Digital Tech InsurTech Award Presentation
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This document discusses Digital Tech International's connected insurance solution and business model. It proposes a modular, mobile-based platform that insurance carriers can use to offer personalized, data-driven insurance policies. This is enabled through integrated sensors, devices, and data analytics. The solution is designed for flexibility and quick deployment. Digital Tech has tested the concept with over 20 insurers and sees strong potential growth in the connected insurance market from increased use of internet-connected devices. Financial projections estimate the business will generate over $26 million in annual revenue by 2021.
![Market: the $5 T international insurance industry
2
Source: Connected Insurance Observatory, Bain & Company, World Economic Forum
“all the players in the insurance arena
will be InsurTech—meaning
organizations where technology will
prevail as the key enabler for the
achievement of strategic goals.
Bain & Company
GROWING INSURTECH
INVESTMENTS CONNECTED INSURANCE
EXPECTED SURGE IN
CONNECTED THINGS
"[about Fintech] the greatest impact of
disruption is likely to be felt in the
insurance sector. Ubiquity of connected
devices will enable insurers to highly
personalise insurance and proactively
manage clients’ risks”
World Economic forum
10
connected things per
person
200
connected things
per person
Connected insurance is the approach using sensors for collecting data
on the state of an insured risk and telematics for data remote transmission
and usage along the Insurance value chain](https://image.slidesharecdn.com/digitaltechdeck-160904081838/85/Digital-Tech-InsurTech-Award-Presentation-2-320.jpg)
![Quotes from insurers
5
“A solution able to simultaneously manage all house related perils is not yet
available in the US market and is very interesting for us”
Phil Brubacker, ASI
“This [the insurtech disruption] is just the beginning and we like your approach
because we need a strategic partner willing to work with us and customize the
solution according to market feedback and emerging opportunities”
Toi See Jong, Tokio Marine
“Your understanding of the digital insurance space is impressive and I wonder if
together with your applications you are keen on providing strategic guidance as
well ”
Aman Chowla, Prudential BSN](https://image.slidesharecdn.com/digitaltechdeck-160904081838/85/Digital-Tech-InsurTech-Award-Presentation-5-320.jpg)
Digital Tech InsurTech Award Presentation
- 1. DRAFT August 2016 Digital Tech International This document is proprietary and strictly confidential. No part of this document may be disclosed in any manner to a third party without the prior written consent of DigitalTech Srl
- 2. Market: the $5 T international insurance industry 2 Source: Connected Insurance Observatory, Bain & Company, World Economic Forum “all the players in the insurance arena will be InsurTech—meaning organizations where technology will prevail as the key enabler for the achievement of strategic goals. Bain & Company GROWING INSURTECH INVESTMENTS CONNECTED INSURANCE EXPECTED SURGE IN CONNECTED THINGS "[about Fintech] the greatest impact of disruption is likely to be felt in the insurance sector. Ubiquity of connected devices will enable insurers to highly personalise insurance and proactively manage clients’ risks” World Economic forum 10 connected things per person 200 connected things per person Connected insurance is the approach using sensors for collecting data on the state of an insured risk and telematics for data remote transmission and usage along the Insurance value chain
- 3. Business model: mobile based solution enabling the Insurance Carriers to easy deal with the connected insurance opportunity 3 end-to-end solution white-label and modular Profit sharing and time to market PAY-PER- USER FLEXIBLE • Connected insurance SaaS for the insurance Carriers • Single engaging and mobile based customer experience • Device agnostic • Already integrated with a full set of service providers • Look & feel designed coherently with the Insurer corporate image and brand • Container app able to host any pre-existing insurer’s apps, third parts' app and to evolve over time • Insurer picks & we deploy preferred modules • State of the art technology fully scalable • Weeks for the go to market • No set up costs, revenues based on % of the insurance premium • Modular pricing based on the module activated by the single insurance carrier THE DIGITAL SNACK INSURANCE CONVENIENT
