This white paper deals with the impacts and opportunities of the sharing economy on the insurance sector. Lord Wei, Chair of Ninety’s Future Strategy Board, says in his foreword to this white paper: “The Sharing Economy gives rise to both significant opportunities and challenges as new technology enables all kinds of people to access the "on demand" lifestyle. In insurance, these challenges are well documented in this excellent and practical briefing from Ninety, which I hope will not only inform the industry but also policy-makers and politicians such as myself."
This document discusses the evolution of the insurance industry from Insurance 1.0 to Insurance 3.0. Insurance 1.0 referred to analog insurance companies. Insurance 2.0 saw the industry become IT-enhanced through computerization and the internet. Insurance 2.5 saw some forays into digital with predictive analytics and customized products/services. Insurance 3.0 requires the industry to fully embrace digital technologies and create primarily digital business models that are customer-centric and able to quickly adapt. The insurance industry has been slow to change due to its complex regulatory environment and business model, but digital disruption requires it to now transform into a digital business.
Some analysis on Sharing Economy and Collaborative Economy.
2015 Global Initiatives Symposium in Taiwan (GIS Taiwan)
U++ Innovation Competition
[More Information and personal perspectives]
Due to the limitation of pages and format, the slides only show my around 50% perspectives and experience.
Therefore, I write an additional note for reference on my Facebook.
投影片因為版面與頁數限制,大概只呈現約5成的看法與個人觀察,
因此將我的其他個人觀察與看法整理於下方的文章中:
https://www.facebook.com/notes/raymond-hou/979932002020080
The document discusses the sharing economy, providing examples of companies in various sectors that exemplify the sharing model. It begins with an overview of the sharing economy's growth and projections, then defines key concepts. Subsequent sections explore the history and development of sharing economy models, how sharing economy businesses operate, and sectors like transportation, hospitality, finance, and more that have adopted sharing economy approaches.
Who will own the internet of things june 29, 2015Blair Currie
The document discusses how insurance may become the natural business model for the Internet of Things (IoT), similar to how advertising became the model for the internet. It provides examples of how auto insurance has already started utilizing IoT data through telematics to better assess risk and pricing. The author argues this model could transfer to other types of insurance by using data from smart home devices and health trackers. For insurance to fully capitalize on the IoT, it would need to shift from reactive risk rectification to preventative risk management and continuous policyholder engagement.
Future of privacy - Insights from Discussions Building on an Initial Perspect...Future Agenda
The initial perspective on the Future of Privacy kicked off the Future Agenda 2.0 global discussions taking place through 2015. This summary builds on the initial view and is updated as we progress the futureagenda2.0 programme. www.futureagenda.org
The sharing economy: How economic activity is shifting to, and being enhanced...Andrea Silvello
The term sharing economy is widely perceived as a synonym of “collaborative economy” or “on demand economy”, but it actually represents a very wide concept which lacks a common definition.
Rachel Botsman defines the collaborative economy as “a system that activates the untapped value of all kinds of assets through models and marketplaces that enable greater efficiency and access ”. The concept behind the sharing economy is indeed very simple: anything that is not being used can be rented out. This framework includes services such as renting, bartering, loaning, gifting, and swapping of underutilized material or immaterial possessions. These idle resources are useful to create an efficient circular system by reallocating or trading them with people who want or need them. Recycling, upcycling and sharing the lifecycle of products are common features of the sharing economy. “Waste” is the result of a misallocation of resources: today technology often allows us to easily correct that misallocation, by redistributing or trading a great variety of “sleeping” assets and resources (table 1). For instance, Uber and AirBnb platforms allow customers to share cars and homes, while TaskRabbit connects people with free time with people who need someone to perform small tasks.
The document discusses ecosystems beyond insurance and their impact on the future of insurance. Roger Peverelli, who has over 20 years of experience in insurance strategy and innovation, believes that ecosystems beyond insurance where people address needs like mobility and health will be a major trend. Insurers need to be present in these ecosystems in order to remain relevant to customers. Peverelli discusses how insurers are embracing insurtechs but more work is needed for innovations to have significant impact. He also outlines the different waves of insurtech and how technologies are enabling insurers to improve customer relationships.
This document discusses the evolution of the insurance industry from Insurance 1.0 to Insurance 3.0. Insurance 1.0 referred to analog insurance companies. Insurance 2.0 saw the industry become IT-enhanced through computerization and the internet. Insurance 2.5 saw some forays into digital with predictive analytics and customized products/services. Insurance 3.0 requires the industry to fully embrace digital technologies and create primarily digital business models that are customer-centric and able to quickly adapt. The insurance industry has been slow to change due to its complex regulatory environment and business model, but digital disruption requires it to now transform into a digital business.
Some analysis on Sharing Economy and Collaborative Economy.
2015 Global Initiatives Symposium in Taiwan (GIS Taiwan)
U++ Innovation Competition
[More Information and personal perspectives]
Due to the limitation of pages and format, the slides only show my around 50% perspectives and experience.
Therefore, I write an additional note for reference on my Facebook.
投影片因為版面與頁數限制,大概只呈現約5成的看法與個人觀察,
因此將我的其他個人觀察與看法整理於下方的文章中:
https://www.facebook.com/notes/raymond-hou/979932002020080
The document discusses the sharing economy, providing examples of companies in various sectors that exemplify the sharing model. It begins with an overview of the sharing economy's growth and projections, then defines key concepts. Subsequent sections explore the history and development of sharing economy models, how sharing economy businesses operate, and sectors like transportation, hospitality, finance, and more that have adopted sharing economy approaches.
