1. Potential disruption of the insurance industry
Presenting to:
Panel of Judges
Presented by:
Lukas Grote
Ina Jonalik
Johann Wiebold
Lina Zaika
1/8/2019
HHU

2. Incremental innovations give potential room for disruption
Disruption theory by Christensen (1997)
Performance
high
middle
low
Time
1/8/2019
HHU

3. Agenda
01 Industry assessment 02 Roots of disruption 03 Industry reaction 04 Strategic alternatives
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HHU

4. Disruption developed to an overarching megatrend
Industry
Underlying trend
Current state
Example
Asset Management
Artificial Intelligence
Early
BlackRock Robo Advisor
Energy
Climate change
Developed
Coal exit in Germany
Entertainment
Cloud technology
Netflix
Health
Biotech
Siemens Healthineers
Hospitality
Peer-to-Peer
Developing
Airbnb
Mobility
Autonomous driving
Google car
Insurance
Blockchain
Teambrella
Retail
Online marketplaces
Amazon
1/8/2019
HHU

5. The focus will lay on the industries which have the highest potential to react successfully
Industry
Underlying trend
Current state
Example
Asset Management
Artificial Intelligence
Early
BlackRock Robo Advisor
Energy
Climate change
Developed
Coal exit in Germany
Entertainment
Cloud technology
Netflix
Health
Biotech
Siemens Healthineers
Hospitality
Peer-to-Peer
Developing
Airbnb
Mobility
Autonomous driving
Google car
Insurance
Blockchain
Teambrella
Retail
Online marketplaces
Amazon
Potential
State of disruption
Disruptor power
1/8/2019
HHU

6. Many potentially disrupting trends are coming up in the insurance industry
Underlying trend
Current state
Example
Asset Management
Artificial Intelligence
Early
BlackRock Robo Advisor
Energy
Climate change
Developed
Coal exit in Germany
Entertainment
Cloud technology
Netflix
Health
Biotech
Siemens Healthineers
Hospitality
Peer-to-Peer
Developing
Airbnb
Mobility
Autonomous driving
Google car
Insurance
Technology
Teambrella (Blockchain)
Retail
Online marketplaces
Amazon
Potential
State of disruption
Disruptor power
1/8/2019
HHU

7. Factors at the root of potential disruption
New technologies
Automation
Inflexible corporates
Standardized products
Digital insurer
Underpenetrated markets
1/8/2019
HHU

8. Disruption in the insurance industry
Performance
high
middle
low
time
1/8/2019
HHU

9. Current costumer journey$0
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10. Blockchain-based P2P insurance costumer journey
$300
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11. Insurances have reacted to the disrupting trends rather slowly
Applied technological trends in insurance industry
Example
Blockchain AI
Internet of Things
B3i (blockchain insurance industry initiative)
Different use cases e.g. Axa flight insurance
Automated claim management
Smart products
1/8/2019
HHU

12. Traditional insurance companies could be cut out of the industry
Only incremental innovation
New business models need to be taken into account
1/8/2019
HHU

13. How could insurance companies react differently?
Buy start-ups
Business as usual
Shift costumer focus
Build up own resources
Run Accelerator & Incubator programs
Use knowledge to build up new revenue stream right away
Continue insurance business without changes and serve remaining customers
Focus on customer groups that are less likely to adapt Peer-to-Peer (e.g. business clients)
Set up own portal for Peer-to-Peer organically insurances and monetarize it
Support start-ups, share knowledge to develop together and set base to act when the business is mature
1/8/2019
HHU

14. Different strategies have their pros and cons
Buy start-ups
Business as usual
Shift costumer focus
Build up own resources
Run Accelerator & Incubator programs
+ no additional costs
High risk of disruption
Loss of customers
+ immediate integration of know-how
Concept won’t succeed
High investment risk
+ more robustness to disruption
Loss of private customers
Lost potential
+ more influence
Hard to build to internally
costly
Time intensive
+ low risk
+ flexibility
+ close to new trends
+ mitigate risk of cannibalization
Difficulty to integrate
1/8/2019
HHU

15. Different strategies have their pros and cons
Buy start-ups
Business as usual
Shift costumer focus
Build up own resources
Run Accelerator & Incubator programs
+ no additional costs
High risk of disruption
Loss of customers
+ immediate integration of know-how
Concept won’t succeed
High investment risk
+ more robustness to disruption
Loss of private customers
Lost potential
+ more influence
Hard to build to internally
costly
Time intensive
+ low risk
+ flexibility
+ close to new trends
+ mitigate risk of cannibalization
Difficulty to integrate
1/8/2019
HHU

16. – Act now! Insurance industry is facing potential disruption 1/8/2019
HHU

17. Risks and mitigation I. II. Impact
I. Regulations might hinder the future business model
II. Development of blockchain technology might not be as promising as expected I.
II.
Probability
1/8/2019
HHU