Tag Archives: roger peverelli

Insurtechs: 10 Super Agents, Power Brokers

Insurers should aspire to give their agents and brokers superpowers. Superpowers? Think of the impact of speech-to-speech language translators that free you from having to learn foreign languages. Of GPS car navigators helping you find your way without knowing your way. Or of 3-D printers that enable consumers to produce their own products. Those kind of superpowers. Insurers can deploy technology to empower agents and brokers much more, leading to an even better experience and performance. For instance, by combining and integrating robo-adviser systems with human agents and brokers, insurers can deliver better conversations and higher customer satisfaction, which result in better advice and higher conversion rates. A hybrid model. The best of both world.

Connecting online customers with offline brokers and agents

Digitization changed the way people research and purchase products. More and more comparison sites enable customers to check prices and services with just a few clicks. Consequently, agents and brokers need to adapt. Yesterday’s tactics become less and less effective, in particular in view of ever increasing customer expectations. But complex insurance products still need extensive explanation, and trust in the insurer. This is where the human factor comes into play. In Germany, for instance, 59 percent of all insurances are researched online, but purchased offline (ROPO), according to a survey by Google and Zurich in 2016. For high value and complex insurance and finance products like health, mortgage and pension insurances, the ROPO share accounts for more than 75 percent of all sales.

Best of both worlds

The past decade has taught us that insurers need to manage the feelings side of their relationship with customers much better. But with new technologies primarily being used to digitize processes, insurers are in danger to become even less human.

Humans inject emotion, empathy, passion, creativity, they are able to smile and surprise, and can deviate from the procedure if needed, which algorithmic systems are unlikely to do at this stage. They have the ability to be kind, honest, friendly, generous, giving; someone who makes time for me, listens to me, keeps promises, goes the extra mile. These talents are essential parts of successful customer engagement. We believe that insurers should create the best of both worlds. By leveraging the latest technologies insurers can create smarter agents and empowered brokers.

See also: Insurtech: How to Keep Insurance Relevant  

Agent and broker empowerment

In this DIA Summer Read we included six insurtechs that insurers should team up with to revamp this channel. Each of these insurtechs supports the agent or broker in different stages of the primary process:

1. LifeDrip offers state of the art automated marketing tools to agents and brokers.

2. Predictivebid built building an advanced AI platform for online customer acquisition.

3. Finanzen.de created an online marketplace for leads.

4. Virado puts the insurance broker back in the middle with an on-demand offer for millennials.

5. RiskAPP allows agents and brokers to seamlessly collect data for risk analysis.

6. Figlo facilitates the conversation between brokers/agents and customers.

These six insurtechs have in common that they all give superpowers to agents and brokers. They give access to capabilities that used to be exclusive to large corporations. With the solutions offered by these insurtechs agents and brokers can move to a next level.

Next generation brokers

We also notice a new kind of broker emerging that taps into the needs of consumers and insurance carriers alike, leveraging to the max what digital has to offer. We included four of them in this DIA Summer Read:

7. Knip: the personal digital insurance manager.

8. SPIXII: an insurance chatbot designed to speak to consumers just as a person would.

9. Bought By Many: grouping together people with a special similar insurance need.

10. PolicyGenius: reveals the gaps and overlaps in your policies.

DIA Munich

Expect DIA Munich (15 and 16 November) to pay ample attention to insurtechs that make smart agents and power brokers.

Agent and Broker Empowerment

1. LifeDrip: The future of life insurance agent’s sales software

The world is going mobile but most insurance brokers and agents still use ‘old’ marketing methods to generate leads. It is time for something new and something smarter.

LifeDrip, launched by the Seattle based software company Xeddy, is a turnkey, fully automated mobile marketing system exclusively built for the life insurance agent. It provides monthly, custom branded email newsletters and an exclusive agent website for generating client reviews and feedback.

LifeDrip captures the fastest growing form of lead exposure, including Facebook, Google+, Twitter and LinkedIn. It is done automatically and the contacts and the database are continuously synced. Agents don’t even have to think about it. LifeDrip offers a new way to generate leads at a fraction of the cost. The SEO website is registered with Google and built with responsive code so it is viewable on any mobile device. To maximize Social Media marketing exposure all the required content for Social Media Marketing and Email Newsletters is automatically generated and customized specific to the agent’s sales specialties. The Recommendation Engine generates dozens of powerful and real client recommendations. SplashTriggers notifies instantaneously when a prospect is ready to be contacted for the sale and what to sell them.

Read more: http://bit.ly/2vniEFD
Check demo: http://bit.ly/2irgVOG

2. Predictivebid: the bidding platform of the future for insurance

Predictivebid is a Tel-Aviv based tech company, building the most advanced AI platform for online customer acquisition through Search & Social campaigns based on Life Time Value Measurements. They excel in lead generation campaigns, lead quality analysis and lead potential scoring, thereby optimizing the lead process and helping companies lower their acquisition cost by providing higher quality leads with better life-time-value metrics. Predictivebid bridges the gap between online and offline, helping insurers capture consumers online and then directing them to book a meeting with their nearest and most relevant agents. The AI platform connects and tracks potential customers to the right agent nearest to them, based on their location and needs. A costumer can schedule a meeting with an agent, chat with an agent or even send his details so the agent can call him back.

Read more: http://bit.ly/2vdced1
Check demo: http://bit.ly/2wmpXC7

3. Finanzen.de: the marketplace for leads

Finanzen.de, located in Berlin, Paris, Zurich and Bristol, connects lead generators such as online price comparison sites with lead buyers such as independent financial advisers and insurance companies. More than 800,000 leads are annually traded via its industry leading technology platform, using real time auctions and real time lead delivery. The company also acts as an online broker for P&C insurance products. Thanks to its scalable business model, finanzen.de is ideally positioned to benefit from the digital shift occurring in the European insurance and banking domain and to capture the significant market potential ahead.

Founded in 2004, Finanzen.de is one of the oldest and at the same time one of the most successful InsurTech companies. Finanzen.de generates about one million online leads per year for more than 20,000 insurance experts and financial consultants. Finanzen.de informs consumers about insurance and finance topics and offers interested customers free access to the best possible advice. In the search for suitable offers, visitors can perform neutral tariff comparisons. If they find a suitable offer they can close a contract directly online or receive advice from audited and evaluated experts.