Who will own the internet of things june 29, 2015Blair Currie
The document discusses how insurance may become the natural business model for the Internet of Things (IoT), similar to how advertising became the model for the internet. It provides examples of how auto insurance has already started utilizing IoT data through telematics to better assess risk and pricing. The author argues this model could transfer to other types of insurance by using data from smart home devices and health trackers. For insurance to fully capitalize on the IoT, it would need to shift from reactive risk rectification to preventative risk management and continuous policyholder engagement.
Future of privacy - Insights from Discussions Building on an Initial Perspect...Future Agenda
The initial perspective on the Future of Privacy kicked off the Future Agenda 2.0 global discussions taking place through 2015. This summary builds on the initial view and is updated as we progress the futureagenda2.0 programme. www.futureagenda.org
The sharing economy: How economic activity is shifting to, and being enhanced...Andrea Silvello
The term sharing economy is widely perceived as a synonym of “collaborative economy” or “on demand economy”, but it actually represents a very wide concept which lacks a common definition.
Rachel Botsman defines the collaborative economy as “a system that activates the untapped value of all kinds of assets through models and marketplaces that enable greater efficiency and access ”. The concept behind the sharing economy is indeed very simple: anything that is not being used can be rented out. This framework includes services such as renting, bartering, loaning, gifting, and swapping of underutilized material or immaterial possessions. These idle resources are useful to create an efficient circular system by reallocating or trading them with people who want or need them. Recycling, upcycling and sharing the lifecycle of products are common features of the sharing economy. “Waste” is the result of a misallocation of resources: today technology often allows us to easily correct that misallocation, by redistributing or trading a great variety of “sleeping” assets and resources (table 1). For instance, Uber and AirBnb platforms allow customers to share cars and homes, while TaskRabbit connects people with free time with people who need someone to perform small tasks.
The document discusses ecosystems beyond insurance and their impact on the future of insurance. Roger Peverelli, who has over 20 years of experience in insurance strategy and innovation, believes that ecosystems beyond insurance where people address needs like mobility and health will be a major trend. Insurers need to be present in these ecosystems in order to remain relevant to customers. Peverelli discusses how insurers are embracing insurtechs but more work is needed for innovations to have significant impact. He also outlines the different waves of insurtech and how technologies are enabling insurers to improve customer relationships.
Exploring the practice of collaborative consumptionHugo Guyader
Presentation at the 10th AMA SERVSIG Conference: "Opportunities for Services in a Challenging World", 14-16 June 2018, IÉSEG School of Management, Paris.
http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-148918
The document discusses how digitization is transforming the insurance industry. It is putting pressure on life/pensions and property/casualty insurers to improve customer experience through digital channels. Customers now expect seamless, personalized experiences through mobile and online access. Insurers need to leverage new technologies like analytics, cloud computing, and the internet of things to meet these rising expectations and compete in the digital era. Data and digitization offer opportunities to better understand customers, price policies dynamically, and automate processes, but insurers must also address challenges of security, regulation and building customer trust.
Connected Vehicles—Insurance: The Business of Preventing Crashes Andreas Mai
Connected vehicles have the potential to significantly reduce costs for the insurance industry and society by preventing crashes. Insurance companies can track driver behavior through telematics devices to better price premiums, with some offering pay-as-you-drive and pay-how-you-drive models. Connected vehicle technologies may be able to prevent up to 80% of crashes through features like collision avoidance systems and vehicle-to-vehicle communication. A unified in-vehicle connectivity platform could further reduce insurance operating costs and unlock additional value of over $380 per connected vehicle annually for insurance providers.
Master thesis sdeg pieter van de glind - 3845494 - the consumer potential o...Pieter van de Glind
This document summarizes a master's thesis that studied collaborative consumption in Amsterdam. It used qualitative interviews and a large survey to identify motives for collaborative consumption and measure willingness among Amsterdam residents. The results found financial, social, and environmental motives. Over 80% of respondents were willing to participate in some form of collaborative consumption. Factors like income, age, and experience affected willingness. Despite limitations, the research provided valuable empirical evidence on collaborative consumption's consumer potential.
Long before the phrase “the sharing economy” was ever uttered, many businesses leveraged sharing. Bed-and-breakfast inns, timeshares and car pools are old ideas.
The development of it in economic growth in usa & bangladeshRafi Afnan
This document is an assignment submitted by Rafi Afnan to Jewel Kumar Roy on the topic of fintech and its potential to disrupt traditional financial institutions. It summarizes findings from a World Economic Forum report that identified 5 key characteristics of fintech innovators that make them more threatening to incumbents than past innovators. These include highly focused products, automating processes, strategic use of data, platform-based models, and collaborating with incumbents. The document concludes that while brands may survive, fintech will force changes that benefit consumers. It then briefly previews emerging technologies in 2019 like 5G that could enable further fintech innovations.
The document discusses the collaborative economy transforming industries like insurance, lending, payments and trading. It notes that financial services are ripe for disruption as they are often complex with redundant middlemen and restricted access. New collaborative models are emerging that decentralize and democratize finance by allowing person-to-person and crowd-driven options for funding, lending, currency and investment. Examples include social lending platforms, crowdfunding sites, peer-to-peer currency and payment systems, and insurance and trading options.
