A snapshot of ITC 2022
Analysts' Takeaways from ITC 2022
Last week we attended Insuretech Connect conference 2022. A landmark event that brought together more than nine thousand people representing incumbents, insurtech entrepreneurs, venture capital firms, influencers and regulators, in a single place, altogether to improve the industry through the use of technology.
This year the exhibit hall surface almost doubled and it was crazy (good), full of activity. I counted almost 300 booths, not including the startup kiosks.
Networking at its best, we had ~250 scheduled meetings and many more unplanned. The MMC booth brought together the combined strengths across OW, Marsh, Guy Carpenter, and Mercer, and it was an ideal setting for us to host some of those meetings, and to record the many interviews we will be releasing in the next few months showcasing the insurtech community and their views on the industry.
During kick-off day of ITC we hosted Celent Tech Connect with around 200 people attending, which meant having a full room, with people standing at some moments. Thanks to our distinguised panelists and all that attended our sessions!
Celent Tech Connect sessions featuring Celent analysts and distinguished guests and the MMC booth where much of our activity was hosted at ITC.
We did also enjoy participating in a few panels and a fireside chat as part of the general ITC agenda. More to come soon on this as we cover in more detail, in an upcoming report, the most relevant sessions attended by our analysts’ team. Last year's ITC report is available for client customers.
This year's event brought a bunch of important announcements for the insurtech community, that are near to us. Not only ITC announced going global by adding the Latin American and European chapter of the event, but at ITC I had the privilege to announce the launch of the Miami Insurtech Advocate Hub, a non-for-profit organization backed by MMC along with other leading organizations of the insurtech ecosystem, that positions Miami as the epicenter of insurTech in Latin America by offering an open collaboration platform providing access to intellectual capital, investors and/or business partners.
Announcing the launch of MIA Hub at the LATAM Summit session at ITC; ITC going global; Andrew Schwartz recording one of the many videos about insurtech industry; and Juan Mazzini participating in panels with Equisoft (Seeking The Optimal Distribution Experience), Sureify (Embedded Insurance), and Appian (Speed, Efficiency, Transparency: Modernizing the Underwriting Process) at ITC.
With so many things happening at ITC, and now that the dust has settled, we went around the horn to get a synthetized view from our analysts, on their key takeaways from the conference. So, here we go.
Rob Norris |
Less focus on disruption: The conference seemed to be less focused on disruption of the industry and more about making smart use of modern technologies to improve the business in all areas Going big: Big firms in software and services seemed to be increasing their presence, making the conference less startup focused Networking fever: Attendees seemed more interested in networking with one another and walking the show floor than attending educational sessions |
Andrew Schwartz |
Packed exhibit hall: The expo floor was completely packed with attendees. So packed that it was almost overwhelming. I thought ITC was crowded last year, but this year eclipsed it Democratizing technology: Many insurtech startups seem to have changed their pricing structure to “per use” basis which has democratized access to many mid-smaller tier carriers Hot topics: Embedded insurance and the disruption to distribution seemed to be the two ‘hot topics’ of the event Partnerships at work: Carriers seem intent on opening their moats and finding insurtech startups with whom to partner to develop an ecosystem There is a curiosity in finding ways to create a synergistic relationship between carriers and non-insurance partners. Incentives need to be aligned to create an experience that provides value for the end-user |
Keith Raymond |
Vibrant crowd: The crowd was amazing, by day 2 it seemed overwhelming Covid, what Covid?: Covid seems to be an afterthought, I would estimate 1% or maybe 2% of attendees wore masks Meaningful interactions: ITC has proven to be a high value event in terms of networking, with most attendees eager to connect and talk… about insurance and technology! IT Investment decoupled from economy (yet): Shared view within the insurance IT community that they don’t see the acceleration to digital slowing anytime soon; however, a few recognize that the sales cycles are getting longer with additional diligence being done to mitigate risk. |
Donald Light |
Walking the Exhibit Hall floor at ITC 2022, confirms: Convergence: The ever-closer integration of insurtech and insurance technology – to the benefit of insurers and policyholders Vendor driven ecosystems: Ecosystems are increasingly seen as a must-have enabler to extend and diversify a solution’s value propositions Positioning: A lot of tech firms are making significant investments to see and be seen at ITC |
Karlyn Carnahan |
Huge event: This year’s InsureTech Connect was the largest ever with close to 10,000 participants across insurers, vendors, and investors. The exhibit hall was HUGE – although the main scene is now dominated by more established vendors, big name consultancy firms, and other ecosystem participants already scaling. The startups seemed to be relegated rather than front and center as in the past Data, data, data: Data continues to be the hot topic with a wide variety of solution providers focused on use cases such as fraud, customer experience and improved underwriting. Process digitization was also a focus – especially with a goal of improving the customer experience. These themes were mimicked in the content of the sessions Evolving distribution: We saw some great discussions on digital distribution -including embedded insurance; new uses of data to drive true results; and a variety of sessions discussing how to effectively drive innovation at an insurer Ecosystem: And the idea of an ecosystem of solutions, easily integrated into a core system has matured – with multiple examples of insurers using them and vendors providing them Whether or not your firm is ready for implementation of any of these initiatives, paying attention to the pace of change is an imperative for anyone that wants to keep up |
Juan Mazzini |
Nothing new to report: From last year to this, nothing new in the scene, other than the fact that ITC has almost doubled in size and what my colleagues have shared about the eager to connect in person after the years of isolation imposed by Covid-related restrictions and care. As a reminder here below are my views from 2021, that I believe continue to be true after ITC 2022: ·Maturity of insurtech: We now know what works and doesn't. Insurtech startups have figured this out, in some cases evolving into a tech player rather than staying just as an insurance player (i.e., Haven Life launches Haven Technologies, following other similar plays from Slice Labs, Trov, Zhong An just to mention a few). Insurers know that they have to look for their next partner in the exhibit hall rather than the sessions. And while back in 2017 at ITC, there weren’t many startups looking to compete with insurers among the participants, this has changed. These neo insurers claim their share of attention as they grow in size and test their business models at scale. ·Execution kills novelty: Nothing new in terms of technology for insurers, but a few insurance models enabled by technology growing in relevance. Think about the different flavors of embedded insurance, parametric insurance, digital partnerships, and risk sharing models. Success is now measured by the capacity to execute at scale. Looking beyond product and market fit, into risk fit; enabled by technology but being a risk taker in the core (unless you are in the distribution side of the business). ·Show me the money (Part II): Back in 2017 I reflected post-ITC that the industry needed to see successful, profitable, stories to sustain investments in insurtech startups. While some (neo) insurers could be seen as a success from an investment perspective, there is still some way to go until they can demonstrate sustained profitability. For now, their valuations represent, at most, the potential they have to grow their portfolios. Those few that are showing profits are either niche (neo) insurers that operate at low cost or jumbo (neo) insurers that use the scale of their ecosystems and partners. An area to watch, as we move into year end and 2023, is the impact of recession and inflation in the economy and hence in the insurance industry, and how this translates into the insurtech scene. If Covid showed us something is that resilience requires deep pockets. ITC 2023 could find the insurtech industry in a very different (and dooming) situation. Hope I am wrong. |
Please, reach out to us if you want to find more about what is trending or what's the next cool thing to happen in insurtech.