Technology, Demographics, and Insurance Are we Ready? The Future of Insurance Forum Andrew Castaldi

The rest of us Me You Innovation Disruption

Pre-Digital Age: The American Dream and Insurance -1950s Job at one company (retire, pension) Marriage House(mortgage, pay off mortgage, stay) Raise family, college, grandkids, pension Community involvement Car(s) Pet(s) Insurance served to protect this dream via Local insurance agent/advice Home owners insurance Life insurance Auto insurance Heath insurance Even pet insurance

Digital Age: New insurance perspectives, does tradition fit? 22 is the most common age 79% have Bachelors degree Average job lasts 2 years Mobile/quick to relocate Urban Alternative work place Diversified backgrounds Resurgence in renting Social media/Technology driven Internet buying behaviors Less owned assets Pay as you use preference CONNECTED to abundant data

New products Omnibus’ coverage – one custom policy Cyber theft and other commercial or personal high tech risks Insurance on demand – pay as you need Maintenance “smart” support. Shift from “repair and replace” to “detect and prevent” More “Value” Risk Monitoring devices Simplified claims (parametric) or technology senses Smart device coverages Dependency

Information, Distribution, Operations Brick and Mortar Age Digital Information Age Single-specific, local, time consuming multi-specific, unlimited, immediate Municipal records Drones Satellites Social networks Hazard monitoring Smart technology AI – Broker in a box Data – less noise Expedia like product comparisons Risk pools Multiple insurers within one policy AI/Machine learned risk sharing

Technology – shaking things up

AI and Machine Learning Faster at collecting and analyzing data Blockchain More consistent Better connected Ability to find patterns and learn new things More Efficient Immediate Developing a more human feel for things Identify opportunities

What will the impact be on my business? Insurance industry - percentage of tasks affected by Machines and AI Job Title Percentage Insurance Agent 60% Insurance Underwriter 35% Claims Adjusters 26% Actuaries 15% CEOs 25% Source: McKinsey

Andrew Castaldi – PERILS Thank you END Andrew Castaldi – PERILS 914-433-6025 Andrew.castaldi@perils.org