- 4. An insurance innovation factory 4 Luciano Pezzotta Founder & Partner Andrea Silvello Founder & Partner Narciso Podda Consultant Luigi Mozzillo CTO Melissa Siano Marketing specialist Antonio Marciante Product Manager Celia Clinciu Consultant TEAM MARKET TEST Innovative start-up founded in 2013 Completed the MVP and set-up partnership to scale up by leveraging founders’ consulting companies The products and the related B2B business models have been tested with international insurance and reinsurance target clients In the last 12 months we fine-tuned the concept and the business model thanks to discussions with over 20 insurers in Italy, Europe and Asia. Developed 5 different POC Digital Tech is part of the Observatory on Connected Insurance, a think tank created by Bain & Company who has attracted not only ANIA, the Italian Association of Insurance Companies, over 30 primary insurance and reinsurance international Groups and 12 other vendors (Octo, Vodafone, Guidewire, ..) Acknowledgement from the insuramce community: Digital Snack (Neosurance) has been awarded the Insurance IoT newcomer and Digital Tech has been shortlisted among the 5 finalists
- 5. Quotes from insurers 5 “A solution able to simultaneously manage all house related perils is not yet available in the US market and is very interesting for us” Phil Brubacker, ASI “This [the insurtech disruption] is just the beginning and we like your approach because we need a strategic partner willing to work with us and customize the solution according to market feedback and emerging opportunities” Toi See Jong, Tokio Marine “Your understanding of the digital insurance space is impressive and I wonder if together with your applications you are keen on providing strategic guidance as well ” Aman Chowla, Prudential BSN
- 6. The architecture 6 B2B Sales and relationship management, partners orchestration Mobileuserinterface Health access Health services Wellness Car insurance Digital insurance snack House insurance Datarepository MGA (managinggeneralagents) BUSINESS ARCHITECTURE Neosurance Air COMPANY ARCHITECTURE Digital Tech 50% 50% 7,5% 50% 92,5% 50% Established IoT manufacturer (>16M revenues) Top agents of leading Insurer. Broker on the car dealer channel (12M€ of insurance portfolio) Leader mobile customer experience Digital tech represents the strategic head of the architecture, the owner of the relationship with insurers, the exclusive distributor for Neosurance and Innotech
- 7. Top line: business unit and key drivers 7 Health front House front The digital snack insurance & MGA platform 13% of 2021 sales 8% of 2021 sales • From 1 to 15 Insurers in 5 years • Number of active policies for each insurer from 7,5K to 29K (progressive activation) • Average premium from 1500K€ to 1200K€ (entrance of collective schemes) • Revenues at 3,6% on premium (60% of the full modules) THE DIGITAL SNACK INSURANCE 79% of 2021 sales • From 1 to 10 Insurers in 5 years (50% from cross selling with health) • Number of active policies for each insurer from 7,5K to 33K (progressive activation) • Average premium starting at 150€ • Revenues 3,9% on premium (60% of the full modules) • Health and house front clients: - Insurer activation from 10% to 30% - Use from 0,5% to 7,5% - Number insured event from 10 to 30 • Average premium 2€ • Revenues 20% on premium • MGA platform usage from 30% to 20%, additional revenues 20%
- 8. Set-up costs 8 DEDICATED TEAM COST STRUCTURE Senior Commercial • From 1 to 4 in 5 years • From 1 to 7 in 5 years CTO • From 1 to 4 in 5 years Product manager • Health front from 1 to 4 in 5 years • House front from 1 to 2 in 5 years • Digital snack/MGA from 1 to 3 in 5 years Partner costs • Neosurance charge 26% on the health front revenues and digital snack • Innotech charge 54% on the house front revenues • Air charge 75% on the MGA revenues Facilities • From 90K€ to 1.700K€ in 5 years Services • Commercial expensed from 100K to 2.000K€ in 5 years • Data management and integration 50K€ to 2.680K€ in 5 years • Other costs 100K€ to 900K€ in 5 years From 7 to 28 FTE
- 9. Digital Tech 2016-2021 Economics 9 K Euro 2016 2017 2018 2019 2020 2021 Revenues Health Front revenues 405 2,241 5,777 11,435 19,651 House Front revenues 44 219 571 1,143 1,940 Digital Snack revenues 1 16 110 342 843 MGA platform revenues 11 48 259 1,311 3,761 Total Revenues 0 461 2,524 6,718 14,232 26,195 Costs Manpower -130 -390 -430 -945 -1,412 -1,986 Facilities -45 -135 -235 -475 -905 -1,740 Services -91 -274 -1,006 -1,960 -3,680 -5,675 Partners -45 -134 -730 -2,056 -4,800 -9,621 Total Costs -266 -933 -2,401 -5,437 -10,796 -19,022 EBITDA -266 -473 123 1,281 3,435 7,173 EBITDA % n.a. n.a. 5% 19% 24% 27%
- 10. DRAFT email: info@digitaltech-international.com Digital Tech International