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”
Key points to remember about UBS insurtech Shifting Asia
- Asia is one of the least insurance-covered markets and there are huge catch-up prospects
- Insurtechs have the opportunity to transform this market more than any other. They could generate, for example, up to $ 300 billion in savings by 2025.
- Competition is tough on the continent and forces to improve the quality of service as well as to find differentiation criteria
- Customers are going to be the big winners of the arrival of insurtechs.
- Incentive prevention actions could lead to significant effects on risky portfolios and thus significant improvements for the benefit of society.
The update of my landscape insurtechs goes on with 14 additions on February 23rd, 2018. You’ll find the update here. There are now 150 startups documented, from 21 countries.
Additions to the landscape insurtechs on February 23rd, 2018
- RiskGenius: Using artificial intelligence to better categorize the content of insurance policies, ensure a better reading and facilitate underwriting operations.
- Go Bear: Price and quality insurance product comparison engine, enriched with a scoring system.
- Codeoscopic: Provider of digital solutions dedicated to the insurance business, Multi-pricing motor, Risk manager dedicated to Solvency 2.
- Gistek Insurance solutions: Set of software solutions to facilitate the management of insurance contracts or claims, Automation of processes.
- Numen: Provider of digital solutions dedicated to the improvement of the insurance process and the management of the triangles of claims.
- Satisfi: Exploit customer data to automatically make recommendations through automation, artificial intelligence and robots..
- Captricity: Exploitation of the data to increase sales, reduce processing cycles or offer quick subscriptions without losses on the quality of risk analysis.
- Ideeo: Brokerage of insurance contracts, Compensation defined with the applicant.
- Addon-ACS: Behavioral analysis in real time of the consumers, during the course of care, Prevention, Improvement of the course of care via a scoring of the practices.
- Aukazou: Damage management Water damage on behalf of the insured.
- Assurup: Insurance dedicated to the specific needs of startups.
- Wizzas: Co-design of customized insurance products to cover the needs of communities, Community building, Search for insurers to bear the risks.
- Guard Time: Blockchain solutions to limit fraud and improve trust and automation of decisions.
- Boundlss: Using chatbot and artificial intelligence to encourage improvement of lifestyle behaviors, Increased engagement with policyholders.
Contact me if you still don’t appear in the landscape insurtechs!
Here is a little overview of articles that caught my attention and deserve to appear in the press review of January 30th 2018!
Astonishing experimentation of CPAM
The question of personal data and above all health data is really sensitive in France. Market players are also very focused on these issues in the context of the arrival of the GDPR regulation. However, this is the moment chosen by the Social Security to try an initiative really out of the ordinary. In an attempt to fight absenteeism, the Social Security has communicated to companies, whose absentee rate was 4 to 5 times higher than the average, the reasons for work stoppages, and first those related to MSDs ( Musculoskeletal disorders) and those of the PSR (Psycho-Social Risks).
The stated objective, in agreement with the trade unions, is to encourage the company to question the practices, and to consider prevention solutions upstream.
We are here in a very interesting process of exploitation of health data for the purpose of prevention! Crossing sources now allows this type of analysis, and it is interesting to note that neither the French CNIL nor the unions have opposed the approach, which shows the quality of the exercise!
Case to follow in a few months, with the first results of the test and an extension of the companies concerned.
Expanding Google’s artificial intelligence in Paris
Following his visit to Paris on the road to Davos, Sundar Pichai, CEO of Google has announced its desire to strengthen, in Paris, his team dedicated to artificial intelligence. France is positioning itself as a real actor for the future on the subject.
More interesting, it turns out that Google’s offer tends to a SaaS offer, on the shelf, intended to be accessible to everyone, even without knowing how to code. This is the goal of Cloud AutoML vision (ML for machine learning).
Note: There is a free trial, I note in my todo to go try for you! If you have a specific use case (why not the pictures during claim’s FNOL), let’s do it together!
Emotional intelligence, or the complement to artificial intelligence
A reminder of what is emotional intelligence and how it is now essential! In a context where artificial intelligence seems to take more and more space, it is interesting to follow a subject for which the role of the human seems to remain necessary!