Read more: http://bit.ly/2nZAR9C
Check demo: http://bit.ly/2xrmr6j

4. Virado: One app. 250 niche product insurances for Millennials

German tech startup Virado is successfully creating new sources of income for insurance brokers. By offering 250 insurance products, mainly for niche policies on one platform. Targetting German Millennials. For example, insurance for an apartment share, DJ-equipment, or a travel backpack. These kind of products were not available for the insurance broker due to high connection and transaction costs of the insurer. The Virado all in one app for smartphones and tablet is based on Virado technology. The on-demand platform offers insurance brokers structured access to all insurances. Easy. Fast. Free.

Virado puts the insurance broker back in the middle. Millennials do not use a traditional insurance broker. They go online to find an insurance solution to fit their lifestyle. The on-demand platform Virado puts the insurance broker back in the middle by giving him the opportunity to not only protect but also to create new sources of income by serving the Millennials with insurance products they need. ‘On the spot’ insurance products will significantly increase the customer’s loyalty and customer lifetime. The tech startup offers also digital business expertise and the app is suitable for the insurance brokers homepage and its own social media channels.
Virado is completely free of charge and user-friendly. All the insurance broker needs to do is download the app and register.

Read more: http://bit.ly/2w23mbh
Check demo: http://bit.ly/2wmAGg5

5. RiskAPP: Risk assessment by agents and brokers

RiskAPP is a new Risk Assessment tool created to assist insurers globally. RiskAPP is a unique platform for structured data collection and integrated risk assessment. RiskAPP helps insurers to use captured data from their prospects and clients to sell and underwrite the risks wisely and profitably. The RiskAPP is a complete Risk Assessment tool for the insurer that wants to win his challenges.

RiskAPP delivers the most complete risk assessment possible. Through the platform the insurer can offer the most remunerative coverage program giving safety and peace of mind to insurance clients and the insurance carriers. The sales process is now smooth and seamless.

When the broker has the first meeting with a prospect, the RiskAPP data collection helps the broker to engage the client. The process follows with the technical inspection where the loss preventionist gathers further technical data that clearly describes the company. RiskAPP, thanks to its proprietary algorithm, processes the data collected and elaborates a detailed report included with automated loss protection recommendations. The insurer now has access to the most complete risk profile of the insured. RiskAPP enables analytics, portfolio management and helps in increasing the efficiency of risk selection.

Read more: http://bit.ly/2wDxoon
Check demo: http://bit.ly/2vnQtX4

6. Figlo: facilitating the conversation with customers

AEGON Turkey uses the Figlo platform to facilitate the conversation between brokers/agents and customers. A tablet app guides the complete conversation and gives a quick and tailored overview of the customer’s financial situation to select suitable products based on the client’s risk profile, to cover possible shortfalls. Uğur Tozşekerli, CEO AEGON Turkey: “Customer interaction and involvement as well as the possibilities for illustration and demonstration of the product benefits dramatically increased. From a customer point of view, using the app leads to better and more understandable advice, focus on the real customer needs and on top of that faster service. Straight through processing results in more efficiency and speed of delivery. Apart from a significant improvement of conversion rates the deal size increased between 10 to 45%, depending on the product category. At the same time the operational costs decreased by 18% due to decrease in rework and paperwork. The ROI was already positive in the first year of deployment.”

Quote is from our new book ‘Reinventing Customer Engagement’

Next Generation Brokers

7. Knip: The personal digital insurance manager

Knip is a ‘mobile-first’ digital insurance broker with a simple and transparent solution to insurance; bundling all the customers’ insurance products into one app. Even if these products are from different insurers. An easy-to-understand overview shows existing insurance policies, tariffs and services. One click opens an entire insurance policy. So the important information is always at hand. After an automatic analysis, new customers receive individual recommendations based on their existing insurance portfolio. Upon request, the Knip insurance experts offer professional consulting, analyze tariffs and services and detect individual savings and optimization potential. As the consultants receive a fixed salary and no commission whatsoever, they can provide independent and honest insurance advice. The app is designed to automatically detect individual’s insurance gaps and recommend essential insurance. Knip allows users to change their tariffs, close new insurance contracts and cancel old policies with a simple click.

Read more: http://bit.ly/2wxi65i
Check demo: http://bit.ly/2vXA7YK

See also: What Incumbents Can Teach Insurtechs  

8. SPIXII: Making insurance simple, accessible and personal for everyone

London based startup SPIXII is on a mission to make insurance simple, accessible and personal. It starts by redesigning the way people buy insurance. SPIXII, named after a family of Brazilian parrots that spell out the co-founder’s names, has almost entirely done away with the human component of selling insurance. It is an automated insurance agent, a chatbot accessible via messaging platforms or via a native mobile app. Its app creates a WhatsApp-like chat on a smartphone where a robot will ask simple questions and figure out what the user needs. Built on principles of neuro-economics and the integration of user data with contextual data from multiple sources, SPIXII is an insurance chatbot designed to speak to consumers just as a person would.

Read more: http://bit.ly/2xrFfT9
Check demo: http://bit.ly/2sxsubF

9. Bought By Many: grouping together people with a special similar insurance need

Bought By Many uses a combination of search engine optimization and social media to group together people who have similar insurance needs –such as diabetic travelers, pug owners or homeowners in flood risks areas. They present that group’s requirement to the insurance industry and negotiate on behalf of the group to bring them a better deal than they can get on their own. A better deal might be better pricing, it might be more tailored benefits, or it might be both. Once they bring the offer back to the group, individuals buy directly from the insurer on the better terms that Bought By Many negotiated for them. Creating a win-win for everyone. Insurers only write the risks that they want and members of Bought By Many get a better deal.

The company finds niche groups by looking at Google search data to see which niches have high volumes of search queries. There is also a data entry box on its website letting people submit their own policy ideas. They then validate those segments through social media and engaging with niche blogs, Facebook groups and other stakeholders. The site makes it easy for users to use social media and invite friends to join via Facebook, Linkedin, Twitter and the like. Having established the market, the company works out the group’s specific requirements and then approaches the insurance companies to negotiate a deal on a policy.

Bought By Many suggests to insurers to split the usual broker fee in three parts: one third for the Bought By Many members to get a better benefit, one third for Bought By Many and one third for the insurance company, because Bought By Many want you to want to do this business.

