Value Added Services
Artificial intelligence will gradually reduce the hassle of everyday life by anticipating the needs of customers. 2 examples to mention:
- The citymapper app automatically links the uber command, traffic and traffic data, and train schedules to make sure you arrive on time to catch your train;
- Whirlpool dishwashers automatically identify when rinsing liquid or detergent needs to be added and, subject to the device being connected to the brand’s Amazon-related application, automatically launches order these products.
Our lives will therefore gradually become easier and without” friction”, through the combined effect of connected objects and artificial intelligence.
The question is how will these new behaviors be applied to insurance? The majority of respondents (86%) believe that this will reduce insurable risks in the near future, and therefore the raw material of insurance. This is especially true for car insurance.
In order to better protect their policyholders, insurers will have to progressively transform themselves from a compensation provider into a trusted partner role that accompanies their client on a daily basis.
It starts with anticipation and prevention messages to better protect your home from flooding or to perform vehicle maintenance on time. The collected data can then customize these messages, and compare the behavior between them to suggest improvements. These are typically additional services for which policyholders could agree to pay, and which would offset the reduction in premiums.
Most insurers are considering this kind of practice for 5 years.
It’s not just about preventing risks. Insurers will also seek to provide protection or prevention solutions. 95% of the respondents consider that it is necessary to 2. Thus, it is a question of surrounding oneself with an ecosystem of partners or developing internally a certain number of these solutions.
Reduce data barriers
Providing and charging for this set of services will not happen overnight. Insurers must first secure access to data, especially in a GDPR context. 2/3 of insurers believe that they will have to go upmarket to ensure that their customers agree to let them access their personal data.
Insurers must also remain vigilant to developments in the sectors of activity that surround them and, in the first place, the bank. The move towards open data (open banking, API system) is a fundamental move that could have consequences for insurance. More than 80% of respondents believe that open APIs will become part of our day-to-day life and will improve the connectivity of systems and therefore of our data. This could fundamentally upset the market.
2 conclusions at this stage:
- It is by offering effective risk prevention that the insurer will guarantee access to its clients’ data ( Note: the customer will only give access to his data if there is find an interest, customer-centricity, when you hold us! )
- 87% believe that the heart of the insurers’ business will be tomorrow’s value-added services. (Note: for my part, I would say differently, in my theory of the decomposition of the value chain: a part of the value will come from the portage of risk, another part of the relation to the insured to cover the entirety of its needs, it does not say that it must be the same actor who does the 2).
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