The event to be
Novarica and the IOT insurance observatory offer a webinar on their research on February 28:
The broker Gras Savoye, belonging to the Willis Towers Watson Group, published in september 2017 an interesting economic note on the transformation of the insurance markets 2018. They come back therefore, by business line, on current trends.
Overall, the French insurance market is rather stable:
- The world market is down slightly
- France remains an important market (5th world player), with just over 200 billion euros of premiums
- Personal insurance accounts for 75% of this figure, and sees a rise in pension premiums
- Property insurance is subject to strong competition, and is experiencing a significant increase in claims, which affects the underwriting results. This is due in particular to climatic events.
In the details of the 2018 insurance markets
Given the richness of the report, it is complicated to synthesize it, and I prefer to suggest that you refer to it if necessary. I prefer to present the plan!
Each theme is treated according to 5 axes:
- Capacity / Appetite
Some key things to remember
- 3 alternatives to risk transfer are presented:
- Structured Insurance: covering the multi-year consequences of new or complex risks. (terrorism, pandemics, strikes, etc.)
- parametric insurance : or index-based insurance, which i have already talked a lot here
- Mutli-line / Multi-year approach: which reduces volatility
- D&O (Executive) policies continue to evolve and adapt to changing risks. The tailor-made is put on this profitable and dynamic market (new regulations, cyber risks, etc. which increase the risks for managers).
- There is growing interest in combined fraud / cyber collateral, although these mounts do not always yield the best proposals. Note: It is understandable that customers are always looking to hedge against an unknown risk, but perceived as critical .
- Kidnap & Ransom products are in full swing, because of an international geopolitical context that is sometimes hazardous.
Conclusion: My opinion
This report is a mine of information, very technical, but essential to a good understanding of the complexity of heavy risks. A disadvantage on the bedside table, but imperatively under the elbow!
In hollow, one sees there appear, as often, the insurance products which could be generalized tomorrow. The trends observed, especially on cyber, fraud or regulatory aspects are in this sense good indicators of the future.
Here is a little overview of articles that caught my attention and deserve to appear in the “press review January 15th, 2018”!
O’Reilly offers books on data and artificial intelligence
The famous publisher of computer science books has a library of 80 of its publications on big data, artificial intelligence and data science, published between 2012 and 2016. Essential detail: the download is free, in pdf, epub or mobi.
Remember: when it’s free, you’re the product! O’reilly asks for your name, first name and email to download, but nothing forces you to enter the real …
Not so accidental road accidents
Mathieu Grossetête is a researcher at the university research center on public action and politics. We propose in the Diplomatic World a reading interestingly, accidentology by car.
It appears that the prevention policies of Road Safety may now reach their limits because they are poorly targeted! Or when the art of data analysis becomes essential to better control a phenomenon, and treat it correctly!
Exciting article to read, which makes us rethink the notion of risk analysis, the perception of events. Finally, it simply invites us to change our way of thinking.
Typologies of wearables
Evan Kirstel, one of the leading thought leaders in connected health, offers us a panorama of typologies of connected objects for health, aka wearables. This one goes a little further than the usual dichotomy watch and bracelet vs balance!
Deloitte: human collaboration – machines
A visual of a Deloitte study, found on Twitter, gives an interesting reading of the symbiotic relationship that can develop between humans and machines. All thanks to the service rendered!
Axa and telemedicine
Jacques de Peretti, CeO of Axa in France announced this week the launch of telemedicine in companies and openness from service to experts.
The second service is the extension of the current service (which I had the opportunity to test personally and which is very good). On the other hand, the first one supposes major investments and questions around the model chosen by Axa.
The question of danger, posed by Olivier Harmant, is in my opinion not relevant.
However, what is the return on investment of this model for a complementary insurer? Indeed, a teleconsultation at the expense of the complementary supposes a cost support higher than the usual part. In order to be financially attractive, such a service needs to be either cheaper than normal consultation or to reduce risks. For now, teleconsultation is a vector of brand image and carries a demarcation line with respect to the competition. However, when everyone will do it, it will be necessary to consider the business model that goes with it!
