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The Connector.
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The Connector Podcast - FinanceX #10 - Navigating the Future of Insurance Technology
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Our 10th episode dives into the exciting intersection of insurance and technology, exploring innovations within the InsurTech landscape. We celebrate milestone achievements while uncovering key themes of balancing reliability with digital transformation.
• Exploring the significance of InsurTech in reshaping traditional practices
• Highlighting Vee Finance's layered strategy for effective digital transformation
• Discussing cybersecurity importance and NIS2 regulations for SMEs
• Delving into the concept and benefits of parametric insurance
• Investigating the rise of embedded insurance and its regulatory implications
• Analyzing InsurTech trends across various regions in Europe
• Reflecting on the necessity of balancing innovation with the human element in insurance
Join us in this insightful exploration where technology meets a time-honored institution, prompting thought-provoking questions about the future of insurance.
Thank you for tuning into our podcast about global trends in the FinTech industry.
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Cheers
Koen Vanderhoydonk
koen.vanderhoydonk@jointheconnector.com
#FinTech #RegTech #Scaleup #WealthTech
Welcome back Deep Divers. Can you believe it? We're celebrating.
Speaker 2Celebrating yeah.
Welcome back, Deep Divers
Speaker 1Our 10th episode. Here at the Deep Dive, we're exploring, as always, the ever-evolving world of finance and tech.
Speaker 2It really has been quite a journey.
Speaker 1It has, and to mark this milestone, I thought what better way to celebrate than diving headfirst into a sector that's absolutely buzzing with innovation.
Speaker 2Let me guess. Insert tech.
Speaker 1You got it, insert tech.
Speaker 2Ah yes, insert tech. I mean it really is fascinating to see how technology is kind of reshaping this. You know, traditionally slow-moving industry.
Speaker 1You're right, Creating some really really exciting opportunities.
Speaker 2Oh, absolutely.
Speaker 1And some really unique challenges as well, wouldn't you say? For sure I mean it's like that old saying, right? You can't teach an old dog new tricks, but InsurTech is proving that even the most established industries, like insurance, can learn to adapt and evolve with the times. Exactly Now, to help us navigate this deep dive, we've got a stack of sources. A stack literally yeah Well, figuratively speaking, of course articles on specific companies, trends and even some opinions from you know, the big thinkers in the industry.
Speaker 2The thought leaders.
Speaker 1The thought leaders shaping this landscape. I like it.
Celebrating Episode 10
Speaker 2So get ready to explore the future of insurance, because things are about to get really, really interesting. They are, and you know, one of the one of the key themes that emerges from all these sources is this idea of balance. You know insurance companies they're grappling with this need to embrace digital transformation while also maintaining that stability and reliability.
Speaker 1Right, which customers expect Exactly? Yeah, it's like walking a tightrope, you know.
Speaker 2It is.
Speaker 1On one hand you've got the pressure to modernize, to adopt all the latest technologies, but on the other hand you have to make sure that you don't sacrifice those core principles that have made insurance such a trusted institution for centuries.
Speaker 2Exactly, and one company that's offering a really interesting approach to this balancing act is Vee Finance. Yeah, they're a Belgian tech company and they're proposing what they call a layered strategy for digital transformation.
Speaker 1Layered strategy. Okay, so what does that mean exactly? Are they saying that not every process within an insurance company is created equal?
Speaker 2Yeah, that's exactly it. You know, they're recognizing that not all processes should be treated the same way when it comes to tech.
Speaker 1Okay, I look where this is going. Let's break down this layered strategy.
Speaker 2Okay, sure, so they break it down into three categories. So first you have these what they call precise processes. Precise processes like what Like calculating premiums or renewing policies. So these are the tasks that can be, you know, fully automated.
Speaker 1Yeah, where accuracy is really important.
Speaker 2Exactly, and human error. You want to minimize that as much as possible.
Speaker 1Makes sense. You know computers, they're great at crunching numbers Much better than we are. And following rules, yes, but what about those processes that require a bit more nuance, a bit more human judgment? Surely not everything in insurance can be reduced to just an algorithm, right?
Speaker 2Oh, for sure, For sure. And that's where their second category comes in Goal-oriented processes.
Speaker 1Goal-oriented processes. Okay, so like what? Give me an example.
Speaker 2So think risk evaluation.
Speaker 1Okay.
Speaker 2Where there's a clear objective, you know, but the path to achieving it might not be so straightforward.
Speaker 1Right, there are a lot of variables to consider, a lot of unknowns.
Speaker 2Exactly, and AI can definitely play a role here, but human oversight is still, you know, absolutely crucial.
Speaker 1It's not a simple yes or no, black or white. Not at all, there's a lot of gray area in insurance. A lot of gray area, yeah. Now this leads me to a question for our listeners what aspects of insurance do you think should never be fully automated? Drop us a comment on our social media. We'd love to hear your thoughts.
Speaker 2Yeah, because I think it's a really important point. Technology should serve us, not the other way around.
Speaker 1Right.
Speaker 2There will always be a need for you know, human judgment, empathy.
Speaker 1The human touch.
Speaker 2Exactly In the insurance industry.
Speaker 1Couldn't agree more. Now, before we move on, there's one more category in Vee Finance's layered approach.
Speaker 2Oh, that's right, that's right.
Speaker 1Called highly adaptive process.
Speaker 2Highly adaptive. Yeah, so these are the areas that are, you know, constantly evolving.
Speaker 1Like what.
Speaker 2Like sales and marketing and customer engagement.
Speaker 1Okay.
Speaker 2Technology can certainly help optimize those processes.
Speaker 1Yeah.
Speaker 2But human creativity and decision-making are still essential.
Speaker 1So it's all about finding the right tool for the job. It is Recognizing that technology isn't a one-size-fits-all solution. Exactly, and it sounds like this layered approach from V Finance. It strikes a good balance, you know. It does and it sounds like this layered approach from Vee Finance. It strikes a good balance. You know it does. It allows insurance companies to leverage technology without sacrificing that human element.
Speaker 2Yes.
Speaker 1Which is so crucial to their success.
Speaker 2Yeah, for sure.
Speaker 1Okay, so we're starting to see how companies are tackling this tech integration challenge.
Speaker 2Right.
Speaker 1But you know, with all this data flowing around, cybersecurity has to be a major concern, right? I mean you hear about data breaches, cyber attacks all the time. It's got to be keeping insurance executives up at night.
Speaker 2Oh, it absolutely is, and it's not just a concern, it's actually becoming a regulatory requirement.
Speaker 1Is it?
Speaker 2It is yeah.
Speaker 1So where does that lead us?
Speaker 2Well, this brings us to our next point. Okay, nis2 regulations and the rising importance of third-party cybersecurity assessments.
Speaker 1Okay, I have to admit NIS2, it sounds a bit intimidating. It does. Can you break it down for us?
Speaker 2Sure. So, in a nutshell, NIS2 is a set of rules passed by the European Union aimed at strengthening cybersecurity across all sectors.
