Macaii S1 E003: Nurturing an Ecosystem of Partnerships with Phil Denman

People in Insurance: Changing the Conversation

In this episode of the Changing the Conversation, we are thrilled to be speaking with Phil Denman, Co-Founder and CEO of four-section MGA, Capacity Insights! In conversation with Macaii’s Sarah Myerscough, Phil explains his philosophy for establishing partnerships with experts external to the insurance industry, and how these can help us to keep apace with customer interests and regulatory demands.

Is it possible for any insurance company to address customer desires without delegating any tasks to external experts? As we rapidly transition towards digitisation, how do we keep an eye on the unintended consequences of new digital practices, particularly with new regulatory measures to consider? Having established what your company is good at and what your customers want, how can you align both of those propositions?

Quote of the Episode

“I see this modern, fast moving insurance market that we work in being a sort of an ecosystem of partnerships. Whether that's technology, whether that's people providing parametric claim settlement, or data services, whether that's partnering with different claims providers where we can. Instead of trying to be everything to everybody, being a leader in the delivery of high-engagement, subscription-type services, as a fully regulated entity, with all of the cost and rigour and robustness that comes with that. We may be compartment with people for some of the faster-moving engagement services, certainly in terms of digital health, digital assistance, digital claims services. We will come outside of our own organisation and partner with people for that, for that engagement layer.”

Phil suggests that the insurance market today will flourish or flounder on account of how quickly and effectively we can partner up with and incorporate the insights of experts external to our industry. Particularly with regard to technological proficiency and digital services, it is key that we can provide a platform that is easy and user-friendly whilst also mitigating any potential unintended consequences to satisfy the regulators. It’s impossible for us to be experts at everything, and outsourcing certain processes to people who can provide those areas will, Phil argues, be the differentiating factor that eventually keeps some companies afloat, and leaves others in the dust.

Key Takeaways

Our buying cycles have been completely reoriented by the high-speed nature of the Amazon business model and others of its ilk, fuelling an ‘I want it yesterday’ mentality underpinned by getting products quickly, with as little administrative hassle as possible. Yet, insurance is a complicated product. Phil suggests that delivering a such a simplistic customer journey necessitates a significant amount of complex work and technological expertise. Great products, he notes, are complex products, masked with a veneer of ease and simplicity from the client’s perspective. To facilitate this, Phil argues, it is essential that we begin to collaborate more with digital partners who can provide the expertise you might not have in-house.

‘We can’t be everything to everyone,’ Phil notes, and as such developing such partnerships will become a core means by which our industry can begin to meet these aforementioned customer expectations. Capacity Insights themselves have made many changes in this regard. Phil notes that the company has re-engineered its product process to begin with customer needs, and with regulatory expectations in mind, thereby deploying a 360-degree view of the various levels that products need to deliver on.

Data management is a crucial aspect of delivering a smooth customer journey. While we have access to more data than ever, its oversaturation can often prove a hindrance rather than a help. Phil argues that data should be perceived as a pillar of support rather than an illuminator in determining customer outcomes. The need to carefully navigate the use and implementation of data perfectly exemplifies Capacity Insights’ partnerships-based business model. The company has recently signed a contract with an external actuarial consultancy providing data storage and analytics. This brings huge benefits to a business of Capacity Insights’ size. The company simply wouldn’t have been able to build a data warehouse and insight function internally with nearly the same functionality, let alone the extensive cost considerations. Phil considers outsourcing in this manner to be a theme that will become increasingly significant across insurance in years to come, particularly with regard to AI. To keep ahead of the curve, insurance companies must remain nimble, highly technically proficient, and empowered by technology, which can be externally provided.

If you’re an intermediary in the UK or Europe looking to deploy medical, dental, travel or personal accident insurance, consider getting in touch with Phil, whose contact details are linked below!

Best Moments/Key Quotes

“We are constantly challenging ourselves to say, ‘What is it that we are good at?’”

“I'm not even sure the experts in AI are truly experts in tomorrow's AI. It is such a complex, fast-moving sector that I just question whether, in the future, we will all be the experts of all that we survey. We're starting to see, being the entity that we are, we will have to partner with people who can provide these areas that we're not experts in.”

‘Great products aren't simple products; great products are actually complicated things that are delivered in a way that makes them feel simple.’

“And I think the global giants, who obviously are a massive force, in our online marketplaces, I think they will have as many challenges as we do, just at a different scale. Maybe their desire to partner for what they might see as core functionality around technology, AI engagement, there may be less desire, less corporate appetite, and a greater inner inertia to try and be that jack of all trades. They're trying to be experts across this huge gambit of technical proficiencies, which I think will be hugely challenging for them, just as it is for our business.”

Resources

Capacity Insights: https://capacityinsights.co.uk/

About the Guest

Phil Denman has worked in and around the schemes market for thirty years. He is the Co-Founder and CEO of Capacity Insights, a four-section MGA underwriting travel, medical, dental, and personal accident claims.

Phil’s LinkedIn Profile: https://www.linkedin.com/in/phil-denman-38188a9/

About the Host

Sarah Myerscough is the Chief Ideas Officer at Macaii, formerly Boston Tullis. She hosts/co-hosts several podcasts and is known for her knack in connecting with people. Sarah excels in bringing out the best for video, podcast, and live events, helping clients showcase the human side of their business.

Sarah is passionate about the evolving dynamics of the insurance industry and enjoys conversing with innovators, trailblazers, and long-term advocates of change.

Website: www.macaii.co.uk