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IoT Insurance Observatory
- 1. IoT Insurance Observatory Initiativepresentation
- 2. 2 The Observatory missionis to promote a profitable IoT adoption Insurance IoT Observatory is a six-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 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 Our approach HOLISTIC INTEGRATION STRUCTURED USAGE CONNECTION COLLECTION RESEARCHING INTERPRETING STORYTELLING REFLECTING Information Organization Knowledge Development Insurance IoT Wisdom sharing Constant Scouting
- 3. 3 The annual Observatoryeditions in figures hours of one-to-one workshops over the five annual editions of the Observatory plenary symposiums between North America and Europe insurance companies, including: 4 of the top 5 Reinsurers 11 of the top 15 European Insurance Groups 9 of the top 15 US P&C Insurance Groups international publications tech players and vendors 2350 26 7 45 83 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 The think tankmembership 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
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- 6. 6 We cover allthe insurance business lines Business lines Cross-business line topics Personal auto Homeowner Life & Health Commercial auto Property General liability Workers’ compensation Employee benefits Extended warranty Personal lines Commercial lines 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 Cross- business line topics We helpObservatory members to address the insurance IoT opportunity • 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: Enhance Customer Experience Create Value on Insurance Core Processes Develop New Knowledge Improve Sustainability • 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) What learnings are obtained by members? • 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 One-to-one workshops todeep-dive the more relevant aspects for your company 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 8 9 10 11 12 13 14 15 16 ed 48 IoT-based solutions Real time Reporting Other information about risk exposure Claim management • Collision and machine breakdown detection (and position tracking) for proactive claim managementand assistance • Set of objective information for claim handling (including in court) Hazard (indecent and near miss) and remediation action detection Risk selection • Amount and context of usage as input for UW decisions (policy cancellation, change of policy conditions, reinsurance, …) • Detected hazard and remediation actions to support UW decisions (policy cancellation, change of policy conditions, reinsurance, …) • Logged/missed inspection and safety tasks as input for UW decision (policy cancellation, change of policy conditions, reinsurance, …) Behavioral change • Detected hazards and remediation actions as inputs to the loss control team for the delivery of risk prevention services to this policyholder • Logged/missed inspection and safety tasks as input to the loss control team/supervisors and to employee behavioral change programs Safety (inspection/ maintenance) task completion Real-time risk mitigation • Asset condition monitoring and warning dispatch • Risky situation (incoming collision) detection and alerts to the employee • Anti-theft solutions • Alerts to supervisors for missed inspection and safety tasks Pricing • Amount and context of usage as input for the renewal pricing calculation • Detected hazard and remediation actions as input for renewal pricing calculation • Logged/missed inspection and safety tasks as input for the renewal pricing calculation 4 5 1 2 6 Prevention Claims Continuous UW Expensive agri-machines listed in the farm inventory are a target for IoT solutions 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 25 Active rewards & Apple Watch Active Rewards Baseline before program introduction Vs. Vs. 100 Level of physical activity (indexes as 100 the baseline before the program introduction) 137 179 100 131 167 Source: Incentives and physical activity, Rand - 2018 This approach has showed a significant effectiveness in increasing the physical activity level 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 $ $ Benefits from the insurance IoT use cases Iot Mastery Pressure Gauge Partner contribution valve Sources: IoT InsuranceObservatory 126 Service fees paid by the customer Traditional bottom line Street value of the IoT services Value sharing IoT costs Hardware Services Risk prevention Enhanced Claim Management Continuous Underwriting Bottom line with IoT Street value of the IoT services Discount and incentives to the customer Intermediary remuneration Source: IoT Insurance Observatory Partners’ contributions Real-time mitigation Behavioral Change Risk selection Pricing sophistic. To achieve a positive ROI you will need to combine deep business function expertise and cross-functional initiatives A key element is to deeply understand business needs
- 9. 9 Peer discussions atplenary symposiums June 15th (Digital) 8.30- 9.00 Long term trends and learnings from digital wellness programs in insurance – Bewley, Evo and Mattison, Vitality 9.00- 9.30 Building Believers: How to use IoT successfully for Home Insurance – Rose, AiteNovarica 9.30- 10.00 Transforming commercial lines by creating an IoT powered small fleet ecosystem – Labbé, Fleetr 10.00- 10.30 An update on the use of telematics in the US Personal Auto Insurance market – Ross, DRC Group 11.00- 11.30 Next generation fraud detection with aerial imagery and artificial intelligence - Ardossi, Data Reply 11.30- 12.00 Auto Claims: Ecosystem value creation with Smart Claims – Scoville and Arora, Swiss Re 12.00- 12.30 Home digitization & insurance: 6 years of lessons learned and finding success with hardware – Anderson, Nationwide 12.30- 13.00 Telematics Adoption and