Speaker 1All sectors.
Speaker 2Yeah, and you know, they recognize that in today's world everything's interconnected.
Speaker 1Right.
Speaker 2A cyber attack on one company can have ripple effects throughout the entire economy.
Speaker 1So it's not just about protecting individual companies, it's about protecting the whole system.
Speaker 2The whole system Exactly.
Speaker 1Okay, that makes sense. Yeah, but what about these third-party assessments? Where do they fit into all of this?
Speaker 2So think of these assessments as like a health check for a company's cybersecurity practices. They're becoming really important because, again, with so many interconnected systems, a vulnerability in one company's network can expose an entire supply chain to risk.
Speaker 1Right, it's like a chain reaction. It is. One weak link can bring the whole supply chain to risk. Right, it's like a chain reaction. It is One weak link can bring the whole thing down.
Speaker 2Exactly. And what's interesting is that these assessments, they're moving beyond those simple yes-no questionnaires.
Speaker 1Okay.
Speaker 2We need more context, you know. We need more nuanced insights into a company's security posture.
Speaker 1Right, because a simple yes or no doesn't really tell you the whole story.
Speaker 2It doesn't, and luckily we've got some insights from Tom Ascroft. Tom Ascroft, he's the CISO of Unit 4. Unit 4, okay yeah a major software company and he's got some pretty strong opinions about this whole thing.
Speaker 1Okay, I'm all ears. What does Mr Ascroft have to say about these assessments?
Speaker 2Well, he raises a really important point about the limitations of these standardized scores, you know.
Speaker 1OK.
Speaker 2He argues that blindly relying on a generic risk rating can be incredibly misleading.
Speaker 1So it's not enough to just get a passing grade. It's not, no, you need to dig deeper, understand the context, the specific vulnerabilities of each organization.
Speaker 2Exactly. He's calling for more thorough investigations, more you know, detective work, if you will.
Speaker 1So it's about truly understanding the nuances of the situation. Nuances, yeah it sounds like he's advocating for a more proactive, almost skeptical approach to cybersecurity.
Speaker 2Oh, absolutely. He believes that organizations need a clearly defined risk appetite.
Speaker 1Risk appetite. So like what level of risk are they willing to accept?
Speaker 2Exactly and this you know. This tolerance might vary across different departments within an organization. That makes sense. He also stresses the importance of going beyond those simple yes or no answers Right and really seeking detailed information from suppliers to truly assess the risk.
Speaker 1So it's about having those tough conversations, asking the hard questions. It is it sounds like he's pushing for a more holistic and integrated approach to cybersecurity, where it's not just the IT department's responsibility but something that needs to be embedded in the company's DNA.
Speaker 2Exactly, and this focus on collaboration and information sharing. That's a theme that emerges in our next source as well.
Speaker 1Okay, what do we got?
Speaker 2It's the incredible story of Prudential.
Speaker 1Prudential.
Speaker 2Yeah, a major insurance player, and their partnership with APIX, which is a digital innovation platform.
Speaker 1Interesting Right. What were they trying to achieve with this partnership?
Speaker 2Well, prudential was looking for. You know innovative ways to engage customers. They realized that the you know the traditional insurance model with all the paperwork and complex processes, it wasn't exactly exciting for the average consumer.
Speaker 1You're telling me. I think most people would rather do just about anything else and deal with insurance paperwork.
Speaker 2Exactly.
Speaker 1So what did they do?
Speaker 2So that's where APIX came in. They connected Prudential with a network of insert tech startups.
Speaker 1Startups yeah.
Speaker 2Okay, and together they co-created some really engaging gamification tools. Gamification in insurance yeah, in insurance, I know right, it sounds kind of crazy.
Speaker 1How does that even work? I mean, are we talking about turning insurance into a game?
Speaker 2That's pretty much it. So, instead of just reading through those you know dry policy documents, you're interacting with an app that uses game-like elements to you know, teach you about insurance concepts and reward you for making smart decisions.
Speaker 1Okay, so it's about making insurance more interactive, more fun, more engaging.
Speaker 2Exactly.
Speaker 1But did it work? Did people actually use these tools?
Speaker 2They absolutely did. And not only did they boost customer engagement, they helped Prudential cut their time to market in half.
Speaker 1Really, yeah, wow, that's impressive. So it was a win-win for everyone.
Speaker 2A win-win for everybody.
Speaker 1Now, what does this tell us about the broader InsurTech landscape? Is this kind of collaboration becoming the new norm?
Speaker 2It really seems that way. This case really highlights the power of collaboration in insert tech.
Speaker 1Right. It allows companies to you know work together.
Speaker 2To accelerate innovation, yeah.
Speaker 1To share resources expertise.
Speaker 2Exactly.
Speaker 1Even enhance risk management.
Speaker 2By exchanging insights.
Speaker 1Yeah, so it's not just about competition. It's about recognizing that everyone has something to contribute.
Speaker 2Yeah, it's about creating a more collaborative, interconnected ecosystem.
Speaker 1Yeah, Exactly, and APIX, the platform that facilitated this partnership, is a great example of how technology can be used to foster this kind of collaboration. They're bringing together these insurers with these insert tech startups.
Speaker 2Yes.
Speaker 1Creating a space for, you know, innovation and growth.
Speaker 2For sure.
Speaker 1Okay, so we've seen how companies are tackling digital transformation, right, cybersecurity and the power of collaboration.
Speaker 2Yes.
Speaker 1But now I want to talk about something that's really really shaking things up in the world of insurance.
Speaker 2Oh, okay.
Speaker 1Parametric insurance.
Speaker 2Parametric insurance Now.
Speaker 1I have to admit, the term sounds a bit intimidating.
Speaker 2It does. Yeah, it's a mouthful. But hopefully you can break it down for us Of course, and luckily we have Eric Barna, an InsurTech advisor and investor, to guide us.
Speaker 1Okay, good.
Speaker 2He's got a real knack for explaining you know these complex concepts in a way that just makes sense.
Speaker 1Perfect. Let's hear what he has to say.
Speaker 2So, in essence, parametric insurance is a completely different approach to traditional insurance right. Instead of going through those you know lengthy assessments and paperwork to file a claim, you get an instant payout based on predefined triggers.
Speaker 1Okay, so it's like an if this, then that for insurance.
Speaker 2That's a great way to put it.
Speaker 1If a certain event happens, boom, you get paid. No fuss, no muss.
Speaker 2Exactly.
Speaker 1But can you give us some, you know, some real world examples to kind of bring this to life?
Speaker 2Sure. So imagine you're traveling and your flight gets delayed. You know beyond a certain threshold with parametric insurance.
Speaker 1Yeah.
Speaker 2You get an instant payout based on real-time flight tracking data.
Speaker 1So you don't have to file a claim or wait for reimbursement.
Speaker 2No waiting, no paperwork.
Speaker 1That's incredible. I can definitely see the appeal of that. What other examples are there?
Speaker 2Okay, so think about natural disasters.
