Tag Archives: inconnect

The New Insurance Is No Insurance

Insurers are aware that technology will help to reduce claims drastically and therefore finally run premiums down to unsustainable levels.

Time to move on

“Insurance is a cornerstone of modern life. Without insurance, many aspects of today’s society and economy could not function. The insurance industry provides the cover for economic, climatic, technological, political and demographic risks that enables individuals to go about their daily life and companies to operate, innovate and develop.” Source: Insurance Europe

I fully support this, but the way this cornerstone fits into modern life needs attention. It’s time to move on.

See also: Insurance Coverage Porn  

The Third Wave

Twenty years ago, I set up the first digital insurance. Ten years ago, I set up (again the first) mobile insurance Now we’re heading for the third wave: connected insurance.

Real connected insurance with the new opportunities that technology brings is what I (with a few former colleagues) believe in and have been working on for some time now.

Of course: “IoT,” “data science,” “AI,” “customer-centric” and “on-demand” are the buzzwords. But let me add two: “holistic” and “transversal.”

“Holistic” refers to the complete modern household with a connected lifestyle and “transversal” to the consumer who is completely not interested in our industry verticals.

Insurance has to stay but with an overall and fresh approach. Hundreds of insurtech initiatives are currently taking pieces and add sometimes compelling features. See the Sherpa-Neos-Interpolis-Trov-CBien-Metromile-Vitality-Clark-Knip-PolicyGenius-Lemonade-Inshared-like initiatives.

The real challenge is to bring it all together to a compelling, simple, transparent and engaging full service offer to the customer.

Focus on prevention

The new insurance is no insurance — meaning the focus should not be on pushing insurance products but on offering prevention services.

For this we developed an international concept for smart protection called InConnect, with the household as hub connecting all smart devices, vehicles and wearables and with technology and data used to improve prevention.

Safety and Peace of Mind

Unbiased personal risk management tools (Primes) help reduce insurance to what is really needed in one universal personalized policy without redundancies and gaps, dynamically adjusted to the actual situation and needs with:

  • On-demand add-ons
  • Built-in loyalty and reward system
  • Ready connections for sharing cars, rides and homes
  • Easy combining or splitting households
  • Privacy and cyber risk recognized

and backed with a one of a kind insurance and claims IT platform.

Startup

The overall concept is quite ambitious. Although we’ve successfully done ambitious businesses before and have qualified people and technology on our side, we’ll start on a controllable scale. A startup will kick off in three European countries with home, motor and travel.

As soon as we’ve completed our search for the right partners, we’ll start proving the concept, do the learning and keep you posted. Of course we’re always looking for enthusiastic and good individuals. Feel free to give me a buzz.

See also: The Insurance Model in 2035?  

Finally

Insurers are experts in risk and capital management, and that is what they should keep doing, but in a different perspective. Deploy that expertise in the new environment of connected lifestyles.

Where Will Real Innovation Start?

Ten years ago, BlaBlaCar was founded and now is a trusted community marketplace that connects drivers with empty seats to passengers looking for a ride. BlaBla has 25 million members in 22 countries and is one of many successful initiatives using technology to bring together supply and demand. Are there successful equivalents in insurance, as well? When will the customer be served with appropriate insurance cover and services for a safe environment based on real-time individual risk profiles?

See also: The Future of Insurance Is Insurtech

There are a few interesting initiatives:

  • trials and pilots (in car-telematics have been around for 10-15 years);
  • conferences and summits where new technology is discussed as a true disruptor;
  • billions of dollars reserved for fintech and insurtech initiatives;
  • warnings from regulators and consultancy firms that business models are under pressure;
  • studies and whitepapers from the industry;
  • insurance companies setting up or expanding innovation labs.

And yet we hardly have seen any serious change in the insurance offerings in the last decades. Creativeness does not go beyond a discount on a traditional product/premium when good behavior is proven. That is good for a start but of course is a dead-end street.

So will real innovation/disruption come from the inside or the outside?

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As a business engineer with 30-plus years’ experience in insurance innovation and digital transformation, I’m following global insurance business and all kinds of new initiatives closely.

There are two important findings:

  • the initiatives are often thin (scratching the surface and lacking insurance substance) and
  • the initiatives are fragmented, touching only a part of the overall customers’ insurance and claims needs

It is rather obvious for me that the insurance future is in real customer-centricity and -engagement and that technology (with a personal touch) provides the means to achieve personalized, dynamic and engaging solutions in a new and sharing economy.

Some of the key requirements:

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If you do the tick-list, the outcome will be that there is a strong reason to have clever teaming-up between startups and existing insurance companies., where a NewCo can develop at arm’s length from the insurance company but with full consent and maximum freedom (while staying compliant). In insurance, it seems that “Construct” is more promising than “Disrupt.”

See also: Shift in Funding for Strategic Initiatives  

Where “Bla Bla” in BlaBlaCar refers to the level of chattiness, let’s hope that there won’t be too many Bla’s in insurance and that real innovation will come soon, resulting in future-proof insurance solutions with happy and engaged customers.

At Intsure Technology Solutions, we are working on projects like:

  • My Insurance Kit
  • Pay-per-mile car insurance
  • Digital Advisor and
  • InConnect (Intelligent Insurance for Smart Living)

As a consultant I’m ready; as a consumer, I’m waiting.

And anyhow there is so much happening and so much to learn that any delay is a waste of time.