Willis Towers Watson Public Limited Company · NASDAQ:WTW
Willis Towers Watson Public — Willis Towers Watson — Q3 2021 Earnings Presentation
46 slides from Willis Towers Watson Public's earnings presentation, October 2021
Slide 1: Quarterly InsurTech Briefing Q3 2021
Q3 2021 Quarterly InsurTech Briefing October 2021
Slide 2: Contents
Contents Foreword 2 Introduction 12 InsurTechs in Spotlight 24 Mega-round deals – a disguised blessing? The future of risk - OTONOMI 26 - Corvus 27 - Arbol 28 - Stable 29 - Understory 30 - Concirrus 31 - Kettle 32 - Previsico 33 The Art of the Possible 34 Incumbent Corner 44 Thought Leadership 50 Ma
Slide 3: Foreword: Mega-round deals – a disguised blessing?
Foreword Mega-round deals – a disguised blessing?
Slide 4: Mega-round deals — a disguised blessing?
Foreword Mega-round deals — a disguised blessing? The vast majority of the InsurTech investment in 2021 Q2 was concentrated into a small number of companies. Q2 mega-round funding; Q2 total funding — 15 deals $3.3 billion, 67% 162 deals, $4.8 billion of total funding relatively easy access to ready
Slide 5: Relative/comparable share price percentage change
Foreword continued Figure 2 : Relative/comparable InsurTech stock price changes over time pegged to zero beginning January 2021, including S&P 500 Carrying on from the Q2 recordings, the stock price performance over time. It is worth noting, however, that the high(er)-valued to benchmark of many pub
Slide 6: Number of venture investors in InsurTech
Foreword continued Figure 4 : Annual InsurTech funding totals, 2012 – Q3 2021 In certain cases, the motivations of outside VC providers are valuations that might otherwise be considered irrational (relative to relatively short-term focused and therefore greater emphasis is business performance on tr
Slide 7: Q3 data highlights and contents of this briefing
Foreword continued Q3 data highlights of all deal activity, a 15-point increase quarter on quarter and a six- This quarterly briefing’s contents 5. Understory point increase year on year. Understory builds and sells insurance solutions for the most InsurTech funding falls from its previous record hi
Slide 8: Introduction: The future of risk
Introduction The future of risk
Slide 9: The future of risk
Introduction The future of risk This edition of the Quarterly InsurTech Briefing focuses on the When reviewing the possible avenues and directions we could More than anything, the characterization of new(er) risks is their 1. Climate change/increased weather volatility future of risk. Specifically,
Slide 10: Climate and weather risk
Introduction continued Perhaps unsurprisingly, a lack of data is driving much of our As the graphic below illustrates, the impact of weather and climate One of the most alarming statistics that has come to light over the As an example of the scale of issue we are facing, we look at one industry’s is
Slide 11: Technology and climate change
Introduction continued From our perspective, technology has a primary and secondary In particular, over the past few years we have seen significant The secondary function is event reduction and even possibly event to come from solar and wind (by 2050). None of this would be role to play as it relate
Slide 12: Cyber risk
Introduction continued 2. Cyber to surpass $22.5 billion by 2030, up from $7 billion in 2020. Cyber In the opinion of many, our industry has been slow to innovate commercial partnering to allow incumbent insurance firms the crime and disruptive technology are two of the top three most around cyber.
Slide 13: Noteworthy InsurTech partnerships, deals and funding from Q3 2021
Introduction continued Some noteworthy InsurTech partnerships, deals and funding from Q3 2021: 1. Carvana and Root, Inc. exclusively partner to 6. Climate risk platform Cervest raises $30 million 11. DealerPolicy raises $110 million for embedded 15. InsurTech Certificial raises $5.8 million in Serie
Slide 14: InsurTechs in Spotlight: Case studies
InsurTechs in Spotlight Case studies
Slide 15: InsurTechs in Spotlight: OTONOMI and Corvus
InsurTechs in Spotlight: OTONOMI InsurTechs in Spotlight: Corvus OTONOMI is a blockchain-enabled parametric managing general Corvus Insurance is the leading provider of commercial insurance products agent (MGA) OTONOMI that transformsparametric is a blockchain-enabled cargo insurance MGA thatpolicie
Slide 16: InsurTechs in Spotlight: Arbol and Stable
InsurTechs in Spotlight: Arbol InsurTechs in Spotlight: Stable Arbol is an InsurTech platform for parametric weather risk products Stable is a London-based financial services and risk that help businesses of any size or location build resilience against management-focused business that provides pric
Slide 17: InsurTechs in Spotlight: Understory and Concirrus
InsurTechs in Spotlight: Understory InsurTechs in Spotlight: Concirrus Understory builds and sells insurance solutions for the most Concirrus is a U.K.-based InsurTech that is harnessing the power of the challenging climate risks, powered by hyperlocal risk models and internet of things (IoT), satel
Slide 18: InsurTechs in Spotlight: Kettle and Previsico
InsurTechs in Spotlight: Kettle InsurTechs in Spotlight: Previsico Kettle’s mission is to balance risk in a changing climate. Kettle is bringing Previsico’s modeling technology is the next generation of advanced artificial intelligence technology to the $400 billion-a-year flood warnings, created to
Slide 19: The Art of the Possible
The Art of the Possible 1. Manny Citron, Volery Capital 2. Toby Behrmann, Global Parametrics
Slide 20: The Art of the Possible: Manny Citron, Volery Capital
The Art of the Possible: Manny Citron, Volery Capital Manny Citron is the Managing Partner of Volery Capital. Prior to forming Volery in late 2017, Manny was a Principal at Stone Point Capital, a financial services-focused private equity firm with an extensive track record in insurance, which he joi
Slide 21: Manny Citron interview continued
The Art of the Possible: Manny Citron, Volery Capital continued The Art of the Possible: Manny Citron, Volery Capital impact, both in-house and along inside their supply chains. TCFD 5. Specifically, what types of technology do you differentiates between physical risks — which are the direct costs 8
Slide 22: The Art of the Possible: Toby Behrmann, Global Parametrics
The Art of the Possible: Toby Behrmann, Global Parametrics Toby Behrmann has spent the past 20 years structuring and deploying financial solutions globally through retail and commercial channels, including digital, business to business and direct. Considered a leading expert in parametrics, his focu
Slide 23: Toby Behrmann interview continued
The Art of the Possible: Toby Behrmann, Global Parametrics continued The Art of the Possible: Toby Behrmann, Global Parametrics Global Parametrics was founded with investments from the U.K. 5. How does Global Parametrics use technology 6. Global Parametrics has done an incredible job government’s Fo
Slide 24: Incumbent Corner: Liberty Mutual
Incumbent Corner Liberty Mutual
Slide 25: Incumbent Corner: Liberty Mutual
Incumbent Corner: Liberty Mutual In business since 1912 and headquartered in Boston, Massachusetts, today Liberty There’s notably an increased appetite across the industry to 4. To what extent does this mirror Liberty’s overall Mutual is the sixth largest global property & casualty insurer based on
Slide 26: Incumbent Corner: Liberty Mutual continued
Incumbent Corner: Libery Mutual continued 6. What role do you think technologically enabled “Liberty Mutual is very keen to continue As we have witnessed a large shift from tangible to intangible In terms of the next “big thing,” I’m extremely interested in how insurance solutions have to offer soci
Slide 27: Thought Leadership: The future of risk management
Thought Leadership The future of risk management
Slide 28: Thought Leadership: The future of risk management
This quarter, Julian Roberts shares his thoughts on the future of risk management and the increased impact that technology is having on our industry. Thought Leadership: The future of risk management This quarter, Julian Roberts shares his thoughts on the future of risk management and the increased
