Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Towers Watson — Q4 2020 Earnings Presentation
47 slides from Willis Towers Watson Public's earnings presentation, January 2021
Slide 1: Quarterly InsurTech Briefing Q4 2020
Quarterly InsurTech Briefing Q4 2020 January 2021
Slide 2: Contents
Contents Foreword 2 Introduction 12 Case Studies 22 2020 - The most important year The global life, accident and health - Afficiency 24 for InsurTech to date InsurTech world - Inclusivity Solutions 25 - Decent 26 - dacadoo 27 - Player's Health 28 - Abi Global Health 30 - Global IQX 31 The Art of the
Slide 3: Foreword
Foreword 2 willistowerswatson.com Quarterly InsurTech Briefing Q4 2020 3
Slide 4: 2020 — The most important year for InsurTech to date
Foreword 2020 — The most important As we have noted in prior briefings, InsurTechs do still need to were preoccupied with COVID-19 given that the biggest reduction survive the uncertainty of this unfamiliar operating (and social) in activity came at the higher investment rounds where corporate envir
Slide 5: Foreword continued
Foreword continued This was predominantly driven by six megadeals (accounting for In the shadow of P&C InsurTechs, L&H start- What we experienced was a concurrent overvaluation of latest- or have ancillary phoenixes reborn in their embers to support the 70% of the total volume raised in the quarter)
Slide 6: 2020: A year in review
Foreword continued 2020: A year in review Figure 4 : Total number of deals across L&H and P&C (bars) vs. the total amount of funding (lines) per quarter Figure 6 : Number of deals at each stage vs. the average deal size in 2020* L&H number of deals P&C number of deals L&H investment P&C investment L
Slide 7: Foreword continued
Foreword continued Overall, 2020 has been a fascinating year for InsurTech; anyone So what is in store for 2021? We anticipate there will be another certain InsurTechs can morph into profitable businesses that do Inclusivity Solutions, a South Africa-based company that who doubted the value and ro
Slide 8: Introduction
Introduction 12 willistowerswatson.com Quarterly InsurTech Briefing Q4 2020 13
Slide 9: The global life, accident and health InsurTech world
Introduction The global life, accident and health InsurTech world Figure 8: Number of L&H and P&C InsurTech deals vs. the average deal size, 2012 – 2020* L&H P&C Average deal size This edition of the Quarterly InsurTech Briefing focuses on life, accident and health (LAH) 450 140 insurance. Specifica
Slide 10: Introduction continued: wearables and biometrics
Introduction continued (Re)insurers are doing a fantastic job of rewarding proactive The rise of wearable technology: Split of wearable technology used* 1. Wearables and biometric devices insureds for the increased release of their data (for example, As we observed in our first and second Quarterly
Slide 11: Introduction continued: genomics and incumbent landscape
Introduction continued 3. Molecular gene road maps/genomics understand what is statistically likely (or unlikely) to happen to a The incumbent landscape and its use of The report also found that life insurers are attempting to use person as he or she ages or is exposed to certain environments. techn
Slide 12: Snapshot of global LAH InsurTechs and partnerships
Introduction continued A snapshot of some global InsurTechs operating in the LAH space: Some noteworthy LAH InsurTech partnerships, 5. MassMutual’s LifeScore Labs and Antara Health deals and funding from Q4 2020: have partnered to explore risk scoring in health care LifeScore Labs, a subsidiary of M
Slide 13: Case Studies
Case Studies 22 willistowerswatson .com Quarterly InsurTech Briefing Q4 2020 23
Slide 14: Case Studies: Afficiency and Inclusivity Solutions
Case Studies: Afficiency Case Studies: Inclusivity Solutions Afficiency has developed a digital life insurance platform that Founded in 2015 in South Africa, Inclusivity Solutions designs, builds, allows new products to be digitized and made available for operates and innovates digital insurance sol
Slide 15: Case Studies: Decent and dacadoo
Case Studies: Decent Case Studies: dacadoo Launched in 2017, Decent aims to offer affordable health insurance for dacadoo develops and operates a comprehensive Digital Health groups underserved by the current health insurance carrier landscape. Engagement Platform to motivate users to achieve and ma
Slide 16: Case Studies: Player's Health
