Riskwolf Pitch Deck
Data & AI | Using unique real-time data and dynamic risk modelling, Riskwolf enables insurers to build and operate parametric insurance at scale.
Graduation Day FIL23 Turn Real-Time Data Into Insurance
Sales Deck Copyright Riskwolf AG Long-term mega trends present challenges for traditional underwriting and insurance The Challenge 2 It’s costly 35-40% cost ratio of incumbent insurers (e.g. Lloyd’s cost ratio 2022 ) It’s slow 4-6 months for claims settlement (in Cyber up to 3 years ) It’s inflexible A one-policy-fits-it-all approach with static and history based underwriting fails for new risks But traditional insurance is not made for this purpose: Climate Change Climate change effects will increase the property risk pool by around 33‒41%, generating up to USD 183 bn in new premiums by 2040 ( SwissRe ). Digitalization Cyber and technology risks could account for up to USD 80 bn by 2040. New trends such as cloud adoption fundamentally changes the market. Pivot East By 2040 $560 bn or 13% of the premium volume will shift from advanced markets towards east. + 16 additional new insurable risks
Sales Deck Copyright Riskwolf AG 3 3 Can we revolutionize insurance by designing it for simplicity, speed, and efficiency?
Sales Deck Copyright Riskwolf AG Automated payouts on the basis of a predetermined trigger: If you can measure it. You can insure it. Solution: Parametric Insurance 4 Fills gaps Complements traditional insurance policies, filling gaps and exclusions. Fast payouts Provides immediate payouts on pre-defined triggers Highly customized ability to price and capture individualized protection needs It’s a useful tool for insurers and policyholders: Catastrophic event occurs Neutral 3rd Party verified event Issue payout within days Predetermine payout
Sales Deck Copyright Riskwolf AG Solution: One platform. One process. One parametric view. 5 Riskwolf enables insurers to build and operate parametric insurance at scale 15+ datasets for Climate & Weather Natural Disasters Cloud & Internet Intelligence Parametric Insurance Services API LAYER & MULTI-TENANT PORTAL Create Coverage Generate Quote Monitor Policy Enable Payouts Define & Model Novel Indices Handle Big Data Sets
Sales Deck Copyright Riskwolf AG Massive New Market Opportunity For The “New Great Risks” Market 6 *Swiss Re https://www.swissre.com/press-release/Global-property-casualty-insurance-premiums-expected-to-more-than-double-to-USD -4-3-trillion-by-2040-Swiss-Re-Institute-forecasts/66cbcf70-d69f-4e5e-8d87-1b389dbf9491 Chart: Riskwolf The Global P&C premiums will more than double from USD 1.8 trillion in 2020 to USD 4.3 trillion in 2040* Climate change effects will increase the property risk pool by around 33‒41%, generating up to USD 183 bn in new premiums by 2040. Cyber and technology risks could account for up to USD 80 bn by 2040. The parametric market will outperform the overall P&C market growth in the coming years. $2.5T+ GWP $200-300B GWP $30-35B GWP New Premium Potential (GWP)
Sales Deck Copyright Riskwolf AG Why Parametric Insurance Will Grow 7 Climate change and the resulting increase in extreme weather events resulted in USD 183bn of global disaster losses were uninsured (58% of total). In some cases, a parametric policy is simply the better solution and thus indemnity policies will partially be replaced by parametric There are three major growth drivers for parametric insurance: Yearly average growth rates of parametric markets outperform overall market development Cover new and previously uninsured or inadequately covered risks , for instance parametric microinsurance for farmers and cyber non-damage business interruption coverage.
Sales Deck Copyright Riskwolf AG Dealing With Four Key Challenges In Parametric Insurance Why Are Insurers Not Adopting The Parametric Model Yet? 8 Traditional Underwriting Not Applicable Parametric insurance involves complex modeling and data analysis. Underwriters must be equipped with data science tools and deep data understanding for external events. Knowledge Locked At Reinsurance Insurers depend on reinsurers and other partner to underwrite parametric insurance. Limited internal knowledge about parametric models and applications. Data Availability and Quality Obtaining accurate and timely data can be challenging, especially in certain risks and regions. Unavailable, Inaccurate or incomplete data affects the reliability of parametric insurance. Basis Risk Parametric insurance may not align perfectly with actual losses (basis risk). Potential discrepancies between actual losses and predefined triggering criteria.
Sales Deck Copyright Riskwolf AG End-to-end support for parametric solutions 9 CREATE COVERAGE Self-service selection of risks, locations, limits, payout structures and simulate pricings GENERATE QUOTES Take over coverages and customize for client POLICY MONITORING Register policies and real-time monitor relevant data points EVENT DETECTION Trigger insurance processes in case of a pre-defined event happening GENERATE CLAIM DOC Calculation of losses based on policy level Real-time data Key Features: Simple. Reliable. Fast. LAUNCH BUILD OPERATE
Sales Deck Copyright Riskwolf AG Riskwolf supports multiple use cases using the same data, model and technology stack 10 Further: Digital Risks: Weather Risks:
Sales Deck Copyright Riskwolf AG Realistic Growth Target: AUD 30M+ GWP Real world example - Parametric Crop Insurance 11
Sales Deck Copyright Riskwolf AG Awards & Recognition 12 Recent Industry Reputation & Recognition Co-Innovation Price in 2023 Cohort London Riskwolf Secures CHF 1.6M Swiss Accelerator Grant from Innosuisse to Revolutionize Cloud Downtime Insurance Press Release, May 2023
Sales Deck Copyright Riskwolf AG Our team has 80+ years of relevant experience in re-/insurance, technology and digital transformation Peter Belko Platform Lead Thomas Krapf Co-Founder & CEO René Papesch Co-Founder & CTO Ashish Trivedi Market Lead Asia Founders & Team 13 Sahil Shinghal Parametric Actuary
Sales Deck Copyright Riskwolf AG With Riskwolf it’s easy to create, launch and operate parametric insurance products Start small, scale big. We will grow with you. 14 CALIBRATE Build parametric products using the Riskwolf platform within weeks EMBED Integrate parametric products into platform channels through APIs LAUNCH One-click to enable quotation and automated operations SCALE Continuously expand on the same platform Good Package monthly fee + consumption Pilot Package monthly fee Better Package monthly fee + consumption
Sales Deck Copyright Riskwolf AG Beachfront Hotel in Punta Cana, Dom Rep Example Case Study 16 Cat-In-A-Box Storm Cover: Property Value: USD 75m BI Value: USD 30m
Sales Deck Copyright Riskwolf AG STEP 1: CREATE A COVERAGE 17 CREATE COVERAGE Limit definition Pre-defined Event payout Trigger Property Damage Business Interruption Sum Insured ($m) 75 Sum Insured ($m) 30 Premium 1 ($m) 5,30 Premium 1 ($m) 2,42 Premium 2 ($m) 0 Premium 2 ($m) 0,09 Payout Structure ($m) Category 3 25 Category 1-2 1 Category 4 50 Category 3 7,5 Category 5 75 Category 4+ 30 *Premium 1 is based on the frequency of cyclones for whole of country *Premium 2 is based on CAT-in-a-box
Sales Deck Copyright Riskwolf AG Pick & Choose Pre-Defined Coverages STEP 2: QUOTE 18 DUMMY
Sales Deck Copyright Riskwolf AG STEP 3: CLAIM REPORTS 19 EVENT DETECTION Trigger insurance processes in case of a pre-defined event happening Hurricane tracks DUMMY