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IoT Insurance Observatory 2021 edition

The IoT Insurance Observatory is a four year old think tank specialized in insurance IoT
The Observatory generates and promotes innovation in the insurance sector: representing the cutting edge of global innovation; offering a strategic vision to exploit the insurance IoT full potential; stimulating research and debate between the participants.

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IoT Insurance Observatory 2021 edition

  1. 1. IoT Insurance Observatory 2021 initiative presentation
  2. 2. 2 The Observatory mission is to promote a profitable IoT adoption Insurance IoT Observatory is a five-year-old think tank specialized on the insurance IoT with the participation of top executives from the most relevant Insurers, Reinsurers, and Tech players in the IoT insurance arena The Observatory is about connecting people and ideas in order to spread the innovation culture throughout the insurance market with three concrete outcomes: • A global multiclient research on the insurance IoT paradigm • One-to-one workshops delivered to each member • Plenary symposiums with all the members Some international insurance best practices have successfully integrated IoT in their insurance value chain and achieved positive ROIs. These insurer’s business transformation journeys show how strategy matters more than size The Observatory speaks the insurance business units’ language but has the innovation units’ soul
  3. 3. 3 The former four Observatory editions in figures hours of one-to-one workshops plenary symposiums between North America and Europe insurance companies, including: 4 of the top 5 Reinsurers 11 of the top 15 European Insurance Groups 8 of the top 15 US P&C Insurance Groups international publications tech players and vendors 2000 21 6 41 76 Worked directly with players accounting for more than 80% of global IoT insurance volumes (number of insurance policies with telematics, smart home/buildings, and connected health/life)
  4. 4. 4 The 2020 Observatory members
  5. 5. 5 The think tank membership provides access to the most globally relevant insurance IoT knowledge The knowledge is delivered through workshops dedicated one- to-one to each of the organizations, which are members of the Observatory and plenary symposiums both in North America and Europe Observer Interpreter The most pragmatic multiclient research specialized in the insurance IoT domain based on a constant observation of the usage of sensors in different insurance business lines around the globe We interpret best practices and pitfalls for the members leveraging experience built on advising hundreds of organizations in almost 20 different international countries on IoT insurance projects Storyteller
  6. 6. 6 We cover all the insurance business lines Business lines Cross-business line topics Personal auto Homeowner Life & Health Commercial auto Property General liability and umbrella Workers’ compensation Employee benefits Extended warranty Personal lines Commercial lines Seniorliving Agriculture Retail Manufacturing Construction Logistic Behavioral change Selling services and improving customer experience IoT architecture Continuous Underwriting IoT-based innovation journey (IoT and leadership capabilities) Go to market Real time risk mitigation Ecosystems ROI management Digital twins & usage of new knowledge about clients and risk
  7. 7. 7 We help Observatory members to address the insurance IoT opportunity What topics do we cover? What learnings are obtained by members? • Insurance IoT vision and strategy • Reasons for adopting IoT into the insurance business • Current insurance IoT state of adoption • Deep dive (international best practices, local opportunities, expected future development) on the following IoT use case: – Customer experience – Continuous underwriting – Prevention and mitigation – Behavioral change – Claims management – Selling services – New sales approaches – Cross and up-selling – New approaches to insure current risks – New risks – Positive externalities to the society • Deep dive on leadership capabilities (international success stories, pitfalls): – Vision and strategy – Usage of IoT as enabler for business performances – Engagement – Governance – Continuous innovation • Key aspects for execution: – Go to market and partnership – People, skills, and processes – IoT architecture – Data sources and sensors • Focus on critical issues and constraints: – Compliance and privacy – Operational risks (security and data confidentiality) • Understanding the business reasons for adopting the insurance IoT paradigm • Understanding the role of leadership capabilities in the IoT- based business transformation • Identifying the different insurance IoT use cases and their contribution for providing a strategic advantage to your business • Identifying approaches to execute a profitable IoT-based business transformation • Assessing customer readiness for different value propositions • Assessing your company’s readiness for the IoT journey • Understanding best practices for enhancing IoT capabilities and leadership capabilities in your insurance IoT program • Identify the challenges of insurance IoT programs (both in the design, execution, and continuous evolution) and methods for addressing them
  8. 8. 8 20 Earned additional service fees Security/ Safety o Remote monitoring and emergency services to provide peace-of-mind Care o Remote monitoring and assistance focused on specific health and wellbeing needs directly connected to households: ‒ Chronic patients ‒ Post surgery patients ‒ Elders ‒ Kids ‒ Pets Solar panel Lighting Intrusion alarm Heating/ cooling Thermostat Flower control Computers & electronics Mould detector Camera Refrigerator and freezer Fire detection Camera Lock Electric meter Vacuum cleaner Washing machine Heat exchanger Auto value proposition enlarged with a suite of services telematics based Home security and safety and a platform of care services a la carte Alert in case speed limits are exceeded Client assistance and personalized case management in case of crash Highway/parking area tolling Alert if the car is hit when parked Weather alert based on geo-localization Road or medical assistance via dedicated button Automatic assistance to the client on the premises in case of severe accident Simplified claim notification, including automatic form fill-in based on telematics data Claim certification at client’s disposal Short- time theft cover Parking localiza- tion Bodyguard for emergency outside the car when parked Antitheft service if the box is removed/ uninstalled Stolen vehicle recovery Alert in case the vehicle is moved when the engine is off (e.g. tow- away) Alert if the car is hit when parked 1 3 2 4 5 6 7 8910 1112 13 14 15 16 While Driving In case of crash When parked 38 Manufacturing (Industrial IoT) - Map of the most relevant Industrial IoT use cases for insurers Potential to deliver services - + - + 3D printing Advanced Digital Product Engineering Asset/Plant Performance Optimization Human-Robot Collaboration Inventory Optimization Predictive Maintenance Quality Control Remote Services Supply chain track and trace Augmented Operations Energy Management and optimization Everything-as -a-Service Business Models Potential to create impact on the insurer technical profitability One-to-one workshops to deep-dive the more relevant aspects for your company 6 Telematics usage on commercial auto is at infancy Source: IoT Insurance Observatory, represented the level of maturity of the most advanced market for each business lines • First pilots focused on one single use case • Roll out by few pioneers (with some volumes) • More pilots and product lunches, by greatest part of players by using a "me-too" approach • Only few top players understand IoT full potential (UW, claims, VAS), define their own approach (e.g. big data) and push to sell more • Commercial offer differentiation • IoT potential fully understood and increased commercial push by all players • Differentiating solutions / providers over top players • Telematics approach is the standard for the insurance business • Relationship consolidation between top players and providers, cross-country diffusion of best practices Incubation phase Growth phase Maturity phase Exploration phase Learning phase “What is the ROI of the use case?" "Does the approach make sense?" “What is the best way to do it at my company?" “How to extract more value from the data?" Personal Auto Commercial Auto Commercial Buildings Homeowner IIoT and Workers’ Comp 43 Homeowners – The concept of connected home shows appeal to homeowners 27.0% 27.3% 12.1% 7.5% Canada 24.0% 5 Not interested at all FranceAustria 