Speaker 1Okay.
Speaker 2Parametric insurance can provide, you know, much faster disaster relief.
Speaker 1Right.
Speaker 2Because payouts are triggered by. You know specific event data.
Speaker 1Okay, so if an earthquake hits a certain magnitude, people with parametric insurance get immediate financial assistance, even before damage assessments are complete.
Speaker 2Even before yes.
Speaker 1Wow, that's powerful. And this model it has applications beyond travel and natural disasters.
Speaker 2Oh yeah, definitely Even in you, even in car insurance. Terametric insurance is making waves.
Speaker 1How so.
Speaker 2So imagine this You're in a car accident right. And, using AI-powered image recognition, it assesses the damage from photos or videos and triggers instant payouts if the damage meets certain criteria.
Speaker 1So you're telling me I could potentially have my car accident claim settled in minutes instead of weeks?
Speaker 2Potentially yes.
Speaker 1Sign me up, but I mean, I'm sure there were some challenges with this model as well, right?
Speaker 2Of course. Of course, One challenge is what's called basis risk.
Speaker 1Basis risk. What's that?
Speaker 2So the predefined trigger it might not perfectly match the actual loss you experience. I see, and there's also a heavy reliance on data right. The accuracy of those payouts depends on the quality and reliability of the data sources.
The Buzz of InsurTech
Speaker 1So it's a trade-off speed and transparency in exchange for potential discrepancies in payout amounts.
Speaker 2It is yeah.
Speaker 1Definitely something to consider, but it's clear that parametric insurance is. You know it's shaking things up.
Speaker 2It is.
Speaker 1Speaking of shaking things up, our next discussion point dives into the broader impact of AI in insurance.
Speaker 2AI yeah.
Speaker 1It's everywhere. Now, who better to guide us than Amelie Braidbird, a seasoned insurance expert with over 30 years of experience. She's amazing. She really paints a picture of how AI is impacting both. You know, the back-end operations and customer interactions.
Speaker 2Back-end and front-end.
Speaker 1Okay, let's hear it. How is AI changing the insurance game?
Speaker 2Well, for starters, it's streamlining everything from pricing and risk assessment to claims processing and even personalizing services.
Speaker 1It's like AI is becoming this invisible hand that makes everything smoother, faster, more tailored to our needs. It is yeah, but how does this impact us, the consumers?
Speaker 2Well, for one thing, ai is changing customer expectations. We're becoming accustomed to instant gratification, personalized experiences and seamless digital interactions.
Speaker 1So it's no longer enough for insurance companies to just offer a policy. They need to provide a more engaging personalized experience.
Speaker 2Exactly.
Speaker 1They need, you know, stronger customer engagement strategies.
Speaker 2Stronger strategies yes.
Speaker 1That go beyond those traditional intermediaries like brokers and agents.
Speaker 2Right, and they need to be adaptable, catering to both, you know, individual consumers and businesses in this digital age.
Speaker 1It sounds like AI is forcing the insurance industry to finally catch up with the digital revolution. Oh, it is. That's been sweeping through every other sector Pretty much. But this leads us to another really interesting trend Embedded insurance.
Speaker 2Embedded insurance. That's a fascinating development.
Speaker 1Tell me more. What is embedded insurance?
Speaker 2So it's all about integrating coverage seamlessly into other purchases, making it more accessible and convenient.
Speaker 1Give me an example.
Speaker 2Sure. Imagine you're buying a new phone online. Instead of having to shop around for a separate insurance policy, you're offered device coverage right there at checkout.
Speaker 1Okay, so they're bringing the insurance to you. Bringing it to you, yeah, instead of making you go out of your way to find it Exactly. Bringing it to you. Bringing it to you, yeah, instead of making you go out of your way to find it. Exactly Now, with all these non-insurance businesses offering insurance, there have to be some regulatory considerations, right.
Speaker 2Oh, absolutely, and that's where the Insurance Distribution Directive, or IDD, comes into play. The IDD, yeah, it's a set of rules that governs insurance distribution across the European Union.
Speaker 1Okay.
Speaker 2And it has some pretty important implications.
Speaker 1OK, I'm getting a bit lost in the regulatory weeds here.
Speaker 2I understand.
Speaker 1Could you just, you know, break it down for us what are the key things we need to know about the IDD and embedded insurance?
Speaker 2OK, so the IDD? It focuses on two key aspects transparency and authorization.
Speaker 1Transparency makes sense, right? Customers need to know what they're buying, what's covered, what their rights are. But what about authorization? Are we saying that every online store now needs an insurance license?
Speaker 2Not necessarily. The IDD offers a couple of options for these non-insurance businesses that want to embed coverage into their services.
Speaker 1Okay, what are they?
Speaker 2So first they can obtain an intermediary license themselves which allows them, to you know, distribute insurance products.
Speaker 1So they become like a, like a mini insurance company.
Speaker 2In a way, yes.
Speaker 1OK, what's the other option?
Speaker 2The other option is partnering with licensed insurers.
Speaker 1Right, so they're teaming up with the experts.
Speaker 2With the experts.
Speaker 1Making sure that everything is above board.
Speaker 2Exactly.
Speaker 1Now the IDD actually offers a shortcut.
Speaker 2It does.
Speaker 1For those non-insurance businesses wanting to, just you know, dip their toes into embedded insurance.
Speaker 2Right, what's it called? It's called the connected contracts exemption.
Speaker 1Okay, the connected contracts exemption? Yeah, tell me more.
Speaker 2So it applies to businesses selling. You know low risk.
Speaker 1Low risk Okay.
Speaker 2Complementary insurance products.
Speaker 1Like what.
Speaker 2Like flight cancellation protection.
Speaker 1Right.
Speaker 2Or device coverage.
Speaker 1Okay, so those are considered low risk.
Speaker 2Yes, and these businesses, they can operate without those, you know, full licensing burdens, as long as they meet certain criteria.
Speaker 1So it's a way to kind of encourage innovation.
Speaker 2Encourage innovation.
Speaker 1In this embedded insurance space without creating unnecessary regulatory hurdles.
Speaker 2Exactly.
Speaker 1Okay, we've covered a lot of ground so far.
Speaker 2We have.
Speaker 1From digital transformation and cybersecurity to parametric insurance and embedded coverage.
Speaker 2Lots of ground.
Speaker 1It's amazing to see how InsurTech is reshaping this industry.
Speaker 2It is.
Speaker 1So let's zoom in a bit and take a look at some specific InsurTech companies and trends from around the globe.
Speaker 2Okay, sounds good.
Speaker 1Now we've got spotlights from France, ireland and the Netherlands.
Speaker 2Ooh, exciting.
Speaker 1Each region brings its own unique flavor to the InsurTech table.
Speaker 2They do.
Speaker 1So let's start with. France. What's happening over there in the world of InsurTech?
Speaker 2Well, France is becoming a real hotbed for InsurTech innovation.
Speaker 1Really.
