Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Towers Watson — Q1 2020 Earnings Presentation
42 slides from Willis Towers Watson Public's earnings presentation, April 2020
Slide 1: Quarterly InsurTech Briefing Q1 2020
Quarterly InsurTech Briefing Q1 2020 April 2020
Slide 2: Contents
Contents Foreword 2 Introduction 14 Case Studies 26 A new decade, a new epoch for InsurTech The auto/motor InsurTech world - Buckle 28 - OCTO 30 - By Miles 31 The Art of the Possible 32 Incumbent Corner 38 Thought Leadership 44 Principal at Anthemis, Matthew Jones’ Ping An and Zhong An on technologi
Slide 3: Foreword
Foreword 2 willistowerswatson.com Quarterly InsurTech Briefing Q1 2020 3
Slide 4: A new decade, a new epoch for InsurTech
Foreword A new decade, a new individual InsurTech businesses, a cultural renaissance Globally, InsurTech companies did still manage to raise US$912 reawakening in our industry of the value of technology and a million across 96 deals in Q1, but most of this was captured and nontraditional entrepreneu
Slide 5: Percentage increase of InsurTech funding in Q1 2020
Foreword continued Tech-enabled claim management oversaw significant traction in U.S., which absorbed 57% of deals, and the U.K., with 10% of deals. Running total of funding decelerates Total funding: an active auto insurance market. This quarter oversaw significant China recorded a six-percentage-p
Slide 6: Foreword continued
Foreword continued The below, while not exhaustive, is a rundown of InsurTech as it has come to be, as a lively and energetic 10-year-old. Player Function Development from 2010 to 2020 Player Function Development from 2010 to 2020 Most (re)insurers have at least looked at individual InsurTechs as a
Slide 7: The decade view: Where next for InsurTech?
Foreword continued The decade view: Where next for InsurTech? Principal factor three: InsurTech maturation > Our predictions Over the next 10 years, InsurTech is going to have to change given how unsustainable A greater percentage of InsurTechs enter the commercial MGA to full-stack insurer: W
Slide 8: Foreword continued: Auto
Foreword continued The evolution of the Quarterly InsurTech This particular briefing will focus on the global auto space as it innovation in China. The piece considers the role of technology in lead in the Insurance Consulting and Technology business. Briefing series relates to technology and InsurT
Slide 9: Introduction
Introduction 14 willistowerswatson.com Quarterly InsurTech Briefing Q1 2020 15
Slide 10: The global auto InsurTech world
Introduction The global auto InsurTech world As handheld and telematics devices are able to offer both parties a real-time source of data, innovative pricing structures are coming However, as mentioned previously, auto insurance is already one of the most innovative areas of the insurance industry.
Slide 11: Auto InsurTech deal count and funding
Introduction continued Graph 1 : Total deal count vs. funding in auto InsurTech (per year) Graph 3: Deal count across global investment stages into auto InsurTech 1,200 60 100% 5% 5% 4% 56 14% 11% 14% 6% 16% 8% 48 551062 27% 49 7% 1,000 1026 50 80% 32% 6% 16% 14% 25% Percentage of total deal count 4
Slide 12: Number of total auto InsurTech deals globally since 2010
Introduction continued Number of total auto InsurTech deals globally since 2010* (Round volume per country) 4 31 10 3 6 126 1 17 2 1 18 4 1 1 1 3 8 4 1 *In some cases, companies have raised multiple times. Each of these raises have been included in the calculations as individual rounds. 20 willistow
Slide 13: Auto functional cycle
Introduction continued Auto functional cycle 2. Third-party technology/data Usage-based insurance Here is a snapshot of the ways in which technology can be leveraged in the different parts of the functional cycle orbiting the auto risk. Automated claims Today’s drivers can choose the policy
Slide 14: Auto incumbent InsurTech partnerships and investments
