Today, Latarche heads up the Sales department of a brand new division of Swiss Re that draws on a broad range of innovative solutions as well as Swiss Re’s deep industry knowledge built over 160 years. We caught up with him to find out more.
Tell us about your entry into the insurance market? Why did the industry become a career choice for you?
My entrance to insurance came through the technology route. I had worked at insurance software houses, and I always enjoyed looking to improve an industry held back with legacy. The insurance market then grabs your attention with the ability to innovate, the people that work within it and its diverse opportunities.
Tell us about your entry into the insurance market? Why did the industry become a career choice for you?
I have always been an entrepreneur inside corporate enterprises and find it is one of the strongest platforms for success. I think there is a misconception that to drive new insurtech opportunities it needs to be done outside the classic corporate vehicle. As long as you have an unwavering focus and tackle concerns around agility, corporate structures give you the runway to drive success.
You joined Swiss Re in 2022 following a three-year-stint at Verisk, stepping into another CCO role. What was that transition like, especially following two very turbulent pandemic years?
Whilst the titles are the same, the roles are very different. Swiss Re Reinsurance Solutions is similar to a tech startup inside a major brand. Our new division is in the privileged position to be able to draw on a broad range of innovative solutions as well as Swiss Re’s deep industry knowledge built over 160 years. The access we have to data, software solutions and knowhow sets our offering apart from others.
What are the biggest challenges facing your particular area of expertise at this moment in time, and why?
Generally speaking, re/insurance has been lagging other industries in embracing digitalisation. The Covid-19 pandemic accelerated digital transformation, which forced insurers to separate technology hot-topics from hype.
During the pandemic, our research showed significantly higher acceptance of digital interactions with insurers and more frequent digital touchpoints for health management and insurance purchases. As this trend continues, one major challenge is for insurers to continue applying digitalisation throughout their value chain. Major technology trends (blockchain, quantum computing, metaverse) remain far from having a transformative effect on the industry, while others (virtual care solutions, telematics, predictive analytics etc.) are on the verge of changing the way the industry operates.
Another key challenge in our area is the need to shift towards maturing, deploying, and scaling selected impactful technologies to remain relevant in a rapidly evolving industry.
What strategies have you found most useful in terms of addressing those challenges?
Finding a partner that can help you make sense of the new technologies, trends, and analyse data, is crucial, if you don’t have those capabilities in-house. Processes, optimisation, often becomes an obsession. So much so that you forget about the human, soft factors in the decision-making journey and the long-term benefits.
Swiss Re has been around for 160 years, a firm with a lot of history and taking a long-term view on the business. We are open to collaborate with clients, equipped with amazing software and people, ready to make a difference for the end consumers, making insurance more affordable and easier accessible.
Digital transformation is steaming ahead in the insurance industry. Which areas do you think still need a lot more work, and why?
There are three key considerations for successful digital transformation in the insurance industry:
First, new technologies must balance the focus on improving operational efficiencies with creating new innovative business models and solutions. For example, in risk prevention and mitigation services, complementing the more traditional pay-out solutions.
Second, advanced data analytics allow us to better understand the risks our customers face and helps us mitigate them while incentivising early prevention.
And third, it’s critical for tech and business teams to work hand in glove, and senior leaders need to understand the technology that drives the future growth of their companies.
Which three trends do you think will play the most important role in transforming the insurance space over the next five years?
Technology is having a significant impact in the fight to reduce the protection gap. We can look at it from several different perspectives: risk understanding and modelling, product innovation as well as efficiency gains.
When it comes to risk understanding and modelling, technology enables the industry to have improved data collection, analysis and risk assessment capabilities, which will lead to Swiss Re and other companies to better understand and price risk.
In product innovation, various sensors and improved imagery allows insurers to develop innovative parametric and index-based products that provide solutions for sections of populations most at risk. And when coupled with public partnerships, these solutions can go a long way in reducing the protection gap. Furthermore, technology such as satellite imagery, drones and virtual inspection tools can facilitate remote claims assessment. This enables faster and more accurate claims processing, particularly for areas affected by natural disasters or other events where on-site assessments are not feasible. Faster claim payments will help communities rebuild quicker.
It has to be said that the protection gap is also very much a L&H topic, and here the potential with wearables and various ecosystems, such as those seen in many Asian countries, the potential to reach and insure large swaths of population also dramatically increases.
Finally, technology can drive operational efficiencies and reduce costs, making insurance easier accessible and more affordable to previously underserved segments of the population.
If you could solve one problem in the insurance industry today with a click of your fingers, what would it be, and why?
Our ultimate goal should be to close the prevailing risk protection gaps. Digital insurance solutions, if implemented correctly, have the potential to narrow this gap by addressing three key factors: Availability, Accessibility and Affordability (‘3As’).
There are three areas which insurers should focus on to achieve the 3As:
- Seek to better understand customer needs across all segments
- Engage in strategic partnerships to boost diversity in distribution channels
- Innovate in underwriting processes and product design to meet customer needs in more affordable and efficient ways
What inspires you in insurtech today?
It’s fascinating to see how tech partnerships have become essential in the insurance industry. No single player, not even the biggest, is able to build every digital product or solution themselves. This means we are all collaborating in a big ecosystem now in which we all play a distinct role in making insurance better available, easier accessible and more affordable.
