STRATEGY
“ It is vital for the traditional insurer to decide why they want to innovate ”
RENÉ SCHOENAUER DIRECTOR , PRODUCT MARKETING EMEA , GUIDEWIRE SOFTWARE
to cover and whether the authority is to be exclusive to them . Equally , Insurtechs may or may not have ambitious plans for an IPO within so many years or may have an eye on creating their own capacity ( setting up their own insurer ) at some point in the future . Mechanisms for agreeing changes to the type of insurance book and the limits of authority should be negotiated into the agreement .
Honest and frank conversations about these matters at an early stage are vital . When it comes to recording each partnership in writing , the devil really is in the details . Will an investor be entitled to have a director on the board ? How often does that director expect to attend meetings ? What decisions of the company will require investor consent ? For delegated authority , there will be similar details in the delegated authority agreement ( DA ).
The parameters of that authority must be carefully negotiated and drafted into the agreement . Whilst the extent of that authority is important , exit and reporting provisions must be considered . Intellectual property and confidentiality clauses could all also be points of friction if not discussed and written into the DA at the beginning of the partnership .
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