Efma Review 2019 offers an overview of issues and technologies that are affecting financial services companies across the world. It includes a great article “Why Insurtech is the future of insurance” featuring Matteo Carbone. The main thought of this article is that the synergy of the best propositions from both worlds will lead to great potential to revolutionize the insurance industry.
Insurance companies are still perceived as traditional with conventional businesses models. However, many Insurers and Insurance brokers are aware of the great potentials of embracing technology in order to transform and reinvent its established models and impact the industry with this powerful tool.
How driving behavior data can become a powerfull tool for achieving insurance company business goals.
“Today it’s unthinkable for an insurance company not to ask how it can evolve its model by considering which modules within its value chain should be transformed or reinvented via technology and data usage,” said Carbone.
Great potential for Insurers lies in partnerships with Insurtechs such as Amodo offering platform that collects data from smartphones and other connected devices, in order to build holistic customer profiles, providing better insights into customer risk and customer products needs.
“In our hyperconnected world, risks are changing, digital assets are more valuable than physical ones and people don’t accept waiting to be served anymore, insurers can do it all so much better if they not only accept and embrace insurtech, but truly become it.” Carbone added.
Partnerships between insurtechs and insurance companies with P&C offerings can provide various benefits for an insurer and to their customers as well.
Benefits for P&C Insurance providers:
Insurance companies and Insurance brokers are able to distribute their insurance products directly through digital (smartphone) channels and provide the next generation of personalized insurance products and services to existing customers but also to attract new ones. A better understanding of customer needs will expand their relationships and create a better customer experience. Consequently, this will result in differentiation in the market and smart loyalty strategy. The full potential of data analytics in the insurance industry is visible through predictive analytics. Risk prevention has a direct impact on claims expenses that will lead to lower costs for both parties. Did you know that Amodo Clients achieve up to 32% conversion from download to policy purchase?
Benefits for the end user/driver:
Based on various parameters driving behavior is analyzed and evaluated by the scoring system. The driver receives a detailed evaluation of his driving behavior on his smartphone, after every journey. Every well-rated ride leads to lower claims and consequently to a better proposition. Drivers can get a monetary value in the form of monthly cash-backs, based on their road safety performance.
Over time, User improves his driving skills and become highly engaged using various customer engagement options: entertaining challenges, reward contests, creative badges, and friendly competitions between peer groups. Drivers are incentivized for the behavior change through discounts system. Part of the value is the reduced premium, users can also enjoy other benefits provided by Insurer program partners. Did you know that users of Amodo app have a 60% lower probability to be involved in an accident with fatal injuries?