Slide 29: Transaction Spotlight: Key transactions from this quarter
Transaction Spotlight Key transactions from this quarter
Slide 30: Transaction Spotlight: reThought and At-Bay
Transaction Spotlight: reThought Transaction Spotlight: At-Bay Tech-enabled commercial flood risk managing general agent reThought Insurance At-Bay, the insurance company for the digital age, combines world- completed a $15.5 million Series A investment round in May 2021. Founded in 2017 class techn
Slide 31: The Data Center
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Slide 32: InsurTech by the numbers
The Data Center InsurTech by the numbers Quarterly InsurTech transactions by target country Quarterly InsurTech funding volume – all stages 2012 –– Q3 2012 Q1 2021 2021 Q1 Q32021 2021 5000 Property & casualty Life & health 4824 4500 United States United States United Kingdom United Kingdom 4000 21%
Slide 33: Q3 2021 InsurTech transactions – P&C
The Data Center Q3 2021 InsurTech transactions – P&C Q3 2021 InsurTech transactions – P&C Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 7/1/2021 Inshur 35 45.9 Jerusalem Venture Partners Inshur provides auto insura
Slide 34: Q3 2021 InsurTech transactions – P&C
TheData The Data Center Center Q3 2021 InsurTech transactions – P&C Q3 2021 InsurTech transactions – P&C Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 7/20/2021 Lovys – 24.46 Adevinta Ventures Lovys is an aggregate
Slide 35: Q3 2021 InsurTech transactions – P&C
TheData The Data Center Center Q3 2021 InsurTech transactions – P&C Q3 2021 InsurTech transactions – P&C Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 8/9/2021 Vesttoo 6 6 Axon Partners Group Vesttoo is a risk-hedg
Slide 36: Q3 2021 InsurTech transactions – P&C
TheData The Data Center Center Q3 2021 InsurTech transactions – P&C Q3 2021 InsurTech transactions – P&C Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 8/26/2021 Shangyong Technology – – China Merchants Group Shangy
Slide 37: Q3 2021 InsurTech transactions – P&C
TheData The Data Center Center Q3 2021 InsurTech transactions – P&C Q3 2021 InsurTech transactions – P&C Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 9/9/2021 Lula 3.71 37.04 Andrew Wilkinson Lula offers insurance
Slide 38: Q3 2021 InsurTech transactions – P&C
TheData The Data Center Center Q3 2021 InsurTech transactions – P&C Q3 2021 InsurTech transactions – P&C Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 9/21/2021 bolttech 30 210 Activant Capital bolttech is an inter
Slide 39: Q3 2021 InsurTech transactions – L&H
TheData The Data Center Center Q3 2021 InsurTech transactions – L&H Q3 2021 InsurTech transactions – L&H Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 7/1/2021 Osmind 15 17.2 20|20 Fund Osmind develops practice man
Slide 40: Q3 2021 InsurTech transactions – L&H
TheData The Data Center Center Q3 2021 InsurTech transactions – L&H Q3 2021 InsurTech transactions – L&H Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 7/30/2021 Catch 12 25.58 10X Capital Catch offers a personal be
Slide 41: Q3 2021 InsurTech transactions – L&H
TheData The Data Center Center Q3 2021 InsurTech transactions – L&H Q3 2021 InsurTech transactions – L&H Funding (US$M) Funding (US$M) Date Company Round Total Investor(s) Description Date Company Round Total Investor(s) Description 8/19/2021 Vbao Technology – – Holch Capital Vbao Technology is
Slide 42: Q3 2021 L&H transactions and private technology investments by (re)insurers
TheData The Data Center Center Q3 2021 InsurTech transactions – L&H Private technology investments by (re)insurers Funding (US$M) Private technology investments by (re)insurers Date Company Round Total Investor(s) Description 9/28/2021 Sureify 15 25.33 Aspen Capital Group Sureify’s platform brid
Slide 43: Private technology investments by (re)insurers
The Center Data 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 7/7/2021 Artis 7 8.5 CMF
Slide 44: Q3 2021 strategic (re)insurer partnerships
The Center Data Data Center Q3 2021 strategic (re)insurer partnerships Q3 2021 strategic (re)insurer partnerships Date Company (Re)insurer investor(s) Description Date Company (Re)insurer investor(s) Description 7/6/2021 Joyn Insurance SiriusPoint Ltd. Insurtech Joyn Insurance Secures Insurance
Slide 45: Additional information
The Data Quarterly CenterBriefing InsurTech 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 t
Slide 46: 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