Read more: http://bit.ly/2wmz8CB
Check DIA keynote CEO Steven Mendel: http://bit.ly/2v4hvrz

10. PolicyGenius: revealing the gaps and overlaps in policies

PolicyGenius for instance addresses the uncertainty of consumers with regard to gaps and overlaps in the various policies they have purchased over time. PolicyGenius offers a highly tailored insurance check-up platform, where consumers can discover their coverage gaps and review solutions for their exact needs. PolicyGenius’ online store includes solutions from life and long-term disability to pet insurance. Quoting engines offer side-by-side comparisons of tailored policies. PolicyGenius is backed by AXA Strategic Ventures and AEGON’s Transamerica Ventures. What would happen if AXA and AEGON would open up the PolicyGenius platform to all its brokers and agents in all countries she has a presence?

Read more in our new book ‘Reinventing Customer Engagement’.

10 Insurtechs That Tackle IT

Regulatory overhead + old technology = high prices + bad service.

A German insurer shared this telling formula with us, and it’s a perfect summary of the challenges that insurers are facing. Among the 75 executives we interviewed for our book Reinventing Customer Engagement: The next level of digital transformation, many said that maintaining legacy systems consumes 90% of technology budgets. Typical digital transformation programs therefore give a lot of attention to simplifying IT environments. Outdated systems not only result in high costs but also make it difficult and costly to act quickly and effectively on new customer wishes. The systems of insurers are often older than the customers they serve. Meanwhile, digital life has become so much more intuitive (Apple), interactive (Mint), contextual (Amazon), beautiful (Spotify) and intelligent (Google).

Insurers have to operate much closer to the market and foster the opportunities that new technologies offer with techniques such as the “lean methodology” to experiment with new ideas and processes, constantly tweaking these with fast feedback loops. So, in this blogpost, we included 10 insurtechs and innovative tech providers that help insurers with solving the legacy issue, taking IT off the critical path:

  1. KASKO
  2. Backbase
  3. Vlocity
  4. Keylane
  5. Faktor Zehn
  6. Roundcube
  7. Tieto
  8. OutShared
  9. Guidewire
  10. Ti&m

(The forthcoming DIA edition in Munich (Nov. 15 and 16) will, of course, feature the latest.)

1.  Kasko: Helping insurers to act like an insurtech startup

London-based Kasko is the first digital insurance platform for on-demand insurance products to enable insurance companies and brokers to quickly bring products to market. Kasko allows digital marketplaces and booking platforms to offer their customers contextually relevant insurance products via plugin or API. The company relieves clients from the regulatory and technological burdens associated with integrating directly within insurance companies. Kasko provides insurance solutions within the spaces of car, property, freelance, travel and events. By offering an API-powered agile insurance product platform that sits in between digital customer touchpoints and their customers legacy IT, they take the internal IT off the critical path to product launch.

Read more, click here.
Check demo, click here.

2.  Backbase: Omni-channel experiences, ready to go

Backbase has created the world’s leading lean customer experience platform, Backbase CXP. It has been designed to help financial institutions organize, create and manage deeply relevant customer experiences across all channels, on any device, to delight your customers and deliver measurable business results. Backbase has a flexible and modular architecture that puts insurance providers back in control of their digital experiences and strategy, which puts them back in touch with their customers. By putting their own business and digital marketing teams in the driver’s seat, insurers will be able to create the types of interactions that boost engagement, resulting in increased retention and a larger share of wallet and, most importantly, happy customers.

Backbase is a ready-to-go insurance solution. It fully supports internet, tablet and mobile experiences, including omni-channel, by facilitating cross-channel customer journeys, plus seamless handover and orchestration between channels and devices.

Read more, click here.
Check demo, click here.

See also: 10 Insurtechs for Superb Engagement  

3. Faktor Zehn: innovative agile insurance solutions

Munich-based Faktor Zehn is well known as the product house for agile insurance solutions. The international IT consulting and software company, provides innovative consulting services in combination with concrete solutions based on the platform-independent programming language Java. Faktor Zehn focuses on product management, policy management and sales and service systems to help insurance companies to innovate and develop competitive advantages. All products are developed to support insurance companies to generate speed of innovation as well as competitive advantages. Therefore, all business transactions are executable through web services to ensure a high rate of fully automatic processing. The user interface is optimized to process complex issues while leaving intact all primary batch processes, such as follow-up debit and premium due date mutations. While using products of Faktor Zehn, business and IT development teams of an insurance company work hand in hand with product development to improve time to market, to make sure that the products meet the high standards and to launch products or product variants quickly and efficiently.

Read more, click here.
Check demo, click here.

4.  Keylane: software with smart robotic applications for insurers

Keylane is the showcase of insurance 3.0. The state-of-the-art Keylane technology platform supports core processes such as policy administration, sales and distribution and underwriting, and enables companies to excel in operational performance as well as in customer service. Keylane’s software solutions enable companies to engage effectively with their customers; providing operational agility (founded on best practice), in the insurance and pension markets. New technologies such as speech recognition, social analysis and predictive analytics are already integrated with the Keylane solutions to make the insurance customer experience as easy and friendly as possible. The integration of core solutions with smart robotic applications provides front-line workers within a matter of seconds with a more holistic view of their information landscape. Improving efficiency, effectiveness and lowering of costs. The user-friendly multi-channel portals integrated with flexible administration systems enable insurers to boost customer experience as well as excel in operational efficiency, achieving cost savings of more than 50% on the IT budget.

Read more, click here.
Check demo, click here.

5.  Vlocity: Adding industry-specific process applications to Salesforce

Developed in partnership with Salesforce, Vlocity extends the Salesforce Sales Cloud, Service Cloud, Communities Cloud and other clouds with very specific business process applications for, among others, the insurance and health insurance verticals. The Vlocity apps on Salesforce add value to the user through a much faster time to market, a lower total cost of ownership and the agility of a product that stays in sync with Salesforce all the way through. Those are huge benefits from a business perspective.

ABD Insurance, a top 100 insurance broker in America, sells all different lines of insurance across multiple carriers and uses Salesforce, which ABD liked it but which couldn’t do all the things the broker wanted. Vlocity came in and deployed Vlocity Insurance in just 45 days.