Insurance carriers future competitive advantage will be determined not by their organization alone, but by the digital platforms and ecosystems they choose. Read more.
This report looks at how digital platform companies and the ecosystems they are creating are reshaping customer experience expectations for insurers. It considers insurance carriers’ options for creating digital platforms and ecosystem strategies that will enable them to grow their relevance and market power in a changing world.
To read more, visit https://www.accenture.com/us-en/insight-emerging-insurance-ecosystem
First Annapolis Navigator: Mobile Commerce & Alternative Payments Special Edi...Ben Brown
This document provides an overview of First Annapolis Consulting's Mobile Commerce & Alternative Payments practice. It discusses how the practice has focused on the impact of mobile technologies across the payments landscape in recent years. It also outlines the types of clients and projects the practice works with, including issuers, processors, and mobile technology providers in North America and Western Europe. The practice aims to help define mobile commerce value chains and business cases. It produces reports on topics like mobile payments acceptance and mobile banking functionality.
This document provides an overview of the Summer 2015 edition of the Public RM magazine. It includes:
- A preview of sessions at the upcoming Alarm National Educational Forum, including a session challenging conventional approaches to defending claims.
- A summary of the Chairman's comments, where he discusses recent governance failings in local councils and questions if lack of resources has led to corners being cut in important areas like governance and risk management.
- The contents page listing various articles in the magazine on topics like insurance, charities, children's services, and cyber security.
Future of payments - Insights from Discussions Building on an initial perspe...Future Agenda
The initial perspective on the Future of Loyalty by MasterCard kicked off the Future Agenda 2.0 global discussions taking place through 2015. This summary builds on the initial view and is updated as we progress the futureagenda2.0 programme. www.futureagenda.org
Digital Banking: Reshaping the Business Model - Alba CéspedesAlba Cespedes
Digital banking is reshaping the traditional banking business model through new digital technologies and changing customer behaviors. Banks must transform by focusing on omnichannel strategies, creating value-added digital products, and maintaining customer relationships as interactions become more digital. While some regions like the UK and Scandinavia are more prepared for digital banking, adoption is happening unevenly across Europe. Banks that fully embrace digital transformation stand to significantly increase revenues and reduce costs.
Exchange of P2P services in the Collaborative Economy (PhD research-in-progress)Hugo Guyader
Presentation of my work-in-progress on P2P service exchange in the collaborative economy (particularly ridesharing and carsharing); at the PhD-workshop of my division (December 2015).
The document provides an introduction to the sharing economy and Airbnb as a prominent example. It discusses how the sharing economy allows for underutilized resources to be shared through online platforms. Airbnb allows people to rent out rooms or homes when they are away. It has grown significantly with more listings than hotels in some cities. The sharing economy is impacting many industries like tourism by offering new accommodation options and experiences that travelers seek. Both opportunities and challenges exist for traditional businesses.
IoT (Internet of Things) is a modern day gold rush and the early winners will be those who find gold in connecting millions of dumb devices into an intelligent network.
Here's how you can fight the challenge of commoditization and take the lead in an environment where the competition may be finding it difficult to survive.
This document discusses how design thinking and service design can help companies develop engaging cross-channel solutions for local shopping. It highlights how these approaches integrate different perspectives like human values, business needs, and technology feasibility. Key elements of design thinking discussed include having a creative team process, conducting user research, building prototypes, and focusing on the customer experience. The document advocates using these methods to transform separate departments into a collaborative pipeline supported by information technology.
Exploring the practice of collaborative consumptionHugo Guyader
Presentation at the 10th AMA SERVSIG Conference: "Opportunities for Services in a Challenging World", 14-16 June 2018, IÉSEG School of Management, Paris.
http://urn.kb.se/resolve?urn=urn:nbn:se:liu:diva-148918
The document discusses how digitization is transforming the insurance industry. It is putting pressure on life/pensions and property/casualty insurers to improve customer experience through digital channels. Customers now expect seamless, personalized experiences through mobile and online access. Insurers need to leverage new technologies like analytics, cloud computing, and the internet of things to meet these rising expectations and compete in the digital era. Data and digitization offer opportunities to better understand customers, price policies dynamically, and automate processes, but insurers must also address challenges of security, regulation and building customer trust.
Connected Vehicles—Insurance: The Business of Preventing Crashes Andreas Mai
Connected vehicles have the potential to significantly reduce costs for the insurance industry and society by preventing crashes. Insurance companies can track driver behavior through telematics devices to better price premiums, with some offering pay-as-you-drive and pay-how-you-drive models. Connected vehicle technologies may be able to prevent up to 80% of crashes through features like collision avoidance systems and vehicle-to-vehicle communication. A unified in-vehicle connectivity platform could further reduce insurance operating costs and unlock additional value of over $380 per connected vehicle annually for insurance providers.
Master thesis sdeg pieter van de glind - 3845494 - the consumer potential o...Pieter van de Glind
This document summarizes a master's thesis that studied collaborative consumption in Amsterdam. It used qualitative interviews and a large survey to identify motives for collaborative consumption and measure willingness among Amsterdam residents. The results found financial, social, and environmental motives. Over 80% of respondents were willing to participate in some form of collaborative consumption. Factors like income, age, and experience affected willingness. Despite limitations, the research provided valuable empirical evidence on collaborative consumption's consumer potential.
