5 mins with: Milan Veskovic, former global chief sales officer and managing director, Wefox (Part One)

“When this data is structured in a totally different way, we will be able to provide the customers the right solutions for their needs”.

Arguably one of the most successful insurtechs in Europe, Wefox made headlines this year for raising $650 million. In the first of a three-part expert interview series, PolicyDock sits down with Wefox’s former global chief sales officer and managing director Milan Veskovic to get his take on the change that is gradually happening in the insurance industry. 

You’ve been in the insurance industry for many years. What are some of the main pain points in the industry in terms of technological infrastructure, innovation speed and productivity?  

The biggest challenge comes from the fact that we have a very old industry, a legacy based on many insurance contracts from the past and its many different tariffs. In addition, we have complex regulations, tariff calculations and different regulators in each market. 

To change for the future will require data to be handled totally differently while adhering to data regulation. When this data is structured in a totally different way, we will be able to provide the customers the right solutions for their needs.

How would you describe the industry's attitude towards technological change especially cloud computing?

The industry has generally understood that they need to change but we have certain obstacles. In a way, the great profits some companies have made in the past is hindering them from developing further and faster because they are not under enormous pressure to prepare for the client of the future.

In addition, some insurers are daunted by the thought of having to transform all those paper files and the thought of connecting local servers with cloud technology. 

On top of this, we must be mindful of the regulations of each market.  

Competition is coming from different sides of the insurance industry. For instance, insurtechs. Are the newcomers better at certain things? 

For sure, in certain things. Why? Because the newcomers do not have legacy, so it is relatively easier for them to position themselves for the future. 

At the same time, I know of established insurers who have great solutions. These companies are being pushed by the newcomers, so they are responding by adjusting, fighting, and modernising their solutions.

Is there anything else that sets the newcomers apart? For example, the way they are staffed.

I believe that employees are changing so an environment that supports this social shift creates a positive chain-effect within the business. That’s probably why some large insurers are hiring people from start-ups. 

Is there a difference in the way some of the newcomers staffed? For example, do the new guys tend to hire people who have inter-disciplinary skill sets?

I would say that the new players are providing a certain lifestyle which fits very well with creative, intelligent young people who want to achieve something great and can change the way things are done. When you create a certain culture, you attract certain types of people. 

The culture of a start-up gives you more opportunities to try and fail whereas in large entities, there is a process that must be adhered to.

What do you think made Wefox so successful? Is there something they're doing differently?

Yes, I used to work for Wefox and I will always be part of the Wefox family. I felt there was a strong family culture within Wefox and when you are part of a family, you fight for the common vision. This is what made Wefox so successful. Everybody was fighting for the vision and not for personal gain.

So again, it comes back to culture, company culture. 

It always comes back to culture, yes.