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Q4 2017

Q4 2017 Industry Theme The Sobering of InsurTech: Adapting Business Models for Incumbents Segmenting the InsurTech Universe As InsurTech start-ups continue to emerge across the various components of the insurance value chain and business lines, incumbents and investors are evaluating opportunities to deploy these applications in the insurance industry today and in the future. To simplify the process of identifying useful and potentially transformational technologies and applications, we have endeavored to segment the increasingly broad universe of InsurTech companies by their core function into four categories: 1 Product & Distribution This exercise is complicated by the tendency of companies to operate across multiple functions, so significant professional judgment was used in determining the assignment for each company. A summary of the criteria used to determine placement is listed below. On the following pages, we have included market maps to provide a high level perspective of the number of players in each category, as well as a competitive assessment of each subsector and our expectations for each market going forward. Selected companies in each category, ranked by the amount of funding they have raised to date, are listed, followed by more detailed overviews and Q&A with selected representative companies from each subsector. 2 Business Process Enhancement 3 Data & Analytics 4 Claims Management Placement Criteria by InsurTech Category Product & Distribution Business Process Enhancement • Personal or commercial lines digital insurance distribution businesses including MGAs, brokers, online marketplaces, aggregators or other comparison sites • Companies offering specialized products to emerging or niche markets (e.g. per use coverage, products tailored for “gig economy” workers, or for individual personal items, pet insurance, etc.) • Other consumer or enterprise facing insurance product sales oriented companies • Outsourced technology solutions enabling digital marketing, underwriting, policy administration, billing and claims management • Technology-enabled employee benefits brokerage and administration • Integrated human resources technology solutions for recruiting, health insurance benefits and payroll Data & Analytics • Data mining and analysis • Modeling companies quantifying emerging risks • Analytical platforms and tools • Businesses developing or offering automated machine learning capabilities Claims Management • Claims processing software and/or mobile applications leveraging AI and machine learning to improve customer communication, data capture and analysis and/or automation throughout the claims cycle • Technological solutions for managing drones or other technologies providing or enabling remote inspection capabilities 5

Q4 2017 Industry Theme The Sobering of InsurTech: Adapting Business Models for Incumbents Product & Distribution 1 Product & Distribution 256 Companies • Broadest category includes 256 companies (~57% of InsurTech $5.9 billion Funding Volume to Date universe) primarily focused on direct distribution and/or specialized insurance products InsurTechs by Subsector • Consumer facing online marketplaces, mobile applications and/ Claims Management or specialized products targeting emerging risks in the modern economy or in underserved niche markets Data & Analytics Business Process Enhancement 15% 22% 6% Homeowners/Renters 57% Product & Distribution • Focused on improving user experience for insurance customers • Recent research from Aon suggests that 55% of InsurTechs are seeking to change how customers interact with insurers • According to an Accenture study, 40% of customers are unhappy with their coverage and willing to switch to a new provider • Though many of these businesses focus on disintermediating customers from incumbents, (re)insurers are increasingly focused on user experience and will explore acquisitions or partnerships with leaders in the space and continually evaluate opportunities to provide capacity for consumer responsive products that demonstrate profitability and scalability Health Auto Diversified/Other Personal Lines Life & Annuity Asian Aggregators and E-Commerce Point-of-Sale Small Business Insurance-Linked Securities Source: Aon research and Accenture research. Quarterly InsurTech Briefing Q4 2017 6

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