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

25 insurtechs Oxbow 2018

25 insurtechs Oxbow 2018

Oxbow Partners is a UK-based consulting firm dedicated to the world of insurance. More specifically, they are specialized in topics that are changing the world of insurance, through 3 entry points: strategy, digital, and M&A. They just released a report called “ The 25 insurtechs Oxbow 2018 ” .

Introduction

I share the point of departure of Oxbow Partners, according to which there is no reliable criterion of comparison of insurtechs currently.

Some are interested in raised funds. However, I think financially speaking, raising money is not necessarily a positive criterion for a startup. Indeed, if it is necessary to pass caps, it can mean that it can not finance its growth alone.

I decided to classify them according to their contribution to the business value chain, but it is just as debatable because I do not take into account their economic sustainability.

In short, Oxbow Partners made its selection according to the following criteria:

25 insurtechs Oxbow 2018

In addition, they take up a concept now commonly accepted: insurtechs today are not only distributors (B2C), but are facilitators or accelerators in B2B.

Last interesting element, represented under the diagram below, they consider that after the abandonment of a phase of competition, in favor of the collaboration between big groups and insurtechs, one should see reappearing soon a competition of another kind . This could be explained, according to Oxbow Partners, in the event of insufficient commitment by insurers. 25 insurtechs Oxbow 2018

Selection of 25 insurtechs Oxbow 2018

25 insurtechs Oxbow 2018

The selected startups belong to 4 categories:

  • Distribution: These players are looking for end customers and need insurers or reinsurers to provide them with products
  • Data & analytics
  • Operations
  • Claims and fraud

These last 3 categories are actors who need insurers as clients.

Here is the selection presented differently.
25 insurtechs Oxbow 2018 25 insurtechs Oxbow 2018

The last pages of the report present a summary in 1 or 2 pages for each of the selected solutions.

Landscape insurtechs – February 23rd, 2018

landscape insurtechs

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

Newcomers today:

  • 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!

Matteo Carbone – 4P’s of insurtechs

4P's of insurtechs

Matteo Carbone is an opinion leader in the insurtech industry today as one of the most prominent on the market. He created the Connected Insurance Observatory, an international working group, first in Europe, then in North America, dedicated to insurtechs. Matteo participates in numerous conferences around the world throughout the year. He unfolds his theory of 4P’s of insurtechs, and I wanted to make a presentation for a long time.

The 4P’s of insurtechs

First of all, you can listen to Matteo Carbone in his presentation at the 2017 Global Insurance Symposium in Des Moines.

You can also find slides at this link, if you are an aficionado of his prose, without listening to his wonderful English accent!

Key points to remember

According to Matteo Carbone, insurtechs can intervene on 4 axes:

  • Productivity : be more efficient
  • Profitability : get a better technical result
  • Proximity : to be closer to the customer and his needs
  • Sustainability of the portfolio (the term it uses is “Persistency” which means persistence over time, and therefore no attrition): Build a profitable portfolio on the long run term, with a small rotation.

In the absence of these objectives, there is no interest in innovating because the solution will not bring anything useful.

Telematics

The second subject addressed in this presentation is telematics, because it is one of the key topics of Matteo Carbone. The Swiss Re report which I was echoing a few months ago is directly worked with him, when it comes to the Italian example.

3 topics to consider:

  • The connected object : often a black box connected to the vehicle
  • Insurance coverage : and the notion of incentive reduction associated with it
  • Associated services : access to a set of additional services that can be provided for a fixed fee.

Under the arguments that telematics allows of itself and of course a selection of the best risks ( Note: it is questionable ) and a better controls of the compensations ( Note: that on the other hand, I share ), he comes to the conclusion that the financial result of the insurer is improved thanks to this technology.

4P's of insurtechs

It is also possible to rework the customer experience on all of its use of the vehicle and the different needs that might be relevant. Note: this aspect is absolutely essential, because it is from the use that one deduces the exploitation that one can make technologies.

4P's of insurtechs

Finally, the figures it presents show that attrition will be lower with telematics than without (11% instead of 14%).

In short, that positive points!

My conclusion

I share a lot of Matteo’s conclusions.

By reading, you will understand that the questions of use and business need interest me first. The 4P’s of insurtechs are a key to reading that is interesting to keep in the lead.

On the Telematics side, I am also convinced of the short / medium term prospects for the subject. I invite you to read again my note on it . Let’s discuss if you want to consider a deployment!