Speaker 2Yeah, tech. Well, france is becoming a real hotbed for insert tech innovation, really, yeah, we've got companies like Shift Technology, using AI to revolutionize claims processing and Accurate, accurate, yeah, leveraging machine learning to make pricing more accurate and efficient.
Speaker 1So they're tackling some of the, you know, the biggest pain points in the insurance industry. The big ones, yeah. What else is happening?
Speaker 2Okay. So we've also got Plus Simple, which is a tech-enabled managing general agent, or MGA, that's catering to small businesses and Descartes Underrating making waves in the world of parametric insurance.
Speaker 1Hold on. You said MGA. What's an MGA?
Speaker 2You're right. Some of our listeners might not be familiar with that term.
Speaker 1Yeah.
Speaker 2So an MGA? It's basically a specialized type of insurance agent that has more authority than a traditional agent. They can underwrite policies, handle claims and even develop their own insurance products.
Speaker 1So they're kind of like a mini insurance company.
Speaker 2In a way yes, got it.
Speaker 1Thanks for clarifying that. So it sounds like France is really embracing insert tech. They are. From AI-driven solutions to new business models.
Speaker 2Yes, excited.
Speaker 1And then there's Ireland, with a growing number of companies joining the APIX platform, apix, yep, the platform that brought Prudential and those gamification startups together.
Speaker 2That's right.
Speaker 1What kind of companies are we seeing in Ireland?
Speaker 2Okay, so we've got no frictioniction Streamlining Money Movement with APIs.
Speaker 1APIs. Those are basically digital connectors, right.
Speaker 2Exactly. They allow different systems to talk to each other.
Speaker 1Okay, got it.
Speaker 2Then there's Strat AI using AI for smarter investing.
Speaker 1Okay.
Speaker 2Best Insights bringing AI to credit assessments, wow and Digiproai automating document processing. Pro dot AI automating document processing.
Speaker 1So it sounds like Ireland is leveraging technology to make every aspect of finance, you know, smoother and more efficient. They are and all of these companies they're connecting through APIs, expanding their reach and impact.
Speaker 2Exactly.
Speaker 1Collaboration in action. Now, what about the Netherlands? What's happening in the world of insert tech over there?
Speaker 2OK, well, we have some insights from the founder of insert tech Amsterdam. Who? Who really highlights the challenges, the opportunities and that elaborative spirit that defines this ecosystem.
Speaker 1The Netherlands is known for its collaborative business environment right, Very much so yeah. So it sounds like their approach to InsurTech reflects that collaborative spirit.
Speaker 2It does. They're focusing on, you know, meaningful networking and knowledge sharing, creating a space where insurers and startups can connect and learn from each other.
Speaker 1So it's not just about you know, attending conferences and collecting business cards. It's about building real relationships, Real relationships. And driving innovation through collaboration.
Speaker 2Exactly.
Speaker 1And it sounds like this collaborative approach is paying off Through collaboration. Exactly, and it sounds like this collaborative approach is paying off. The Netherlands is home to a growing number of you know, successful insert tech companies.
Speaker 2It is yeah.
Speaker 1Tackling everything from customer experience to complex risks.
Speaker 2AAR.
Speaker 1So it's clear that insert tech is this global phenomenon.
Speaker 2It is.
Speaker 1With each region bringing its own strengths and approaches to the table, for sure. But one thing is for sure this sector is evolving at lightning speed. At lightning speed and it's impacting every aspect of the insurance industry. Every aspect, yeah, From the back-end operations to the customer experience.
Speaker 2Absolutely.
Speaker 1Now, it's not just about technology for technology's sake, right. It's about solving real problems.
Speaker 2Real problems.
Speaker 1Making insurance more accessible.
Speaker 2More accessible.
Speaker 1Efficient and ultimately more beneficial for everyone.
Speaker 2For everyone yeah.
Speaker 1Okay, we've covered a lot of ground in this first part of our deep dive into InsurTech.
Speaker 2We have yeah.
Speaker 1We've seen how companies are tackling the challenges of digital transformation, right Cybersecurity and collaboration. We've explored the revolutionary potential of parametric insurance and the rise of embedded coverage. Yes, and we've glimpsed at those, you know, vibrant insert tech ecosystems that are emerging around the globe, but we're just getting started.
Speaker 2Oh, we are Stay tuned for part two.
Speaker 1Part two, where we'll continue our exploration of this exciting and ever-evolving industry.
Speaker 2It's a wild ride.
Speaker 1It is.
Speaker 2Welcome back to our deep dive into the exciting world of Instratech.
Speaker 1You know I'm still buzzing from all those amazing innovations we discussed in the first part. It's incredible to see how technology is transforming this industry.
Speaker 2It really is, and we're not done yet. Remember those Instratex spotlights from France, ireland and the Netherlands.
Speaker 1Yeah. Well, there's one more region we need to add to the mix Belgium. Belgium, hmm, famous for its chocolate waffles and a burgeoning Instratex scene. I have to admit, that's not the first thing that comes to mind when I think of Belgium.
Speaker 2I have to admit, that's not the first thing that comes to mind when I think of Belgium. You're right, it might not be as well known as you know some of the other insert tech hubs, but Belgium is definitely making its mark.
Speaker 1OK, and what's really interesting is how it's benefiting from its proximity to that. You know, dynamic insert tech ecosystem in the Netherlands. Ok, now that you mention it, I do recall something about like cross-border collaboration happening.
Speaker 2Right.
Speaker 1Tell me more about this connection between Belgium and the Netherlands.
Speaker 2So we actually have a really insightful interview with Venetia Brooks.
Speaker 1Venetia.
Speaker 2Brooks yeah, she's the founder of InsurTech Amsterdam. Insurtech Amsterdam, but we're talking about Belgium right, yeah, we are, but Brooks explains that you know that Dutch ecosystem is having a significant impact on its neighbor is having a significant impact on its neighbor. She talks about how the Dutch approach to InsurTech, with its emphasis on collaboration and knowledge sharing, is creating opportunities for Belgian startups and insurers alike.
Speaker 1So it's like a ripple effect, spreading innovation across borders.
Speaker 2It is, it is, and Books points out some unique benefits of the Dutch approach, particularly for startups.
Speaker 1Okay, like what?
Speaker 2So she highlights the strong regulatory framework in the Netherlands which, while it might seem strict at first glance, actually fosters trust and stability in the long run.
Speaker 1So it's about creating a solid foundation for growth Right Ensuring that innovation happens within a responsible and sustainable framework.
Speaker 2Exactly, and that can be particularly appealing for startups looking to scale and expand internationally.
Speaker 1That makes sense. You know investors and customers want to know that a company is operating within a clear set of rules.
Speaker 2They do.
Speaker 1It reduces risk. But it's not just about regulations, is it? Brooks also mentioned something about the collaborative spirit of the Dutch ecosystem.
Speaker 2Oh, yes, absolutely. She emphasized how insurers in the Netherlands are like actively seeking partnerships with insert tech startups.