Long before the phrase “the sharing economy” was ever uttered, many businesses leveraged sharing. Bed-and-breakfast inns, timeshares and car pools are old ideas.
The development of it in economic growth in usa & bangladeshRafi Afnan
This document is an assignment submitted by Rafi Afnan to Jewel Kumar Roy on the topic of fintech and its potential to disrupt traditional financial institutions. It summarizes findings from a World Economic Forum report that identified 5 key characteristics of fintech innovators that make them more threatening to incumbents than past innovators. These include highly focused products, automating processes, strategic use of data, platform-based models, and collaborating with incumbents. The document concludes that while brands may survive, fintech will force changes that benefit consumers. It then briefly previews emerging technologies in 2019 like 5G that could enable further fintech innovations.
The document discusses the collaborative economy transforming industries like insurance, lending, payments and trading. It notes that financial services are ripe for disruption as they are often complex with redundant middlemen and restricted access. New collaborative models are emerging that decentralize and democratize finance by allowing person-to-person and crowd-driven options for funding, lending, currency and investment. Examples include social lending platforms, crowdfunding sites, peer-to-peer currency and payment systems, and insurance and trading options.
Insurance carriers future competitive advantage will be determined not by their organization alone, but by the digital platforms and ecosystems they choose. Read more.
This report looks at how digital platform companies and the ecosystems they are creating are reshaping customer experience expectations for insurers. It considers insurance carriers’ options for creating digital platforms and ecosystem strategies that will enable them to grow their relevance and market power in a changing world.
To read more, visit https://www.accenture.com/us-en/insight-emerging-insurance-ecosystem
First Annapolis Navigator: Mobile Commerce & Alternative Payments Special Edi...Ben Brown
This document provides an overview of First Annapolis Consulting's Mobile Commerce & Alternative Payments practice. It discusses how the practice has focused on the impact of mobile technologies across the payments landscape in recent years. It also outlines the types of clients and projects the practice works with, including issuers, processors, and mobile technology providers in North America and Western Europe. The practice aims to help define mobile commerce value chains and business cases. It produces reports on topics like mobile payments acceptance and mobile banking functionality.
This document provides an overview of the Summer 2015 edition of the Public RM magazine. It includes:
- A preview of sessions at the upcoming Alarm National Educational Forum, including a session challenging conventional approaches to defending claims.
- A summary of the Chairman's comments, where he discusses recent governance failings in local councils and questions if lack of resources has led to corners being cut in important areas like governance and risk management.
- The contents page listing various articles in the magazine on topics like insurance, charities, children's services, and cyber security.
Future of payments - Insights from Discussions Building on an initial perspe...Future Agenda
The initial perspective on the Future of Loyalty by MasterCard kicked off the Future Agenda 2.0 global discussions taking place through 2015. This summary builds on the initial view and is updated as we progress the futureagenda2.0 programme. www.futureagenda.org
Digital Banking: Reshaping the Business Model - Alba CéspedesAlba Cespedes
Digital banking is reshaping the traditional banking business model through new digital technologies and changing customer behaviors. Banks must transform by focusing on omnichannel strategies, creating value-added digital products, and maintaining customer relationships as interactions become more digital. While some regions like the UK and Scandinavia are more prepared for digital banking, adoption is happening unevenly across Europe. Banks that fully embrace digital transformation stand to significantly increase revenues and reduce costs.
Exchange of P2P services in the Collaborative Economy (PhD research-in-progress)Hugo Guyader
Presentation of my work-in-progress on P2P service exchange in the collaborative economy (particularly ridesharing and carsharing); at the PhD-workshop of my division (December 2015).
The document provides an introduction to the sharing economy and Airbnb as a prominent example. It discusses how the sharing economy allows for underutilized resources to be shared through online platforms. Airbnb allows people to rent out rooms or homes when they are away. It has grown significantly with more listings than hotels in some cities. The sharing economy is impacting many industries like tourism by offering new accommodation options and experiences that travelers seek. Both opportunities and challenges exist for traditional businesses.
IoT (Internet of Things) is a modern day gold rush and the early winners will be those who find gold in connecting millions of dumb devices into an intelligent network.
Here's how you can fight the challenge of commoditization and take the lead in an environment where the competition may be finding it difficult to survive.
This document discusses how design thinking and service design can help companies develop engaging cross-channel solutions for local shopping. It highlights how these approaches integrate different perspectives like human values, business needs, and technology feasibility. Key elements of design thinking discussed include having a creative team process, conducting user research, building prototypes, and focusing on the customer experience. The document advocates using these methods to transform separate departments into a collaborative pipeline supported by information technology.
If your contact center deflects a major part of your support call volume, your company is probably missing out on opportunities to own the customer relationship.
What is Service Design Thinking? And how does it relate to the agile world?
There is a lot buzz about service design and design thinking as means to innovate. But how do they relate to the methods and mind set of agile? What is the role of a designer in an agile organization? And how could she/he contribute to generate and increase customer value? In this presentation I gave on Mix-IT conference in Lyon in 2014, I will give a short overview about the history of design in business, explain the ideas of design thinking and service design and suggest how these disciplines could help your team to create products and services that create superior customer value.
