Blockchain is for dogs and cats

blockchain c'est pour les chiens

On September 13th, Axa published a press release very noticed about the launch of Fizzy : parametric insurance coupled with a blockchain technology. I remain skeptical about the arguments, especially regarding the blockchain.

Operating Principles

The principle is simple! The insurer provides coverage against aircraft delays that triggers automatically without the need for a claim by the insured. It’s a simple product that lends itself well to parametric insurance. However, a nuance, the data made available by air operators or airports are limited, which now forces AXA to limit the exercise only on flights to / from Paris Roissy Charles de Gaulle airport.

The use case approaches so much (not to say almost identical) to the offer proposed by Bajaj Allianz last spring , which we echoed here. There was already talk of Blockchain, and I was already dubious at the time!

The complementary element that Axa brings is the principle of an open blockchain known to all (at least specialists): Ethereum. This makes it possible to use smart contracts, and according to Axa, to secure exchanges and transactions.

Useless technology use?

2 points disturb me in these proposals (Bajaj and Axa).

Useless technology

First of all, there is no need to use a blockchain technology to manage parametric insurance. This type of product, although still not widespread today, is not new and is already working. For example, Swiss Re proposed earlier this year in Taiwan a dedicated parametric solution aquaculture in Typhoons . If it rains more than 480mm for 2 consecutive days, the insurance is triggered, and the loss is automatically settled on the agreed bases.

The concept of parametric insurance (or index based insurance in English) is based on products built ad-hoc with objective and measurable parameters made available by third parties. Thus, during the subscription, the insured person covers himself for a measured risk and for an agreed amount.

At the occurrence of the risk (and if possible with data that are automatically provided to the system, from the weather services in the case of SwissRe), a simple rule engine integrates and interprets the incoming data flow to trigger a automatic transfer to the insured.

In short, IF (rainfall> 480mm AND days> 2) THEN Reimbursement.

In other words, no need for blockchain for that. Nevertheless, it is feasible with the blockchain, but it is a debauchery of useless energy! In the case of Axa or Bajaj, we bet that the objective is more to realize a proof of concept to validate the principles before considering other implementations.

Specious argument

The argument invoked by Axa to justify the use of the blockchain is security.

  • On the one hand, parametric insurance is not in itself a lack of security to justify an additional layer
  • On the other hand, the blockchain has not proved its lack of risk.

I come back to this last point! The blockchain is, by nature, secure! I will not come back here on the operation, a lot of documentation exists on the internet. However, more precisely, it secures what has entered, but does not prevent in any case, fraudulent maneuvers before entering or leaving the blockchain. Thus, we have seen in recent years theft operations / truanderies around the currency bitcoin, which have put on the straw several large operators of this currency.

The security argument seems so slightly usurped! It’s a marketing attempt to cover what ordinary people do not understand!

The blockchain is for dogs and cats or rare usecases of the blockchain

Make no mistake: I am rather in favor of blockchain technology! On the other hand, I am looking for real cases of use relevant to insurance. To this day, I only see one!

Pros and cons of blockchain

The blockchain has several advantages:

  • Decentralization of nodes within a network.
  • self-correction if a network node is altered or modified (this is what justifies the security argument)
  • Data Encryption

However, several important limitations apply:

  • Reduced” scalability”: performance is bad as volumes grow too much
  • Operational costs: it is a very energy-intensive technology. (eg power consumption of data centers / computer centers that” mine” bitcoins)
  • Difficulty of implementation between multiple actors who must share the same technologies and solutions.

Thus, despite the obvious strengths, the fact remains that the concrete use of the blockchain is complex.

The blockchain is for dogs!

To date, only one use case has caught my attention as a true viable example of the blockchain in insurance. It has been reported in the Market Force report. . This is to use the blockchain in the UK for insurance contracts for dogs and cats (and more generally it could be extended for any animal). All insurers can then share a common risk basis (animals) to ensure that a health expenditure for an animal is subject to only one insurer and thus avoid fraud. This is possible thanks to the blockchain, which simplifies the procedure and makes it faster and more reliable. Volumes are manageable without major performance difficulties, and lower regulation than for individuals makes more in-depth controls necessary.