Case Studies: Player’s Health Player’s Health is a sports services organization that provides digital risk management services and reporting tools to sports organizations to comply with the needs of the changing athletic environment and related responsibilities. Founded in 2015 in Minneapolis and ba
Slide 17: Case Studies: Abi Global Health and Global IQX
Company case study Case Studies: Abi Global Health Case Studies: Global IQX Abi Global Health has created Abi, a medical micro-consultation service that A provider of artificial intelligence (AI)-driven employee benefit gives people secure and compliant access to real doctors via chat apps. technolo
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 Q4 2020 33
Slide 19: The Art of the Possible: An Investor's Perspective
The Art of the Possible: An Investor’s Perspective Stephen Goldstein is Vice President, Client Experience Lead for RGAX, LLC, where he works closely with “With the events insurance companies in the U.S., Canada, Mexico and of 2020, the rapid South America to develop need-based solutions. adoption of
Slide 20: The Art of the Possible: RGAX venture portfolio
The Art of the Possible: An Investor’s Perspective continued RGAX venture portfolio 4. Can you tell us a little bit about 7. What are your predictions for the next five years? 8. Finally, if you were going to give some advice to a your current InsurTech portfolio? Americas hopeful InsurTech looking
Slide 21: Incumbent Corner
Incumbent Corner 38 willistowerswatson.com Quarterly InsurTech Briefing Q4 2020 39
Slide 22: Incumbent Corner – Case Study 1: Discovery's Vitality program
Incumbent Corner – Case Study 1: Discovery’s Vitality program Adrian Gore founded Discovery in South Africa in interpret the results and apply them to behavioral analysis. 3. COVID-19 has affected nearly every facet of 1992 – with a core purpose “to make people healthier This enables us to identify
Slide 23: Discovery's Vitality program continued
Incumbent Corner – Case Study 1: Discovery’s Vitality program continued and tools for members and doctors, integration with health Obviously, challenges remain in that not everyone has equal from a COVID-19 infection than a 45-year old with no chronic “We need to navigate this pandemic monitoring de
Slide 24: Incumbent Corner – Case Study 2: Aviva Singapore
Incumbent Corner – Case Study 2: Aviva Singapore Santosh Gon is the Chief Information Officer for Aviva 2. Aviva Singapore has made a number of very “We’re always looking to work with Singapore. Santosh provides leadership for the continued large technology investments in the past few disruptive ide
Slide 25: Aviva Singapore continued
Incumbent Corner – Case Study 2: Aviva Singapore continued instantaneously to our underwriters, reducing the time lag 7. And finally, if you were a budding technology firm/ between application and inception of policy. This platform has InsurTech looking to get into the life, accident and also improv
Slide 26: Thought Leadership
Thought Leadership 48 willistowerswatson.com Quarterly InsurTech Briefing Q4 2020 49
Slide 27: Thought Leadership
Thought Leadership Ryan Jessell Senior Director, Head of Individual Marketplace Strategy, Willis Towers Watson “The development of electronic application This quarter, Ryan Jessell shares his expert view on the movement to processes, expansion of electronic enrollment and the new role of agents and
Slide 28: Thought Leadership continued
Thought Leadership continued Are there any particular evolutions that you have done So, you mentioned there that you work with a third party recently? What are some of the recent endeavors that you to provide that underwriting engine, which is great segue have completed in your line of business? int
Slide 29: Thought Leadership continued
Thought Leadership continued As you think about your adoption of technology, how would Yes, I've seen it happen. Worst thing that can happen to a you place it on the spectrum of proactive to reactive? Are technology company is that innovation is stifled. We've seen that you out there looking to be o
Slide 30: Transaction Spotlight
Transaction Spotlight 56 willistowerswatson.com Quarterly InsurTech Briefing Q4 2020 57
Slide 31: Transaction Spotlight: Coherent Series A
Transaction Spotlight In November 2020, Coherent, a provider of digital platforms and data intelligence engines to insurers, announced a US$14 million Series A funding round led by global venture capital fund Cathay Innovation, with participation from Franklin Templeton. This is Coherent's first pub