According to a research report, telecom companies across the globe could lose up to $172 Billion in revenues over the next five years. How can telcos turn the tide and increase the ARPU?
Mobile Commerce in the Phono Sapiens EraOisin Lunny
It was a great honour to deliver this webinar for the GSMA where I explored humanity’s collective evolution to Phono Sapiens; how this new species shops via their mobile, how this transforms our approach to marketing and why a good mobile user experience is today’s “killer app”.
Topics covered included:
• The statistics illustrating our Phono Sapien planet
• How mobile is transforming the retail landscape
• How global enterprise strategy is shaped by mobile-first millennials
• Why an app alone is not a mobile strategy
• How to engage with consumers in an age of ad blocking and app fatigue
• How chatbots and AI can optimise commerce and customer service
• Innovators breaking down OTT mobile messaging silos
• Why commerce is about conversation, not destination
• Lessons from global leaders in “full ecosystem” conversational commerce
The webinar will be available to stream soon from the GSMA and OpenMarket.
Customer delight & its impact on business - Big Bazaar Arul Paul Raj F
This document provides information about a research project conducted by Arul Paul Raj F, Shreya Singh, and Niraj Kumar Rai on customer delight and its impact on business at Big Bazaar stores in India. It includes a certificate verifying the project was completed under the supervision of Mrs. Bianka Ray Chowdry. The document also acknowledges those who provided guidance and assistance. It contains sections on Big Bazaar's company profile, innovations, facilities, brand analysis, competitors, organizational culture and structure, and a SWOT analysis. The project examines how customer delight impacts Big Bazaar's business.
storythinking - use storytelling to prototype digital (service) experience Jens Otto Lange
The "storythinkers" Jens Otto Lange and Thomas Stegmann did an exercise and gave a talk about how storytelling supports a design thinking process to generate service innovation.
#TDC17 - Hermes - Investing to Grow, Innovating to DelightMetaPack
Carole Woodhead, CEO of Hermes UK, discusses Hermes' strategy to invest in technology and innovation to grow the business and delight customers. This includes investing over £25 million in technology, R&D, and an innovation lab to develop new customer-focused delivery solutions like same-day delivery and flexible delivery time slots. Hermes is also expanding its myHermes parcel shop network and developing new digital channels to provide customers more choice and control over their deliveries and returns.
The insurance industry has evolved over centuries from early forms of risk-sharing in ancient times to the modern insurance model that emerged in the late 19th century. The document outlines three eras of the insurance industry: Insurance 1.0 referred to analog insurance companies of the 20th century; Insurance 2.0 saw insurers adopt digital tools and the internet but still operate similar business models; Insurance 3.0 calls for insurers to fully embrace digital technologies and transform their business models to focus on customer needs in today's digital world. The industry now faces pressures to change as customer expectations have risen and new competitors have entered the market.
The Sharing Economy: Implications for Property & Casualty InsurersCognizant
The document discusses how the sharing economy poses risks and opportunities for property and casualty insurers. It is growing exponentially, projected to reach $335 billion by 2025. Insurers must rethink their products, underwriting, and processes to capitalize on the new risks and revenue potential presented by the sharing economy, as personal assets are now sometimes used for commercial purposes. Failure to adapt could be detrimental to insurers.
1. The world of risk is changing, with new consumers and risks emerging. Insurance matters more than ever to build resilience for households and enterprises.
2. Challenges in market development persist, as most developing countries are stuck in the early stages of insurance penetration. Technology and data present opportunities to overcome these challenges and improve value.
3. The insurance landscape is also changing, with new providers like MNOs and digital platforms creating opportunities but also challenges for traditional insurers. Market facilitation remains key to guiding development and realizing opportunities from innovations.
The insurance industry has remained much the same for more than 100 years, but over the past decade it has seen a number of exciting new innovations and new business models.
This document provides an overview of digital disruption in the insurance industry. It analyzes forces driving disruption like the Internet of Things, big data & analytics, sharing economy, and online intermediaries. These forces are transforming the industry and creating opportunities for new competitors. The document also examines how property/casualty and health insurance sectors will be affected. It argues that insurance companies must quickly adapt to remain competitive against new digital-native rivals. The future landscape may involve different types of ecosystems where insurers take on new roles like preventative risk advisors rather than just reactive claims payers.
Who are today's consumers of Legal Expenses Insurance?Demi Edmunds
Jacqueline Harvey talks about who today's consumers of legal expenses insurance are, in short - An increasing range of those using dispute resolution services.
Disruptive fintech and insurtech startups are posing challenges to traditional financial institutions. The document discusses a panel event exploring how incumbents are dealing with these threats through partnerships with startups, investing in innovation, and rethinking their business models. It also examines the funding challenges for startups and questions around the use of customer data and building trust with consumers.
This document provides an overview of omnichannel approaches in the insurance sector. It discusses how Progressive Insurance has been an early adopter of digital customer experiences, while State Farm has been slower to integrate its divisions digitally. The document also examines trends in the insurance sector triggered by omnichannel advances, such as the development of sophisticated mobile apps and the blurring of direct and agent sales channels. Finally, it explores how insurers can use omnichannel techniques for both customer acquisition and retention.
