For insurers open to new business models, there is a surprising array of opportunities to both add value for customers and grow revenue.

Insurers who are armed with insights based on new data sources can explore entirely new types of business. They can build partnerships with digital disrupters to gain early access to the data they generate or offer new products tailored to their customers’ needs.

In case you’re still not convinced of the potential value to be had from external data sources, here are five examples of insurers seeing value from business created by digital disrupters.

Insurance for short term rentals

Homeowners renting out their homes on a short-term basis through Airbnb or similar services often want and need additional home insurance, since their standard homeowners’ policies typically do not cover such rentals. Centraal Beheer, a Dutch insurance carrier, includes insurance for sharing one’s home through platforms like Airbnb in its standard home insurance package, without requiring customers to pay extra.

Insurance for travelers who have missed flights or lost luggage

Berkshire Hathaway Travel Insurance’s AirCare product, which helps travelers rebook a missed flight or find lost luggage, uses Federal Aviation Agency (FAA) and other databases. AirCare also pays bonuses to make insured travelers’ flight delays more comfortable.

Insurance for customers borrowing someone else’s car

Cuvva, a Scotland-based broker, launched a product in October 2015 that offers temporary insurance to those who have borrowed someone else’s car for a short period (for a weekend away, an errand or an airport drop-off). Customers select the length of coverage they require and the app generates a one-off price. Coverage starts immediately and can be extended using the app.

Insurance for passengers and drivers of ride-sharing services

Passengers and drivers of ride-sharing services might wish to purchase more coverage, on the spot or on a one-time basis. AXA has teamed with BlaBlaCar, a ride-sharing platform, to provide free additional insurance specially designed for long-distance ride-sharing. It is offered as an addition to a driver’s existing insurance policy for journeys across France organized through BlaBlaCar’s online booking system. USAA, MetLife, Erie, Progressive and GEICO have also launched, or are planning to launch, offerings in the ride-sharing market.

Insurance sold through Facebook

Dutch insurer Aegon N.V.’s Kroodle insurance is sold exclusively through Facebook (presumably providing Aegon with extensive new sources of data on customers using this channel). Kroodle currently offers:

  • Boodle Kroodle – household insurance.
  • Casa Kroodle – home insurance.
  • Trouble Kroodle – liability insurance.

The initial success of the product has prompted Aegon to add College Kroodle for students and Travel Kroodle.

These are just a few of the ways insurers are finding value in the digital world—you can find other examples in our recent report. For insurers willing to embrace external data streams, the opportunities are almost limitless.

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