Introduction continued The following are examples of noteworthy auto incumbent InsurTech partnerships and investments from the past 12 months. A snapshot of some global InsurTechs operating in the auto and motor space: 1. Tokio Marine uses Metromile for claims 6. Gojek, the Indonesian ride-sharing c
Slide 15: Case Studies
Case Studies 26 willistowerswatson .com Quarterly InsurTech Briefing Q1 2020 27
Slide 16: Case Studies: Buckle
Company case study Case Studies: Buckle Buckle, a U.S.-based InsurTech founded in 2017, provides financial Buckle’s credit model services to gig workers, beginning with personal and commercial In a partnership with Cox Automotive, Buckle has also launched I I I Information insurance coverage in one
Slide 17: Case Studies: OCTO and By Miles
Case Studies: OCTO Case Studies: By Miles Founded in 2002, OCTO offers innovative technological solutions that By Miles is a London-based InsurTech that offers drivers real-time, connect the world of mobility through advanced analytics and internet pay-as-you-go car insurance by the mile through a p
Slide 18: The Art of the Possible: An Investor's Perspective
The Art of the Possible: An Investor’s Perspective 32 willistowerswatson.com Quarterly InsurTech Briefing Q1 2020 33
Slide 19: The Art of the Possible: Anthemis and its investing stance
The Art of the Possible: An Investor’s Perspective Matthew is a principal at Anthemis, where he is responsible for sourcing, analyzing and executing investments as well as providing support for Art of the possible Where will it be in five, ten years’ time? Anthemis’ portfolio companies. He brings in
Slide 20: The Art of the Possible: An Investor's Perspective continued
The Art of the Possible: An Investor’s Perspective continued insurers and reinsurers in attendance on two hands. Don’t get me Anthemis has made a number of investments into auto/ wrong, insurers and reinsurers have a lot on their plate, dealing with mobility technology (Humanising Autonomy, Xapix).
Slide 21: Incumbent Corner
Incumbent Corner 38 willistowerswatson.com Quarterly InsurTech Briefing Q1 2020 39
Slide 22: Incumbent Corner
Incumbent Corner Willis Re China spoke with Ping An and Zhong An about the development of the InsurTech 1. Impact of InsurTech on the insurance industry and the Chinese market: industry in China, the role of the customer in their respective technological developments – Has the market focus on techno
Slide 23: Incumbent Corner continued
Incumbent Corner continued Zhong An: In recent years, with the integration of insurance may look like digital products, but they actually may not be Zhong An: Zhong An always sees “insurance + technology” Over the past six years, Zhong An has acquired business and technology, a Chinese model of Insu
Slide 24: Thought Leadership
Thought Leadership 44 willistowerswatson.com Quarterly InsurTech Briefing Q1 2020 45
Slide 25: Incremental gains fuel technology transformation in the motor market
Thought Leadership There lies an opportunity, and a challenge, to make use of Insurers that have been able to move away from legacy technology to achieve a win-win scenario for provider and systems — or integrate them into updated IT infrastructures — Incremental gains fuel technology consumer. A
Slide 26: Technology Spotlight
Technology Spotlight 48 willistowerswatson.com Quarterly InsurTech Briefing Q1 2020 49
Slide 27: Radar Live
Technology Spotlight Radar Live is a real time insurance rules and model deployment solution that Case study: Fraud detection builds on, and completely integrates with, Willis Towers Watson’s analytical software Emblem, Classifier, Radar Base and Radar Optimiser. Its use is now Among the numerous us
Slide 28: Transaction Spotlight
Transaction Spotlight 52 willistowerswatson.com Quarterly InsurTech Briefing Q1 2020 53
Slide 29: Transaction Spotlight: Concirrus
Transaction Spotlight Concirrus, a U.K.-based specialty lines (marine, cargo, aviation) and Automated active risk management automotive InsurTech, raised US$20 million in a Series B funding round With Quest Automotive, insurers and fleet operators are automatically alerted to risky driving behaviors