Speaker 1Okay.
Speaker 2It's like they've recognized that these new players bring fresh perspectives and technological expertise that can help them, you know, adapt and thrive in this digital age.
Speaker 1It's a win-win situation, right.
Speaker 2It is.
Speaker 1Startups get access to these established networks and resources, while insurers gain a competitive edge by integrating cutting edge technology and innovative solutions.
Speaker 2Exactly.
Speaker 1But, you know, I do wonder, is there a risk that these startups get, I don't know, swallowed up by the big corporations?
Speaker 2Oh, that's a valid concern.
Speaker 1How can they maintain their innovative edge within these partnerships?
Speaker 2Well, what we're seeing is that many of these partnerships are structured in a way that allows startups to retain their independence while still, you know, benefiting from the resources and expertise of those larger companies. It's about finding a balance, a way to work together without stifling innovation.
Speaker 1So it's less about being acquired and more about creating a symbiotic relationship where both parties benefit Exactly. And it sounds like this collaborative spirit is spreading beyond the Netherlands, influencing the insert tech scene in Belgium as well.
Speaker 2It is, it is.
Speaker 1So Belgium is really benefiting from its proximity to this. You know this dynamic insert tech hub.
Speaker 2They are.
Speaker 1It's a great example of how innovation can transcend borders, creating a ripple effect that benefits entire regions.
Speaker 2A ripple effect. I like that. And speaking of benefits, let's, let's shift gears a little bit. I talk about a company that's leveraging technology to transform the way insurance payouts are handled.
Speaker 1OK.
Speaker 2We've got a fascinating deep dive into Verestro.
Speaker 1Verestro okay.
Speaker 2They offer a fintech as a service platform.
Speaker 1Fintech as a service okay.
Speaker 2Specifically designed for insurance companies.
Speaker 1Interesting Fintech as a service. That sounds pretty high tech. Can you break it down for us?
Speaker 2So imagine this Instead of insurance companies having to build you know their own complex payment system, they can simply plug into Verestra's platform and instantly access all the tools they need to make you know seamless digital payments.
Speaker 1It's like they're providing the building block.
Speaker 2The building blocks.
Speaker 1For a modern connected insurance experience. Exactly, no need to reinvent the wheel. Just focus on delivering that you know exceptional service to customers. That's it. And what's really cool is how Verestro empowers these insurers to offer customized MasterCard payment cards.
Speaker 2MasterCard payment cards yeah.
Speaker 1These cards. They can be issued instantly.
Speaker 2Instantly.
Speaker 1Through a user-friendly web portal or mobile app.
Speaker 2That's right. And they can be tailored to specific, specific scenarios it can okay, so give me an example so let's say you're traveling and your luggage gets lost okay, classic travel nightmare right. So instead of waiting weeks for reimbursement right, your insurance company could instantly issue you a virtual car virtual yep to cover those immediate expenses.
Speaker 1Wow, that's amazing, and I imagine this has applications beyond just lost luggage.
Speaker 2Oh, absolutely Think about, you know, a minor car accident. With Verestra's platform, you could receive, you know, instant reimbursement for those repair costs directly to your card.
Speaker 1So it completely eliminates all that. You know, that hassle of paperwork, waiting periods.
Speaker 2The waiting, the paperwork.
Speaker 1And those, you know, those frustrating back and forths with insurance adjusters.
Speaker 2All gone.
Speaker 1It really puts the power back in the hands of the customer.
Speaker 2It does.
Speaker 1And it's not just about speed and convenience, is it? The rest of this platform. It also enhances security, right it does yeah.
Speaker 2So these virtual cards, they use two-factor authentication.
Speaker 1Okay.
Speaker 2And can be easily added to, you know, digital wallets like Apple Pay or Google Pay.
Speaker 1So it's a win-win for both you know, insurers and consumers. Win-win yeah, Insurers they streamline their payout processes. Yep Enhance customer satisfaction.
Speaker 2Yes.
Speaker 1And consumers get instant access to funds and a more seamless you know digital experience.
Speaker 2Absolutely.
Speaker 1And it's amazing how Verestra's platform has like such a wide range of real-world applications right.
Speaker 2It does?
Speaker 1We're talking about everything from you know advanced payments for urgent services.
Speaker 2Yeah.
Speaker 1To emergency funds for travelers who lose their wallets. It's true, yeah, like they've thought of every possible scenario.
Speaker 2Yeah, every scenario.
Speaker 1Where instant access to funds would be, you know, a lifesaver.
Speaker 2A lifesaver.
Speaker 1exactly they're really transforming the way insurance interacts with our everyday lives.
Speaker 2They are.
Speaker 1And you know, this brings us to another important point.
Speaker 2Okay.
Speaker 1We've talked a lot about technology and innovation, but what about the human side of InsurTech? Right, the human side? How are these? You know? How are these advancements impacting the people working in this industry?
Speaker 2Yeah, that's a great question.
Speaker 1I mean it's easy to get caught up in all the excitement of, you know, new technologies.
Speaker 2Excitement yeah.
Speaker 1But we can't forget about the human impact. Are there downsides to all of this disruption? Are jobs being lost? Are people being left behind?
Speaker 2Those are valid concerns and while it's true that you know some jobs may become automated as technology advances, what we're also seeing is the creation of entirely new roles and opportunities within the Instatech sector.
Speaker 1So it's not just about, you know, replacing humans with robots. It's about reimagining the way we work and creating new possibilities for human ingenuity and expertise. And this actually brings us to our next source, which highlights another challenge facing the insurance industry.
Speaker 2Oh OK.
Speaker 1Cybersecurity, particularly for small and medium sized enterprises or SMEs.
Speaker 2SMEs yeah.
Speaker 1Now are they particularly vulnerable to cyber attacks.
Speaker 2Unfortunately. Yes, we have an article here from Cyber Contract, a company specializing in cybersecurity for SMEs, and their findings are quite alarming.
Speaker 1Okay.
Speaker 2The article reveals that a staggering 80% of Belgian SMEs underestimate the risks associated with inadequate cybersecurity 80%.
Speaker 1Wow, that's a huge number.
Speaker 2It is. It's like they're, you know, playing Russian roulette with their data.
Speaker 1And the consequences. They can be devastating.
Speaker 2They can. Yeah, the article states that the average cost of a cyber attack for an SME is a whopping $145,000.
Speaker 1$145,000?.
Speaker 2Yeah.
Speaker 1That's enough to I mean to cripple many small businesses.
Speaker 2It is for sure.
Speaker 1But what exactly are these SMEs doing wrong? Are they just not investing enough in cybersecurity?
Speaker 2Well, it's not just about money. The article highlights, you know, several factors contributing to this vulnerability.
Speaker 1OK, like what.
Speaker 2So many SMEs. They simply lack awareness of the risks. They think you know, oh, we're too small to be a target. But that's simply not true anymore.
Speaker 1Right, cybercriminals. They're not discriminating. They think you know, oh, we're too small to be a target. But that's simply not true anymore, right.
