My most recent blog posts have dealt primarily with general observations on how innovative insurers are using digitalization to stay ahead of their competition. Now we are about to get a bit more specific about who is doing what.
Every quarter, Accenture tracks new examples of digital innovation in both the property & casualty and life & health sectors, culling examples from around the world. Based on what we’ve compiled for the P&C sector, we have identified the following trends:
- Innovators are using mobility to boost customer engagement and provide regular value-added services.
- The use of telematics is rapidly expanding across the globe.
- Digitally enabled product innovation is on the rise.
- Digital distribution developments are increasing.
- Innovators are using social media both as a channel, and to meet broader customer interests.
- Insurers are internally organizing for digital innovation.
The fact that mobility and telematics are two of the leading trends is a general observation, and consistent with Accenture’s Digital Innovation Survey, which I have discussed in detail in my earlier blogs. But our Innovation Tracker delves deeper into these generalities by citing specific examples of insurers that are leading the pack in six areas: social media, mobility, product, telematics, distribution, and internal.
Mobility is a dominant global trend, with insurers launching a huge array of new applications or adding features and functionality to their existing apps. Accenture’s 2014 Consumer Driven Innovation Survey found that almost 70 percent of consumers are interested in mobile-based insurance services—and these leaders are delivering:
- GEICO, the U.S.’ third-largest personal lines insurer, has been a leader in mobile technology since rolling out its application. The addition of a mobile auto insurance card app allowing customers 24/7 access to proof of insurance, is further enhancing their positive consumer perception.
- U.K. insurer Aviva introduced the new MyAviva app to offer products and services via mobile phone. Going straight to the source, Aviva invited 200 consumer “testers” to help design the app, offering high-end retailer vouchers as the incentive. The resulting app allows customers to renew policies, retrieve quotes and file claims, and helps prospective customers receive quick online quotes.
- Italian insurer Quixa, the online company of the AXA Group, rolled out QuixApp for its personal lines auto customers, designed to solve many driving-related problems. Available in iOS and Android, the app uses “Guido,” a virtual personal advisor, to guide users with directions, geolocation to body shops and related locations, and a quick-quote tool.
- On the homeowners side, Allianz France introduced the “Ma securite by Allianz” free mobile app, which provides users with information on the risks at their location and helps them establish a plan to keep their family and property safe. Data is supplied by the Ministry of Ecology, Sustainable Development and Energy, and the Department of Prevention from Major Risks.
Telematics is becoming a global trend, with insurers testing and launching many different propositions. Accenture’s telematics white paper argues that while premium discounts will attract consumers to telematics, value-added, location-based services will drive broad-based customer adoption. Here are some innovative approaches:
- Direct insurer Sparkassen DirecktVersicherung AG launched S-Drive, the first telematics-based car insurance policy in Germany. Through a box installed in the vehicle, policyholders can check via the Internet or a mobile app how safely they drive scored on speed, driving style, night driving, city driving and overall driving safety. Good drivers receive a 5 percent discount based on their scores.
- Russian insurer Renaissance Insurance Group launched a pioneering fleet management telematics solution in cooperation with telecommunications group Mobile Telesystems, which captures vehicle information and driver behavior data, allowing insurers to determine premiums based on the track record of drivers and corporate customers.
- In India, Policybazaar.com, an online financial services platform, and Chleon, a cloud-hosted global platform that offers insurance telematics as a service (iTaaS), rolled out “pay how you drive,” which captures driver behavior to calculate future motor insurance premiums. Along with driver scores, the product includes features like family tracking, driving coach, car locator and theft tracker.
- In South Korea, Hyundai Marine and Fire Insurance Co. launched BlueLink, a telematics platform to provide mileage-based premium discounts. Users are eligible for a 3 percent premium discount.
Next week, I will share more examples of how innovative property & casualty insurers are using digitalization in the areas of product and distribution.
Other papers on the topic that you might find useful: