Higinio Iglesias
ebroker CEO

Interview published in the special New DNA Technologies of Insurance in April of 2019

Do you think that the Insurtech phenomenon is changing or will substantially change the insurance market? Why and how?

With the birth of the first personal computers in 1962, the world entered the 3ª Industrial Revolution that with the birth of the Internet in the 90, became the Digital Revolution.

Today the insurance industry is no stranger to the fact that the application of technology is causing disruption in the way of understanding and doing business and also the rules of the market. The insurtech phenomenon goes from that, from the transformation of the traditional insurance industry to a new socioeconomic environment in whose focus is to cover the new needs and habits of a client that is changing.

Quite simply, the Insurtech phenomenon catalyses the process of change, making it possible to implement the digital transformation.

Has your company made any investment related to Insurtech? In what field - communication with the customer, after-sales services, promotion, sale, etc.?

ebroker insurance brokers software is part of the Spanish insurtech ecosystem. Everything we do and everything we invest in it is insurtech. We are a company that manufactures technology and services for the digital transformation of insurance brokers and that says it all. Our value is innovation.

Will we see a noticeable takeoff of the digital insurance business -understood as online sales-? Will it reach all types of insurance and will it be used by all kinds of channels-including providers?

Yes, the native digital customer will be a consumer of all types of products and services, including insurance, through mobile devices, which will make a take off of online sales. However, this must be accompanied by a simplification of the products by insurers.

In the particular case of mediators, online sales tools such as multitarificadores incorporated in web portals, with the integration of information in an ERP software, safe corridors for their subsequent management and use, will be part of the solutions to face this new challenge and compete with other channels.

ebroker is part of the Spanish Insurtech ecosystem. Everything we do and everything we invest in it is Insurtech.

The application of technology: does it effectively improve the customer experience? What are the main advantages, in your opinion?

Before a new customer with greater demands and that defines his perception of a brand or service by virtue of the digital experience he has had, the insurance broker has to offer competitive products and a service according to the current digital world. Technology plays a major role in the relationship with customers.

The new digital client requires immediate attention, high availability, easy access to information, efficiency in management and a good omnichannel experience, and all this would not be possible without the appropriate technology such as APPs provided by secure technology platforms and software brokers so that, in the case of insurance mediators, they gain in service and loyalty capacity, as well as improving the image of their brand and company and represent a vision of digital transformation.

How would you define digitalization and its advantages for the insurance business?

The digital transformation is nothing else than the use of the virtues and benefits that new technologies offer the company to adapt to this irreversible evolutionary process of society and how to obtain a competitive advantage in areas such as efficiency, productivity, relationships with clients and marketing channels, etc.

Today, to steal the most precious merchandise of a company, your data, just sneak in a wifi from the sidewalk in front or an unfaithful employee with a small pendrive

Cybercrime is a growing evil, in quantity and complexity. This rapid technological evolution: does it make it difficult to offer insurance that effectively covers the different risks?

Crime is a problem of coexistence in society, and this problem evolves with society itself in all its areas, aspects, complexities, scope. Before, stealing in a company depended on a lock, a security barrier or a guard prevented, and to take the stolen goods needed a transport with more or less capacity of cargo, van or truck.

Today, to steal the most valuable merchandise of a company, your data, just sneak in a wifi from the sidewalk in front or an unfaithful employee with a small pendrive. Things have changed, worse because, although the perception of risk may be lower, the consequences are extremely great, because, in addition, today we must add to the damage the new legal consequences for the responsibilities in the management of information.

Are SMEs and the self-employed aware of their vulnerability to these cyber risks?

The question is not whether you, your business or your company will receive a cyber attack, the question is when; and on this matter and on the existence of a real exposure to risk there is still no awareness in the field of protection and assurance, but this is a matter of time and that in that time what will happen will undoubtedly happen: Attacks, serious consequences, and let it be known.

There are many and complex areas of protection in the guarantees of a cybersecurity, both from the compensatory side and from the provision of critical services

Is it enough to contemplate some coverages in this area in other types of insurance or do you think that a specific insurance is necessary? What do you think are the basic coverages in an insurance that protects against these incidents?

Un insurance for cyber risk coverage It has two very distinct parts, one that affects the company due to its own consequences and the other for possible responsibilities; In both cases, these are very technical and specific issues of the nature of this type of risk and the management of contingencies.

There are many complex areas of protection in the guarantees of a cyber insurance, both from the compensatory side and from the provision of critical services: Treatment of crisis states, management of reputational aspects, cyber extortion, coverage for breach of legal obligations, loss of profits, damage to systems, data recovery, ...

There has been a lot of talk about the advantages of applying the Internet of things: at home, in the company, in the field of health ... Do you consider that you are also aware of its risks, as cybercrime linked to the protection of data?

"OK Google, tell me the agenda for today but do not tell anyone"

Everything related to sensorization in the field of IoT, compromises the security of information and privacy. It is the price that must be paid for living in a connected society. It is only necessary to understand and accept the rules of the game of this new reality.

Today, the insurance sector is not yet prepared to obtain real value from the Big Data

What do you think the real scope of Big Data will be? Do you think that the insurance sector is prepared to work properly: extracting results and valuable information while protecting your customers' data in an optimal way?

The increasingly diverse and widespread habitat around virtual communities, together with the great penetration of mobile devices in society, make the circle of the internet, social networks, mobile devices, data and consumers close around a perfect storm originating a new paradigm of market model in which, the analysis of all our information dispersed over the internet becomes the most precious jewel of the 21st century. Today, the insurance sector is not yet prepared to obtain real value from the Big Data, but it will be soon, and the question is, when is it soon?

And this is true, only in the case of insurers, or does it also mean opportunities for other players in the sector?

One of the advantages of technology is that its virtuous use brings capabilities and opportunities closer to the economically less powerful. With little investment and a good idea focused with the right perspective, in a moment of opportunity you can develop a good business initiative.

This is a match for new innovative models based on entrepreneurship in distribution, underwriting under experimental formulas within the framework of the sandbox that allow innovation under the regulatory framework.

Download full interview