Speaker 2Cybercriminals. They're not discriminating.
Speaker 1They're not. They're going after anyone they think they can exploit.
Speaker 2Exactly, and cybercriminals are increasingly targeting SMEs because they often have weaker security measures in place.
Speaker 1So it's a bit like you know, leaving your front door unlocked and then being surprised when someone walks in, and a lot of these attacks they're preventable.
Speaker 2Many of them are yeah. The article points out that simple security measures like multi-factor authentication and, you know, proper email configuration could drastically reduce the risk.
Speaker 1So it's about like basic cyber hygiene.
Speaker 2Basic cyber hygiene yeah.
Speaker 1But it's not just about technology, is it? I've heard that you know human error is often the weakest link when it comes to cybersecurity.
Speaker 2Oh, that's absolutely true. The article stresses the importance of employee awareness.
Speaker 1OK.
Speaker 2Even the best security systems, they're useless if employees aren't trained to recognize, you know, phishing scams.
Speaker 1Right.
Speaker 2Suspicious links and other common cyber threats.
Speaker 1It's like that old saying a chain is only as strong as its weakest link.
Speaker 2Exactly.
Speaker 1You can have the most sophisticated security system in the world, but if one employee clicks on a malicious link, it can all come crashing down.
Speaker 2It can, it can, and the article also points out that regulations are. You know, they're becoming stricter.
Speaker 1Right, we're seeing that across the board.
Speaker 2With standards like NIS2 and DORA, pushing companies to strengthen their cybersecurity posture.
Speaker 1OK.
Speaker 2This is a positive development, but it also puts pressure on SMEs. You know who might not have the resources or the expertise to navigate this complex landscape.
Speaker 1So it's a bit of a catch-22.
Speaker 2Hello.
Speaker 1SMEs are being told to you know up their cybersecurity game Right, but they might not have the resources or the knowledge to do so effectively.
Speaker 2Exactly.
Speaker 1But it's not all doom and gloom, right. No it's not. There are solutions available. There are. What does the article suggest? Well it emphasizes that cyber insurance can provide, you know, valuable peace of mind for SMEs, helping them mitigate those financial risks associated with cyber attacks. So it's encouraging to see that you know insurers are stepping up to address this growing need.
Speaker 2They are, they are.
Speaker 1OK, so this brings us back to the, you know, to the core of our discussion, the core InsurTech. It's not just about, you know, fancy gadgets and disruptive technologies.
Speaker 2Right, it's not.
Speaker 1It's about using innovation to solve real world problems. Real world problems, to protect businesses and individuals from emerging threats.
Speaker 2Exactly.
Speaker 1It's about making insurance more relevant, accessible and, ultimately, more human-centric.
Speaker 2More human-centric. Yeah, I like that.
Speaker 1And speaking of celebrations, remember how we started this episode highlighting our 10th episode milestone.
Speaker 2I do yeah.
Speaker 1Well, it seems like Finance X, the publication behind all these insightful sources, is also celebrating a special anniversary.
Speaker 2Oh, that's right.
Speaker 1They're celebrating their 10th edition.
Speaker 2The 10th edition, wow.
Speaker 1Time flies when you're diving deep into the world of finance and technology, doesn't it?
Speaker 2It really does.
Speaker 1And their journey, much like ours, has been all about growth, collaboration and a passion for exploring the frontiers of finance and technology.
Speaker 2Frontiers yeah.
Speaker 1You know they started as a simple idea.
Speaker 2A simple idea.
Speaker 1A way to bring together diverse voices and perspectives.
Speaker 2Right.
Speaker 1In a curated publication.
Speaker 2In a publication.
Speaker 1yeah, and now they've evolved into a global platform with contributors from all corners of the financial world.
Speaker 2It's amazing, isn't it?
Speaker 1It's a testament to the power of you know, sharing knowledge and fostering connections.
Speaker 2Good fostering yes.
Speaker 1And it lines perfectly with what we're trying to achieve here at the Deep Dive.
Speaker 2It does.
Speaker 1You know, we're all this journey of discovery A journey, and it's through collaboration, open dialogue and a willingness to embrace new ideas that we can truly unlock the transformative potential of finance and technology.
Speaker 2The transformative potential for sure.
Speaker 1And speaking of unlocking potential, let's shift our focus to a region that's becoming a major player in the world of fintech.
Speaker 2Okay, which region?
Speaker 1Asia.
Speaker 2Asia, Asia Okay.
Speaker 1A continent rimming with innovation, a rabidly growing middle class and a hunger for digital solutions.
Speaker 2A hotbed of activity over there.
Speaker 1It's no surprise that you know that fintech is flourishing there.
Speaker 2No surprise at all.
Speaker 1Now we have a source that takes us right to the heart of this. You know this exciting landscape.
Speaker 2Oh, okay, what is it?
Speaker 1Money 2020 Asia.
Speaker 2Money 2020. Ok.
Speaker 1That's one of the most influential fintech events in the region.
Speaker 2I've heard of money 2020. It's a big deal, a big deal, yeah.
Speaker 1And the Asian edition is particularly interesting because it brings together, you know, those biggest names in fintech, banking and payments from across the region. It does. Creating a space for you know, discussion, collaboration and deal making.
Speaker 2For sure.
Speaker 1So it's not just a conference.
Speaker 2It's not.
Speaker 1It's a hub for innovation and growth.
Speaker 2A hub. I like that.
Speaker 1What were some of the like the key themes at this year's event?
Speaker 2Well, one of the, you know, the main focuses was the future of cross-border payments.
Speaker 1Cross-border payments OK.
Speaker 2With Asia's diverse mix of you know countries, currencies and regulatory frameworks. Yeah, it's a real hotbed for innovation in this space.
Speaker 1I can imagine.
Speaker 2The source actually highlights the presence of, you know, key regulators from countries like Malaysia, thailand and the Philippines.
Speaker 1Okay.
Speaker 2Alongside fintech leaders from companies like you know, gcash and Airwallex.
Speaker 1Interesting. So it's not just about developing new technologies. It's about creating a you know, a regulatory environment that fosters innovation and enables these technologies to thrive.
Speaker 2Exactly, and that's what makes Money 2020 Asia so interesting. It's not just a showcase of the latest gadgets. It's a forum for discussing, you know, those real world challenges and opportunities facing the fintech industry.
Speaker 1Right, because technology alone isn't enough.
Speaker 2It's not.
Speaker 1You need the right environment, the right support system to truly unlock its potential.
Speaker 2You do.
Speaker 1And it's a reminder that you know that innovation knows no borders. No borders the insert tech trends and advancements we've discussed, you know, throughout this episode.
Speaker 2Yeah.
Speaker 1They're not isolated to you know, to specific regions.
Speaker 2They're global.
Speaker 1They're part of this global wave of change transforming the way we interact with insurance and shaping the future of this industry. That's exciting. Absolutely. And speaking of shaping the future, let's delve into a topic that's raising important questions about how insurance is distributed and accessed.