Finally, should not this be the role of an intermediary platform? The latter would make this service available and look for the insurer who answers it. On the contrary here, it is carried directly by a complementary insurance? What does this say about our public health insurance? A lot of questions, few answers for now!
A conjunction of elements led me to reflect lately on the link between insurance, innovation and behavioral evolution! It is an opportunity to give you my point of view on the issue.
Insurance is often considered reactive. Indeed, it reacts to events called claims to compensate for the residual loss.
Campaigns, sometimes famous (I think about road safety), are intended to transform behavior upstream to reduce downstream losses. For the insurer, it is an initial investment that finds its ROI in reducing the indemnification. We are here in a model in which the insurer is a preventer and no longer just a compensator.
However, a lot of debate has taken place in recent years to give the insurer a more proactive societal role upstream to reduce risks and thus change behavior. The embedded telematics (with Pay-How-You-Drive offers for example) has often been seen as an incentive for good practice: if you drive better, I make you pay less. Ditto for connected bracelets of health: if you play sports, you will have a reduction.
However, we note that these approaches do not always work or that they are not effective. However, do not we say “chase the natural will come back at a gallop”? The challenge is therefore twofold:
- Find new ways to influence behavior.
- Adjust offers to better stick to individual behaviors rather than standardizing responses.
Nudges at the service of behavioral change
It will probably not have escaped you that the last Nobel Prize in economics (2017 ) was awarded to research on the so-called behavioral economy. To learn more, read here . This is also called benevolent manipulation.
I will not attempt here to detail fully the possibilities offered for insurance, because it deserves to think seriously about it. Anyway, I invite you to read the very good article from one of my competitors on the issue. Here is the example cited:
For some American motor insurances, the declaration of the mileage achieved in the year (n) conditions the premium for the following year (n + 1). The average rate of under declaration is estimated at 15% compared to the Km actually made. A Nudge has been tested to try to improve the statements. Instead of signing the declaration on honor at the end of the document, the researchers put it on the heading of the document, before the declaration. This simple change results in a 10% increase in the number of Km declared, a gain for the insurer of $ 48 per insured. The simple reorganization of the structure of the document, the architecture of choice, makes it possible to modify the behavior of the insured and thus to increase the income.
Some examples of nudges for insurance
Here are some examples of nudges that are or could be relevant to insurance depending on the objectives:
- Reducing risks: The incentive to drive better.
- The solution implemented by Liberty Mutual and relayed here consists of a mixture of gamification and information to drivers. Thanks to embedded telematics, the solution allows everyone to consult their driving information and to consider how to drive better and therefore how to reduce their premium, the discount rate being updated live every day for 3 months before being fixed.
- By extending the exercise outside the pure scope of intervention of the insurer, we can note that tracing, on the road, shorter white stripes gives the impression of going faster and encourages you to slow down without even realizing it.
- The incentive to subscribe:
- A study relayed in the book above (London Economics and YouGov in 2013 for the FCA) showed the impact of the presentation of the insurance offer in parallel with another product. This is the case for example when buying the insurance when buying a mobile or cancellation insurance.
Beyond the questionable ethical aspect, this shows the influence of the distribution strategy on the choices of insured.
- The choice of priorities: Last-mile problems (read for it this article and that one)
- Segmenting the populations can be done according to a probability of underwriting. By identifying 3 segments (low, medium and high effort) using artificial intelligence, we can then determine who has the strongest probability of traveling the last mile to the subscription. These populations, for which the effort is small, will be treated differently and maybe receive, when the time comes, a little nudge! This can be a text message, a small message on the screen or a welcome email when giving the little extra that will be enough to convince them.
I will come back to these questions later with other detailed use cases to imagine more precisely how to use these methods.