REPORT KleinBlue – Benchmark insurers facing insurtechs

Benchmark Les assureurs face aux insurtechs

FrenchKlein Blue Partners has published 2 interesting reports on the market about insurtechs. The first one, France insurtech panorama was published in June 2017. The second, “Benchmark Insurers facing insurtechs and innovative players“, was published in December 2017. They confirm this young consulting firm’s (and its partner Salim Echoukry ) desire to position as a quality partner for insurers who have questions about their innovation strategy in the market. I start the year by not being late and therefore deals here with the last published! Continue reading “REPORT KleinBlue – Benchmark insurers facing insurtechs”

SwissRe – Global Insurance Review 2017

global insurance review 2017

Version Française ici.


SwissRe has just published its global insurance review 2017 and its 2018 forecasts. The document is available at this link (Global insurance review) .

Innovation is essential, but to identify new answers, I remain convinced that we need to understand the state of the current market. This type of report is therefore essential to refine the grid of reading of what is happening in the world around us! This is particularly right as they give valuable insights into innovative solutions!

The four main themes covered in this document are:

  • Continued cyclical economic recovery at the macroeconomic level, although risks of instability persist;
  • Obviously, a big subject on the natural disasters of the year! These are causing great difficulties for all the systemic insurers in the area and therefore even more so for reinsurers;
  • Life insurance re-insurers adapt to the new deal;
  • Stable emerging markets in non-life and strong growth in life.

Key Points from the 2017 Global Insurance Review

More globally, here are the 10 points that SwissRe puts forward:

  • The rise of protectionism in large markets: in the United States, but also Brexit or the situation in Catalonia. This phenomenon is however not uniform (for example Latin America is liberalizing)
  • Monetary policy : what about the gradual end of quantitative easing?
  • Cyber ​​risk : The market is growing rapidly, and the stakes are high, particularly in terms of the quantity and quality of data needed for risk monitoring and pricing. A particular focus is to read p15 of the doc on this subject. Indeed, an estimated growth of 30% per annum of this market over the next 5 years should not be underestimated.
  • Increasing auto claims : More and more miles traveled, more traffic and distracted driving are the first drivers. The key is always technical results.
  • Brexit and the UK insurance market: Depending on the UK exit format, premiums should be reduced by 8 to 20%. This is a considerable shock on the market.
  • Innovate to increase the scope of insurability, especially in the “commercial” segments: I come back to this point just after
  • Losses related to Natural disasters (hurricanes).
  • Protecting Floods : Tools now exist to assess flood risk, and collaboration with states is needed to ensure the best coverage of this risk.
  • IFRS17 : Investments will be needed around the data to ensure good data collection and analysis.
  • Insurtechs in China : I’ll come back to this point below.

Increase insurability

On the perimeter of the “commercial” contracts (on which I am working rather seriously lately), innovation brings new solutions.

Swiss Re cites, of course, parametric insurance solutions, coupled with a global vision of risk, that solve complexities of the process at the time of the claims. On the other hand, it does not bring any real additional value talking about premium reduction for example.

The most important point about these contracts is that it is now possible to insure elements previously impossible to cover. This offers interesting growth opportunities. For example: image loss, product recalls, weather protection, or financial risks of increasing energy prices. This is now possible thanks to better access to risk data and a better assessment of its consequences.

Insurance can therefore strengthen its position as a protector of corporate investments and offset the risks of earnings volatility.

global insurance review 2017 global insurance review 2017

Insurtechs in China

A small recap is proposed on the issue of insurtech in China, where the growth of Zhong An is particularly impressive (insurtech largest insurer of the world).

2 successive waves took place in China:

  • A first from 2001, around the online distribution, which brought the online market share to almost 8%;
  • The second in recent years, which exploits new technologies and especially big data (telematics or insurance to use / UBI)

Prospects can still open up to cover the ecosystem of e-commerce, and even consider the entry of new players outside the insurance world.

The Chinese regulator seeks to constrain certain segments (such as online lending), but it is generally rather a support for innovation.

global insurance review 2017 global insurance review 2017

My opinion on the global insurance review 2017

Always of very good quality, the Swiss Re reports are full of information and figures. One could blame them for their lack of pedagogy and the austere aspect of their reports, which prevent a diffusion to the greatest number. It may be the price of quality!

Deloitte – The growth of connected cars insurance

Version française ici.