Beyond this specific example, all the steps mentioned, including that of the B3i consortium that remains to follow, seems to me uses of the blockchain to surf the wave of media buzz, but not always wisely.

Talk about it!

What do you think? Have I missed something essential?

Feel free to send me your comments or remarks. I am curious to improve my understanding on this subject!

If you want an opinion on your projects, contact me , we can meet and talk about!

On August 29th, new brand, new site, new project

Following the many meetings that I had this year, it seemed to me possible to bring a different expertise to the market: a decryption of innovation servicing the insurance business.

Subscribe to my newsletter to receive in advance information about the kick off of my new site! (do not forget to validate your email)

Here are some elements to tell you a little more !! I do not reveal the name yet, but you already have the logo!

Otherwise, you can follow me on linkedin or twitter .

Finally, until the official launch of the new site and my offer at the end of August, you can consult my innovation landscape which already classifies 179 startups at this day!

Landscape insurtechs June 2018

panorama insurtechs

The update of my landscape insurtechs goes on with 14 additions on May 21st, 2018. You’ll find the update here. There are now 179 startups documented, from 27 countries.

Besides, I have the pleasure to inform you that there will soon be another version of this site, in order to support an important project for innovation in insurance. Stay tuned for next updates, it won’t be long!

Additions to the landscape insurtechs June 2018

Newcomers today:

  • Get me ins: * Prediction and reduction of cases of fraud at source * Claims automation * Cost evaluation * Improved customer engagement.
  • Insurance Drip: * Digital marketing solution dedicated to insurance brokers and agents (websites, newsletter, recommendations generator, loyalty campaigns, etc.).
  • Insure App: * Customized and contextualised insurance platform * Pay-how-you-drive * Contextual health insurance * On-demand and just-in-time insurance e* Data analysis, profiling and segmentation, predictive modeling, real-time proposals.
  • Jamii: * Micro health insurance.
  • Nuvalaw: * Accelerates litigation through mass analysis of legal documents.
  • Tapoly: * On-demand insurance dedicated to self-employed workers and only.
  • Vlocity: * Cloud platform that offers tools for distribution and management of insurance contracts * Custom virtual agent.
  • Riskattitude: * Provision of virtual tools for estimating and analyzing risk.
  • Insurnext: * Creation of modern and responsive websites dedicated to the world of insurance.
  • Cogito Corp: * Human intelligence enhanced by artificial intelligence.
  • Cyquant: * Helps underwriting cyber risks by facilitating risk estimation.
  • Jooycar: * Connected Vehicle Platform * Real-time data analysis to provide contextualized insurance products adapted to the situation.
  • Hello Zum: * Centralized insurance data in the same place and made available to all parties * The customer is at the center.
  • So sure: * Collective insurance with retrocession of the unused portion of the premium.
  • Monuma: * Heritage advice and support * Blockchain dedicated to fine arts.

Contact me if you still don’t appear in the landscape insurtechs!

Key takeaways from Vivatech 2018

vivatech 2018

I had the chance to visit the Vivatech 2018 trade show held this week Versailles (Thanks @Anne!). This show is the global meeting of startups and leaders, according to their site. The figures announced by the organization are spinning, and the posters of Thursday’s conferences in particular speak for themselves. Make your opinion:

  • Emmanuel Macron
  • Mark Zuckerberg (Facebook)
  • Satya Nadella (Microsoft)
  • Dara Khosrowshahi (Uber)
  • Ginni Rometty (IBM)

In short, the best of the world’s tech was at the rendezvous, helped by a calendar facilitated by the summit Tech for Good organized at the Elysée the day before.

Beyond the numbers, what does it take for the insurance industry?

Vivatech 2018 or the bubbling of ideas

A half day to walk in the aisles allow you to get a pretty clear idea of ​​the challenges ahead in the years to come. All sectors of activity are undergoing transformation and all technologies are on the table. Like a competition Lépine innovation, it is to whom will propose the solution the craziest, the wackiest or the most breathtaking.

vivatech 2018 Not everything is good of course, but for anyone of us, it is essential to fully measure the transformation at work and gauge the impacts. potential. What about these little robots that welcome you at the entrance, will they replace a physical reception? What about artificial intelligence, will she keep her promises?

