AI Magazine Issue 1 2018

Acquisition International - Issue 1 2018 19 Ty Sagalow: Redefining the Insurance Industry You know, the co-founders of Premonition found me in much of the way that Lemonade found me. They began talking to me about an area of insurance which had long bothered me, the lack of a scientific method in managing and choosing outside counsel. Tell us a little about what Premonition does? Premonition has two fundamental value propositions. First, it has the largest litigation database. 87% of all cases in the United States and in many other countries as well are in this database, which includes the judge, the plaintiff’s attorney, the defendant’s attorney, the venue, the duration of the case and the type of case. Simply put, it has more data than all of the competitors combined, really phenomenal. The second value proposition is its artificial intelligence. It is the algorithm that takes this massive database and calculates “win rates”, which attorneys against which attorneys in which courthouses against which judges, in which types of cases are more likely to win. It is the Moneyball method of outside counsel selection based on data not instinct. I see a connection between Lemonade and Premonition is that they’re both working with how artificial intelligence and transparency are transforming the space. Did you see that when you landed on Premonition? Did you see the connection? Not right away but eventually I did. I think one of the drivers toward Premonition is the fact that it shares a couple of fundamental characteristics with Lemonade. Both companies are based on using artificial intelligence to create transparency in the insurance industry. In many ways Premonition takes a step further than Lemonade by shinning a light on an area where there was no light, which is how do you logically select and manage your outside counsel based on how likely they are to achieve lower settlement and judgment costs? Indeed, using Premonition, you can lower not just your expense ratio but more importantly your loss ratio. Ty, but please let me wrap this up with a final question, apart from Premonition, are you working with any other InsurTech start-ups? Several. I am working with an exciting new company that is creating a customized investor protection product for crowdfunding companies and another which is working on an insurance product for pandemic risk. In each case, the client uses technology to help makes risks previously uninsurable insurable creating new products for the insurance industry. INSURTECH ADVISOR AND SENIOR EXECUTIVE Ty Sagalow is an executive and advisor to the InsurTech industry. A founding member of founding Chief Insurance Officer of Lemonade, Mr. Sagalow acts as Chief Insurance Officer or Advisory Board Member for several InsurTech companies including Premonition, Metaiota, Assurely and others. Founded in 2015, Lemonade is the first licensed and regulated InsureTech insurancecompany in theUnitedStates. Lemonade offers homeowners and renters insurance powered by artificial intelligence and behavioral economics. Launched in September 2016 in New York, Lemonade Insurance Company is operating in 8 states and licensed in 25 representing over 65% of the US population. Lemonade has been called the “Uber of Insurance.” Prior to InsurTech, Mr. Sagalow was a globally recognized senior insurance executive veteran. Most of Ty’s career was spent at AIG where over a 25 year period he held various positions including Chief Underwriting Officer and General Counsel of AIGExecutive Liability (D&O, E&O), Chief Operating Officer of AIG eBusiness Risk Solutions (Cyber insurance) and President of AIG Product Development. Following AIG, Mr. Sagalow was Chief Innovation Officer of Zurich North American and Chief Innovation Officer of Tower Group. Immediately prior to Lemonade, Ty founded Innovation Insurance Group, LLC, a premier consulting firm to the insurance industry. Mr. Sagalow is considered on the world’s experts in innovation in the insurance industry having been credited with creating various insurance products including Y2k Insurance, (Entity Cover) Directors and Officers Insurance, Cyber insurance, Reputation Insurance, Collectible Authenticity Insurance and Intellectual Property Collateral Insurance. He is also the host of the series Innovations in Insurance With Ty Sagalow and What’s New in Insurance, both produced by World Risk and Insurance News. Mr. Sagalow is a frequent author and speaker. His works include @Risk: Internet and E-Commerce Insurance and Reinsurance Legal Issues and Directors & Officers Insurance Handbook. Mr. Sagalow has appeared on CNBC, WPIX-TV, FOX, PBS and Bloomberg Radio, and he has spoken before various tech, legal and insurance forums on issues including the White House, Department of Homeland Security, and Congress. For the past two years, Mr. Sagalow has been a frequent speaker on InsureTech issues and insurance innovation. Mr. Sagalow is a cum laude graduate of Georgetown University Law Center and holds a LLM (Master of Laws) from New York University Law School.