Read more, click here.
Check demo, click here.

6.  Roundcube: Why a “fat” mid-office is healthy for insurers!

To be truly agile as an insurer, you need an almost unattractive body: a slim back office, a flat layer that enables connectivity at the front end and a rich, “fat” mid office that is the engine that drives it all. It’s the mid-office where connections should be made. We cannot wish our legacy systems away, we cannot simply upgrade, we cannot continue to add channels that add cost without bringing in more business.  But what we can do is use the back office for its core and stable strength by extracting relevant data and let it run the more stable admin tasks. This system can run at a different heartbeat and cost than a mid- and front office, while still making use of your existing investment. The Roundcube Insurance Platform is an agile mid-office engine where data becomes relevant information, where you can build experiences with the customer through relevant offerings.

Read more, click here.
Check demo, click here.

7.  Tieto: an ecosystem for business renewal

Tieto, the largest IT services company in the Nordic region and creator of the world’s first internet bank, digital health records and e-invoice solutions, has already helped a large number of worldwide businesses in banking, insurance, retail, manufacturing, healthcare and public services with the digital leap in highly competitive markets. What’s more, Tieto actively builds an ecosystem of leading innovators and startups to complement its offering on data-driven areas. Tieto has several internal startups in the company focused on Tieto’s main growth areas: Customer Experience Management (CEM), Internal Internet solutions and Security Systems. This benefits customers by allowing them an increased ability to speed up digitalization.

Read more, click here.
Check demo, click here.

See also: What Incumbents Can Teach Insurtechs  

8.  OutShared: a digital insurer in a box

OutShared offers an in-house developed and built digital insurance platform in a SAAS solution to the market. OutShared’s platform is an all-in-one insurance solution for policy management, quotations, claims origination and processing: from back-office database through middle-office processing to front-office web and app interfaces. Built on today’s digital ethos, and offered through strategic BPO and SaaS operations, OutShared offers the smart integrated solution for insurance specialists, developed for both new market offerings and the renovation of established operations migrated to the platform. HEMA for instance, an established retail brand, converted its traditional business to OutShared’s platform. As a result, the operational cost ratio decreased by 50%, the loss ratio improved by 10 percentage points in one year. The portfolio was converted in two months, from zero to live in six months.

Read more, click here.
Check demo, click here.

9.  Guidewire: Personalized and hassle-free customer journeys with among others a chatbot and Facebook messenger service

The California-based company builds software products that help P&C insurers replace their legacy core systems and transform their business. Providing insurers with solutions for the main drivers for a successful customer journey; digitalization, personalization and a real omni-channel strategy.

Guidewire products enable insurers to deliver excellent service for all stakeholder within the insurance lifecycle, increase market share and lower operating costs. The platform is based on three elements – core processing, data and analytics and digital engagement. These work together to strengthen the insurers’ ability to engage and empower their customers, agents and employees, allowing insurers to select, deploy and upgrade best-of-breed applications individually or as a pre-integrated suite, according to their requirements and priorities. More than 260 P&C insurers off all sizes and business lines around the world have selected Guidewire. In Europe alone, Guidewire has more than 45 customers across 11 countries.

Read more, click here.
Check demo, click here.

10.  Ti&m: the benchmark for a personalized digitalization strategy

Ti&m is a Swiss market leader for digitalization and security products. The ti&m channel suite is the simple, fast, trusted and efficient way to digitalize customer relationships. With flexible business modules, ti&m creates a personalized digitalization strategy. The ti&m security suite provides the necessary security for all channels and makes the digitalization journey safer and faster. Together they set the benchmark for business digitalization. The ti&m approach is cost efficient with an extremely low cost of entry and compatible with most of the current security providers

Read more, click here.
Check demo, click here.

10 Insurtechs for Superb Engagement

We have written about the key challenges that insurance carriers are facing. Winning insurtechs are those that tap into these challenges to accelerate digital transformation. In this post, we’ll focus on the first of seven different flavors of winners in fintech insurance: insurtechs that drive superb customer engagement.

Customer engagement leaves much to be desired

Most insurers still have low Net Promoter Scores. In spite of all the efforts and investments in the last years, customers continue to experience a lot of friction throughout the customer journey. And what is even more challenging, rising consumer expectations are more and more difficult to meet. The frame of reference is set, not by the service offered by other insurers, but by what customers experience when they reach out to other brands, for instance when using their smart phone.

See also: Core Systems and Insurtech (Part 1)  

There are a bunch of reasons why customer engagement is the first flavour we are exploring in this blog series. We believe customer engagement is the key to turning digital transformation efforts into a lasting competitive advantage:

  1. Customer engagement is the key to build trust
    This is what research told us: Trust is built by excelling in the daily provision of services. Touch point performance, the perceived quality of customer-facing employees, the ease of doing day-to-day business are the most important elements in building or reinforcing trust.
  2. Customer engagement offers new points of differentiation
    Because virtually every financial institution is simplifying its product range and individual products, it will become increasingly difficult to differentiate from competitors on a product level.  Consequently, the points of differentiation of financial services will shift to the way the company engages with customers, e.g. in service and customer experience.
  3. Service is becoming a much more important purchase driver
    In the past, you shared your thoughts and experiences with your neighbors over your backyard fence. Nowadays, people exchange their thoughts and experiences also over a virtual fence powered by smart phones and social media. Peer-to-peer information sharing is almost always about the service quality. This has a huge impact on our decision-making. We are less and less choosing solely on price any more; more and more we are — within a certain price bracket — choosing on service. Service is becoming a much more important purchase driver.
  4. Lack of customer engagement results in loss of value
    Every day, thousands of insurance and financial products are purchased that do not completely match the needs of the customer. The cancellation rate in life insurance is proof of this. Sunk costs include billions of euros in intermediation costs and, even more importantly, of course, huge loss of value for customers.
  5. Customer engagement is a primary source of profit
    Ample research shows that customers who have had real positive experiences will drive revenues and profit in a variety of ways. They are more open to other products of that company. They will be less sensitive for offers from competitors. The costs to serve will decrease. And the customers are more likely to advocate your services to friends and family.
  6. New entrants set new standards to engagement
    Not all new entrants will survive, but they will definitely set new standards. Despite the fact that they differ quite a lot in nature, they have one thing in common. Every new entrant is attacking the frictions and complex processes that customers have to deal with when working with financial institutions. Incumbents need to step up to the plate to keep up.
  7. Regulators scrutinize how the industry engages with customers
    During the first couple of years “after Lehman,” the various supervisory authorities have focused on the way money was made, and the quality of financial products. We now see that that focus has widened to just about every aspect of customer engagement: sales, advice, service, even advertising. Regulators are forcing insurers to have a 360-degree view of customer engagement to treat customers fairly.