In short, in the excitement of the show, we must find inspiration to explore our future. However, this can not be enough, because the challenge is to find the applicability in the short term to trace the path to the transformation of society and trades.

A sector of the insurance and the financial tertiary sector little present

Insurers side

Overall, the insurance sector is poorly represented at Vivatech 2018. Only one large company stand in the sector (Matmut) is located, well placed near the entrance. By extending the thinking more broadly to the financial sector, banks are also poorly represented (only BNP Paribas has its own space).

How to interpret this relative absence?

2 possible answers to this question:

  • The financial service sector has not taken the measure of current or future changes
  • Vivatech 2018 was not perceived as “the place to be” to promote the ongoing transformation: too expensive, poorly targeted public, etc.

In both cases, I wonder! Vivatech is now “The place to be” in terms of innovation, whether for the pros, but also for the general public, come in number Saturday. Insurers are not reputed to be the forerunners in innovation, it does not seem inconceivable to want to highlight its steps in this type of salon. From there to think that we are rather in the first option, I dare not think about it!

Startups side

Startups that intervene around the world of insurance were present, but in relative numbers. They are often invited by incubators or schools that wear them. Beyond the interest of each of these solutions, it is difficult to reconstruct the coherence in all this.

A burst of identical solutions

In terms of innovation, because this is the subject that interests us here, several points are worth noting.

A categorization into 3 families

The majority of start-ups present for the financial service sector can be categorized in 3 families

  • Those that improve data collection
  • Those who work on data analysis (often with the application of a business layer)
  • Startups that specialize in the action and application of solutions from the analysis

These are the axes of analysis that I use in my insurtech observatory and which are here again confirmed. So thank you to BCG for the initial reading that I have taken (and improved!).

In other sectors of activity, startups complete this vision with material technological innovations (aeronautics, robots, 3D printing), but which have few uses in the insurance world (at least in the first reading, but we’ll come back to it maybe later!).

Burst

The principle of startups is to start an activity thinking to solve a problem better than others.

The difficulty is that the first steps to climb are the same for everyone, and that the true value comes next. Thus, the startup landscape is extremely fragmented, in France, but also abroad. Many structures offer equivalent solutions, not to say the same, with exciting promises for the future. However, each one wishing to control its value, one observes a burst of structure whereas the force would come from a union to advance more quickly. For example, in these startup unions, some teams could focus on common application bricks, while others would be focused on application research. They would still be agile, but above all stronger and more able to bring the true value they promise.

In short, Vivatech 2018 is for the diversity and comprehensiveness of the solutions presented. However, I remain on my hunger on my scope of activity

Cap Gemini – World insurance Report 2018

world insurance report 2018

Cap Gemini and Efma published their annual report World Insurance Report 2018 last week. This report is usually the occasion for an interesting overview of what is happening on the market. I wrote an article on the 2017 version of this report . What should we remember from this edition?

Highlights of Cap Gemini’s World Insurance Report 2018

Because of the length, the article is separated into 3 pages, for each of the chapters.

If the results of the study provide welcome figures, the content of the World insurance report 2018 is unfortunately very clutter and does not really give proper reading to explain the situation.

Accelerate digital transformation

A necessary catch-up?

world insurance report 2018 Insurance ranks third in the customer experience score ranking ( Note: no explanation is provided on the measurement of this indicator ). This figure looks very good. On the other hand, as soon as one looks at the positive customer experience score, the result deteriorates. This is particularly the case when comparing the results with the banking sector.

world insurance report

It therefore seems clear that insurance needs to catch up on these issues. For example, the report cites the best ability of banks to leverage technology to benefit from customer touch points. ( Note: Certainly, but it is undeniable and well known that insurance has a natural deficit of points of contact with the bank, the stakes are not the same: for the bank to exploit, for insurance generate them … ).

By pushing the analysis on the satisfaction around the essential services, a significant difference appears on the simplicity of use: 36% of satisfied compared to 47% in the bank! The gap is also important in terms of speed of service.

world insurance report 2018

Regional variations

Regional variations exist, especially if we compare the levels of satisfaction between Europe and North America. If the French are eternally dissatisfied, this is not the case for all Europeans. The gap is also important enough to attract attention!

world insurance report 2018

Digital is a lever to break the traditional boundaries of customer interactions

Communication via digital channels is now well integrated, and it is now the mobile that is gaining importance! 40% of respondents believe that a mobile application is an important channel.

world insurance report 2018

Among the arguments invoked, that, classic ease (because common to many other uses of everyday life) and the other newer on personalization and individualized services.
The adoption of digital is an essential factor and opens new horizons for insurance. First, it generates an increase in the number of touch points. This creates new business opportunities. The new services that are associated with these uses are also an opportunity to improve the acquisition and retention of customers.

