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Connected Insurance Observatory

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The Observatory is available to share with Connected Insurance's Stakeholders an innovative think tank

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Connected Insurance Observatory

  1. 1. Bain Observatory on Telematics, Connected Insurance & Innovation Matteo Carbone Principal, Bain
  2. 2. Context 2 • Data provided from Telematics and Internet of Things represent an extraordinary opportunity for Companies in order to: - Improve risk selection - Innovate pricing definition processes - Sell additional services (following to the de-risking process on several lines) - Move from just paying claims to a more proactive role, fundamental element for profitability improvements - Engage customers (enhance communication frequency and value) • The approach has been concretely used (in Italy but also within other markets) in motor insurance business (black box) • Italian insurance market, pioneer in motor business: - Has a relevant experience either in terms of penetration (~15% penetration) or in defining the approach to the market - Is going into the next innovation wave with home and health telematics offering definition • Bain Telematics, Connected Insurance & Innovation Observatory is aimed at spreading innovation culture over the insurance market with the associates, allowing them to get a great opportunity
  3. 3. We want to create a connection among Companies and stakeholders interested in participating to this new model 3
  4. 4. We strongly believe that the successful experience on motor telematics in Italian market can be extended to other business lines 4
  5. 5. The Observatory is available to share with Connected Insurance's Stakeholders an innovative think tank 5
  6. 6. Telematics are the most disruptive transformation occurred during last 10 years in the Italian motor insurance market 6 Jumped at 15,5% at Q3 2015
  7. 7. Telematics penetration has grown, especially in regions with higher average premiums… 7 Source: Telematics, Connected Insurance & Innovation Observatory, Ivass Data
  8. 8. …but with high variance at the same premium level 8 Source: Telematics, Connected Insurance & Innovation Observatory, Ivass Data
  9. 9. The Observatory is available to share with Connected Insurance's Stakeholders an innovative think tank 9
  10. 10. Raw data isn’t smart…based on the Italian experience, the strategic partnership with a TPS is key to enable the Insurer's innovation 10 Source: Telematics, Connected Insurance & Innovation Observatory
  11. 11. Mobile first: Which rules for the smartphone? 11 Telematics Smartphone based Smartphone as one of the data sources within a telematics approach User experience: mobile first! • Opportunity to use only the smartphone sensors to gather the telematics data • Mobile app to manage: - the trip automatic-start - data gathering - M2M data transmission (smartphone to cloud) • Mobile apps to create try before you buy funnel for the customer before a policy purchase (policy with an aftermarket telematics box) • Hybrid smartphone & hardware (beacon or "light" OBD/box), approach to gather the driving behaviors • Smartphone sensors to gather contextual data, able to enrich the telematics data coming from the black box • Insurer's app as key touch point of the customer experience: - Communication channel to provide information about the telematics policy and engage the client improving his behaviors - Front end for all the telematics value added services to the driver - Mobile sales channel for contextual cross selling MOTOR EXAMPLE Source: Telematics, Connected Insurance & Innovation Observatory
  12. 12. Connected health: radical innovation of the tradtional Health insurance business model 12 Source: Telematics, Connected Insurance & Innovation Observatory Risk mitigation (how) Target (who) Healthy behavior steering Healing process monitoring Illness presence check Service quality/price monitoring Early warning identification Service (what) With illness Chronic/ elderly At risk Health Indemnity Medical service supply Medical Expenses Discount price purchase (negotiated by the company) Traditional positioning Health Insurance company Company strategic role (why)
  13. 13. The Observatory is available to share with Connected Insurance's Stakeholders an innovative think tank 13
  14. 14. How will you boost the penetration on the smaller premiums? Fonte: Osservatorio Bain Telematics, Connected Insurance & Innovation; Mistery shopping Bain in Agenzia 14 Euro (59-y.o. living in Milan, Volvo C30) Quotation in Agency MTPL Net saving1 6% Including 16,5% discount on MTPL (new business incentive) "Mandatory" assistance Box yearly fee Maximized MTPL discount, charging a cost component to end client
  15. 15. New data source: In the next 20 years, both aftermarket black boxes and other devices will coexist, all with a material presence Insurers must manage this complexity within their telematics programs Fonte: Osservatorio Bain Telematics, Connected Insurance & Innovation 15
  16. 16. Sharing views about connected insurance topics Privacy Rules Data portability Data standardiziartion … ILLUSTRATIVE Data Ownership Fonte: Osservatorio Bain Telematics, Connected Insurance & Innovation 16 Cyber risk Connected insurance landscape Motor Ecosystem E-health Ecosystem Insurance Company Client Security Thermostat Water Detection Smoke Detection Energy management Appliances control Infotainment Wearable Remote monitoring Remote health advice Smartwatch Wellnessapp Self quantification EMRs E-shop food & grocery E-pharmacyEducation Navigation Infotainment Road/park charging Diagnostic & maintenance Crashassistance Education eCalls Stolen vehicle recovery Domotics Ecosystem Data
  17. 17. Matteo.carbone@bain.it

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