Deloitte published in November 2016 a European study on car insurance entitled The growth of connected cars insurance. This study is carried out for the second year in a row on approximately 15,000 consumers and in 11 European countries (Austria, Belgium, France, Germany, Ireland, Italy, Poland, the Netherlands, Spain, Switzerland and the United Kingdom) .

Briefly, Deloitte believes that these products are promising, that customers are ready, and that it remains to work the business model by moving towards services. One of the main elements to remember is the notion of service platform, presented at the end of the study .

Current situation of the European market

Deloitte presents the figure of 97 billion euros for the size of the European market (premiums issued) of motor insurance in 2015. They also present a potential of connected cars insurance by 2020.

connected cars insurance

Three lessons are to be remembered:

  • Overall, the potential is 17% (or € 15bn) of connected cars insurance, with two countries far ahead: Italy (see Swiss Re case study on this topic ) and to a lesser extent the UK. These two countries have a potential of respectively 27 and 23% of their market. Note, in Italy, there are already 4.5m insurance policies concerned.
  • The study shows a significant change between 2015 and 2016: the intention to change insurer increases more than 15% in Europe. For the authors, this indicates a transition towards a more volatile market, and therefore a necessary transformation. (Note: In France, we observe it through the consequences of the law “Hamon”)
  • 28% of respondents are willing to share their data with their insurer. At the extremes, France and Germany were the most cautious (27% and 25%), and Belgium, the most interested (40%).

connected cars insurance

Short summary sheets are presented by country and make it possible to explain specific local situations.

Sharing data

While insurers do not always have good press, customers are nevertheless rather ready to share their data with them. Insurers have a relatively better image than many other types of actors.
connected cars insurance
In an increasingly standardized, competitive and fluid market, this shows the appearance of a momentum for insurers. It could be interesting for them to exploit these good conditions to position themselves in this market and thus set up criteria differentiating from their competitors.
Nevertheless, it’s impossible to talk about connected cars insurance without talking about analyzing and processing the data collected. It is therefore a question of organizing the transition to more big data in order to benefit from real targeting skills.

Which potential customers?

6 categories of customers are identified by the study, with a very different interest towards connected insurance contracts:

  • Segment of curious elderly policyholders
  • Faithful elderly

connected cars insurance

  • Refractory aged insured categories
  • Versatile young people insured

connected cars insurance

  • Young faithful insured
  • High-Premium Insureds

connected cars insurance

If these categories deserve a little refinement, they already allow the authors of the study to make an international comparison.

connected cars insurance
Excerpt from the detailed country / segment analysis

What motivations for underwriting connected cars insurance?

Several scenarios were proposed to the respondents.

connected cars insurance

Consumers appear much more likely to share their driving data than data from social networks. In addition, as expected, price reduction is the main motivation that can encourage sharing of information. On the other hand, the provision of complementary services is well reflected in the expectations of customers.

The study then presents two interesting visions showing the correlation in the valuation of services and the confidentiality of data, first by country, then by population segment.

connected cars insurance

We will note here different profiles for the two most advanced countries (Italy and United Kingdom).

connected cars insurance

What services?

Is connected automobile insurance, in addition to an opportunity for differentiation in the market, the opportunity to renew or develop the service offer. This is what the authors of the study think.

Categories of Services

3 categories of services were studied:

  • Automotive related services : troubleshooting assistance, theft notification, etc.
  • Non-automotive services : geolocated promotional offer, etc.
  • Data analysis and driving behavior services : Travel and expense information, comparing driving with friends, etc.

Respondents then had to indicate whether they would agree to share their data in order to benefit from one of the 17 services offered.

connected cars insurance

4 services are therefore clearly of significant interest (more than half of the respondents would be willing to share their data):

  • free troubleshooting assistance
  • automatic assistance in case of emergency
  • theft notification / tracking of stolen vehicles
  • free oil change or vehicle maintenance services

These services (in relation to the automobile) could then serve as levers for insurers in order to gain maturity on the other 2 categories of services.

Case / smartphone application

Finally, the study shows a preference in almost all countries for a box installed in the vehicle rather than a smartphone application. A nuance is to be brought: the versatile young insureds show a rather opposite behavior (54% of preference for the application). As it is in this segment that there is a strong potential for development, this nuance is important!

As the choice of equipment is fairly structuring, insurers will have to choose the segments of the population they want to target as a prerequisite for any approach.

