In this series, I’m exploring seven innovation trends emerging out of the Efma-Accenture Innovation in Insurance Awards 2017. We have analyzed our database of over 750 innovations and observed these powerful ways in which insurers are putting digital technologies to work. For previous posts on this topic, please also visit here.
Today I’ll discuss the sixth trend, which we’ve named the Plug & Play Insurer. This model sees insurers grow by embedding insurance products into existing offerings with strategic partners. We’ve seen this model in practice for quite some time with online travel sites offering products like opt-in trip cancellation insurance for an additional fee at the point of sale.
One major appeal of this distribution trend is that, from both an operational and technological perspective, integration with partners can be achieved in a short amount of time. We view fees from partners and referral fees as the main revenue models, along with the opportunity to increase revenue by embedding additional product offerings into the retail journey.
This proactive model meets customers where they are, when they are already engaged in the retail experience. It allows insurers to put their products front of mind for consumers, while offering targeted products exactly when they need them. Partnerships with established enterprises would allow insurers access to a large number of customers at scale, and yield greater customer insights and learning, by analyzing their consumer data.
Brazil’s Bradesco Seguros developed their own ‘API Playbook’ to enable clients and partners to integrate with its systems by providing definitions and best practices from everything from design to security. As the carrier undergoes its digital transformation, the API Playbook helps ensure a smooth journey.
Kasko (UK) is an InsurTech startup that provides access to digital customers where they live online. Kasko offers its insurance API to help insurers embed themselves into websites and apps so that they can cross-sell their products during the retail journey.
Munich Re and Tictrac (Germany)
London-based healthtech business Tictrac and Munich Re have formed a partnership that will use customer analytics to help insurers improve their products and underwriting. The ‘Wellgage’ initiative will take data from customers’ apps and wearables to develop insights about customer behaviors and provide lifestyle advice to alleviate and combat health problems such as stress or diabetes.
Munich Re offers ‘Wellgage’ to insurers globally as part of a broader digital health plug and play ecosystem. Insurers will benefit by staying connected with their members, accessing real-time consumer lifestyle data and combining with legacy data sets, providing employers with a solution that is customized for their populations, and improving policyholder health.
Visit again for the final post in this series, Sharing is Caring.