28.2% 15.0% 4 7.7% 3 28.8% 6.8% 12.9% 29.2% 30.5% 22.4% 33.1% 19.1% 32.7% 7.6% 9.2% 20.9% 29.4% 36.7%2 10.9% 14.4% 29.2% 1 Definitely I will purchase it 12.6% 28.9% Germany 19.6% 14.8%15.7% 22.4% Italy UK USA 9.5% 29.1% 18.6% 6.0% Source: SSI survey for the IoT Insurance Observatory 34 The governance of economics of the IoT insurance paradigm is complex and also requires a strong support from your financial department Cash back, rewards, .. Commission to distributors $ Iot costs (hardware amortization, installation, operative costs) $ Insurer costs Claims ($) Discount valve Premiums ($) Service fees ($) Service subsidization valve Insurer profitability Loss ratio valve Products, cash back, .. From partners Other shared value valve POLICYHOLDERs $ $ Benefits from the insurance IoT use cases Iot Mastery Pressure Gauge Partner contribution valve Sources: IoT InsuranceObservatory
  9. 9. 9 Peer discussions at plenary symposiums May 5th ’20 (Digital) 9.00 - 9.30 “Residential Risk Management Leveraging IoT” - DeVito, Hartford Steam Boiler 9.30 - 10.00 “Nationwide’s Innovation Journey” - Steinfeldt, Nationwide 10.00 – 10.30 “Geospatial Intelligence - Generating Business Value with Artificial Intelligence and Geospatial Data” - Mason, Reply 10.30 - 11.15 “Experimenting with IoT in Commercial Lines” - Campany, The Hartford 11.15 - 11.45 IBM telematics experience in personal auto - Caleari, IBM 11.45 - 12.30 “Vitality Drive – utilising telematics to spur customer engagement, improve driving behaviour and enhance profitability” - Alli, Discovery Vitality 12.30 - 13.00 “A comprehensive view of the automotive & mobility landscape: ADAS, EVs, Claims and more” - Ricci, Swiss Re Sep 23rd ‘19, Vegas 10.30- 11.00 Smart Home Insurance – Observations from the Field” - Wechsler, Comcast 11.00- 11.30 “Increasing customer value from connected home” - Poll, Neos 11.30- 12.00 – “Commercial and MDUs Water Damage Mitigation... a proven IOT application" - Kritzler, Likktech 12.00- 13.00 “Auto Insurance Telematics-based Pricing - An interactive discussion about market trends” – Ross, DRC Group 14.00- 14.30 “Applied artificial intelligence for agri- insurance” – Ardossi, Data Reply 14.30- 15.00 “The Modern Use of Telematics - Claims and Behavior Change” – Bowne, Cambridge Mobile Telematics 15.00- 15.30 “Smart Mobility – Fleet Telematics Value Proposition – Lessons Learned”, Weisgerber, Munich Re 15.30- 16.00 “Rewards and Risk: Using Connected Health and Wearables in Life Insurance” – Bewley, EVŌ and Rivard, Munich Re Dec 5th ’19, Iselin Dec 17th ’19, Turin 10.00- 11.00 Think as an insurer, Innovate like a retailer – Materozzi, Intesa Sanpaolo Vita 10.15 - 11.00 Business Transformation through industrial IOT – Moser, Munich Re and Petrikat, Relayr 11.00- 11.25 Italian drivers’ perspective on distraction and connected insurance - Rashid, Cambridge Mobile Telematics 11.25- 11.50 Driving intelligence across the customer lifecycle - Kisvarday, TrueMotion 11.50- 12.40 Competing in a world of digital ecosystems: how can insurers react? - Avramakis, Swiss Re 12.40- 13.00 G-Evolution and IBM JMA – Scarnera and Romani, G- Evolution and Cervetto, IBM 14.00- 14.30 The impact of GDPR on organizations: adapting internal processes to the change in legal landscape - Novellini, Portolano Cavallo 14.30- 15.00 Biological Age Model and the technology at support of continuous underwriting – Ciabattini, Scor 15.00- 15.30 SPHERE: home insurance ecosystem - Mesiano, Perceptolab 15.30- 16.30 Interactive session on the usage of IoT data in Commercial Lines, Dabusti and Carbone 9.15- 10.00 How insurers can leverage data for customer-centric approaches – Sankar, ValueMomentum and Young, Buckle 10.00- 10.30 Keeping Customers at the Center of Connected Insurance - Jamiel & D’Amato, CMT 10.30- 11.00 Motor insurance solutions for complex markets - Genovese, Swiss Re 11.00- 11.30 The impact of Distracted Driving in telematics scoring models and best practices for behavior change - Phillips, Arity 11.30- 12.15 Auto Telematics Roundtable - Genovese, Swiss RE; Phillips, Arity; Kowal, The Hartford 13.00- 13.45 The Future of Work; IoT and the Proud, Protected, and Productive Industrial Athlete - Petterson - StrongArm Tech 13.45- 14.30 IoT & Life Insurance Roundtable - Goehrke, Munich Re; Heafitz, Prudential; Bowley, EVO; Benton, Novarica 14.30- 15.00 Helping Broker’s Embrace