The usual worries of the insured are not excluded from this study. connected cars insurance

The issue of transparency in the use of data is therefore essential. In addition, three approaches are to be taken into account by insurers to integrate social responsibility issues:

  • ethical dimension of data usage
  • possibility to feed a new type of relationship with the insured
  • taking into account real risk prevention / loss reduction.

In the end, it should be clear to insurers that the data collected should be used for risk reduction and not just for risk selection. We find clearly in our study that the assessment of services is related to security issues.

The service platform

One of the main elements of this study is the notion of service platform. Insurers have the opportunity to move from a value proposition focused on claims management to a wider range of services around the mobility experience.

Connected cars insurance could be the product that will allow the insurer to renew its relationship with the insured, adding more frequent touch points.

This implies for the insurer to be interested, beyond tariff benefits, in the entire ecosystem of car insurance. More specifically, the insurer will probably have to participate more deeply and invest these new segments to reinvent the user experience.

The choice that presents itself is simple for the insurer:

  • Either do nothing and take the risk of being overwhelmed by new players that will spill over into its business segment
  • Either position itself as a service platform, which will allow the insured to access an ecosystem of partners.

The experience of a few players in other markets (eBay, Uber, TripAdvisor, etc.) shows the potential of such an economic model. These entities are indeed able to operate light and flexible structures that adapt quickly to the needs of consumers.

Auto insurance is already mature enough, and offers a clear environment. This will surely be one of the first branches for which we will have to reinvent the operational model. The first to launch will have a certain competitive advantage.

Deloitte is presenting a proposal for a range of services that could be addressed.

connected cars insurance

Cap Gemini – World insurance report 2017

world insurance report 2017

Version française ici.


Cap Gemini released mid-September, in partnership with Efma , its annual report on insurance:”world insurance report 2017“. This one is based on an international survey (Capgemini’s voice of customer) and this year is interested in 3 aspects:

  • Generation Y and its appetite for digital solutions,
  • The notion of” Moment of Truth ” (Moment of Truth, the moments that tip a customer’s opinion on his insurance company)
  • A growing cooperation between insurance companies and traditional insurers that makes it possible to exploit the strengths of the two types of structures.

Thus, and I’m aligned with this idea, it is not only necessary to invest in innovation, but we must invest properly.

Key elements to remember from Word insurance report 2017

  • 1st part
    • Digital technology is now at the heart of insurers’ strategy
    • Digital is also changing the competitive landscape and, by raising the insurance profile, is driving sector transformation
    • Insurers stay ahead thanks to the confidence they inspire
    • With their respective strengths, it is the collaboration that takes place between insurers and insurance companies
  • 2nd part
    • The deployment of new technologies in insurance is transforming processes and bringing value to insurers and policyholders
    • Insurers prioritize their investments towards solutions that are easily integrated into their systems and have a potential impact on the entire value chain
    • Innovation and digitalization are likely to respond to the triptych Convenience, Agility and Personalization
    • For a successful implementation, insurers must invest in a solution portfolio in synergy with each other.

World insurance report 2017 details each of these aspects.

Digital collaboration redefines the insurance industry

The rise of digital insurance

Insurers have gained unparalleled expertise in risk analysis. The current wave of new technologies, focused on customer needs, is forcing insurers to change. Today, younger generations want to have solutions adapted to their way of life. More specifically, CapGemini finds specificities in the expectations of these groups of populations. They formalized them in their study on “Moments of Truth”.

world insurance report 2017

Specifically, CapGemini finds that Generation Y and the group of techies have more marked behaviors, including the loyalty and the likelihood of buying a complementary product.

This confirms the need to find solutions to meet these more demanding expectations. world insurance report 2017

CapGemini cites the examples of Aviva (driving support app), AllState (claiming with Quick Foto Claim) or Meiji Yasuda Life (strengthening the sales force with smart tablets).

Is digital changing the competitive environment?

Insurance companies can draw new business models, but in a deeper way, they pull the market on a path of breakthrough innovation. Some examples:

  • The Everquote comparator offers a preselection of companies based on the profile analysis of the individual;
  • Aggregators FinanceFox or Brolly allow to have a 360 ° vision of the policyholders’ contracts;
  • BrightHealth to simplify the patient experience by keeping you healthy on the smartphone;
  • Trov offers on-demand insurance;
  • Finally, Fabric targets young parents to offer life insurance policies.

