A Global View of Insurtech June 8, 2017 Chris Dougherty & Lauren Pollock © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Insurtech -- A movement by entrepreneurs, investors, and incumbents to significantly improve ("disrupt") insurance through the application of new technologies.

Explosion of activity in insurance innovation as carriers seek to remain relevant © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

2016 Insurtech funding at $1.7 billion and 174 deals -- 2017 on track to maintain strong momentum © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Bulk of Insurtech startups are in the US but Europe and India are gaining traction Source: Willis Towers Watson -- Quarterly InsurTech Briefing Q1 2017 © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Investor landscape includes Accelerators, VCs, CVCs, and Global (Re)insurers © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Insurtech startups bringing products to market in 2017 YTD © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Relationships & Distribution Capital and Investment Incumbents are valuable (critical?) partners to new ventures in insurance Knowledge & Resources Relationships & Distribution Regulatory Interface First Customer Capital and Investment 8

Insurtech partnerships are essential for carriers to transform their business model Through partnerships Insurers are getting… Access to emerging technologies A deeper understanding of the customer A new way of working; design thinking / sprints Partnerships are essential for Insurers to launch better designed / relevant products, decrease frictional costs, and enhance overall customer experience © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

The disruptors and enablers © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

“If the Insurance Industry does not innovate and become more relevant, we are in danger of being left behind. Soon.” - Mike McGavick, CEO © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO 11

Investment thesis: - Stage agnostic, but mostly seed & series A, reflecting the maturity of the market - $2-10 MM - 2 streams of investments: Data & Analytics and New Insurance Business Models - Look for opportunities that are scalable, and can make a difference to the P&C market. Management team is a key consideration as well evaluate businesses – we look for relevant experience that supports their approach, and a balance or willingness to include insurance expertise. And the ability to be both tenacious and flexible enough to pivot, and to receive advice from board. © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Acquisition & Distribution Business Intelligence XL Innovate focuses on these four pillars Acquisition & Distribution Operational Costs Business Intelligence Cost of Capital Selection Customer Satisfaction Cost Automation Simplicity Efficiency AI / ML Automation Data Analytics Over Capitalization Efficiency Velocity Investment Taxation Sourcing © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

© 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

© 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

© 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Accelerate works with our internal business units to create commercial opportunities that arise from emerging technologies – We make things go faster! © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Accelerate’s key criteria to prioritize partnerships and experiments Business sponsor appetite / hunger Shared Value, in particular customer benefit Alignment with Elephants The ‘Wow’ factor Scaling potential Quick win potential and confidence in delivery Differentiation / USP from partner © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Case study: Our partnership with Oxbotica © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO

Building a culture where innovation can thrive is essential to our industry’s success Create & embrace the chaos Build diverse teams Experiment Learn from Failure Be curious Build partnerships Create a bold, empowered culture © 2017, XL Catlin companies. All rights reserved. I MAKE YOUR WORLD GO