LEADERSHIP SPOTLIGHT: Leveraging the Digital Ecosystem with Unum Group and SixThirty

LEADERSHIP SPOTLIGHT: Leveraging the Digital Ecosystem with Unum Group and SixThirty
Mike Simonds, COO of Unum Group, and Atul Karma, CEO of SixThirty, discuss collaboration, innovation and trends in the Employee Benefits space.

Partnerships in the insurance industry are redefining business models, driving innovation and expanding horizons for both incumbents and insurtech startups. As part of our series on leadership, Insurtech Insights caught up with Atul Kamra, (left) CEO of SixThirty, and Mike Simonds (right), COO of Unum to find out more about their collaborative strategy.

SixThirty is a venture fund specialising in finance, health, and privacy, that invests globally in collaboration with industry leaders, and has a strategic partnership with Unum Group, a leading provider of financial protection benefits in the US, UK and Poland. 

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As the COO of Unum, Mike Simonds leads all aspects of the company’s employee benefit operations, as well as the marketing and strategy functions.  

How would you describe the partnership between Unum Group and SixThirty?

Mike Simonds: Our partnership with SixThirty has been truly invaluable. There are a few key dimensions that make this collaboration so important to us. Firstly, we are a limited partner (LP) in one of their funds, which gives us access to their investing expertise and extensive networks. This has been instrumental in exploring opportunities and challenges within the employee benefits space, particularly at the intersection of health and wealth. By leveraging our respective networks, we can identify innovative companies and startups, share insights, and seek ways to address these challenges and seize opportunities together. It’s a collaborative effort where we not only invest but also work together to develop proof of concepts and use cases.

How does collaboration play a role in this partnership?

Atul Kamra: Collaboration is at the heart of our approach to redefining the venture capital experience. At SixThirty, our aim is to engineer collaboration between our portfolio companies, category-leading investors, and LPs. This collaborative spirit is particularly crucial in regulated industries like ours because we believe that collaboration drives trust. And trust, in turn, drives speed and facilitates the acceptance of change. For us, the true challenge lies not just in technology but in embracing and consuming change. Building trust through collaboration accelerates this process. Unum has fully embraced this collaborative model, whether it’s through scanning for ideas, working with peers, conducting due diligence across health and wealth, participating in investment committees, co-investing, or forming advisory groups. Together, we nurture a collaborative sensibility that is at the heart of our partnership. Unum has been an exceptional partner in this regard.

What are the benefits of this partnership?

Mike Simonds: Our partnership with SixThirty has brought tremendous benefits to us. Beyond the innovation and positive change that directly benefit our customers in the employee benefits space, there is also a cultural advantage. Injecting creativity, optimism, and the rapid pace that SixThirty and their portfolio companies bring has been truly invigorating for our teams. As a company with a 175-year history, we have a rich legacy and a wealth of expertise. Combining this with the energy, innovation, and creativity that partnerships like SixThirty offer is where the magic happens. It fuels excitement and propels our teams forward, allowing us to embrace the opportunities and challenges that come with change. This partnership has truly been transformative for us.

In terms of investment in insurtechs, it’s been very tough over the past 12 months. From an employee benefits and investor perspective, what strategies in your experience are driving positive outcomes?

Atul Kamra: When looking at the InsureTech landscape, it’s important to acknowledge the strong position of incumbents in the direct-to-customer space. These incumbents have built brands, loyal customers, established channels, and nurtured relationships with regulators over many decades. Breaking through these established positions and changing the customer experience has been a significant challenge for many startups. Sustainable business models have been lacking, and there has been capital inefficiency due to insufficient understanding of market dynamics and customer buying behavior. However, there are strategies that have shown positive outcomes.

Mike Simonds: Absolutely. Despite the challenges, the employee benefits sector has been thriving. We have seen consistent growth in investments and capabilities over the past five years, even through the pandemic. The sector offers numerous opportunities and significant white space for entrepreneurs. Additionally, when considering the macro trends, there is a long-term demographic challenge in the US labor force, particularly in attracting skilled workers. This presents a growth opportunity for employee benefits, as they play a vital role in helping employers attract and retain talent.

Atul Kamra: To add to that, successful strategies in InsureTech have involved creating new markets within incumbents or startups. Examples include bending the cost curve to target small businesses, tackling new risks such as cyber insurance, and combining previously separate areas such as savings and insurance. Another impactful area has been addressing the caregiver space, where delaying or reducing the placement of elderly individuals into facilities has positive economic and social outcomes. These strategies tackle multiple important issues and incentivize action and change.

Mike Simonds: Exactly. It’s crucial to focus on solutions that provide a double benefit, such as leveraging technology and innovation to improve customer experience while simplifying processes and reducing costs. These opportunities rise to the top, especially during times when investments may be more limited. Combining creativity with addressing new markets or solving new pain points has shown promise in driving positive outcomes in InsureTech.