Cyber Security and Insurance Coverage Protection: The Perfect Time for an AuditNationalUnderwriter
Cyber Security and Insurance Coverage Protection: The Perfect Time for an Audit by Lynda Bennett
2014 ended almost the same way that it began for most companies – having concerns about cyber security and hackers. At the beginning of the year, the news cycle was focused on breaches that took place in the consumer product space as Target, Michael’s, Neiman Marcus, and Home Depot worked fast and furious to address breaches that led to concerns about a massive amount of credit card information possibly being “in the open.” Later in the year, we learned that corporate giants like JPMorgan Chase and Apple were not immune from cyber security breaches as still more personally identifiable information and very personal photographs were released into the public domain. Finally, as 2014 drew to a close, the entertainment industry was further rocked by the cyber-attack on Sony Corp., which led to even broader concerns about national security and terrorist threats.
Innovation in Insurance - necessity or luxury?Mateusz Maj
So the world is changing at bewildering speed and we are facing an economic and digital revolution. To manage that change, countries and communities need to change the way we do business and insurance industry cannot ignore these changes. Learn why.
Banking & Innovation: How Financial Services Can Embrace the Customer RevolutionComrade
Financial services companies are increasingly seeing opportunities to be at the forefront of innovation. Historically, banks have been slow to translate consumer demands into technologies like paperless statements and mobile check imaging. However, they were quick to implement online banking and, today, customers who bank online are typically more satisfied as well as more cost-effective to maintain. Banks have also responded to the shift in consumer demand for mobile banking on tablets and smartphones. The next challenge facing financial services is how to address the rise of consumer trends evolving mainly outside of the industry. We’re pleased to have partnered with Matchi to publish “Banking & Innovation: How Financial Services Can Embrace the Customer Revolution." This paper focuses on three phenomena that will ultimately impact every bank:
- Crowdsourcing
- Wearable Technology
- The Sharing Economy
We explore the state of each these trends, and how they relate to financial services.
The sharing economy has grown exponentially due to enabling economic, technological, and cultural factors. What began as small-scale sharing of underutilized assets like parking spaces or rooms in homes is now a $15 billion industry expected to reach $335 billion by 2025, thanks to the internet, mobile devices, and social media lowering transaction costs. Younger generations place more value on access over ownership, while economic hardship and environmentalism have also driven growth. The sharing economy benefits businesses through asset-light, lower-cost models. Companies like Rubicon Global are disrupting outdated industries through innovative technology and customized services while pursuing sustainability goals. Sharing economy companies often start operating without resolving regulations, then negotiate from a position of strength through
- The motor insurance industry is undergoing significant upheaval due to changes in regulation, economic conditions, technology, and customer behavior.
- Regulation like Solvency II has increased complexity for insurers while unintended consequences of other regulations have increased costs.
- Economic uncertainty and a slow recovery has led insurers to be risk averse and delay investments in innovation.
- Market competition is increasing as new digital entrants may disrupt the industry and consolidate auto repair shops are changing insurer-repairer relationships.
- Insurers face challenges from legacy IT systems that inhibit their ability to respond to changes and compete with new digital competitors.
Next Wave of Fintech: Redefining Financial Services through TechnologyRobin Teigland
The Stockholm School of Economics and PA Consulting present The Next wave of Fintech, a sequel to the 2015 Stockholm Fintech Report, focusing on the new InsurTech and RegTech segments. The report, which describes and quantifies the Swedish market for these segments, contains valuable insights and recommendations for decision makers at banks, incubators, startup companies, public authorities and investors.
The future of insurance distribution: New models for a digital customerAccenture Insurance
This report argues that incumbents need to embrace digital disruption, form partnerships and adopt innovative technologies to improve customer engagement and create new opportunities for growth. It introduces five new distribution models that insurers should consider, as well as six ‘lenses’ through which they can be evaluated.
Your insurance clients know that far-sighted players are already confronting the future of insurance distribution. Use this report to help them assess their options.
I nostri intervistati si aspettano addirittura un nuovo tipo di
entità assicurativa emergerà entro il prossimo decennio,
come l'Internet delle cose, l'intelligenza artificiale
e blockchain convergono per creare smart, in tempo reale
soluzioni assicurative. Quasi sette su dieci
(69 per cento) ritiene che l'assicurazione verrà nuovamente intermediata
algoritmicamente a intervalli frequenti con un nuovo stile
di aggregatore assicurativo e il 91% si aspetta
questo avverrà entro un periodo di 15 anni.
Integrating ict in insurance management design & development of an online ins...Alexander Decker
The document summarizes the design and development of an online insurance system for an East Africa insurance company. Key points:
- The system was developed to create awareness about insurance policies and benefits through an online presence, as the existing manual system was ineffective.
- Requirements for the system were determined through qualitative research methods like interviews and document review with insurance providers and clients.
- The system was built using PHP, WAMP, and MySQL. It allows authorized users to access insurance information and claims through a secure web interface.
- After development, the system's perceived usefulness and ease of use were evaluated through a questionnaire, finding it provided important insurance awareness.
Ninety Consulting: The Omnichannel InsurerDan White
Some insurers are already pursuing omnichannel, but other sectors, e.g. retail, are seen as more advanced and could yield lessons for insurers. In Part 1 of this two-part paper, we look at some of the initiatives and issues that are emerging as insurers try to move to an omnichannel approach. In Part 2, released separately, we look at examples and lessons from other sectors and try to answer the question ‘What can insurers learn about omnichannel from other industry sectors?’ We will conclude by making some keynote recommendations and predictions about the changing nature of omnichannel and its impact on the insurance sector.
