Link: Digital is helping Millennials shop around for auto coverage

That’s according to TransUnion’s “Auto Insurance Shopping Index,” which found that 21.7% of consumers shopped for personal auto insurance in 2018, versus 20% in 2017. With 44% of their cohorts shopping, Millennials and Generation Z consumers shopped for auto insurance than other ages.

The reason? Digital distribution and marketing seem to be huge drivers to increase shopping for Millennials. According to David Drotos, VP of insurance solutions at TransUnion, “Technology is fueling the experimentation and development of new business models for insurance that cater to the Millennial lifestyle.”

Source: Digital is helping Millennials shop around for auto coverage

Link: What’s Hot In Insurance Tech In 2019?

The business backbone, the core systems, burden digital transformation strategies. Insurers spend about two-thirds of finite tech budgets on these run-the-business systems. More nimble competitors are spending more on digital tech. And this run-the-business spend is growing. Tech leaders need to demonstrate business value of these maintenance and ops investments. Benjamin Clarke, the CTO of Bold Penguin, argued that “the project mentality of insurance companies leads to them not building anything interesting but just replatforming again, delivering the exact same experience.”

Source: What’s Hot In Insurance Tech In 2019?

Link: It’s Time To Transform Insurance Claims

Protecting customers in times of duress is the basic purpose of insurance, and yet only 57% of US online adults feel confident that their insurance company will treat them fairly when they have a claim.[1] Poor claims experiences have immediate business effect. In the UK, 71% of property & casualty insurance customers would consider switching providers if they had a bad claims experience.[2]

Source: It’s Time To Transform Insurance Claims

Link: Farmers Insurance’s New CIO Sees AI Improving Claims Process

‘Fast, easy interactions are key for customers who have become accustomed to the ease of use and personalization of e-commerce. For example, Mr. Wilson says he won’t buy from a website that doesn’t make it easy to see as many reviews as he can on a product, and to quickly order and check the status of orders, he said. He’s “pleasantly surprised” when a company knows enough about his past purchase behavior to suggest a product or service he might like, he said…. The ability to automate mundane processes for employees through artificial intelligence so that they can spend time working on more complex problems is one area of interest, he says. Artificial intelligence and automation could help make the claims process quicker for customers and take out much of the routine work for its more than 10,000 claims employees, said Rehan Ashroff, director of innovation lab and new ventures at Farmers, in a previous interview.’
Original source: Farmers Insurance’s New CIO Sees AI Improving Claims Process

Link: How Insurance Giant Allstate Is Using Cloud Tech to Build New Businesses

“When you’re an 86-year-old company things have done a certain way, there are rules in place because of what someone did 10 years ago,” says Opal Perry, vice president and divisional chief information officer of claims for Allstate. “Now, instead of a 200-person team, you have small six- and eight-person teams working on things. It unleashes creativity.”

In the past, many enterprise software projects required millions of dollars, and even sign-off by the CEO. “By the time you got permission, ideas died,” explains Perry. “Now a senior manager has $50,000 or $100,000 to do a minimum viable product.”
Original source: How Insurance Giant Allstate Is Using Cloud Tech to Build New Businesses

Link: After Months of Development, B3i’s Blockchain Prototype Is Ready for Testing

More using blockchain for tracking and validating insurance policies:

“With the advent of smart contracts, distributed ledger technologies, and cryptography, we believe we can speed up the insurance transaction through the elimination of redundant and replicated processes, higher speed of execution and greater transparency,” Slaughter added.

Paul Meeusen, Swiss Re’s head of Finance and Treasury Services, explained that the prototype has been taken through robust testing and B3i has observed “efficiency gains in the order of 30 percent, by taking out unnecessary reconciliation, duplication of work and waiting time.”

The prototype application takes a property cat excess of loss contract, puts it on a shared ledger where terms are agreed in real time. “We see who has signed what line, paid what premium and reimbursed what claim, in one single version,” he explained.
Original source: After Months of Development, B3i’s Blockchain Prototype Is Ready for Testing

Link: Insurance industry making the leap to blockchain

Using the decentralized, assertion verification system in blockchain stuff to keep track of insurance policies across geographic and company boundries:

“The distributed ledger is a permanent, secure tool that makes it easier to create cost-efficient business networks without requiring a centralized point of control. With distributed ledgers, virtually anything of value can be tracked and traded,” the foundation said in a 2015 statement. “Distributed ledger systems today are being built in a variety of industries, but to realize the promise of this emerging technology, an open source and collaborative development strategy that supports multiple players in multiple industries is required. This development can enable the adoption of blockchain technology at a pace and depth not achievable by any one company or industry.”
Original source: Insurance industry making the leap to blockchain