Catalysts – McMahon, CMT 14.00- 14.45 Wearable Technology utilization in WC - Bellows, Risk Retention Bureau Oct 4th, Vegas (hybrid) 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 LAST SESSIONS 9.00 - 9.30 Globalising Vitality Drive - Theron, Discovery Insure 9.30 - 10.00 The electrification of vehicles-an overview of the changes in the automotive market and the effects on insurance – Hook and Albanese, Swiss Re 10.00 – 10.30 From zero to hero. How we became the insurtech market leader in Poland in less than five years. Telematics Technologies case study – Bakowski, Telematics Technologies 10.30 - 11.00 Generali Vitality, developing differentiated propositions in Life and Health insurance while driving customer engagement and healthy living – Guest, Generali 11.00 - 11.30 Video and Context: Extending Auto Telematics for Changing Mobility – Bowne, Cambridge Mobile Telematics 11.30 - 12.00 From image to index and from index to product, implementing a satellite based pasture insurance product in Brazil – Douche, Scor 12.00 - 12.30 Introduction of Relyens and its innovation journey – Antier, Relyens 12.30 - 13.00 The Hartford’s IoT Journey, from whiteboard to ROI – Santos, The Hartford 13.20- 13.50 IoT between engagement and preventive care - Vecchietti, Intesa Sanpaolo RBM Salute 13.50- 14.20 iptiQ - shaping the future of digital insurance – Bewersdorf, iptiQ 14.40- 15.10 DriveScore: Unlocking mass- market telematics data for car insurance through a user- centric proposition - Astin, Clearscore 10.00- 10.30 Mobile Telematics Accuracy and Capabilities in Depth – Madden, CMT 15.10- 15.35 TeleMYTHics. The most popu- lar myths of motor insurance telematics – Przybylska, Telematics Tecnologies 15.50- 16.15 At the forefront of insurance innovation. From connected drivers to connected cars, Castellana & Di Lillo, Swiss Re 16.40- 17.10 IoT data has changed an entire class of speciality insurance, and the lessons learnt can benefit the broader commercial insurance market – Yeoman, Concirrus 17.10- 17.35 How to create, launch and scale a phygital ecosystem in the “new normal” era – Garuccio, Reale Group 17.35- 18.00 An Insurtech Ecosystem Project: Net Insurance and the Homix Smart Protection Product - Vignoletti & Pittana, Net Insurance Oct 19th, Milan (hybrid) Dec 2nd, Hartford (hybrid) 9.00 - 9.45 Tried and failed with IoT? Ting: Practical and powerful insurance IoT that scales to deliver prevention, engagement and telematics data, Marshall - Whisker Labs 9.45 - 10.30 Internet of Things in Construction, Bush – Insight Risk Technologies 11.00 – 11.30 “Allstate’s Journey with Telematics”, MacInnis – Allstate 11.30 - 12.00 “Dynamic UBI Programs through Aligned Pricing Personalization Excellence”, Pockard - Earnix 12.00 - 12.30 Cracking the code for Commercial Telematics – an aggregation solution”, Yeoman - Concirrus 13.15 - 14.30 Becoming a Digital Insurer of the Future”, Karthikeyan – ValueMomentum; Followed by a roundtable on the IoT architecture (Samela -The Hartford; Reale – Travelers) 14.30 - 15.00 Single-digit adoption, billion-dollar problems, and why carriers are the secret to accelerating wins in commercial P&C”, Fung-A-Wing - Kairos Click to view Click to view Click to view Dec 14th, Milan (hybrid) 10.00 - 10.30 “Jeniot: an international Mobility solutions provider”, Busetto – Generali 10.30 - 11.00 “Dynamic UBI Programs through Aligned Pricing Personalization Excellence”, Howland - Earnix 11.00 – 11.30 "The last decade was Telematics (IOT) for Cars, will this decade be telematics (IOT) for the home" – Ahmed, Locket 11.30 - 12.00 "The last decade was Telematics (IOT) for Cars, will this decade be telematics (IOT) for the home" – Ahmed, Locket 13.00 - 14.00 13.00-14.00 IoT and Cargo Insurance Roundtable – Ben-Ami, Concirrus; Marques, Porto Seguro; Kern, Swiss Re 14.00 - 14.30 “Long term trends and learnings from digital wellness programs in insurance” – Bewley, Evo and Mattison, Vitality 14.30 - 15.00 “Using Satellite Data for ‘connected property’ claims” – Panchaud, Concirrus 15.00- 15.30 Telematics fireside chat – Lovati, UnipolSai 15.30 - 16.30 Personal Auto Telematics Roundtable – Theron, Discovery; Bernardo Santos, IBM; Rizzotto, Intesa Sanpaolo Assicura; Click to view
- 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 May ’21 The Geneva Association
- 11. 11 Some quotes fromthe Observatory participants It gives telematics and IoT an awesome platform for collaboration, teaching, and knowledge sharing The initiative provided though-provoking contents. The deep dive sessions were clear and stimulated great engagement within the organization Our journey has been going ‘hand in hand’ with your support and the insightful conversations held over those years at the IoT Insurance Observatory, including our joint papers 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 We appreciate the insights, examples, and best practices you and the Observatory community bring forward to help us shape our journey A great support in rationalizing the different opportunities for using IoT data in our business and defining a roadmap for our business transformation 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 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 Rich information as well as thought provoking analysis and perspective. An unbiased platform that focuses on truly learning and embracing IoT. His ability to bring others together and to share thoughts and experiences is extremely valuable Insurer Insurer Reinsurer Insurer Insurer Insurer IT provider IoT Insurtech startup Insurer
- 12. 12 Contacts Matteo.carbone@iotinsobs.com +39 (334) 622-0378 +1 (929) 309-6026 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 2 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) www.IoTinsObs.com
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