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Q4 2017

Q4 2017 Industry Theme The Sobering of InsurTech: Adapting Business Models for Incumbents Business Process Enhancement Example – massUp Business Process Enhancement “Plug and Sell” White-Label SaaS Offering Technology to Sell Through Every Channel Founded in 2015, Germany based massUp offers a turn-key B2B white label solution for insurers and other financial distribution channels to sell micro-insurance policies for individual personal items directly to consumers, and commercial lines products through a network of independent agents. The solution includes all necessary services, including policy issuance, payments and contract management. The company offers a growing list of (re)insurance partners access to internally designed, innovative insurance products distributed through a variety of direct-to-consumer sales channels. massUp also enables its (re)insurer clients to leverage its diverse distribution capabilities to sell their existing products through a variety of digital and offline channels and will manage that process for them, integrating massUp’s software solutions with a client’s existing systems. massUp’s products are tailored to modern millennial consumers that expect to be able to buy insurance online, through apps, in shops, banks and/or via online payment systems. The company offers (re)insurance partners a comprehensive, low-touch solution to manage distribution processes for small-ticket personal lines and small business insurance products through a variety of sales channels. To date, approximately 70% of massUp’s revenue has come from back-end technology services, with the remaining 30% from MGA distribution of the company’s internally developed insurance products. Over time, massUp intends to become a Lloyd’s cover holder and build out its MGA capabilities to increasingly market massUp’s products direct-to-consumers and through agents. To gain a better understanding of massUp’s business model and strategic direction, we spoke to Founder & CEO Fabian Fischer. His responses to a series of questions are listed on the following page. massUp Delivers a Complete Solution “Off The Digital Shelf” Client Risk Product Plug-In Services Sales Covering risk globally, backed by global insurance partners Product design, pricing and underwriting Technical “Plug & Play” solution for all channels Payment, contract and claims management massUp Products massUp Front-End Solutions 21

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

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