Everyone (insurers / insurtech) has its specificities and its assets. The diagram below graphically represents the respective advantages of each.

world insurance report 2017

Collaboration as a method of evolution

Competition has long been the norm between insurers and insurance companies, but the notion of collaboration is becoming more and more popular to make the most of the strengths. The following diagram shows these forces. Knowing them well helps to ensure that we make the most of them.

world insurance report 2017

Different methods of collaboration are envisaged:

  • Investment / Equity stake;
  • Strategic partnerships: in terms of distribution and the construction of offers, for example;
  • Incubators: Kamet’s example for Axa invites external companies to help them in their development;
  • Internal Incubators: When internal teams have good ideas, you need to be able to grow them out of the usual constraints;
  • Acquisitions.

Among these models, it turns out that pure collaboration is still the one put forward by most actors.

world insurance report 2017

Conclusions

The priority for traditional insurers should be to stimulate a culture of innovation and to have a” digital first” approach. Collaboration with insurance companies is one of the keys to this success.

3 themes appear as levers of” Moments of Truth”:

  • Convenience
  • Agility
  • Personalization

world insurance report 2017

Browse the enigma of innovation

The capabilities of insurance companies open up new opportunities for insurers

From a customer point of view, the solutions offered by insurtechs revolutionize the historical face-to-face relationship through:

  • B2C aggregators: These are the comparators, like Insurify
  • B2B aggregators: Proposals for tailored solutions for business customers
  • P2P Intermediaries: Collaborative Solutions
  • Mobile apps and chatbots

Emerging technologies act as catalysts for insurance companies

The technologies cited as examples on the back-office side are:

Then, others, more visible to the client, and therefore front-office side:

world insurance report 2017 world insurance report 2017world insurance report 2017

Note: CapGemini does not take too much risk here because they quote almost all the technologies that make the headlines of the moment!

Set priorities for the future

In order to select priorities for future development, World Insurance Report 2017 suggests meeting the 3 essential needs of the insured: Convenience, Agility, Personalization.

To do this, CapGemini proposes 3 pillars, visible on the diagram below:

  • Digitization, to look for improvements in the cost structure;
  • Data & analytics, to look for a better customer engagement;
  • Insurance as-a-utility to find new sources of income.

world insurance report 2017

What digitalization solutions?

The recommended solutions are:

  • Connected objects : for example, Oscar for health that tracks your physical activity levels, or Hippo for the home that tracks leaks before they cause damage;
  • Key process automation : Lemonade robots by example are dreadfully effective, or the use of drones to resolve claims more quickly in natural disasters;
  • Smart contracts with the blockchain : Examples of Dynamis and SafeShare Global are included as examples.
  • Mobile solutions : Focusing on mobile-only solutions may be relevant, as proposed Wrisk .
  • APIs open to develop new applications : This allows you to benefit from the creativity of the mass of developers on the market. The report only cites MuHu .

world insurance report 2017

What solutions around data and analytics?

The recommended solutions are:

  • Build individualized profiles : Amodo or Mydrive solutions
  • Individual Risk Assessment / Risk Management : Cigna or GOQii allow to target the technophiles for example.
  • Pricing Analytics : Sentiance and its partnership with Insurtech RISK is quoted.
  • Identifying Emerging Risks : Praedicat analyzes millions of pages of scientific studies to identify new risks.
  • Targeted products and services : For example Y-Risk
  • Customer service augmented by artificial intelligence : Chatbots of course, but also offers solutions such as Next Insurance or Xtra Axa chatbot .

world insurance report 2017

What solutions for insurance as-a-Utility?

The recommended solutions are:

world insurance report 2017

How to move forward?

All actors have priorities that vary from year to year and according to their level of advancement. On the other hand, all are confronted with an identical context and the search for new business models is important. For this, it is about being able to choose which solutions to put forward.

The following diagram presents, for each model that an insurer could consider, the functionalities or solutions on which it is relevant to invest.
world insurance report 2017
So we see that one solution can not meet all needs. Therefore, we must invest in a reasoned and coherent way in a set of solutions that create synergies between them. ( Note: Nothing new, the popular saying says well:” Do not put all your eggs in one basket”! ).

Conclusions on world insurance report 2017

The report World insurance report 2017 sometimes appears as a catalog at the forefront of all that the insurance innovation market has solutions, without any opinion, and we can regret it. However, you have to keep 2 things:

  • It has the merit, in this catalog, of being quite exhaustive, and little is missing on the call
  • There are many examples to illustrate ideas and to form one’s own opinion.

In short, they succeed their exercise at will educational, but do not go further!