Address the pain points

The challenge is to close the gap between the insurer and the customer. Moving from transaction to interaction, from one-way communication to a dialogue and from interaction to intimacy, taking the dialogue from exchanging information to actions.

Too often, customer engagement is mistaken for creating a Disney-like experience. We think the opportunities are much closer to home. In our work for insurers, we have learned that customers across the globe more or less experience the same pain points:

  • “They do not really know me. They do not understand my situation.”
  • “I am not convinced they act in my best interest.”
  • “They do not treat me nicely. I don’t think they would walk the extra mile.”
  • “Their information confuses me.”
  • “They don’t make it easy for me.”
  • “I am not sure what I’m covered for and what the overlap with other policies is.”
  • “It is not clear what the status of my claim is.”
  • “I am not sure what I am exactly paying for; it seems very expensive.”
  • “It takes ages to get an answer. And too often I’m not getting any.”
  • “What the call agent says is different from what the broker told me.”
  • “They don’t treat me fairly.”

Just imagine what would be accomplished in terms of customer engagement if all these pain points were solved.

Furthermore, insurance is still about averages, products, one-size-fits-all, paper, brokers and agents – which is not always in sync with changing customer preferences and what technology is able to. In fact, we notice that customer engagement technologies that are widely accepted in other industries are still hardly used in insurance.

Take the use of video. Research shows that only 7% of a conversation is about words, 38% is about tone of voice and 55% is about body language. We have seen quite a few successful WebEx implementations; e.g. bank employees who assist customers in the complex process of purchasing a mortgage, with application-to-proposal conversion rates increasing from 10% to 35%, and proposal-to-signed contract from 50% to 75%.

Another no-brainer is the use of YouTube channels to explain what customers should do when a particular event takes place. These channels are extremely effective to explain more complex consumer electronic products but are hardly used in insurance. Think of the application of social data to simplify the underwriting and onboarding process of new customers and consequently higher conversion rates, or to login to certain information to simplify the customer experience. Or take the poor state of FAQs at many insurers’ websites, while a company such as Zendesk is able to launch a tailored state-of-the-art solution in just a few weeks and at very low costs.

The Tripolis communication platform allows companies to take personalization to a next level, deploying real-time relevant dynamic content in, for instance, email campaigns. Customers receive personalized real-time information and offerings that anticipate their context, the time of day, where they are – not when the email is sent, but at the moment the email is opened. Obviously, this improves the impression of a one-to-one intimate relationship with the brand. While the use of such solutions is increasing fast in other industries; this is hardly the case in insurance.

Fortunately, more and more insurtechs are helping insurers to make a leap in customer engagement, to become much more effective in every step of the customer journey.

And, of course, we also see new entrants that are attacking specific frictions, complex processes and product and pricing imperfections that customers have to deal with when working with insurance companies. Trendwatching.com coined the term Clean Slate Brands: a whole new breed of exceptional new brands living by the rules of business 3.0 — newer, better, faster, cleaner, more open and responsive. Brands that consumers are therefore attracted to, also because they cannot have sinned yet.

See also: Insurtech: Unstoppable Momentum  

A line-up of 10 insurtechs that drive superb customer engagement in various stages of the customer journey:

PolicyGenius addresses the uncertainty of consumers with regard to gaps and overlaps in the various policies they hava purchased over time. PolicyGenius offers a highly tailored insurance check-up platform, where consumers can discover their coverage gaps and review solutions for their exact needs. PolicyGenius’ online store includes solutions from life and long-term disability to pet insurance. Quoting engines offer side-by-side comparisons of tailored policies.

Trov offers customized home insurance by allowing coverage of individual key items rather than a one-size-fits-all coverage set with average amounts. An app-based platform allows customers to discover and track the real-time value of their belonging. They simply upload the items they own to a digital locker, by scanning a product UPC code, entering an auto VIN number or a home address or looking up individual items in an in-app database. Trov (backed by leading fintech VC Anthemis) has partnered with a wide variety of proprietary data sources like Zillow (U.S. real estate), Blackbook (U.S. autos) and Symantics3 (global consumer products).

Erste Digital taps into the fast-growing use of social media and mobile to purchase products and services – quite neglected by traditional insurance companies. Erste Digital is a B2B digital broker platform selling “add on” insurance. The Scan2Insure mobile app allows customers to scan a barcode to instantly get a quote to insure the product. To sell through social media channels, Erste Digital has integrated the platform into YouTube, Instagram, and Facebook.

BIMA offers micro-insurance in 14 emerging markets in Africa, Latam and Asia, using a mobile-delivered model. Traditional insurance companies find it difficult to service those living on less than $10 per day. And that is a shame, because insurance is a powerful tool that can prevent families from falling back into poverty in case of illness and injury. BIMA gives customers access to micro-insurance that is paid for using prepaid mobile credit or postpaid billing. Policies start from $0.23 per month, and BIMA pays out within three days of receiving a claim. Today, BIMA serves more than 18 million customers.

Recently, BIMA decided to enter the health sector. In emerging markets, people need to travel far and spend many hours in waiting rooms to see a physician. BIMA’s mobile health services make it easy, quick and affordable to access medical advice from a qualified doctor via a tele-doctor service. Memberships are available in three, six or 12 month pre-paid packages and include an unlimited number of phone consultations with a qualified doctor for the whole family.

More about BIMA’s fascinating business model in one of our next posts.

Cuvva introduced a mobile app that enables the user to sign up, get a quote and buy coverage in less than 10 minutes. Quite different than what customers have to experience when they apply at the average insurance firm. Basically, a completely digital experience run from a smartphone. What is also addressing a customer need is that Cuvva gets customers covered for only as long as they need it; from a single hour to a whole day – rather than the usual single option of a year.

Another imperfection, at least in the eyes of customers, is the costs of deductibles. insPeer allows users to share insurance deductibles with their friends and family members.

