Insurance Nexus organizes an event around connected insurance on June 11th in London and publishes a white paper to support it named “IOT is just a technology“. Continue reading “Insurance Nexus – IOT is just a technology”
Here is a little overview of articles that caught my attention and deserve to appear in the press review of April 17, 2018!
Subaru offers 3 years of insurance
Those who read me regularly know that I often talk about a decomposition of the value chain to come. Indeed, I believe that it will be necessary tomorrow for insurers to go further in their response to the needs of their policyholders at the risk of being supplanted in the commercial relationship. The example above is symbolic for me of this situation! Subaru, automaker, intermediates the insurer in the proposal of a motor insurance. This is obviously not new, but it raises again the question of the role that can play the trademark of the insurer in this if it no longer assumes the distribution to the client.
The blockchain is dead, live Hashgraph
Links: Article from Journal the net – Hashgraph .
When it comes to blockchain, it happens quite quickly that we fall back on the technical difficulties of scalability and performance. A new technological solution would make it possible to overcome a number of these constraints. The proposal seems interesting and the subject promising, but we are obviously still far from a concrete applicability. All you have to do now is read white paper to get an idea ( Note: I have not read it yet! )
When call centers predict customer emotions
There is a lot of talk about affective computing or how artificial intelligence could move us on the path of emotional intelligence. However, so far, few reliable sources allow to see more clearly what happens. We knew the solution of Affectiva , we can now add Cogito. This solution is based on sociometers, developed by an MIT team. It’s about detecting subtle signals in speech, tone and body language, regardless of the words used.
Solar panels, a puzzle for firefighters
Link: XLCatlin- Solar Panels
Innovation in insurance is not only new technologies that come to transform the business, they are also new risks . We talk about cyber risk very often, but here’s another, quite unexpected, but still difficult to manage.
Make car insurance “cool”?
Karl Heinz Passler is one of the leading influencers in the insurance innovation market. He is very active on the social networks , and a little less frequently on his blog, but the article above presents some often simple ideas for boosting car insurance!
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.
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 ” .
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:
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.
Selection of 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
- Claims and fraud
These last 3 categories are actors who need insurers as clients.
Here is the selection presented differently.
The last pages of the report present a summary in 1 or 2 pages for each of the selected solutions.
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.
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.
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.
Finally, the figures it presents show that attrition will be lower with telematics than without (11% instead of 14%).
In short, that positive points!
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.
I update my landscape insurtechs with 15 new startups on January 19th, 2018. You’ll find the update here. There are now 123 startups documented, coming from 17 countries.
Au menu d’aujourd’hui:
- Hippo: Advanced home insurance and Quote in less than 60 seconds.
- Slice: On-demand insurance.
- Metromile: Insurance Pay-as-you-drive, based on driven miles.
- Bought by many: Grouped insurance buying.
- Understory: Environments captors (humidity, temperatures, wind, rainfalls), similar to mini weather stations which enable to audit afterwards the losses due to weather origins.
- Affectiva: Emotions detection, Sentiment analysis and SDK deployment.
- Jaco: Insured Behaviour data collect on web sites in order to improve the user experience.
- Coverfy: Multi Insurance contracts management from a mobile phone, double coverage identification and Proposal of price improvements.
- MyZuum: Telematics to add to the vehicle, Emergency alerts, prevention, driving behavior improvement, mechanical diagnosis….
- Brokoli: Insurance contracts assessment from mobile phone and Distribution.
- Drivies: Driving data analysis from a mobile app, Driving improvement propositions and Insurance price improvement proposition based upon collected data.
- Predictry: Sentiment, choice or behaviour prediction thank to Machine learning and Predictive analysis and automatic recommendations.
- Twiggle: Buying intention predictions thanks to natural language processing, machine learning and ontological models.
- Conversable: Chatbot with a Saas Platform.
- Leocare: Motor and Home insurance distribution via mobile, Quote in 45s and On-demand insurance for some additionnal options..
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!
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 …
As it is frequent at the beginning of the year, I too will fall into the game of predictions for the coming year. With my 6 topics for 2018, here are the 6 points that I think will be 2018 on innovation in insurance:
I think the moment is good to launch complete offers around telematics embedded in cars, smart homes or wearables. When I think of complete offers, it does not just mean capturing user data. It is also, above all, and before all, providing services to these policyholders or using these tools to implement new prevention policies.
This may be the consequence of the previous point, but a little wider, a redesign of offers. It’s time to think about offering insurance products as the structuring element of the insurance value chain, from prevention, to disaster, to adding service. For example, the improvement of claims management will only pass a complementary course when products are designed to be managed quickly and simply.
I often talk here about decomposing the value chain with the setting up of experts at all levels, namely, risk bearers, distributors and managers, for the purely insurance part, but also service providers. ecosystems that will need to be mobilized intelligently. The advent of the platforms will aim to move towards this type of organization where everyone will find his place!
As a direct consequence of the previous point, if the same contract must concern multiple interlocutors, the notion of interface between them is essential. Maturity on these issues has greatly increased in recent years. Simple EDI flows (like those still used for third-party payment for example), we moved to advanced webservices but sometimes complicated to set up. Then, we now come to expose real complete services, through webservices or APIs to access the data without necessarily changing the technical architectures in a structuring way.
The needs in this segment are exploding, and it will be an intelligent response that avoids the pitfall of systemic risk! For me, here more than elsewhere, it means helping to prevent and reduce risks upstream to avoid the most frequent attacks. On the technological side, the weakest link is always first and foremost the human, it is about takins this into consideration! By the way, how do you manage your passwords?
A user experience at the heart of all steps
The last few years have been mostly devoted (except for the more advanced ones) to work around the efficiency of processes, and how to do it for less! It is now to be interested in doing better for the same price, or better for less expensive. Better means here better from the point of view of the customer, because the essential thing is to simplify his life, to eliminate irritants. It is therefore customer demand that must be at the center of future optimizations.
It goes without saying that Siltéa and I are able to accompany you on these 6 topics for 2018! Feel free to contact me .
And you? What do you think? Do you have others?
Forbes insights publishes a small report on the use of geographic data in insurance that challenges the saying “close enough is good enough” and say that from now on, the GPS approximation is not enough anymore! Continue reading “Forbes insights – Close enough is not good enough”