Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Towers Watson — Q2 2020 Earnings Presentation
41 slides from Willis Towers Watson Public's earnings presentation, July 2020
Slide 1: Quarterly InsurTech Briefing Q2 2020
Quarterly InsurTech Briefing Q2 2020 July 2020
Slide 2: Contents
Contents Foreword 2 Introduction 8 Case Studies 24 The unlikely drivers of change The global property InsurTech world - Openly 26 - handdii 27 - Arturo 28 - Hometree 29 - Insurdata 30 The Art of the Possible 32 Incumbent Corner 38 Thought Leadership 44 Principal at American Family Ventures, TypTap’s
Slide 3: Foreword
Foreword 2 willistowerswatson.com Quarterly InsurTech Briefing Q2 2020 3
Slide 4: The unlikely drivers of change
Foreword The unlikely drivers This quarter’s data highlights business, quote business, distribute product and service a living policy up until the contract ends or a claim is made, then it is leaving Global InsurTech funding recovers after a tough Q1 2020. itself vulnerable to obsolescence. of chang
Slide 5: Foreword continued
Foreword continued million round that earmarks US$100 million to purchase licensed In the medium term, we will likely see a different kind of constraint As a continuation of our newest feature for the 2020 Quarterly insurance companies. We featured Buckle in our last Quarterly affecting the status q
Slide 6: Introduction
Introduction 8 willistowerswatson.com Quarterly InsurTech Briefing Q2 2020 9
Slide 7: The global property InsurTech world
Introduction The global property InsurTech world “Harnessing the power of This edition of the InsurTech Quarterly Briefing focuses on property insurance. Property technology, property insurance as insurance is the second-most bought and sold line of P&C insurance globally. Specifically, a whole is i
Slide 8: Introduction continued: property InsurTech funding
Introduction continued Graph 1 : Total amount of funding per year (purple) vs. number of deals (yellow) Graph 3: Property InsurTech funding broken down by primary focus 1% 1.5% 1.5% 1.5% 1.5% 1,400 60 100% 3.5% 2% 1.5% 2.5% 3% 3% 5% 1% 0.5% 1,200 50 5% Amount of funding (US$ million) 1,000 13% 21% 1
Slide 9: Introduction continued
Introduction continued A non-exhaustive look at some of the sensory device applications in properties If each, or any combination of, the devices shown on the graphic on a significant step forward. Ultimately (re)insurers will be looking to the previous page can be used to create a behavioral identi
Slide 10: Property products: The main characteristics
Introduction continued 1a. Property products: The main characteristics Renters Renters insurance provides financial reimbursement to cover a tenant’s lost or damaged possessions as a result of fire, theft or vandalism. It also covers a tenant’s liability in the event that a visitor is injured on
Slide 11: Property products: The major technology breakthroughs/applications
Introduction continued 1b. Property products: The major technology breakthroughs/applications Renters On-demand coverages for goods that are rented or borrowed Video technology to confirm personal belonging ownership The use of technology platforms to make buying an insurance product for on
Slide 12: Perils and drivers of loss in property insurance
Introduction continued 2. Perils and drivers of loss in property From a pure expense perspective, hail, wind, and plumbing or (2) Actual cash value coverage provides for replacement cost [achievable remotely through proxy video], giving the insurance appliance leaks follow fire in terms of total los
Slide 13: Snapshot of global property InsurTechs and Q2 2020 partnerships
Introduction continued A snapshot of some global InsurTechs operating in the property space: Some noteworthy property InsurTech partnerships, deals and funding from Q2 2020: Product provider Homeowners Personal property 1. Root Insurance introduced Root Home, 7. Hippo announced two new partnerships
Slide 14: Case Studies
Case Studies 24 willistowerswatson .com Quarterly InsurTech Briefing Q2 2020 25
Slide 15: Case Studies: Openly and handdii
Company case study Case Studies: Openly Case Studies: handdii Founded in 2017 in Boston by two industry experts, Openly is a managing handdii is a digital platform that automates the property insurance claim general agent that offers personal homeowners and landlord products process from first notic
Slide 16: Case Studies: Arturo and Hometree
Case Studies: Arturo Case Studies: Hometree Arturo provides structured data observations and predictions for commercial Hometree, a London-based home services InsurTech start-up, and residential properties using satellite, aerial, drone and ground-level provides home cover contracts to homeowners an
Slide 17: Case Studies: Insurdata
Case Studies: Insurdata Founded in 2017 with offices in Denver and London, Insurdata Client exposure data assets enables (re)insurers to generate high-resolution, accurate, risk-specific exposure data in real time. These accurate geocode data points and precise building attribute data are available
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 Q2 2020 33
Slide 19: American Family Ventures and its investment
The Art of the Possible: An Investor’s Perspective Kyle Beatty is an accomplished corporate executive, start-up founder and venture ecosystem, whether or not we have a formal relationship — yet In my view, this is from inaccurate expectations on both sides. We investor with extensive experience in i
Slide 20: The Art of the Possible: An Investor's Perspective continued