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3. While insurance has traditionally been paper-based, mobile provides opportunities for customer insights, personalization, and social media engagement that companies should pursue.
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Abstract
There are many white papers about the sharing economy, and we do not want to repeat much of what has
already been said. Rather, we will start this paper with a short overview of the thinking to date, and then focus
on the latest emerging trends, giving insights on how the sharing economy will impact upon the services
insurers provide to their customers and identifying a series of opportunities for insurers which could be keys to
helping this economy develop and flourish.
Foreword by Lord Wei of Shoreditch
“The Sharing Economy is not new. In the Old Testament, the laws of the land in Biblical times
demanded that asset owners share some of the harvest that fell to the edge of their field, and
even up until a few hundred years ago such "gleaning" activities were legal in Britain. Today,
the Sharing Economy is about a different kind of access, and yet the principles remain the
same.
“The Sharing Economy gives rise to both significant opportunities and challenges as new
technology enables all kinds of people to access the "on demand" lifestyle. In insurance, these
challenges are well documented in this excellent and practical briefing from Ninety, which I
hope will not only inform the industry, but also policy-makers and politicians such as myself.
“The Sharing Economy means that we are all playing catch up in terms of regulation, policy,
and tax law. Undoubtedly, too, the Sharing Economy is challenging how insurance is delivered,
for how long, the kinds of cover that are needed, as well as the kinds of data that will need to
be collected. And yet the prize is huge:
- potentially greater income as untapped micro-demand is met;
- a more inclusive society where those who cannot currently access both services and
insurance, gain coverage and enjoy richer lives;
- and, hopefully, a stronger connection between those sharing their assets and those using
them, as well as between insurers and their customers, as policies become accessed and
"gleaned" not annually, but moment by moment.”
Lord Wei of Shoreditch
Chair, Future Strategy Board, Ninety
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Table of contents
1. BACKGROUND 4
2. EMERGING TRENDS 5
2.1 Access rather than owning 5
2.2 Insurance provision by the platforms 5
2.3 Other insurance offerings are emerging 6
2.4 Services are used by certain demographic cohorts 6
2.5 Regulation is increasing 7
2.6 Big business is acquiring 8
2.7 Sharing Economy platforms are acquiring competitors and advanced tech capability 9
2.8 Associations and standards are forming 9
2.9 Trust systems are developing 10
3. CONCLUSION 12
4. REFERENCES 14
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1. Background
Online technology has enabled people to share assets, resources, time and skills more efficiently. By helping
providers and consumers connect, new technologies help create value, streamline commerce and increase
productivity, make accessing markets and employment easier. Enabling this revolution is not just the internet
but the internet of things (IoT) as well.
This has created, and continues to create a large, growing, collaborative, enterprise economy in which
everyone can participate if they so wish. PwC estimate that the industry will grow from $15 billion in 2013 to
$335 billion by 20251
. Pew Research2
estimated in May 2016 that 72% of American adults have used at least
one of 11 different shared and on-demand services, with 20% using four or more and 7% six or more.
Well known examples of businesses are Uber3
(drive A to B), Airbnb4
(rent house or room), Lyft5
(ride sharing),
JustPark6
(spare spaces to park), Hassle7
(book a cleaner), EasyCar Club8
(rent your car while it is not being
used), WeWork9
(sharing workspace in office building setting) and Vrumi10
(workplace in homes during day).
Apart from economic motivation, there seem to be several other factors at work here:
• Universal access to technology.
• Ease of use and convenience compared to alternatives.
• Companies (especially SMEs) needing a more flexible, adaptable, on-demand business model.
• Environmental concern and the opportunity in this economy for reuse and using finite resources to
their optimal ability.
• A desire to escape the narrow, formulaic choices provided by big brands and satisfy a personal need
for experiencing something different. In a sense, participating can offer a bit of adventure – staying in
someone’s house, using someone’s car, etc.
• Supporting a grassroots movement of small, entrepreneurial traders which reconnects with local
people and satisfies a desire for community.
• 65% of people who participate in the sharing economy are women11 – it is a opportunity for women to
redefine the future of work.
Key to this sharing or access or collaborative economy are platforms that facilitate such transactions and
provide a level of quality assurance. These platforms connect people efficiently and easily and help maximise
the value of resources and services whilst lowering cost of access to market.
Risks abound, and standard home, motor, etc., insurance policies do not cover such activities. Information on
risk is still emerging. There have been liability claims and lawsuits arising from incidents. Whether these are
more numerous than ‘normal’ business activities which are
covered under business policies is uncertain at this stage.
However, these cases tend to receive a lot of publicity and can
damage a brand as it tries to establish an alternative way of
providing a service.
Trust remains a fundamental building block of the sharing
economy. Sharing economy businesses to varying degrees are
offering insurance products themselves to mitigate risks. Key
trust questions are: identity (are you who you say you are?),
safety (will I be safe using your service?), behaviour (is my
property going to be treated well?), and skill (are you qualified
and will you do a good job?).
“Key trust questions are:
• Identity: are you who you say
you are?
• Safety: will I be safe using
your service?
• Behaviour: is my property
going to be treated well?
• Skill: are you qualified and will
you do a good job?”
