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

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