Slide 30: The Data Center
The Data Center 56 willistowerswatson.com Quarterly InsurTech Briefing Q1 2020 57
Slide 31: Funding in Q1 2020 drops 54% from Q4 2019
The Data Center Funding in Q1 2020 drops 54% from Q4 2019’s Mid-stage deal count dropped by 11 percentage points and In Q1 2020 L&H deals, 8% were for insurers, 59% for B2B- A US$50 million Series C round in Clearcover, an insurance record funding quarter funding increased by nine percentag
Slide 32: InsurTech by the numbers
The Data Center InsurTech by the numbers Quarterly InsurTech transactions by target country Quarterly InsurTech funding volume – all stages 2012 – Q1 2020 Q1 2020 ($ in millions) Property and casualty Life and health 1986.9 2000 1864.8 United States United States 17% United Kingdom 17% United Kingdo
Slide 33: Q1 2020 InsurTech transactions - P&C
The Data Center Q1 2020 InsurTech transactions – P&C Q1 2020 InsurTech transactions – P&C Funding ($M) Funding ($M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 1/3/2020 Clearcover 50 107 500 Startups Clearcover’s API-first approach enables
Slide 34: Q1 2020 InsurTech transactions - P&C
The Data Center Q1 2020 InsurTech transactions – P&C Q1 2020 InsurTech transactions – P&C Funding ($M) Funding ($M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 1/22/2020 Yuanbao Technology – – Baika Venture Capital Yuanbao Technology provid
Slide 35: Q1 2020 InsurTech transactions - P&C
The Data Center Q1 2020 InsurTech transactions – P&C Q1 2020 InsurTech transactions – P&C Funding ($M) Funding ($M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 2/13/2020 Talage 5 6.59 Acceleprise Talage provides a digital marketplace for sm
Slide 36: Q1 2020 InsurTech transactions - P&C
The Data Center Q1 2020 InsurTech transactions – P&C Q1 2020 InsurTech transactions – P&C Funding ($M) Funding ($M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 2/27/2020 Tractable 25 59.83 Andy Homer Tractable develops AI for accident and d
Slide 37: Q1 2020 InsurTech transactions - L&H
The Data Center Q1 2020 InsurTech transactions – L&H Q1 2020 InsurTech transactions – L&H Funding ($M) Funding ($M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 1/8/2020 Summary Medical 0.08 0.08 gBETA Summary Medical is developing an AI-ena
Slide 38: Private technology investments by (re)insurers
The Data Center Q1 2020 InsurTech transactions – L&H Private technology investments by (re)insurers Funding ($M) Private technology investments by (re)insurers Date Company Round Total Investor(s) Description 3/17/2020 GIGI 0.15 0.15 Y Combinator GIGI offers financial solutions for those witho
Slide 39: Private technology investments by (re)insurers
The Data Center Private technology investments by (re)insurers Private technology investments by (re)insurers Funding ($M) Funding ($M) Date Company Round Total (Re)insurer investor(s) Description Date Company Round Total (Re)insurer investor(s) Description 1/3/2020 Clearcover 50 107 American Fam
Slide 40: Q1 2020 strategic (re)insurer partnerships
The Data Center Q1 2020 strategic (re)insurer partnerships Date Company (Re)insurer investor(s) Description Date Company (Re)insurer investor(s) Description 1/6/2020 Uber Farmers Farmers Insurance has partnered with Uber to offer commercial automobile insurance to 2/5/2020 Allphins TransRe
Slide 41: Additional information
Quarterly InsurTech Briefing Additional information The Quarterly InsurTech Briefing is a collaboration between Willis Re, Willis Towers Watson Insurance Consulting and Technology and CB Insights. Production is led by the following the individuals. For more information, or to discuss the results of
Slide 42: About Willis Towers Watson
About Willis Towers Watson Willis Towers Watson (NASDAQ: WLTW) is a leading global advisory, broking and solutions company that helps clients around the world turn risk into a path for growth. With roots dating to 1828, Willis Towers Watson has 45,000 employees serving more than 140 countries and ma