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November 28, 2017

S3E6: Insurtech Fireside Chat From Denim Summit 2017

Reimagining the insurance value chain.

Denim Rivet Blog Artwork
Greg Gregory Bailey

Gregory is CEO and co-founder of Denim and is the host of the Denim Rivet podcast.

In this episode, you’ll get glimpse into Denim Summit 2017, held on October 26 in Des Moines, Iowa. This Insurtech Fireside Chat features thought-provoking insights from Farron Blanc, VP, Innovation Studio at RGAx; Chip Bacciocco, CEO of TrustedChoice.com; and Gregory Bailey, CEO and cofounder of Denim. The trio discuss insurtech’s influence on the independent agent channel, reimagining the insurance value chain, the digital age of the consumer, and their predictions for where the industry is heading.

Presenter Backgrounds

TrustedChoice.com was founded out of a fear that agents and brokers were not prepared for the onset of insurtech, before the term had even been coined. They set out to arm agents and brokers with the tools to stay competitive with the rise of the digital distribution of insurance.

Reinsurance Group of America (RGA) is the world’s third largest life and health reinsurer. It is a $12 billion company, and its CEO, who led the company for over 35 years, asked the question, “Where is the next $12 billion going to come from? Where is the next 40 years of growth going to come from?” This led to the creation of RGAx, with a focus on reimagining the value chain and reaching the next generation of consumers.

Digital Age of the Consumer

Chip sees that the path new insurtech entrants are taking is being driven by consumer expectations. Take Lemonade, for example, trying to solve a claim in a minute or less. While this may or may not pan out in the long term, it highlights the shift in consumer expectations. Chip thinks you should be paying extra attention to customer interaction. Recording and listening to phone calls and mining that data is a great way to put a finger on the consumer’s pulse.

Farron doesn’t see actual agents going away due to digitalization either. When you go fully digital, he says the conversion rates are probably about 1 percent from seeing an ad all the way through paying the first premium. As soon as a call center is added to the equation, he’s seeing — depending on the segment — a 30 percent conversion rate.

Activating Data

TrustedChoice.com will get over 6 million visitors this year, which provides a huge amount of data, but what will they do with it? Chip says the company tracks everything the customers do — they even watch live sessions to see what customers do in real time, cheering almost like a sporting event. Click the button! Most of the site’s traffic comes organically through search engines, so they know what the customers are shopping for and what keywords trigger them.

Links

Denim Summit 2017

RGAx

TrustedChoice.com

Farron Blanc

Chip Bacciocco

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