Link: Liberty Mutual embraces AI, blockchain

“The Boston insurer is also testing blockchain software to develop a platform intended to create an audit trail and move money across the business faster, Scerbo says. Blockchain could eventually present carriers with the opportunity to pair the ledger technology with IoT to avoid fraud using connected-car sensors and smart home devices increasingly being adopted by consumers. Collected information would be sent to the blockchain, where it would be distributed to a slew of computers with no need for a middle man.”
Original source: Liberty Mutual embraces AI, blockchain

Link: Insurers go all-out on mobile, but what comes next is elusive

“74% of Canadians begin their insurance research journey online, with 25% of those using a smartphone only. Further 61% of this segment will immediately abandon a broker’s website if not considered mobile-friendly, and a full 50% of Canadian consumers believe that if a company does not have a mobile website it does not care about that customer’s business”

Better have a mobile app.
Original source: Insurers go all-out on mobile, but what comes next is elusive

Link: The Insurance Industry Is A Prime Target For AI Technologies And Solutions

Quote below:

  • Technologies Oriented & Experience Focused: Experience related AI technologies include virtual assistant, speech analytics, and recommendation engines. These technologies are being adopted in customer service and insurance product selection business activities.
  • Technologies Oriented & Operational Focused: Operational AI technologies comprises text analytics, advanced analytics, facial and image recognition, machine learning and natural language generation. Most of these AI technologies are being adopted to improve operational efficiencies. However facial recognition and machine learning are being used to mitigate the risk exposure of insurers.
  • Solutions Oriented & Experience Focused: The two experience focused AI solutions concentrate on providing a positive customer experience. The solutions combine multiple AI technologies to create conversational solutions and industry pre-trained solutions. The latter is also being used to train internal customer facing roles.
  • Solutions Oriented & Operational Focused: As machine learning has grown in maturity, we find insurers combining other AI technologies with machine learning to create deep learning solutions. Currently, risk management is the focus area of deep learning solutions.
    Original source: The Insurance Industry Is A Prime Target For AI Technologies And Solutions

Link: A look inside American Family Insurance’s digital transformation office

“More specifically, our definition will include leveraging technologies, such as AI, machine learning or robotic process automation, but it’s really about data and how we’ll utilize it. Like most insurers, we have decades of outcome data. Now, with evolving capabilities, the availability of new data sources and advances in analytical modeling, we can marry historical data with real-time data to create something more powerful. The ultimate goal is establishing new ways of working that are more data-driven in order to become more proactive and valued in our customers’ lives.”
Original source: A look inside American Family Insurance’s digital transformation office

Link: Amazon pushes further into insurance with its latest investment

“Amazon’s Indian venture is probably a springboard for a move towards more established markets. India is some way away from Amazon’s key US and European markets, suggesting that it’s using India as a test lab for expanding its insurance operations. However, Amazon’s decision to flex its insurance muscles in India is probably also down to the fact that Amazon has stronger competition in this market in the form of home-grown rival Flipkart — which has also begun stepping into insurance. In Europe and the US, meanwhile, Amazon has fewer real competitors. As such, it’s likely that if Amazon’s venture with Acko succeeds, we’ll see it striking similar partnerships closer to its core markets to bulk out its insurance presence there. If this were to happen, legacy insurers and smaller insurtechs would be up against some stiff competition.”
Original source: Amazon pushes further into insurance with its latest investment

Link: Amazon is coming for the insurance industry – should we be worried?

“While UK insurers are investing in tech and providing digital services, the majority are light years behind Amazon,” noted Davies. “If insurers are not careful, they may be pushed out of having a direct relationship with customers and be relegated to the role of a price-driven risk carrier at the back end (assuming Amazon doesn’t want to hold the risk too).”
Original source: Amazon is coming for the insurance industry – should we be worried?

Would you buy auto insurance from Google? The Kids and auto insurance

The young people account for 20% of of the $180bn US auto insurance market. Here’s some trends in their buying behavior a la a BCG infographic:

Infographic on car insurance buying habits.

Some items:

  • That nearly 40% are willing to buy from Amazon, Google, and others should put traditional insurance vendors in full on freak out mode.
  • Once The Kids start the long (up to two weeks!) research process, they’re 70% more likely to switch than The Olds. So, it’s probably a good idea for incumbents to heavily get involved in research, pointing to native content sponsored “third parties” and providing their own research.
  • As one of our Pivotal customers, Allstate, put it: “Everybody is going to disrupt the insurance industry. It hasn’t been disrupted in eighty-plus years.”

Source: bcg.perspectives – How Digital Switchers Are Disrupting US Auto Insurers