of the curve, and who seized every opportunity to become faster and more agile.

This is especially relevant right now, he said, with so much uncertainty facing businesses and with such a plethora of external economic, geopolitical and technological factors all coming together at once. Responding to these different challenges while juggling the changing nature of consumer requirements and expectations is a tightrope but it’s one all organisations have to walk.

“On the one hand, it is very challenging,” he said. “But there’s also a real opportunity in there as well. There’s the opportunity for an organisation to get that speed and agility in place, to make the most of their changing environment, and to meet their customers’ needs and provide a good, reliable experience. Because, in changing times, people want reassurance, solidity and comfort. Insurers that can provide that with the right proposition – they are going to be the winners.”

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ChatGPT, OpenAI’s natural language processing tool, has thrust artificial intelligence (AI) into the mainstream cultural spotlight. More insurance companies are now dipping their toes into the AI pool to gauge its uses.

Swiss insurance group Helvetia is the latest insurer to announce it is testing ChatGPT for its new customer service. Fellow Swiss insurer Zurich said last month that it was experimenting with ChatGPT to find out how AI can help with tasks such as modelling, claims, and data mining.

As carriers explore this new technology, experts have pointed out that there’s one area where companies can see quick wins from AI: customer service.

“There’s been a broad misunderstanding in the insurance industry that AI will replace people altogether,” said Lawrence Buckler (pictured left), VP of sales at Sprout.ai, which uses AI to help speed up claims decisions.

“The hype around ChatGPT has raised awareness of the potential of AI. Rather than replacing people, it enables insurance professionals to provide a better customer experience.”

Sprout.ai partnered with Zurich to produce a claims automation solution in 2021. The London-based insurtech also counts major global insurers like Generali and AXA among its clients.

AI can sift through and review data at a significantly faster rate and with more accuracy than humans, freeing underwriters and claims handlers to do more high-value tasks.

“Claims handlers typically manage one line of business, which is inflexible, and they are focused on the claim and not on the customer,” said Roi Amir (pictured on the right), CEO of Sprout.ai.

“The drive to enable a claims handler to support multiple lines of business is becoming more and more real. With automation, we can make [the claims process] more customer centric.”

AI and ChatGPT among top tech trends

According to Sprout.ai’s CEO, there are three technology-led trends that are making waves in insurance:           

• Artificial intelligence or AI
• The Internet of Things (IoT)
• Parametrics

The ability to train AI models and generate a level of prediction in data allows insurers to take better care of the customers, but also to make better risk management decisions, Amir noted.

“The opportunities are almost limitless with AI,” he told Insurance Business.

IoT technologies, meanwhile, enable carriers to extend their ability to predict and prevent risk. Insurers are leveraging IoT capabilities to assist in customer interactions and accelerate and simplify claims processing.

Networked devices such as telematics and water sensors also create huge volumes of data that can help underwriters to determine risks more accurately.

Finally, bespoke and parameterized insurance solutions are becoming increasingly popular and accessible thanks to technology.

“If you have the sensors, the data, and the AI, you can tailor products specific to the customer,” Amir said.

“Insurers can innovate much more with the right technology because they can adapt it to the right customer at the right time.”

Using AI to adapt to evolving customer expectations

AI and ChatGPT could prove to be useful tools for insurance companies to adapt to the rapidly evolving demands of the market.

Sprout.ai’s research has showed that one in five (21%) of insurance consumers expected claims to be resolved within hours. One hundred percent of younger customers – aged 18-24 – wanted resolution within a week.

The research, which surveyed about 1,000 individuals who had purchased an insurance policy in the last two years, indicated the market was leaning heavily toward a digital-first approach.

“The other thing that we found across all age groups is that a good claim experience is a good predictor for people renewing their policy,” Amir said.

“62% of people that had a good experience on the claim side are likely to renew their policy, while 89% say they are likely not to renew the policy after a bad claim experience. It’s almost a guaranteed churn. Expectations are changing and they’re high.”

For Buckler, increasing market expectations means insurers need to be more flexible, which technology can help them do.

“They need to be able to respond to customer demands and be able to do that at scale,” said Buckler. “That’s where AI can play a big part.”

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Hedge fund Third Point LLC is interested in potentially snapping up SiriusPoint, the board of which will thoroughly consider any such proposal.

SiriusPoint, which reported a US$402.8 million net loss available to common shareholders for 2022, came to life in 2021 as a result of the merger between specialty reinsurer Third Point Reinsurance and multi-line (re)insurer Sirius International Insurance Group.

The business is currently led by RSA alumnus and chief executive Scott Egan, under whose leadership SiriusPoint announced office closures in late 2022.   

Now, in a recent pronouncement, SiriusPoint said: “SiriusPoint Ltd. has acknowledged an indication of interest from Third Point LLC and certain of its affiliates… to explore a potential acquisition of all, or substantially all, of the outstanding common shares of the company.     

“Consistent with its fiduciary duties, in consultation with its financial and legal advisors, the SiriusPoint board of directors will carefully evaluate any proposal to acquire the company, if and when a proposal is received.”

SiriusPoint added that dialogue with its investors is “always welcome”.

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RSA Insurance has appointed Ade Adeyemo (pictured above) as the new head of construction for its UK risk consulting team.

Adeyemo originally joined RSA Risk Consulting in October 2022 and will now lead the construction risk engineering proposition across both commercial and specialty lines. He will be replacing current UK construction lead Trevor Chainey, who is set to retire after a 45-year career.

A qualified chartered civil engineer, Adeyemo has more than three decades of experience in construction management and risk engineering. He transitioned to insurance after working for some of the UK’s largest construction companies for over 10 years, spending time at AIG and Zurich, among other industry players.

Adeyemo is also the chairman of the Construction Insurance Risk Engineers Group.

Andy Jones, risk consulting director at RSA Insurance, expressed his excitement about Adeyemo’s appointment, stating that he is an experienced and well-respected practitioner.

“Since joining us, he has already got to know many of our clients and his expertise has and will be invaluable,” Jones said.

He also wished Trevor Chainey a happy retirement and thanked him for his valuable contributions to the team.

 “He has had a great career and is a valued colleague that we will all miss both personally and professionally,” Jones said of Chainey’s retirement.

Last week, RSA announced the appointment of Gary Mason as its new chief operating officer delivery director. Mason is tasked with leading the technology transformation of the company’s key operating and claims capabilities to improve customer experience. This transformation includes the implementation of the cloud-based Guidewire ClaimCenter system, which aims to simplify the claims experience for customers.

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