Collision damage waiver and loss damage waiver on rental vehicles are also always expensive. Insuremyrentalcar provides the solution with a package that starts from $5 a day to $93.99 a year.

Embroker says it aims “to revolutionize the way businesses buy, manage and understand insurance.” The company combines the service and expertise of the best-in-class brokers with an innovative technology platform. The 100% online solution allows customers to optimize insurance spending with policy benchmarking tools and provides a real-time interface to track and manage claims, apart from many other beneficial features.

Claim Di and Snapsheet are both all about making the most important moment of truth of a car insurance, when an accident takes place and the claim process that follows, less of a hassle.

The Claim Di mobile app “shake and go” feature facilitates communication and claims between parties in an auto accident and their insurance companies. The drivers can shake the phone near the phone of another party who also uses Claim Di, allowing for an insurance claim without waiting for a surveyor from their respective insurance companies to arrive at the scene (which is common practice in Thailand). Claim Di also includes roadside assistance, a call service for insurance companies and a module to facilitate payment to claimants.

Snapsheet provides insurers the process and technology to optimize virtual claims operations. Claims adjusters get the tools they need to provide a seamless experience; a mobile solution enables customers of insurers to settle a claim completely virtually. The solution simplifies claims adjusting, reduces the cycle time and increases customer satisfaction. Consequently, Snapsheet’s solutions are transforming claims organizations into a customer-first experience and cost-efficient operation.

Bauxy’s offerings takes away hassle and frustrations in a very different way. They enable consumers to file their claims just by taking a photo of the invoice. No more queuing on the phone to talk with insurance company call agents, asking when the money will be reimbursed and getting frustrated in the process. Bauxy submits the claim on the consumer’s behalf.

What these insurtechs have in common is that they cut two ways. On the one hand they solve frictions and dramatically improve customer engagement. On the other hand, they simultaneously improve operational efficiency. In our view, this is what makes an insurtech a winner.

In our next post we will focus on the second flavor of winners in fintech insurance; insurtech solutions for dramatic cost savings. So stay tuned!

Insuring What You Want, When You Want

DIAmond Award winner Trōv is one of the most widely referred to cases when speaking about disruption in the insurance sector. But what is Trōv exactly about? What is the business model? How successful is it? Trōv’s founder and CEO Scott Walchek will share his vision in a keynote presentation at DIA Amsterdam, this May. To warm up, I interviewed Scott last week.

Trōv is the world’s first on-demand insurance platform for single items. It is a mobile app that allows users to insure whatever, whenever. It empowers customers to insure “just the things you care about” for whatever period you prefer. Trōv users simply snap a picture of a receipt or the product code of a product. This creates a personal digital repository for all things tangible. For selected items, Trōv offers a quote to insure each individual item. Customers can then simply “swipe to protect” to purchase the insurance. It is equally simple to “swipe to unprotect.” With Trōv, long contracts are not necessary. Even the claims process is automated with the use of chatbots and available on-demand on a smart phone.

Trōv is founded by Scott Walchek. Scott is a successful technology entrepreneur. Over the past 25 years, he built companies such as Macromedia, Sanctuary Woods, C2B Technologies and DebtMarket. He was also a co-lead investor and founding director of Baidu, China’s largest search engine.

Scott is also one of the 75 thought leaders who contributed to our new book “Reinventing Customer Engagement. The next level of digital transformation for banks and insurers.”

What inspired you to create Trōv?

Scott: “At some point I realized there is an enormous latent value in the information related to the things people own. From obvious things such as receipts and warranties to actually having an overview of what you own and what the current replacement value of each item is. We want to curate ways to turn this into value for consumers. From keeping information on items up to date to, for instance, arranging insurance for these items.

We’re a technology company, not an insurance company. We’re new in this space. So I started with testing our first ideas about a proposition and the assumptions behind it with several senior executives of large P&C insurers such as AIG and ACE. What I assumed is that at the end of the day the core metric of success is the ratio of insurance to actual value. The better this ratio, the better the balance sheet.

Of course, this is an oversimplification, but everyone agreed that in essence this is how over the past 200 years value in insurance is created. Now, what is remarkable is that insurers do not really know what consumers own, and what the exact value of these goods is … What if they did know? This would disrupt markets. It would lead to much better risk assessment driven by real knowledge of the true value of what people really own.”

See also: Insurtech: The Approaching Storm  

Trōv’s main target users are millennials, a target segment that most incumbents find very difficult to reach and engage with. Why does Trōv strike the right chord among this generation?

Scott: “We’re in the Australian market for a year now and entered the U.K. market a few months ago. Around 75% of our users are aged between 18 and 24. It appears that we are successful in tapping into the specific needs of this group. We do this by explicitly tapping into four key millennial trends. The first is “on-demand.” We can see that from how millennials consume entertainment, shopping etc. Services need to be now, 24 hours a day, on my device. The second trend is, “Don’t lock me into a lengthy contract.” We enable micro-duration. Customers can turn their insurance on and off as they see fit. In practice, they hardly do. But it is about the psychological benefit of being able to do so. The third is what we call “unbundled convenience”: “Let me choose what to protect, the things I really care about.” The fourth is: “people/agent optional.” Millennials want to engage with their smartphone without having to talk to an actual person.”

Trōv is based in the San Francisco Bay Area. But you decided to launch first in Australia and the U.K. Why there?

Scott: “Ha ha – there’s a linear story and a non-linear story to that! The linear story is that microduration is still new to the industry, so our hypothesis requires testing. The regulatory environment is important if you want to get to market fast. Australia and the U.K. have a single regulatory authority versus the 56 bodies in the U.S. But we’re also in the process of filing in the U.S. The non-linear story is that I just happened to meet Kirsten Dunlop, head of strategic innovation at Suncorp Personal Insurance, at a conference in Meribel in France. She immediately understood the strategic impact of Trōv, and that is when it took off.”

Because the Trōv concept is so new to consumers, it must be extremely interesting to learn what exactly strikes the right chord …

Scott: “Customers just love the experience. Our NPS is +49. However, we’re learning every day. With a completely new concept such as Trōv, it is impossible to know exactly what to expect, honestly. It turns out that Trōv reveals new consumer insights. There is still a significant number of valuables that our audience wants to insure but that we cannot provide a quote for, for instance. Although more than 60% never turn off an insurance, the ability to switch an insurance on and off turns out to be an important psychological benefit. This appears to be category-dependent. Sporting goods are switched on and off more often than smartphones and laptops.