Speaker 2OK, what's?
Speaker 1that Embedded insurance. Embedded insurance we touched on it briefly earlier.
Speaker 2We did briefly.
Speaker 1But I have a feeling there's a lot more to uncover.
Speaker 2Oh, there is. We have a source that provides a really deep dive into this fascinating trend, exploring both the opportunities and the challenges. Embedded insurance is all about seamlessly integrating coverage into other products or services.
Speaker 1Simplest integration. Like offering travel insurance when booking a flight, or Right or device protection when buying a new phone.
Speaker 2Exactly.
Speaker 1It's about making insurance, you know, more accessible, convenient.
Speaker 2And relevant.
Speaker 1And relevant to consumers' everyday lives.
Speaker 2Exactly. Instead of having to actively seek out insurance, it becomes an integrated part of their you know their purchase experience.
Speaker 1Okay, it sounds great in theory.
Speaker 2Yeah.
Speaker 1But I can imagine there are some hurdles to overcome, especially when it comes to regulation.
Speaker 2Oh, there are.
Speaker 1After all, we're talking about non-insurance businesses now offering insurance products.
Speaker 2Right.
Speaker 1So how does that work?
Speaker 2Well, that's where the source gets really interesting. It delves into those regulatory considerations surrounding embedded insurance, particularly in the context of the Insurance Distribution Directive, or IDD, which governs insurance distribution across the European Union.
Speaker 1Okay, I remember us talking to the IDD earlier.
Speaker 2We did, we did.
Balancing Digital Transformation
Speaker 1It's all about ensuring that this new model of insurance distribution doesn't compromise consumer protection or create loopholes for unscrupulous actors.
Speaker 2It is yeah.
Speaker 1So what does the source say about the IDD and embedded insurance?
Speaker 2Well, it highlights two key aspects of the IDD that are particularly relevant to embedded insurance.
Speaker 1Okay.
Speaker 2Transparency and authorization.
Speaker 1Transparency makes sense right.
Speaker 2It does.
Speaker 1Consumers need to clearly understand what they're buying, what's covered, what their rights are.
Speaker 2For sure.
Speaker 1But how does authorization work in this context?
Speaker 2That's where it gets a bit tricky. The source explains that non-insurance businesses embedding coverage into their services. They have a couple of options.
Speaker 1Okay, what are they?
Speaker 2So like they can either obtain an intermediary license themselves which allows them to distribute, you know, insurance products.
Speaker 1So, like we were saying earlier, they kind of become like a mini insurance company.
Speaker 2In a way, yes, but there's another option. What's?
Speaker 1that.
Speaker 2Partnering with licensed insurers.
Speaker 1Okay, so they're teaming up with the expert.
Speaker 2Teaming up yes.
Speaker 1For insurer compliance.
Speaker 2Exactly so. It's about creating a system where everyone plays by the rules, regardless of whether they're a you know, a traditional insurer or a tech company dipping their toes into the insurance water.
Speaker 1Right A level playing field A level playing field?
Speaker 2Yeah, and the source provides a really practical example to illustrate this.
Speaker 1OK.
Speaker 2It. It walks us through the steps you know that a new digital platform would need to take if they wanted to integrate, you know, insurance policies into their offerings.
Speaker 1So it's like a, like a roadmap for navigating the regulatory landscape.
Speaker 2A roadmap yeah.
Speaker 1Ensuring that you know that innovation happens within a framework that protects both businesses and consumers.
Speaker 2Exactly.
Speaker 1Now the IDD. It actually offers a shortcut.
Speaker 2It does.
Speaker 1For non-interns businesses wanting to, you know, just dabble in embedded insurance. Right, it's called the.
Speaker 2The Connected Contracts Exemption.
Speaker 1Connected Contracts Exemption.
Speaker 2Yes.
Speaker 1Now. Didn't we touch on this earlier?
Speaker 2We did, but it's worth revisiting because it's a really important aspect of the regulatory landscape for embedded insurance.
Speaker 1Right.
Speaker 2So remind me what's the catch with this exemption? So the exemption? It applies to businesses selling you know low risk complementary insurance products.
Speaker 1Right, like that flight cancellation protection or device coverage that we talked about earlier. Exactly Okay.
Speaker 2And these businesses. They can operate without those full licensing burdens Right as long as they meet certain criteria.
Speaker 1Okay, so it's a way to, you know, encourage innovation in this vetted insurance space.
Speaker 2It is.
Speaker 1Without creating unnecessary regulatory hurdles.
Speaker 2Exactly, and the source points out that this exemption can be a real boon for businesses, especially those looking to expand, you know, across borders.
Speaker 1Right, because navigating different regulatory frameworks in different countries can be a nightmare.
Speaker 2It can be a nightmare.
Speaker 1So what does the IDD do to address this?
Speaker 2Well, the EU passporting system. It allows companies to launch embedded insurance in one country.
Speaker 1OK.
Speaker 2And then scale it across the entire European market without needing, you know, additional licenses.
Speaker 1But once you're in, you're in.
Speaker 2You're in, yeah.
Speaker 1It sounds like the EU is really trying to create a unified framework that fosters innovation and cross-border collaboration in this embedded insurance space.
Speaker 2They are, they are.
Speaker 1And that's important, isn't it?
Speaker 2It is yeah.
Speaker 1Because embedded insurance has the potential, to you know, to significantly increase insurance penetration.
Speaker 2Increase penetration yeah.
Speaker 1Particularly among those who are, you know, who are currently underserved by traditional insurance models. Exactly, we're not just talking about convenience, we're kind of making insurance more accessible to a wider range of people.
Speaker 2More accessible, for sure.
Speaker 1And that's a goal worth striving for, absolutely. Wow, we've covered so much ground already. Yeah, from, you know, belgium's burgeoning InsurTech scene to the potential of embedded insurance.
Speaker 2It's true.
Speaker 1It's clear that this industry is really on the move.
Speaker 2On the move yeah.
Speaker 1But it's not just about you know new technologies and innovative business models Right. We also need to consider the regulatory landscape.
Speaker 2We do that's shaping this transformation. Absolutely Regulations. They play a crucial role in ensuring that you know that innovation happens responsibly, protecting both businesses and consumers.
Speaker 1And speaking of regulation, that brings us to our final source for this, you know deep dive into InsurTech.
Speaker 2Okay, what is it?
Speaker 1Which focuses on the NIS2 directive. Nis2. A comprehensive set of cybersecurity regulations.
Speaker 2Comprehensive.
Speaker 1It's really setting a new standard in Europe. It is, ah yes, nis2. We touched on it briefly when we were discussing cybersecurity assessments.
Speaker 2We did yeah.
Speaker 1But I have a feeling there's you know a lot more to unpack. But I have a feeling there's you know a lot more to unpack. Oh, there is. Can you give us, you know, a quick overview of what NIS2 is all about?
Speaker 2Sure, Essentially NIS2, it's designed to, you know, bolster cybersecurity across all those EU member states.
