quarterly-insurtech-briefing-q4-2017
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Q4 <strong>2017</strong> Industry Theme<br />
The Sobering of InsurTech: Adapting Business<br />
Models for Incumbents<br />
Business Process Enhancement Example – massUp<br />
Business Process<br />
Enhancement<br />
Fabian Fischer – massUp Founder & Chief Executive Officer<br />
• 15+ years of experience in digital business for insurers and banks<br />
• Previously served as Partner and as Managing Director at mediaman, a digital agency providing<br />
strategy execution and operations for brands’ digital platforms<br />
• Graduated from the University of Tübingen<br />
Describe massUp’s insurance services solution. How is it different from similarly focused<br />
offerings in the market?<br />
Baised in Mainz and Munich, Germany, massUp is a B2B provider of digital products and services to the (re)insurance industry.<br />
We offer access to our internally designed, innovative insurance products to (re)insurers and enable financial and industrial<br />
partners to sell them everywhere with our digital services. Our own products are predominantly in specialty lines for the personal<br />
and commercial markets. The products are designed with millennials in mind, and those who expect to be able to buy<br />
insurance online, through apps, in shops, banks and/or via online payment systems. We offer front-end service provisions and<br />
back-end software based solutions. With all that combined we offer a “one for all” solution, very unique and new to the market.<br />
Given that our products are digitally designed, developed and delivered, we offer extremely competitive prices with reduced<br />
distribution costs. The products and systems themselves are geography and capacity agnostic, and they are modular so that<br />
they can be integrated into nearly any legacy software system, anywhere in the world. Our instant sales plug in directly within<br />
every digital channel, ensuring that we are offering a genuinely differentiated business model. But, not only are we providing<br />
off-the shelf ready-made products, we also provide comprehensive fulfillment services required to sell these products. Lastly,<br />
our back-end service provision supports our clients from within; from claims handling to administrative procedures. We really<br />
are a complete solutions house for any (re)insurer who is looking to develop a digital/online presence, looking to sell products<br />
through the banks and retailers and is looking to improve its back office capabilities.<br />
What are the largest challenges insurers face bringing new products to the market? How does<br />
massUp’s insurance services solution address these challenges?<br />
A significant number of (re)insurers are encumbered by large, inflexible legacy systems which preclude them from<br />
being agile. This can mean that they cannot easily offer new products to their market, or react quickly to changes in<br />
technology. This kind of infrastructure is simply not designed to offer smaller products, the kinds of products that<br />
we’re designing. Our target markets are often considered to be cost ineffective for larger insurers because the price<br />
of procurement often outweighs the potential gains. Our systems are so low cost and light touch, however, that with<br />
our tools, those markets start to make a lot of economic sense in targeting. Also, we designed our business model so<br />
that our products do not require carrier partners to take risk if they do not want to, so they can enter new markets for<br />
the first time with limited downside. Because of massUp’s business model, we can develop products that other carriers<br />
may not be able to develop, and offer them to carriers. We are enablers in this way, making (re)insurers as efficient and<br />
relevant as possible. Finally, massUp has distribution relationships from outside of the (re)insurance industry, which we<br />
can offer to carriers as new lines of business. Because we work so closely with the banking and retail sectors, we are<br />
aiming to bring those markets to our (re)insurance partners.<br />
Describe massUp’s revenue model. What is the implementation timeline for Massup’s solutions.<br />
What level of participation is required from the client during the integration process?<br />
massUp is a true partner to our (re)insurance clients. We develop new products (or digitize existing products), that are<br />
tailored to the modern-day needs of consumers. Our business model operates in conjunction with our partners – premium<br />
comes through our systems on behalf of the partner (which can be white-labeled and branded for the partner) and we earn<br />
a fee based on a percentage of these premiums for our services. If our partners in the market are not taking risk, we also<br />
pay them a commission share of premium income. We do not charge retainer licenses or fees. In doing so, we earn fees<br />
and grow together with our clients. It is in our mutual interest to offer the marketplace best-in-class products and services.<br />
For our particular revenue model, our partners do not need specific technical capabilities themselves.<br />
Quarterly InsurTech Briefing Q4 <strong>2017</strong> 22