We’re constantly measuring and improving every step of the funnel. From leaving Facebook to downloading the app, to registration, to actual swipes. We will share concrete numbers on uptake and conversion rates at DIA Amsterdam. But to already share two big learnings: We designed Trōv for use on smartphones, but, much to our surprise funnel figures multiplied when we decided to add a web interface. And we are actually even attracting better-quality customers.”

In Australia, you decided to partner with Suncorp, in the U.K. with AXA and in the U.S. with Munich Re. What are the success factors of a partnership between an insurtech and an incumbent?

Scott: “At the end of the day, it is about relationships and people. We understand their internal challenges. Everyone agrees that real knowledge of individual insured goods and the actual value of those goods improves the loss ratio. But we need to figure out how this works exactly through experimentation. This requires internal dedication, throughout the whole organization, starting at the top. It is not about conducting small pilots, but the willingness to experiment while going all the way, invest for several years and learn as we go what insurance will look like in the future and how consumers want to engage.”

What are your future plans and ambitions with Trōv? We can imagine that Trōv could also be an interesting partner for retailers and producers of durables. With Trōv, they could seamlessly sell insurance …

Scott: “We have three lines of business. The first is what we call “solid.” This is about expanding the Trōv app geographically, covering more categories and continuously developing the technology. Trōv will be launched in Japan, Germany and Canada shortly. Then there is “liquid”; offering white-label solutions to financial institutions, for instance in relation to connected cars and homes. The third line of business is “gas”; basically Trōv technology embedded in other applications; insurance as a service. This could be attractive for all sorts of merchants, telco operators etc.”

See also: Understanding Insurtech: the ABCs  

This would make Trōv even more part of the context in which consumers makes decisions about the risk they are willing and not willing to incur. And it also taps into the exponential growth of connected devices, similar to how machine-to-machine payments are increasingly taking place …

Scott: “Yes. What we’re now doing with Trōv is really the beginning. Trōv is about providing our customers with exactly the protection they want, exactly when they want it. With more and more connected devices and sensors and new data streams everywhere we can make the whole experience so seamless they don’t have to do anything at all.”

7 Symbiotic Ties With Insurtechs

Our previous blogpost introduced the Top 10 insurtech trends for 2017. We received a lot of requests to share more of our view with regard to the last trend we mentioned: symbiotic relationships with insurtechs. Banks and insurers are looking for ways to learn much more from the fintechs and insurtechs they are investing in and partnering with. This is indeed a critical issue to accelerate innovation in banking and insurance.

In our new book “Reinventing Customer Engagement: The next level of digital transformation for banks and insurers,” we actually included seven best practices — seven examples of banks and insurers that created very different ways of working with fintechs and insurtechs. (The book will be available Feb. 23, but you can already pre-order at Amazon).

Corporate Venturing

Virtually every bank and insurer is organizing competitions and hackathons or supports one or more accelerator programs. Some have started their own corporate venture arm. Obviously, corporate venturing should not be the main way for financial institutions to reinvent themselves. It is a means but not an end in itself. The challenge of the digital transformation is essentially a cultural one that involves the whole company, not just the technology. Working with fintechs and insurtechs offers the opportunity to rethink and accelerate innovation. Innovation is not about asking customers in focus groups what they want. It is about understanding new technologies and how they will interact with consumer behavior. And that is one of the things fintechs and insurtechs are much better at than incumbents. Therefore, financial institutions need to really immerse in the fintech community to stay on pace or maybe even a step ahead in a rapidly changing technology environment, or, better still, to shake up the status quo and accelerate change in the stagnant financial industry.

Minh Q. Tran (AXA Strategic Ventures). Key note address at DIA Barcelona in 2016

Banks and insurers are looking for ways to learn much more from the fintechs and insurtechs they are investing in and partnering with — whether it is about specific capabilities or concrete instruments they can use in the incumbent organization, or whether it is about the culture and the way of working. (At last year’s edition of our Digital Insurance Agenda, Minh Q. Tran, general partner at AXA Strategic Partners, and Moshe Tamir, global head of digital transformation at Generali, shared their view. Check here for the interview with Tamir. Obviously, expect more such keynotes addressing this critical issue at DIA Amsterdam, which will take place May 10-11, 2017.)

We have come across quite a few different models in which relationships between financial institutions and fintechs/insurtechs seem to flourish. In this blogpost, we included seven examples. This is not meant to be exhaustive. New kinds of symbiotic relationships evolve every day, and of course they can be combined.

1. DBS Bank: Fintech Injections

Neal Cross, chief innovation officer at DBS Bank, involves fintechs in his own distinctive way: “I don’t do innovation, I do sales. I sell programs that solve business problems inside the bank. We always start with their problems, around business model innovation or around KPIs. The start-up community plays a key role in our programs. I often tell our business units: ‘Give us 20 of your staff, we will split them into teams and pair them with startups.’ By embedding our staff in this agile, lean mean way of working, everyone benefits. We make sure our teams work within structured processes that include research, experimentation and prototyping, followed by implementation. Everything we do is focused, and we get senior sponsorship before embarking on a project, so we don’t have problems with innovations that end up not being implemented.”

Neal Cross

2. Aviva: Icons

This is the best practice that we included in our previous blogpost. Andrew Brem, chief digital officer at Aviva: ‘In our view, ‘icons’ are needed to spearhead the digital transformation process. Our digital garages in London and Singapore are such icons. They are a very concrete and visual manifestation of our digital journey – for everyone across Aviva. The garages are not just idea labs to house ‘skunk works’ teams. They are real places, where we make and break things. We run digital businesses from the Garages, and we design and build our digital ecosystems such as MyAviva. Anyone from Aviva is welcome to come and hold workshops and meetings there, to see and feel our digital capabilities at first hand. The garages also help us engage with insurtechs and inject their culture into our organization; by launching startups ourselves, but also by partnering, mentoring and investing. Aviva Ventures, with a fund of £100 million, is also housed in the garage, and so are some of the startups they invest in, such as the IoT home security startup Cocoon.”