Proactive

There is room for improvement on the proactivity of insurance offers! Where there is often question of whether the insurance is too much or not enough for its customers, the answer is clear!

world insurance report 2018

Going even further, the proactivity of the insurer has a positive impact on the satisfaction of policyholders [/ inlinetweet].

world insurance report 2018

New challenges as technology advances

There are many examples of GAFA or other large multinational incursion tech in the perimeter of the financial sector. Insurance is one of the recurring targets of Amazon, Apple, Alibaba or Alphabet (Google). This type of competition requires traditional players to change gear to transform themselves by accelerating the pace. Indeed, more and more insureds say they are ready to take out a contract with giant tech. They are 1/5 to position themselves as such in Europe and 1/3 in North America and up to 40% in Asia and 50% in Latin America!

world insurance report 2018

Finally, if security issues are still in everyone’s mind, policyholders are increasingly willing to share their data in exchange for personalized services and additional values.

world insurance report 2018 world insurance report 2018

To conclude, the propensity to switch from a traditional insurer to a tech company can be analyzed from a demographic point of view. Indeed, some groups are more favorable than others (technophiles and generation Y), due to a customer experience deemed insufficient. ( Note: This is the beginning of adoption by early-adopters ) world insurance report 2018

Landscape insurtechs – May 21st, 2018

landscape insurtechs

The update of my landscape insurtechs goes on with 14 additions on May 21st, 2018. You’ll find the update here. There are now 164 startups documented, from 22 countries.

Besides, I have the pleasure to inform you that there will soon be another version of this site, in order to support an important project for innovation in insurance. Stay tuned for next updates, it won’t be long!

Additions to the landscape insurtechs on May 21st, 2018

Newcomers today:

    • Coverwallet: * Small Business Insurance Distribution.
    • Backbase: * Multichannel Hub, which interfaces with your existing systems to deliver an enriched customer experience.
    • Sentimer: * Chatbot service coupled with spoken or written natural language analysis to improve the quality of the answers provided * Automatic customization of the behavior of the chatbot according to the client by the artificial intelligence. * Adaptation of the contents.
    • Laka: * Collaborative insurance for bicycles * The community takes care of claims when they present a maximum amount of money * Beyond an insurer takes over.
    • Granify: * Optimizes the structuring of websites to improve the transformation.
    • Celect: * Initially dedicated to retail, this artificial intelligence solution, combined with machine learning, makes it possible to offer predictions of offers.
    • ExtraDrive: * Calculates an auto score based on driving data * Use either for prevention or for portfolio segmentation.
    • Thinkseg: * Insurance products Marketplace.
    • Earnix: * Analysis of web data to identify and propose in real time actions to be carried out * Real-time rate adjustment.
    • Scoredata: * Online data analysis platform for use on business (retention, cross / up-selling) * Predictive analytics.
    • Utwin: * Loan insurance brokerage and management.
    • Motion S: * Increased mobility data * Exploitation of telematic data to increase contact points, work retention models, plan maintenance phases.
    • Oocar: * Data and services platform for the after-sales and insurance industries * Data collection of the vehicle and the conduct of driving profile collision.
    • Easyprice: * Product provisioning marketplace for a network of around 10,000 brokers on French territory. * Co-creation and product testing.

Contact me if you still don’t appear in the landscape insurtechs!

The technical challenges of personal telecare

téléassistance

I had last January opened my blog to anyone who wanted to shed light on one aspect of insurance innovation. Catherine Marquèze from InfleXsys and Boris Dumontet from Vitalbase were kind enough to take on the game of writing! They offer us here some elements of understanding around telecare, which completes the article published few months ago on VA²CS . I publish their text almost unchanged, hoping that you find here as much value as me! Thanks to them! Continue reading “The technical challenges of personal telecare”