Most of the current offers are very standardized. They take into account a need considered identical for all insureds. At the time of individualization, why could not we consider adapting the coverage more finely according to the real risks of the insured. I can already hear the reactions: “This is the essence of our job”, “We already do it”, the contracts offer options and choices of levels to ensure according to his needs. “Very good, but in truth, can one think otherwise?
The Wilov speech is very interesting on this point. Most auto insured drivers drive less than 50 days a year. Yet they are covered full time. By inventing the “Pay-When-You-Drive”, their starting premise is to charge drivers only when they drive! The price is not necessarily much lower, however, the feeling of the insured is much better (provided that the user experience is the appointment of course!).
The approach of Inspeer goes in a similar direction. Starting from the premise that changing the behavior is complicated, Emmanuelle Mury and her team are working on the notion of affinity groups that go around the use. Clearly, they identify similar behaviors, and create the corresponding supply. I will come back to this in a dedicated article!
In short, the notion of supply is still too much seen today as unique, identical for all. Indeed, IT systems did not allow to easily and quickly deploy variants and customization, or the illusion of personalization was at the marketing level. It’s time to move to a higher level!
And you what do you think? When do we start to revamp your offers?
What you may have missed, like me in 2017!
If like me, you follow between 50 and 70 sources of information (rss feed) on a daily basis, not counting the linkedin and Twitter publications, it sometimes happens to lose your mind and miss some interesting information.
More specifically, it often happens to see an article that we think would be interesting and keep it for later. But this later comes only rarely and we end up with a small stack of articles to read!
For me, this blog has solved the question about the publication of reports, which remained on my desk waiting for something. For the articles, it is not quite that still, and I find myself at the end of 2017, with a good fifty articles under the elbow. Here are some of them, which you may have missed too!
The Tribune – Assurtech: a disrupted industry, for the benefit of the customer?
Daniel Haguet, professor of finance at EDHEC, who was few (hum) years ago my teacher, gives his opinion on the phenomenon:
- 75% of insurers consider that their industry could be disrupted
- Big data, by aggregating data, even out of the insurance, allows a customization of offers
- Distribution is growing online thanks to the rise of the internet
- For many players, the challenge is to take a stake in these structures, to take advantage of both technological advances and the “captive” portfolios of clients.
Note: For a selection of insurers’ strategies with insurtechs, it is here !
Structuring technologies and forces
Seen on Twitter, but unfortunately without noting the source, I share it, because although incomplete without a caption, it seems to me wider in its acceptance of technologies than many current reports and panoramas, including mine !
Here’s another one, which gives a little overview of the issues ahead.
Medium – Insurance as a smart contract
Aigang Network summarizes what insurance contracts will be tomorrow, thanks to smart contracts. Better yet, rather than a long speech, they made a demo, wrote the code around an Ethereum blockchain ( accessible on github ) and an app to test it, as well as a video, here:
Note: For a selection of articles on the blockchain, this is here
Risk management – Investing in the insurtech toolbox
A small inventory of insurtech solutions that address the issues of risk management:
- Understory weather
- Safety culture
- Security Scorecard
- Risk IQ
- Human Condition Safety
- DAQRI Smart Helmet
Note: To find my overview of insurtechs, it’s here !
Intercom Blog – Machine learning is easier than it looks
Once is not customary, a somewhat technical article, but that gives a specific example of what can be done with machine learning in 40 lines of code. Frankly, it’s a gift!
Note: For a selection of articles on artificial intelligences, it’s here !
The digital journal – connected objects of health, french social security does not perceive the added value
The title is deliberately provocative and surely a little removed from reality, when we know the current reflections! However, Laure Beyala, a biomedical engineer in Bichat, who has published a book on connected health objects, offers an interesting vision of the issue. She returns in particular on key concepts: Role of the social security, the insurers, DMP, brakes with the development, etc.
Note: For a selection of articles on connected objects, it’s here !
P & C360 – Telematics in auto claims is inevitable
This article is totally in sync with my opinion on embedded telematics (see my predictions for 2018 or even my note of conjuncture on this subject ). It goes back to what can be done with it, and why the use of this technology for disasters is inevitable!