Speaker 1Yeah.
Speaker 2Recognizing that you know cyber threats. They don't respect national borders.
Speaker 1They don't.
Speaker 2It aims to create a unified framework for cybersecurity. Okay, you don't. It aims to create a unified framework for cybersecurity, ensuring that organizations across different sectors, you know they're prepared to deal with that growing threat of cyber attacks.
Speaker 1So it's not just about individual companies protecting themselves. No, it's not, it's about creating, you know, like a collective defense system for the entire region.
Speaker 2The collective defense. That's a great way to put it. And what does our source say about NIS2? So this source, it highlights some key aspects of NIS2 that are particularly relevant for, you know, those in leadership positions, like board directors and executives.
Speaker 1Right, those at the top making the big decisions.
Speaker 2Exactly and it emphasizes that. You know, cybersecurity it's no longer just an IT issue, it's a business imperative.
Speaker 1Right, it needs to be part of the overall strategy.
Speaker 2Exactly. It requires a strategic approach from the top down.
Speaker 1Okay, so it's not enough to just have the latest security software installed.
Speaker 2No, it's not.
Speaker 1You need to have a comprehensive cybersecurity strategy. Yeah, comprehensive strategy it's integrated into the core business processes.
Speaker 2Into the core.
Speaker 1yes, and NIS2,. It goes beyond just setting guidelines right it does.
Speaker 2It actually introduces stricter enforcement requirements.
Speaker 1Okay, like what?
Speaker 2So we're talking mandatory incident reporting and potential penalties for noncompliance.
Speaker 1So there are real consequences.
Speaker 2Real consequences yeah.
Speaker 1For companies that fail to meet these standards.
Speaker 2It's a clear signal that cybersecurity is no longer optional.
Speaker 1It's not a choice anymore.
Speaker 2It's a fundamental requirement for you know doing business in the EU.
Speaker 1Okay, so what else does our source highlight about NIS2?
Speaker 2It points out that NIS2 significantly expands the scope.
Speaker 1The scope.
Speaker 2The scope, yeah, of organizations that fall under these regulations.
Speaker 1So it's not just about those, you know, critical infrastructure providers anymore.
Speaker 2It's not. It now includes a much wider range of sectors. So we're talking healthcare, transportation, finance, even digital platforms.
Speaker 1Wow, I mean, that's a big change.
Speaker 2It is.
Speaker 1It really highlights the fact that cyber threats they can impact virtually every aspect of our economy and society.
Speaker 2Every aspect.
Speaker 1It sounds like NIS2 is really trying to cast a much wider net.
Speaker 2A wider net.
Speaker 1Recognizing that everyone's a potential target.
Speaker 2Exactly.
Speaker 1Okay, so what specifically does NIS2 require of these organizations?
Speaker 2So the source goes into detail about. You know the specific requirements highlighting the need for robust risk management practices, incident response plans and even the designation of, you know, c-level responsibility for cybersecurity.
Speaker 1So they're not just saying, hey, be more careful with your data.
Speaker 2No, they're not.
Speaker 1They're laying out a very specific framework. A specific framework, yeah, for how organizations should approach cybersecurity.
Speaker 2And that includes everything from conducting regular risk assessments to, you know, implementing security awareness training for employees.
Speaker 1So it's a holistic approach.
Speaker 2Holistic yeah.
Speaker 1That recognizes that cybersecurity is not just about technology.
Speaker 2It's not.
Speaker 1It's about people, processes and culture.
Speaker 2It's about everything, yeah.
Speaker 1OK, so it sounds like NIS2 is creating this blueprint.
Speaker 2A blueprint.
Speaker 1Yeah For a more resilient digital landscape.
Speaker 2More resilient yeah.
Speaker 1Ensuring that organizations are prepared to, you know, to not only prevent those cyber attacks.
Speaker 2Right.
Speaker 1But also to effectively respond and recover if an attack does occur.
Speaker 2That's a great way to put it.
Speaker 1Now, was there anything else in this source about NIS2 that really stood out to you?
Speaker 2There was actually one more thing.
Speaker 1Okay, what's that?
Speaker 2So NIS2, it allows for criminal sanctions.
Speaker 1Criminal sanctions yeah.
Speaker 2Against board directors and executives who demonstrate, you know, gross negligence in the event of a cyber incident.
Speaker 1Wow. So it's not just the company that's held accountable.
Speaker 2No, it's not.
Speaker 1It's the individuals in charge. It is, yeah, it's a big deal, right it's a huge deal.
Speaker 2It's a clear sign that you know cybersecurity governance it's no longer something that can be, you know, delegated to the IT department.
Speaker 1Right, the buck stops at the top.
Speaker 2It does. It's a responsibility that extends to those you know highest levels of leadership.
Speaker 1So it sounds like NIS2 is really, you know, shaking things up, sending a strong message that cybersecurity needs to be taken seriously. It does At every level of an organization.
Speaker 2At every level, for sure.
Speaker 1And you know, while some might see it as a, you know, as an additional burden, Right. I think it's ultimately a positive development.
Speaker 2I agree.
Speaker 1It's a necessary step in creating a, you know, a more secure and resilient digital ecosystem.
Speaker 2A more secure ecosystem For everyone, for everyone, yeah.
Speaker 1And you know it ties in nicely with some of the themes we've been discussing throughout this entire episode. Right, it does. It's a reminder that as we embrace those incredible possibilities of InsurTech, we also need to be mindful of the risks.
Speaker 2Mindful of the risks, for sure.
Speaker 1And take steps to mitigate them. We do Innovation and regulation. They need to go hand in hand. Hand in hand and, on that note, I think it's time to wrap up this 10th episode extravaganza.
Speaker 2Wow, has it really been 10 episodes already? It has, it has it feels like just yesterday we were. You know, we were starting out on this journey, exploring this fascinating intersection of finance and technology.
Speaker 1It's been quite a ride.
Speaker 2It has, hasn't it? But before we, you know, before we sign off, we want to leave you with one final thought provoking question to ponder.
Speaker 1Okay, hit us with it.
Speaker 2With all the incredible innovations we've explored today from you know AI powered underwriting to seamless embedded coverage, yeah, what do you think the future holds for the insurance industry?
Speaker 1That's a great question. Will traditional insurance even exist in 10 years?
Speaker 2Or will insert tech completely reshape the landscape.
Speaker 1It's a question worth considering, you know, as we navigate this rapidly changing world.
Speaker 2It is.
Speaker 1One thing is for sure though the future of insurance. It's being written right now.
Speaker 2It is, it is.
Speaker 1And whether you're you you're a seasoned insurance professional or simply a curious consumer. It's an exciting time to be a part of this transformation.
Speaker 2It is.
Speaker 1So stay informed, stay engaged and keep those questions coming.
Speaker 2Keep them coming.
Speaker 1The Deep Dive will be back soon with more fascinating explorations at the intersection of finance and technology. Until then, happy diving.