Value-Added Services - Anderson, The Anderson Network 15.00- 15.30 The Smart Home solutions by customer segment, Skuba - National Smart Home Dec 15th ‘20 (Digital) 9.10 - 9.40 Modernizing claims with Mobile Telematics – McMahon, Cambridge Mobile Telematics 9.40 - 10.10 Telematics in Insurance 2020: Current State and Evolution – Huberty, Novarica 10.10 - 10-40 Swiss Re ADAS Risk Score. A forward-looking view to make motor UW smarter – Grivel, Swiss Re 10.40 - 11.10 The only right time is the time left – Myszkowski, Talanx 11.10 - 11.40 Taking engagement to the next level. Using data to modify human behavior in insurance populations - Bewley, Evo 11.40 - 12.10 Cyber Risks & IoT insurance programs - Ben- Meir, SCADAfence and Horvitz, HCS Capital 12.10 - 13.00 IoT-based commercial insurance roundtable – Frey, Nationwide; Galbraith, AF Group; Matsui, kWh Analytics and Peterson, Farm Bureau Sep 29th ’20 (Digital) 9.00 - 9.30 Measuring Smart Home ROI in P&C insurance - Jurgens, Notion 9.30 - 10.00 Driving success in a telematics program - McMahon, Cambridge Mobile Telematics 10.00 – 10.30 Artificial Intelligence: a fast track for car insurance claims – Ardossi, Data Reply 10.30 - 11.00 Using Wearables for Risk Management in Workers’ Compensation – Travis and Galbraith, AF Group; Glynn and West, MakuSafe 11.00 - 11.30 An approach the elderly segment - Caleari and Farinella, IBM 11.30 - 12.00 Future of IoT in Life Insurance Ecosystems - De Sousa, Scor 12.00 - 12.30 COVID-19: Health ecosystems from information to integration – and value creation – Avramakis, Swiss Re 12.30 - 13.00 The telematics innovation journey – Sarkar, ValueMomentum; Dzezinski, Erie LAST SESSIONS
  10. 10. 10 The connected and sustainable insurance December '16 Connected Insurance Observatory Unveiling the full potential of telematics May ‘17 Swiss Re Connected Insurance Report December ‘18 Insurance Nexus & IoT Insurance Observatory Smart Home Insurance April ‘19 American Family Insurance & IoT Insurance Observatory Attractive UBI Business Models for US Consumers July ‘20 Cambridge Mobile Telematics & IoT Insurance Observatory Some of the IoT Insurance papers with Observatory contribution From claims coverage to prediction and prevention services Publication Expected in Q1 ’21 The Geneva Association
  11. 11. 11 Unique perspective of the various Insurance IoT use cases around the world. Really helpful the deep dive tailored on our needs Insurer Some quotes from the Observatory participants The initiative provided though- provoking contents. The deep dive sessions were clear and stimulated great engagement within the organization Insurer It is not about to discover the new killer application. The Observatory have continuously delivered top level contents and provided food for thoughts, valuable input for our innovation path Insurer When you read a press release or hear a speech at conference, you see only the shining side. It is great to have the rationalization that connects dots, and investigates also what has not worked well Insurer Insightful ideas and continuous opportunities to meet innovative providers to partner with Insurer Great platform for engage and discuss a wide range of topics and ideas that will impact all of us in the insurance industry soon Reinsurer Relevant opportunity to approach unique contents about connected insurance – both from actuarial angle and customer angle - and to discuss them with Insurance Executives, Associations and the Regulator IT provider The Observatory is creating value for us. We met insurers that have started to work with us. It is also useful to have a constant update on the markets around the world IoT Insurtech startup The Observatory has provided a guidance that has allowed us to successfully pilot IoT wearable devices to prevent workplace injuries without being led astray by industry hype and press releases Insurer
  12. 12. 12 Contacts Matteo Carbone Founder and Director of the IoT Insurance Observatory Keynote speaker and writer on insurance innovation Global InsurTech Influencer (Top 2 InsurTech Influencer by InsurtechNews, Top InsurTech Influencer by Right Relevance, Top 10 InsurTech Influencer and top 4 insurtech influencers in the fintech community by Onalytica, Top 20 Influencer in Geoinsurance by Conirium, Top 25 Disruptors in the Insurance Industry by Vertafore) +39 (334) 622- 0378 +1 (929) 309-6026