Slide 32: Technology Spotlight
Technology Spotlight 60 willistowerswatson.com Quarterly InsurTech Briefing Q4 2020 61
Slide 33: Technology Spotlight: Optimum SAA
Technology Spotlight Willis Towers Watson’s Optimum SAA is a web-based platform for strategic asset Cloud optimization their portfolios. These methods, however, have not been as reliable as some may have hoped. Willis Towers Watson’s cloud approach allocation that helps users find their optimal asse
Slide 34: The Data Center
The Data Center 64 willistowerswatson.com Quarterly InsurTech Briefing Q4 2020 65
Slide 35: The Data Center
The Data Center Global InsurTech funding in Q4 2020 records a slight drop from Forty-two percent of L&H funding was at the late-stage, down For L&H deals in Q4 2020, 25% of deals were to B2B- Strategic tech investments by (re)insurers the prior quarter. 32 percentage points from Q3 2020. For P&C
Slide 36: InsurTech by the numbers
The Data Center InsurTech by the numbers Quarterly InsurTech transactions by target country Quarterly InsurTech funding volume – all stages 2012 – Q4 2020 Q4 2020 ($ in millions) Property & casualty Life & health 2,538 2500 United States United States 2,100 18% United Kingdom China 1,987 23% 2000 Ch
Slide 37: Q4 2020 InsurTech transactions – P&C
The Data Center Q4 2020 InsurTech transactions – P&C Q4 2020 InsurTech transactions – P&C Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 10/5/2020 Lokky 1.18 1.18 Angels4Impact Lokky offers a technology platform for
Slide 38: Q4 2020 InsurTech transactions – P&C
The Data Center Q4 2020 InsurTech transactions – P&C Q4 2020 InsurTech transactions – P&C Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 10/19/2020 Sravni - - Baring Vostok Capital Partners Sravni is the operator of
Slide 39: Q4 2020 InsurTech transactions – P&C
The Data Center Q4 2020 InsurTech transactions – P&C Q4 2020 InsurTech transactions – P&C Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 11/10/2020 Solstice Innovations 4.5 4.95 Undisclosed Investors Solstice Innova
Slide 40: Q4 2020 InsurTech transactions – P&C
The Data Center Q4 2020 InsurTech transactions – P&C Q4 2020 InsurTech transactions – P&C Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 11/30/2020 Justsafe – 1.61 Addor Capital Justsafe specializes in IoT and termi
Slide 41: Q4 2020 InsurTech transactions – P&C and L&H
The Data Center Q4 2020 InsurTech transactions – P&C Q4 2020 InsurTech transactions – L&H Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 12/16/2020 B3i Services – 26.27 Achmea B3i Services provides insurance solutio
Slide 42: Q4 2020 InsurTech transactions – L&H
The Data Center Q4 2020 InsurTech transactions – L&H Q4 2020 InsurTech transactions – L&H Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 11/11/2020 Turaco 2 3.3 Catalyst Fund Turaco offers health loans bundled with
Slide 43: Private technology investments by (re)insurers
The Data Center Q4 2020 InsurTech transactions – L&H Private technology investments by (re)insurers Funding (US$M) Private technology investments by (re)insurers Date Company Round Total Investor(s) Description 12/10/2020 Hibob 70 115 Arbor Ventures Hibob, aka bob, is a cloud-based system that i
Slide 44: Private technology investments by (re)insurers
The Data Center Private technology investments by (re)insurers Private technology investments by (re)insurers Funding (US$M) Funding (US$M) Date Company Round Total (Re)insurer investor(s) Description Date Company Round Total (Re)insurer investor(s) Description 10/6/2020 BlocPower 11.85 11.98 Amer
Slide 45: Q4 2020 strategic (re)insurer partnerships
The Data Center Q4 2020 strategic (re)insurer partnerships Q4 2020 strategic (re)insurer partnerships Date Company (Re)insurer investor(s) Description Date Company (Re)insurer investor(s) Description 10/1/2020 Superscript AXA London-based commercial insurance intermediary Superscript has partner
Slide 46: Quarterly InsurTech Briefing: Additional information
Quarterly InsurTech Briefing Additional information The Quarterly InsurTech Briefing is a collaboration between Willis Re, Willis Towers Watson's Insurance Consulting and Technology, and CB Insights. Production is led by following the individuals. For more information, or to discuss the results of t
Slide 47: 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