Atul Kamra: Absolutely. By targeting areas where we can make a social and economic impact, such as enabling aging at home instead of placing the elderly in facilities, we can achieve significant positive outcomes for insurers, families, and society as a whole. These approaches demonstrate the power of addressing multiple issues simultaneously and driving meaningful change.

In terms of the employee benefits space, what is it that you are most passionate about, and what sort of improvements have you seen in this space over the past few years?

Mike Simonds: There are three key areas that I’m passionate about when it comes to employee benefits. First, it’s about increasing access to basic financial protection. Many individuals in the US live paycheck to paycheck and struggle to cover unexpected expenses. By focusing on smaller employer groups, we can address the underserved segment and provide them with the necessary protection. 

Second, affordability is crucial. We aim to pull unnecessary costs out of the equation, making coverage more accessible and affordable for everyone. 

Last, it’s all about driving positive outcomes. Whether it’s helping individuals stay with their families and in their homes longer or aiding their return to work after an accident or illness, we want to make a real impact on people’s lives.

Atul Kamra: From an investor perspective, the smaller business segment is incredibly exciting. Not only does it represent new revenue opportunities, but it also serves as a catalyst for change within larger organisations. By successfully catering to the needs of smaller businesses, we can bring innovation and transformation to the core of our businesses. 

Moreover, the workforce today consists of four generations, each with different needs and preferences. It’s a challenge, but also an opportunity to provide tailored benefits that address the unique requirements of each generation. We’ve also witnessed a shift towards considering the impact on families as a whole, recognizing that employees face various burdens and challenges that affect their overall well-being. Solving these complex problems and making a positive impact is truly rewarding.

How have you seen the employee benefits space evolve in terms of addressing the protection gap?

Mike Simonds: The protection gap is a significant issue that we’ve been working to address. Access to even the most basic financial safety net can make a huge difference in people’s lives. While we still have progress to make, I’m optimistic about the pace of change. We’ve seen improvements in increasing access, affordability, and outcomes. By providing individuals and families with the necessary protection, we can bridge the gap and ensure a more secure future.

Atul Kamra: Absolutely. The pandemic has accelerated the shift in thinking about benefits from an individual employee focus to a family-centric approach. We’ve combined our expertise in insurance and life events to understand and address the impact on families. It’s not just about what employees go through individually, but also how their families are affected. This holistic approach considers the mental and emotional aspects of well-being, making the benefits experience more comprehensive and impactful. It’s an exciting time as we continue to advance the market and enhance the lives of employees and their families.

What’s your take on wellness washing? Has the problem been overblown? Are we seeing a prevalence of it as a result of the tricky economy from your perspective as a provider of benefits?

Mike Simonds: Wellness washing is definitely a concern, and it’s important to acknowledge the real problems that exist, particularly in the realm of mental and behavioural health. The increase in anxiety and depression among working adults is alarming, and it’s impacting their ability to work effectively. Stigma reduction has encouraged more people to seek help, but there are underlying issues that need to be addressed. Employers are experimenting with various solutions, but sometimes they miss crucial elements in the design and delivery of benefits.

It’s important for employers to invest in data-driven resources and practices to make informed decisions and manage wellness initiatives effectively. By conducting due diligence and implementing best practices, employers can learn what works and make necessary adjustments. Overall, I believe employers take their role in employee wellness seriously and maintain a bond of trust with their employees.

Atul Kamra: I agree that there is a gap between aspirations and achievements when it comes to wellness initiatives. Sometimes, declarations of achievements may not align with the actual impact on employees. It’s crucial to measure and listen effectively to close this gap. Rather than just making declarations, we need to provide authentic support and ensure that employees feel genuinely cared for. It’s about moving beyond surface-level gestures and genuinely addressing the mental and emotional well-being of employees. By measuring and addressing the gap, we can make a real difference without necessarily incurring excessive costs.

Are we getting better at it though? Are things improving or are we seeing, as Mike Simonds was just saying, a marked increase in employee dissatisfaction?

Atul Kamra: It’s an ongoing journey, and I believe there is a genuine effort among employers to close the gap between aspirations and achievements. The war for talent has made it imperative for organisations to listen to their employees and be authentic in their approach. There are underlying health issues, both physical and mental, that need to be addressed, and staying ahead of these evolving challenges is a constant endeavor. However, one positive trend I’ve noticed is the shift towards an employee-centric design of benefits programs. Rather than simply matching competitors’ offerings, employers are now focused on creating a meaningful experience for employees and their families. It’s about working together as an ecosystem with the employee at the center. While we still have progress to make, this shift in mindset is reason for optimism.