Note: For a selection of telematics articles, it’s here
Insurance Thought Leadership – Why is Customer Experience Key?
This article is about a concept that I consider essential! Data, processes, technologies must be oriented around the customer and his needs. This is all the more true as connected objects and their billions of data become more and more accessible in the years to come.
Note: For a selection of articles on the user experience, it is here !
A visual that I like about design thinking and ideation strategy that I integrate more and more in my thoughts because totally related to the notion of innovation. The content could not be done without the form …
On Monday, November 6th, 2017, April Group organized the event Insurection, wanted as the biggest French event dedicated to insurtechs. 300 people attended, and as part of our insurance innovation activities, I was there to represent Siltea .
Back to this day, with the key elements to remember: roundtables and startups present. Continue reading “Insurection by Group April: debrief”
Creative Specific Software has developed an innovative solution for the detection and prediction of falls for the elderly. This solution is called VA²CS.
Halfway between connected object and artificial intelligence, it allows to offer a real service of prevention of a significant risk! <! – more ->
For the record, there are in France 1250 falls per day, for 30 deaths. The need to detect the fall is therefore not new, and several solutions already exist. However, most existing solutions rely on bracelets, pendants or watches, and this, without major innovation for 25 years. The latest solutions are based on ground-based sensors and teleassistance boxes ( see the Harmonie Mutuelle solution – Orange ), but the cost remains generally important.
There are several major limitations to these solutions:
- The first reaction of a falling person is not to press a button, whatever it is, but to try to get up
- Once standing, the 2nd reaction is not to try to call for help because they do not want to disturb. The person is not going to be taken under examination immediately, with all the consequences on health aggravations in particular.
- In the event of a fall with loss of consciousness, not all solutions can automatically send help
- Most calls via teleassistance boxes are calls of convenience (against loneliness, need to talk to someone, need for psychological assistance, etc.). The average duration of these calls is almost 3 minutes.
Moreover, in the event of a trigger or an appeal, the tele-assistants have the legal obligation today to warn the helpers (under risk of not helping a person in danger). When the family is not available, this generates firefighters’ intervention costs (180 €). When we add the potential damage to the home, when it is not always relevant, because there is not always a fall, the consequences are heavy.
With this in mind, and after working with Dr. Jean-Marie Vetel, one of the designers of the french GIR grid , Ramzi Larbi and his team have developed a new solution.
This involves equipping the living area with sensors (cameras), and then, thanks to the analysis of images captured in real time to detect falls.
When it is detected, a photo is sent automatically to the remote assistance center. It takes on average about ten seconds to give a certain answer to the action to take:
- the fall is real and you have to send help,
- either there is no fall, it is a false alarm, and the alert can be closed.
The desire is to obtain a solution at a reasonable price, the offer is based on conventional cameras and a connected box that contains intelligence and algorithms.
VA²CS already has 1500 EHPAD rooms in France, within the largest networks (Korian / Orpéa), as well as 600 private individuals. A partnership also exists abroad with Tunstall, the world leader in teleassistance for the elderly. The algorithms are patented in France and North America.
Prediction of falling
In order to complete its offer, the company has worked in partnership with Orpea to identify key factors in prediction of a fall. Then, she developed the corresponding algorithms. It is now able to predict a fall with a precision of about 60%!
Implemented in testing at Orpea, this solution has reduced falls by 50%!
The solution was then supplemented more conventionally by intrusion detection coverage or facial recognition of visits to notify malicious visitors to relatives.
My opinion on detection and prediction of falls
This solution was not developed at first with a desire to meet the needs of insurers. However, it is totally in line with the current concerns of the sector.
The potential consequences of this type of solution for public health and for insurers are in my opinion significant.
Indeed, being able to predict a fall makes it possible to send notifications to qualified personnel or a relative to intervene. This is obviously valid in specialized institutions (EHPAD) to support staff reduced at night, but use cases can go further.
Thank you Ramzi Larbi for this exchange and good luck!
Note: I do not have a commercial relationship with the company providing this service.