The Art of the Possible: An Investor’s Perspective continued inspection data. I believe data suppliers and catastrophe models have is their historical policy and claims data. Those insurers that proposition that can support referral-based adoption. Features and improve the efficiency and safety of e
Slide 21: Incumbent Corner
Incumbent Corner 38 willistowerswatson.com Quarterly InsurTech Briefing Q2 2020 39
Slide 22: Incumbent Corner: HCI Group's TypTap
Incumbent Corner HCI Group’s TypTap — Innovation in flood insurance, 2. Was TypTap born out of the same 5. In addition to geocoding postal addresses driven by Incumbents mentality that led to the formation of HCI/ against topological indices, what types of Homeowners Choice? What gap did you see ins
Slide 23: Incumbent Corner continued
Incumbent Corner continued 9. Unlike many of TypTap’s competitors, 11. How do you think climate change is TypTap retains some of the risk it writes. going to impact the market in which you are How does this enable you to differentiate operating? Is technology a possible savior to yourself from your
Slide 24: Thought Leadership
Thought Leadership 44 willistowerswatson.com Quarterly InsurTech Briefing Q2 2020 45
Slide 25: Catastrophe property insurance – a high hurdle for InsurTechs
Thought Leadership Given that there is an opportunity to innovate, Catastrophe property insurance – as well as a market dominated by a small a high hurdle for InsurTechs number of entrants with high margins, it would be natural to have expected this to be Catastrophe property insurance has not been
Slide 26: Technology Spotlight
Technology Spotlight 48 willistowerswatson.com Quarterly InsurTech Briefing Q2 2020 49
Slide 27: Technology Spotlight e2Value
Technology Spotlight Structure Insurance Score (SIS) is a product developed through an alliance between Willis Towers Watson and e2Value is a full-service application development and technology provider that offers products to assist with structure data and valuation with a patented tool. Its tools
Slide 28: Transaction Spotlight
Transaction Spotlight 52 willistowerswatson.com Quarterly InsurTech Briefing Q2 2020 53
Slide 29: Transaction Spotlight
Transaction Spotlight The raise The acquisition In May 2020, States Title announced a US$123 million Series Hippo, the California-based InsurTech that provides smart C funding round, taking the title insurance and escrow service insurance coverage for homeowners, has acquired Spinnaker provider’s va
Slide 30: The Data Center
The Data Center 56 willistowerswatson.com Quarterly InsurTech Briefing Q2 2020 57
Slide 31: InsurTech funding in Q2 2020 rebounds after a tough Q1 2020
The Data Center InsurTech funding in Q2 2020 rebounds after Compared with Q2 2019, Q2 2020 had a 15-percentage-point an eight-percentage-point drop in B2B deals and a three- Fifth Wall Ventures, Foundation Capital, Greenspring Associates, a tough Q1 2020 drop in early-stage deals, a three-percent
Slide 32: InsurTech by the numbers
The Data Center InsurTech by the numbers Quarterly InsurTech transactions by target country Quarterly InsurTech funding volume – all stages 2012 – Q2 2020 Q2 2020 ($ in millions) Property & casualty Life & health 1987 2000 1865 United States United States 1558 United Kingdom United Kingdom 1591 20%
Slide 33: Q2 2020 InsurTech transactions – P&C
The Data Center Q2 2020 InsurTech transactions – P&C Q2 2020 InsurTech transactions – P&C Funding ($M) Funding ($M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 4/1/2020 Mulberry Technology 10.1 12.9 Commerce Ventures Mulberry Technology wor
Slide 34: Q2 2020 InsurTech transactions – P&C
The Data Center Q2 2020 InsurTech transactions – P&C Q2 2020 InsurTech transactions – P&C Funding ($M) Funding ($M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 5/11/2020 EvolutionIQ 1.89 1.89 First Round Capital EvolutionIQ is a vertical fr
Slide 35: Q2 2020 InsurTech transactions – P&C
The Data Center Q2 2020 InsurTech transactions – P&C Q2 2020 InsurTech transactions – P&C Funding ($M) Funding ($M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 6/4/2020 HyperScience 60 108.9 Acequia Capital HyperScience automates manual doc
Slide 36: Q2 2020 InsurTech transactions – L&H
The Data Center Q2 2020 InsurTech transactions – L&H Q2 2020 InsurTech transactions – L&H Funding ($M) Funding ($M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 4/3/2020 xbAV 27 51 Armada Investment Group xbAV is a provider of corporate pens
Slide 37: Q2 2020 L&H transactions and (re)insurer investments
The Data Center Q2 2020 InsurTech transactions – L&H Private technology investments by (re)insurers Funding ($M) Private technology investments by (re)insurers Date Company Round Total Investor(s) Description 6/24/2020 Nexben 5.06 7.94 Undisclosed Investors Nexben is an open insurance marketpl
Slide 38: Private technology investments by (re)insurers
The Data Center Private technology investments by (re)insurers Private technology investments by (re)insurers Funding ($M) Funding ($M) Date Company Round Total (Re)insurer investor(s) Description Date Company Round Total (Re)insurer investor(s) Description 4/1/2020 D-ID 13.5 17.6 AXA Venture Par
Slide 39: Q2 2020 strategic (re)insurer partnerships
The Data Center Q2 2020 strategic (re)insurer partnerships Q2 2020 strategic (re)insurer partnerships Date Company (Re)insurer investor(s) Description Date Company (Re)insurer investor(s) Description 1/6/2020 Limelight Health Reliance Standard Life Limelight Health and Reliance Standard Life I
Slide 40: 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 the following the individuals. For more information, or to discuss the results o
Slide 41: 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