10 Things InsurTech Startups NEED to Know! The Curiosity Code 020
10 Jan, 2025
In this episode of the Curiosity Code podcast, Alex interviews Sabine VanderLinden, a leader in insurtech and corporate innovation. As CEO and co-founder of Alchemy Crew Ventures, she helps insurers and financial institutions collaborate with tech startups to drive change and growth. Sabine has worked with over 150 ventures and co-edited the Insurtech book. She discusses her work building R&D and adoption labs that enable large companies to collaborate with startups in a faster and easier way. This involves identifying key problems for the insurance industry, scouting and sourcing ventures globally to solve these problems, and then guiding both corporations and startups through a collaborative process of discovery, investigation, validation, and adoption. Sabine highlights the challenges corporations face in adopting new technologies like AI, including regulatory concerns, employee fear, and potential reputational damage. She emphasizes the importance of co-creation, strong stakeholder relationships, and education to bridge this adoption gap. The conversation explores promising applications of AI in insurtech across the value chain, from marketing and underwriting to claims management, citing examples of specific companies like Plank and Charlier. Sabine underscores the transformative impact of AI on operating models and job roles, leading to the emergence of new positions like ethical underwriters. Looking ahead, Sabine emphasizes the importance of building AI solutions with transparency and ethics from the ground up, particularly for fintech and insurtech companies. She highlights the need for AI governance and the evolving landscape of liability in an AI-driven world, using the example of autonomous driving to illustrate these complexities. This episode offers a comprehensive look at the evolution and impact of insurtech, the critical role of collaboration between corporations and startups, and the importance of navigating the ethical and practical challenges of AI adoption in the financial services industry.

Alex: Hey everybody and welcome to another episode of the Curiosity Code podcast. I'm your host, Alex. And today we're excited to welcome Sabin Wonderlinden, a leader in insured tech and corporate innovation. As CEO and co-founder of Alchemy Crew Ventures, she's helping insurers and financial institutions collaborate with tech startups to drive change and growth. Sabin has worked with over 150 ventures, co-edited the insured tech book, and contributed to innovation research at Bayou Business School. Sabin, it's great to have you here. To start, can you tell us a bit about Alchemy Crew Ventures and its mission?

Sabine: Yeah, thank you Alex for welcoming me on your podcast. So Alchemy Crew Ventures, just to give you a little bit of background, I've been working for big corporations for a very long time. I've been in business for probably 25 or 28 years. And around 10 years ago, I decided to go and work with young ventures. I actually started working with a FinTech startup as the chief revenue officer. I stayed there for one year and then I realized this new world of fintech. But I realized my industry, insurance technology, or insurtech, needed to get on the bandwagon as well. So in 2015, 2016, I left corporate, left that fintech, and then I started building acceleration programs. I started boot camping insurtech in Europe and also did the same in the United States, building well-known acceleration programs. And just before COVID, I decided it was time for me to do my own thing. So I built Alchemy Crew Ventures in February 2020, started by stealth, and then launched something in June 2020 in the midst of COVID-19. And I guess the vision of Alchemy Crew is to help big companies to work with small ones. So we build what we call R&D and adoption labs to enable big companies to collaborate in an easier and faster way with young ventures. I tend to work a lot with B2B vendors, scale-ups, startups, to start solving really important problems within my industry, which is insurance. And you know, it's not about talking about motor insurance or home insurance or travel. I look at emerging risks, such as longevity, climate resilience, and sustainability, which is bringing more risk into the industry, right? We need to help businesses like yours and mine to be more resilient as we are affected by climate risk, healthcare, and other significant challenges.

Alex: Mm-hmm.

Sabine: So we tend to work with corporations to first help them look at big problems and then also industrialize and democratize the way they collaborate with young ventures, doing that differently than they would with traditional vendors. We want them to collaborate, to build partnerships. And that’s why I often don’t call my clients "clients"—I actually call them "partners."

Alex: Yeah, that totally resonates with me as well, with my approach at Product Terra. I have a number here, and correct me if I'm wrong. So you’ve worked with over 150 ventures?

Sabine: I have worked with over 150 ventures, accelerated at least 150 ventures over the past 10 years. I sit on boards now but continue working with corporations. Those 150 ventures mean that we have scouted globally, looking across 55,000 companies to solve those problems. So you know, you have about a 1% chance to actually map the right scale-up or startup to a corporate problem. It’s very small. You have to go through a lot of companies to find the gem among all the options out there.

Alex: Wow.

Sabine: So when we talk about these ventures, the process starts with corporations recruiting us to solve their problems, like simplifying processes or improving claims with AI and generative AI. We scout ventures globally for solutions, taking months to analyze and engage them. After validation, we facilitate their adoption into corporates through co-creation labs. This collaboration allows startups to scale faster, reduce risks, and enhance credibility with proven partnerships.

Alex: That’s fascinating. Let’s talk about the rise of AI-driven fintech. Since you started before COVID and have seen the industry evolve with AI advancements, what specific strategies have proven most effective in bridging the adoption gap for fintech solutions?

Sabine: AI has shifted from tech offices to business offices, making it more accessible. While 95% of corporations plan to adopt AI within two years, there’s also fear and regulatory hurdles. Strategies for adoption include co-creation in sandbox environments, fostering strong partnerships, and ensuring transparency in AI solutions. Responsible and ethical AI is crucial to maintain trust and comply with regulations.

Alex: What are the most promising applications of AI in insurtech that you’ve observed in recent years?

Sabine: Across the value chain, AI powers marketing tools, underwriting platforms like Plank that provide rapid insights, and claims solutions that enhance efficiency and accuracy. Generative AI aids in research, underwriting decisions, and improving customer interactions, transforming traditional processes into agile, data-driven operations.

Alex: Let’s discuss AI ethics. What should fintech companies prioritize when developing AI-powered solutions, particularly concerning data privacy and bias?

Sabine: Building with transparency and ethics from the ground up is essential. Solutions should meet strict criteria for explainability, transparency, and fairness, ensuring trust in mission-critical processes like pricing and claims handling. Liability considerations, like in autonomous vehicles, further highlight the importance of ethical frameworks in AI development.

Alex: Considering your work globally, including in the UK, Singapore, and the US, how do these regions differ in their approach to financial innovation and AI?

Sabine: Asia is fragmented but leads in digitalization and payment innovation. Europe is more strategic and cautious, with smaller investment sizes. The US, on the other hand, is product-centric and transactional, driving high levels of investment and technological advancement.

Alex: Thank you very much, Sabin. It’s been a very insightful conversation. I appreciate you being a guest on our podcast.

Sabine: My pleasure, Alex. Thank you for having me.

Alex: Thanks to our audience for listening. Don’t forget to like the episode and subscribe if you haven’t yet. See you next time!

Sabine: Bye-bye.