What AIG seeks in insurtech partners
At AIG, we recognize the incredible possibilities that result when large carriers and technology startups join forces to meet consumers’ evolving needs. But the power of these partnerships does not lie in the amount of capital to be invested – after all, there’s ample capital available.
As AIG’s Personal Insurance business continues to explore partnership opportunities with startups, we believe it’s more important that the partners be of a like mind and play to each other’s strengths. Both carrier and startup partners have a role to play in making these relationships work. To keep pace with the faster decision-making that characterizes startups, insurers need to be able to move from discussion to action more quickly, and startups should be able to connect with relevant decision-makers from the get-go. And, while larger organizations can exercise substantial bargaining power compared to startups with limited resources, these should be partnerships among equals.
AIG Personal Insurance, part of our General Insurance business, has been partnering with startups across markets with engagements ranging from early pilot discussions to finished products and services. Recognizing that partnerships need to be built on trust and shared goals, we have been developing a “sandbox” engagement model to facilitate quick decision making while maintaining governance to safeguard customer data and proprietary knowledge.
Our “Collective Discovery” session, which we will run Oct. 3 and 4 during the InsureTech Connect conference, will give startups a chance to present their game-changing ideas and have a conversation with AIG Personal Insurance leaders. Joining me in the program are:
- Maureen Hackett, Global Head of Individual Personal Insurance, which includes personal auto and property
- John McPhee, Global Head of Group Personal Insurance, which includes personal accident, supplemental health and travel insurance
- Frank O’Neill, Global Head of Services, which includes warranty and services
- Matan Slagter, Global Head of Market Disruption in Personal Insurance
The session is designed to be an open dialogue, rather than a one-way discussion, to better understand how we can collaborate to solve real problems for different stakeholders in the insurance industry. We have identified several areas of focus where we are already active, and are looking to partner more. However, this is far from an exhaustive list:
- Big Data and Analytics: There is a tremendous amount of data available today. By advancing analytic capabilities and gaining access to new data streams, we can provide the most relevant products to consumers at different times in their lives.
- Artificial Intelligence: Artificial intelligence technology has the potential to improve predictive capabilities, provide smarter solutions and create operational efficiencies, as well as transform the customer experience across many interactions – from sales to service to claims. We are already testing conversational artificial intelligence capabilities with our Travel Guard clients in China.
- Internet of Things: The convergence of the physical and digital worlds through smart sensors has broad applicability to promote tech-enabled insurance and services that proactively prevent accidents.
- Personal Cyber Security: Cybercrime presents rapidly multiplying risks for consumers. Personal Insurance is leveraging AIG Commercial Insurance’s market-leading expertise and partnerships to provide personal cyber risk management services. For instance, our AIG Private Client Group recently launched its Family CyberEdge coverage for high net worth clients in the U.S. The coverage is accompanied by cyber assistance services in partnership with K2 Intelligence and CyberScout. We are looking to forge more such relationships with technology companies to develop cyber solutions that create even more value for consumer clients.
There are many more areas of technological advancements and shifts in consumer behavior, and AIG Personal Insurance is excited to explore them. We have domain expertise to help sharpen startup business models in order to solve some of the biggest challenges facing the industry. We have the balance sheet and commitment to get behind new ideas and support new products, backed by AIG. We are licensed in many jurisdictions across the globe, which gives us the ability to quickly deploy pilots with customers and distribution partners. We offer startups a global platform for testing their business models and technologies.
For insurtech trailblazers, we know it is your time to bring change to the insurance industry. We invite you to reach out directly to our innovation mailbox PersonalInsurance@aig.com. Let’s change the game together.