Munich Re Tech Trend Radar 2022 | Down Markets - What Founders Should Do | 4 Insurance Predictions on AVs | Israeli Tech Firms Want To Start Abroad

The Tech Trend Radar 2022 by Munich Re and Ergo

What will be the implications of technology on insurance this year? To keep up with the rapid pace of technological advancements, the insurance industry must constantly adapt.

The Tech Trend Radar 2022 report can help businesses by providing insights into the most significant innovations in the insurance industry.

This report has been compiled by experts from Munich Re and ERGO, and is structured around the following five trend fields:

1. Wellbeing
2. Hyperconnectivity
3. Data & AI
4. Cyber & Crypto
5. Emerging Industries

Insightful reports that you must not miss from the great cooperation of Munich Re and Ergo.

Click here to download the report now.

Down Markets - What Founders Should Do

When the market dips, founders crave advice that goes beyond platitudes and provides a tangible framework to quantify the magnitude of the change in valuations and what it means for their next round and to chart their future course. In the post, they go through the diagnostic framework used by founders: reevaluate your valuation, understand your burn multiples, and build scenario plans

Reevaluating Your Valuation

1. Quantifying how valuation multiples have changed
2. Median public company software valuations have dropped from 12x forward revenue to 5x or less since highs in October 2021
3. Downturns hit different sectors differently, making it important to look at relevant public companies to best gauge where you stand.
4. Once you know how much your market segment has dipped, how do you recalibrate your goals for this new lower valuation environment?
5. Calculate the ARR you need to reach to get back to your last round's valuation.

Control Your Burn [Multiples]

1. Burn multiples are cash burned divided by net ARR added
2. Unlike other efficiency scores (e.g., LTV/CAC), actions you take across every business function will impact your burn multiple.
3. You should see a decrease over time to cross zero as a company becomes cash flow positive.

Scenario Plans

1. Keeping a close eye on cash outlay and having scenario plans will enable you to adjust spending and investment in response to performance quickly
2. Base case: 80% confidence plan that you know you can hit with good burn multiple efficiencies
3. Best case: ARR growth and burn rate is likely at or better than your operating plan from six months ago
4. Worst case: You need to slow-burn significantly and lengthen your runway
5. Once you have these plans, assess where you are on a quarterly or monthly cadence, and then adjust your spending and hiring accordingly

Credits to - click to read more.

Tech 12 Article and Future.com

Top 4 Predictions on Insurance for Driverless Cars

1. Comparison Websites Will Start Showing Driverless Car Policies.

In a landscape where self-driving cars are present, insurance companies have to offer driverless car policies, or they risk getting "eaten" by the bigger companies that opt-in early. The car insurance landscape is very "dog eat dog," as multiple insurance companies compete with the market rate.

2. Automakers Will Assume Liability Out of Fairness to the Driver

94% to 96% of all accidents are caused by human error.

To account for this, most experts assume the onus will be on the automakers in most cases unless they can prove the accident was caused by the driver.

3. Premiums Will Drop Significantly As Accidents Become Rarer

Since Waymo put the first driverless car on the road, insurers have thought about how to price their policies.

A prediction that they'll drop significantly within 30 years, as insurers already offer premium discounts for self-driving features.

4. The Insurance Industry Will Struggle From Reduced or Drop Coverage

Full coverage auto insurance is crucial for your vehicle and wallet. However, in some countries/states some people don't buy full coverage because it's expensive and often required by their state.

There's a possibility that once self-driving cars take off, full coverage won’t be offered.

Click here to read and learn more.

Israeli Tech Companies Want To Start Abroad.

In recent weeks, Israeli high-tech companies have laid off hundreds of employees, however, the majority of them have chosen to start overseas.

1. Israeli companies have decided to develop their core locally while expanding the rest of the company abroad
2. This has come in the wake of the revolution in the Israeli high-tech sector
3. Instead of establishing small technology-oriented companies, it is establishing more significant sales and growth-oriented companies
4. The result is that many Israeli companies are no longer Israeli and have a large number of employees beyond Israel's borders.

A loss for the Israeli ecosystem and economic growth. We hope to find a long-term plan to incentivize Israeli companies to keep their operation in Israel.

Click here to read and learn more.

Congratulations Ergo For An Amazing 2021

ERGO is a subsidiary part of Munich Re and one of the major insurance groups in Germany and Europe. Worldwide, the Group is represented in 26 countries and concentrates on core and growth markets in Europe and Asia. ERGO offers a comprehensive spectrum of insurance, provision, and services.

I am very proud to share these 2021 achievements,

1. € 19.2 bn - premium income
2. € 140.7 bn - investments
3. About 37,300 - employees and sales partners

Cheer to our friends and colleagues in Ergo!

Ergo will visit Israel and I am super excited to host them this coming Sunday!

Catch Me In Germany this July

For all my Friends and Colleagues whom I missed from the last 2 recent visits to Germany - I am coming back to Germany this 1st week of July.

Let's talk insurtech innovations and solutions - send me a DM now.

A Thought 2 Think 😉

Dear Insurtech and Innovation Friends,

Crisis not only builds character - but also reveals it.

10% is the situation and 90% is how you would react to it.

Best, Dikla 😉

Disclaimer: Personal thoughts and views are my own and do not reflect the interest of any companies and institutions.