Mike Simonds: I agree with Atul Kamra’s points, and I would add that the hybrid work environment has added another layer of complexity. Balancing freedom and responsibility becomes crucial, especially in larger organisations. We want to provide flexibility while ensuring responsible behavior. The basket of benefits and employee wellbeing should be viewed within the broader context of offering freedom and responsibility to our team members. By creating a culture that values responsible individuals and empowers them with the necessary freedom, we can enhance employee satisfaction and growth despite the increasing complexities of the world we operate in.

Mike, in your experience as a COO, what’s the most important leadership strategy when it comes to leading a genuinely happy company culture? Is there a set of essential points you can highlight?

Mike Simonds: When it comes to fostering a healthy company culture, I believe it starts with having a shared sense of purpose within the organisation. If everyone is grounded in the same purpose, it becomes easier to align decisions and create a work environment that people want to be a part of. Another crucial aspect is honesty and authenticity. Leaders should communicate openly about what’s happening within the company, including both the exciting and challenging aspects. Showing vulnerability as a leader and acknowledging that none of us have all the answers builds trust. Providing clear direction is also vital. 

Having a well-defined plan that outlines the organisation’s goals and measures of success allows employees to operate with autonomy within those broad guardrails. As the world becomes more complex, decentralised decision-making and empowering employees to make meaningful contributions are key. These are some strategies I’ve seen work well in cultivating a genuinely happy company culture.

Atul Kamra: I often advise founders that ambition and kindness are equally powerful assets as leaders. It’s important to balance ambition with a genuine sense of responsibility and kindness towards employees. Being authentic in your leadership approach is crucial. In my experience, these qualities have a significant impact on creating a positive company culture and fostering employee happiness.

If you could fix one major issue currently hindering the insurance and insurtech industry, what would it be and why?

Mike Simonds: One major issue in the insurance and insurtech industry is the heavy regulation and legacy processes that hinder disruptive innovation. The nature of the industry, which involves making long-term promises to policyholders, adds another layer of complexity. To overcome these challenges, it would be beneficial to foster a closer collaboration between industry expertise and innovative technology from startups. By leveraging the strengths of both sides, we can drive meaningful change and create more efficient and customer-centric solutions.

Atul Kamra: In my view, the insurance industry has two significant opportunities for improvement. First, there is a need to better understand customers and leverage advancements in technology to gain deeper insights. This understanding will enable insurers to tailor their offerings and provide more personalised experiences. Second, we should reconsider the scope of insurance coverage and explore alternatives such as borrowing or saving for certain needs rather than solely relying on insurance. Disaggregating our approach and considering different economic factors can lead to more effective solutions.

What’s your forecast regarding insurtech over the next 24 months? What do you anticipate seeing more of, and what changes do you think will have a dramatic impact?

Mike Simonds: I believe that the momentum in insurtech will continue over the next 24 months, despite the complexity of the insurance industry. Insurers typically take a long-term perspective, which allows for sustained innovation and expansion of access to insurance products. While there may be fluctuations along the way, the overall trajectory will be upward. Additionally, there will be a focus on innovation that delivers dual benefits, such as improving outcomes and cost efficiencies. Targeted improvements in key dimensions will increase the chances of success for insurtech companies and drive significant changes in the industry.

Atul, what’s your take on the future of insurtech and what trends do you anticipate?

Atul Kamra: I see several trends shaping the future of insurtech. Firstly, we will witness the consolidation and aggregation of point solutions into more sustainable platforms. This will lead to better propositions and enhanced value for customers, especially in areas like caregiving where multiple point solutions exist. 

Secondly, the rise of neobanks and their success in bundling services presents an interesting opportunity for insurance integration. Exploring bank assurance and how banks can innovate in absorbing insurance will be significant. 

Climate change is another crucial factor that will impact insurance. As we face the consequences of climate change, the question arises of whether we step up as lenders or insurers for properties that can’t be insured. This has cascading effects on the lending market. 

Cyber risk and cyber insurance also pose significant challenges, particularly in quantifying and managing cyber risk effectively. Lastly, addressing the aging demographic and improving care infrastructure globally will require political will and support from leading incumbents. This is an area ripe for impactful solutions, but cultural issues need to be addressed as well.

Interview by Joanna England

Joanna England is an award-winning journalist and the Editor-in-Chief for Insurtech Insights. She has worked for 25 years in both the consumer and business space, and also spent 15 years in the Middle East, on national newspapers as well as leading events and lifestyle publications. Prior to Insurtech Insights, Joanna was the Editor-in-Chief for Fintech Magazine and Insurtech Digital. She was also listed by MPVR as one of the Top 30 journalist in Fintech and Insurtech in 2023.

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