Thursday February 27, 2020

We are at an unprecedented interchange in the insurance market

We can now openly challenge models that were born in the Lloyds London coffee houses

12th October, 2016
Hesus Inoma, CEO and Founder of WeSavvy

What's your name?

Hesus Inoma

What position do you hold?

Founder & CEO of WeSavvy.

How long have you held the position?

Since September 2015.

What are your day to day responsibilities?

My day to day role includes responsibility for business development, creating and executing strategies for digital operational transformation, managing our cross functional team and representing WeSavvy to investors and business partners.

What is your professional background?

My interest in Insurance was born in the University of Limerick, to whom I owe the Insurance faculty huge gratitude for cultivating my interest in the dynamic world of international insurance. I obtained a BA Honours Degree in International Insurance and European Studies from UL and after graduating, I completed a Post-Grad. in Financial Services with University College Dublin and the Institute of Bankers. I went on to achieve the industry benchmark qualifications of Chartered Insurer, Chartered Banker and Qualified Financial Advisor.

Throughout my corporate insurance career I have worked with a number of international Life and Non-Life cross border insurance carriers, which has provided me with great insights into the manner in which the industry needs to change to embrace technological advancements.

Tell me about yourself away from work?

I’m a recovering Arsenal and Sporting Lisbon fan, I don’t seem to be able pick my football team well, certainly in terms of winning titles. Since I started supporting Kerry in the GAA (my girlfriend Ciara is from Killorglin), we haven’t had much luck either!

Tell us something very few people know about you?

My best life lesson came from my mother passing away from cancer; “Your Health is your Wealth”. It was one of the best and toughest lessons I learned. If there is anything we could do to extend our time with our loved ones in this life, we should do it!

You are speaking at the 2016 Future of Insurance conference. What is your talk about?

I will be speaking about how the insurance industry is about to go through an unprecedented level of change, the extent of which we believe, will be completely transformative!

I have spoken extensively at tech and insurance conferences across Europe and the US about the technologies shaping the industry which, we many now concede are here to stay. It’s rare that one attends an insurance conference or forum where technology and innovation doesn’t feature as a key topic. However, the most interesting aspect of the changes affecting the industry is what the future of insurance models mean for us, the customers – in my view pure accelerated transformation!

We are at an unprecedented interchange in the insurance market, that as we consider the integration of new technologies we can also step back and question the manner in which the industry was built in the first place. We can now openly challenge models that were born in the Lloyds London coffee houses, which I no longer believe are sustainable for the new digital era in which we live. Back then the technological advancements of smartphones, wearables, chatbots and the blockchain to name a few, could not have been considered in terms of how the industry could be designed. But now, the existence can help the industry advance towards a more customer-friendly service, as opposed to an industry of penalisation and policing.

The really exciting part we can now directly tackle is the fractured circle of trust between the Insurer and Policyholder. Insurance is fundamentally the sale of a promise. How can an Insurer sell a promise effectively if the Policyholder does not fully trust that the Insurer will honour their promise? Based on my company’s current understanding of the market place and relations between Policyholders and Insurers, this circle needs mending!

These are really exciting times for the insurance industry as new business models will present themselves on the back of new cutting-edge technology, which are the themes on which my talk will centre around.

What challenges do you see for the insurance sector?

It is not breaking news that the insurance industry is slow to embrace technological advancements, smart technologies and enhanced methods of dealing with the new generation of customers. Other financial sectors have made inroads on coming to grips with understanding the manner in which their industries can be helped with these developments but the insurance industry, who in my view can be helped the most, has not paid sufficient attention.

In order to stay relevant within the coming years, Insurers will need to adapt and embrace the changes. The barrier to creating financial instruments is dropping considerably. Young creatives are designing Apps and platforms in their basements with more of the functionalities and “savviness” than those of the pillar Insurers. With the use of use of the Internet of Things (“IoT”) and other relevant technological developments these apps and platforms will better understand risks and have better insights into customers than an army of the best actuaries and risk managers and will be able to provide insurance and a much better service at a fraction of the costs and where operational cost can be engineered out by algorithms and machine learning.

The industry should pay attention to the InsurTech wave. Many estimate that within this next 4 years the major startups will have launched and have gained traction, within 8 years they will dominate the industry and in 12 years they will be key influencers in the industry. This may seem to be scaremongering, but what if it’s not?

Failure to adapt will leave the majority of today’s influencers behind.

Where would you like to see the industry in 10 years’ time?

I envision a more connected and customer focused insurance industry emerging over the next 10 years, where the goals of the customer are at the heart of the insurance experience. I would like the industry to take our product (the policy), transform it into a service and then into an experience for the customer.

My company, WeSavvy, is a cloud based insurance platform that leverages lifestyle data of our members to drive down insurance premium cost. At WeSavvy, we envision a transformed insurance marketplace where decisions are made based on real-time data and where customers maintain control over their premium by leveraging their lifestyle data from their Internet of Things (IoT) devices. We envision an insurance industry model where benefits can be reaped by all using technological advances in IoT, Big Data, the Blockchain, Social Networks and Artificial Intelligence (AI). Imagination and creativity will be the ultimate assets in this connected world. Let us paint a picture of what can be achieved with this new framework in the coming years;

Mary is using her Insurer’s WeSavvy powered App and goes for a jog, her wearable detects that she reached her daily 10,000 points and awards Mary points for achieving this goal. With the accumulated activity points Mary and her network, decide to sponsor a micro-insurance contract in the developing world. They find “Leticia” who needs insurance cover for her hospital expenses when she goes into labour. This contract is executed on the Blockchain. Via the algorithm, the contract will define that if Leticia goes into labour, the Insurer will payout. As Leticia goes into labour the claim is automatically executed without human intervention. As an additional add-on, the platform recognises that it is Leticia’s first baby and the AI automatically curates advice for Leticia on how to take care of her new born baby.

In this future, WeSavvy also plans to help customers create a data profile which is transferable around the world from Financial Services Provider to Financial Services Provider, effectively creating the first insurance industry “Lifestyle Living Score”. In turn creating a more inclusive financial model for all. WeSavvy is building today, what a dynamic and customer centric insurance industry will be tomorrow!

Hesus Inoma, CEO and Founder of WeSavvy will be speaking at The Sunday Business Post Future of Insurance Summit on November 18 at The Gibson Hotel in Dublin. See www.futureofinsurance.ie for further details.

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