The future of (motor) insurance is connected (obviously) – thoughts?
I was fortunate enough to present and share a panel (I am the short bald guy in the middle) with the esteemed Kinda Nejem and Trygg-Hansa’s Fredrik Thuring for this wide-ranging session, which prompted several discussion points from the attendant audience.
In broad terms, there were three areas of debate:
1) Consent and incentives to share data?
Clearly, the consumer has a choice of insurance provider. In our Admiral/Ford/REDTAIL [Insurer/OEM/REDTAIL] model the sell is either insurer or OEM. The ‘opt-in’ and permissions are managed by i) OEM – in-dash display prompted and ii) Insurer Ts & Cs signed. Our primary research indicates that consumers will respond to ££/€€/$$ based rewards for better/safer/more eco-driving.
Insurance Observatory (IoT Insurance Observatory: Global insurance think-tank (iotinsobs.com)) primary research indicates that the ROI works for the insurer as well.
2) Who is leading this tech and it’s adoption, and doing it well?
mmmmm……a number of noisy players might claim they are, a couple of failed equally noisily. REDTAIL takes a very considered view, in testing and learning and testing again. This takes time and effort and dialogue and patience and understanding. And the willing to commit resource to innovate.
None of which is necessarily the DNA of all large corporates! Just saying! So to answer the question, we are!
3) How will this impact the insurance company of the future?
Connected vehicle data can be used across risk, propositions and claims – at least! So first answer: it should impact broadly. Secondly, (and I am borrowing a phrase from Fredrik) it will make jobs in all areas including actuarial more interesting. Richer and more immediate data providing increased insight, value and ROI. Insurtechs partnering with insurers offer the thinking and doing to accelerate pilot through to adoption.
Those that don’t will suffer worse loss ratios. No really.
Concluding thoughts?
Not sure. In many ways it is early days; in other ways it is also late – there are other players making noise and moves.
Call to action: do something! Do something with direction, intent, testing and learning – and do it now !