Aviva Garage, Shoreditch, London

3. Deutsche Bank: Digital Factory

In the summer of 2016, Deutsche Bank started its “digital factory.” More than 400 IT specialists and banking experts from the private, wealth and commercial clients division are working on a specific site in Frankfurt to develop new digital products and services for the bank’s customers. In addition, there are 50 places for external partners from the fintech community. The digital factory is obviously also connected with the Deutsche Bank’s innovation labs in Berlin, London and Palo Alto CA.

4. Munich Re: Interfaces

Andrew Rear, CEO of Munich Re Digital Partners: “To avoid a culture clash, we have set up a separate Digital Partners unit in 2016. To make the interface between the two worlds work, two things are vital: The first is speed. Startups move fast and don’t accept the limitations of a corporate diary: ‘Time is money’ is literally true for them. We therefore need to move with the same sense of pace. The second is decision-making: Start-ups make decisions; they don’t arrange committees. Therefore, we don’t do that, either. All the key decisions from Munich Re’s side are in our hands. In our model we do the things startups don’t need to control, to make their proposition live. That can include policy administration, compliance, reporting and product pricing; the ‘boring insurance’ stuff. We have stakes in our start-up partners but we don’t interfere in the way they engage their customers. The positive effects on our ‘regular’ organization are noticeable. For example, people in compliance and risk management were not used to these new speeds but are already adapting and finding new ways to fulfill their responsibilities in a way that is manageable for the start-up.”

Example of an interface between Munich Re and startups at regional level is Mundi Lab. Mundi Lab is an accelerator partnership between Munich Re Iberia & Latin America and Alma Mundi Ventures. Augusto Diaz-Leante, senior vice president of Munich Re Life, Spain, Portugal and Latin America, explains how the cross-fertilization with startups works: “We select startups from all over the world, such as RiskApp from Italy and Netbee from Brazil. Twenty Munich Re executives mentor these startups one-on-one. The best-performing companies with the highest potential to disrupt the insurance industry have the opportunity to work on a pilot program in one of the Munich Re Iberia or Latin America markets. In this way, the sharing of knowledge, experience and expertise is made very concrete.”

The Munich Re Mundi Lab team

5. Zurich: Open Innovation

Zurich created a platform to bring together the innovation initiatives and projects in the group. Xavier Tuduri, CEO of ServiZurich Technology Delivery Center: “In the Zurich Innovation Lab, we generate disruptive ideas and strategic R&D projects for the global Zurich group. We believe in open innovation, a collaborative model that means combining the internal knowledge, for example regarding markets with external talent and disruptive technologies. In this way we are always at the forefront of the latest disruptive fintech and insurtech developments, while being able to quickly develop tangible prototypes that fit and inspire our businesses. These are prototypes, without risky high investments, for example regarding using drones for risk assessment. Each prototype project is led by an employee of ServiZurich who works together in a team with several start-ups, universities and institutions. In this way, our people and organization get injected with new ways of working and thinking.”

6. Chebanica!: Co-Opetition

If a financial institution wants to behave like a fintech, it needs to open up, think of what the ecosystem could look like, be at the forefront to see what is happening and partner with fintechs to accelerate innovation, to learn or to advance the sector as a whole. Roberto Ferrari (CheBanca!) is a protagonist of this mindset: “We believe in a ‘co-opetition’ model. There will be things in which we will be competing with fintechs and other banks, and areas where we will be cooperating with the same parties. Therefore, we try to make the Italian fintech community grow. Building a larger cake will be for the good of the whole financial ecosystem, innovation is key and startups will always be the lifeblood of any sector. We among others launched the Italian fintech awards and the Smartmoney blog, which is now the most important vertical innovation in banking blogs in Italy. We now have a very strong presence in the Italian fintech community, and we are close to all developments and connections. I and other C-level executives at our bank speak to at least five to six fintechs each week, and we have already launched two new services – award-winning Mobile Wallet and Robo Adviser — thanks to our partnership with some specialized Italian fintech startups. We help them by partnering, but also we want to help them to go abroad as scale is key to succeed.”

Roberto Ferrari (right) with Matteo Rizzi (left, one of the most influential fintech experts)

7. Metlife: Capability Building

Lee Ng, vice president and COO of LumenLab, MetLife’s innovation center in Singapore: “LumenLab and our new businesses are distinct from MetLife’s core business. Our mission is to create a growth engine that launches disruptive new revenue-generating businesses for MetLife, targeting the needs of Asian consumers across health, aging and wealth. But we do work with in-country experts to develop plans for testing the new business ideas and assess market potential. In our first year we, for instance, launched BerryQ, a quiz app that rewards users for their health knowledge; Rememory Stories, a platform to capture intergenerational stories; and developed CONVRSE, virtual reality experiences around service and sales for financial services. We notice a real mindset shift within MetLife because of this cooperation. The people we work with develop skills about new ways of testing new ideas, new toolkits and new ways of thinking. Our core insurance business thus improves their performance, through adopting new behaviors like curiosity, velocity, experimentalism and bravery. In others words, we are lighting a path for innovation at MetLife.”

MetLife’s LumenLab, Singapore

We believe that it will be increasingly important to adopt a culture of constant innovation, to stay in sync with all that is going on out there. Rather than trying to change their DNA, which is quite impossible, banks and insurers should think that constant innovation is the only way to adapt the DNA to the change that is taking place. You can, for example, buy great algorithms, but if you are not able to transform your culture, the implementation of these algorithms will fail. A banker shared with us: “I see working with fintechs like vaccinations in biology: these injections in our cytoplasm help us prepare ourselves for new attacks and adapt to changing environments. If you acquire new fintech companies, you could destroy them if you don’t adapt to them as an organization. You have to adapt the mindset of your own people. It is like playing a piano. Some people sit down on their piano chair and move their chair to the piano. Other people don’t want to change their position and try to pull the piano to their chair. We should therefore teach people to move their chair after sitting down. How to move the chair will depend upon the situation, but should always deliver value to our customers.”

Working With Fintechs and Insurtechs at DIA Amsterdam

Maximizing the results from working with insurtechs is an essential subject on the Digital Insurance Agenda. So definitely expect us to pay ample attention to this at DIA Amsterdam: our two-day conference connecting insurance executives with insurtech leaders. Check out www.digitalinsuranceagenda.com for more information.