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2. Emerging trends
2.1 Access rather than owning
One foreseeable consequence of the sharing economy is that consumers will increasingly become ‘accessors’
rather than ‘owners’. Is a culture change happening, especially with Millennials (see 2.4 below). One where
customers hire what they need for the shortest period possible. Therefore, both providers and consumers need
insurance cover which is ‘per use’. Exceptions to this new and emerging rule would be relevant for heavy
providers or consumers of a particular service, in which case an annual offer may still be attractive.
Metromile12
is an example of an insurer that has positioned already for this lifestyle with a basic charge per
month and then a fee based on miles driven. This thinking and system can easily be switched to the shared
economy and, indeed, they already have a product for Uber drivers.
2.2 Insurance provision by the platforms
There have been many liability claims and lawsuits arising from high profile incidents, including reports of
pedestrian deaths1314
, rape by home renters15
, etc.
The key risks seem to be:
• Personal injuries from, say, a car driving to pick up a fare, an accident during a ride, an incident in a
house.
• Damage to your property: strangers may not treat your possessions as carefully as you do.
• Damage to a customers’ property whilst staying at your house.
• Theft.
• Lawsuits by both providers and customers.
The individuals who provide or use these services find they’re not
covered by their insurance policies because their policies are not
built for commercial or shared economy use. There are major
issues around people who don’t understand the risks they’re taking
on.
Therefore, there is a trend of platform providers to include secondary insurance just for that transaction, e.g. a
ride in a car, a stay in a room. Airbnb now offer free, automatic coverage for liability covering up to $1 million
per incident. However, there are still gaps in coverage e.g. sexual abuse, assault, communicable diseases,
incidents prior to stay and post stay. Other examples are: One Fine Stay16
, Vrumi17
, Hassle18
.
These policies can be quite limited but give providers and consumers some peace of mind. They may, though,
lead to contention between risk-carrying parties about who is liable. Furthermore, those customers are lost to
traditional insurance providers for that event. It doesn’t take much effort for those platforms to then flip this to
offer full insurance policies for motor, house, travel, etc., to regular customers that they build a relationship
with.
“Shared economy platforms
present the opportunity to
extend the customer base for
an insurer.”
Opportunity:
The type of insurance products needed by the sharing economy could become standard alongside
traditional insurance offerings, but could the two be blended? Could we see hybrid products?
Standard insurance for things owned with a monthly bill for shared economy services provision
and/or use? This can be incentivised with combined-use discount.
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2.3 Other insurance offerings are emerging
Examples of specialist insurance companies that have emerged are: SafeShare19
- the UK Insurance Start-up
of the Year 2016, Slice20
in the USA which is backed by MunichRe, and Belong Safe21
for insuring Airbnb type
services.
In May 2015, the Rideshare22
product by Farmers Insurance was approved by the California Department of
insurance. They offered a policy similar to the Metromile policy (see 2.1), but it is offered as a seamless
supplement to the driver’s personal policy increasing the premium by 8%.
In June 2016, Admiral23
offered Host Insurance extension to its Home Insurance policies. CBIZ24
offer home
rental insurance.
Then, of course, there are peer-to-peer insurance platforms – an example of a shared economy offering.
Examples are Friendsurance25
and Lemonade26
. The latter is trying to effect P2P around interest in charitable
causes which may also dampen spurious claims (the less money used for claims, the more goes to charity).
2.4 Services are used by certain demographic cohorts
For insurance purposes, how do you to determine risk for any shared-economy service? It takes time to build
data and get accurate risk profiles. Each of the individual platforms has its own unique user base.
However Pew Research27
found that heavy users of these services in the USA are broadly concentrated among
certain demographic cohorts. In particular:
• College graduates;
• Those with relatively high household incomes;
• Those under the age of 45;
• Primarily in and around urban population centres.
One can see the logic here, especially regarding urban areas where cost of ownership is higher, space for
possessions is restricted and there is a critical mass of people who could need services.
Additional research28
confirms that the sharing economy is driven by Millennials - 25-34 year-olds. 57% say
they can find anything they need to rent or borrow online. 51% of Millennials prefer to share rather than own.
“The shared economy satisfies
a desire for community.”
Opportunity:
Insurers could consider collecting risk data in a cost-effective and relatively quick fashion from
focused cohorts. This can then be compared with data from people with the same demographics for
standard products to see how the risk profile compares.
Opportunity:
Insurers would do well to partner with shared economy platforms and help develop insurance
solutions. This will provide access to their growing customer base for other offerings.
Insurers need to make sure that people know what they’re doing in terms of the risks they’re taking
by assuming standard insurance policies will cover shared economy use of their assets or using
someone else’s asset. This could lead to opportunities to provide supplementary cover.
Due to gaps in current supplementary cover offerings, there are opportunities to offer more
comprehensive coverage.
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2.5 Regulation is increasing
The public policy arena has not kept pace with the shared economy. Regulatory arrangements are not clear
and these involve several facets of regulation. Many of these facets will be clarified by governments and the
courts over time. On one hand, lack of regulation has allowed the shared economy to develop and is welcome,
but there are increasing moves to regulate. Some of the key issues that we foresee are as follows:
a) Employment status. This is particularly relevant in a ‘gig’ economy (an environment in which temporary
positions are common and organizations contract with independent workers for short-term
engagements). The recent (October 2016) Employment Tribunal case with Uber in the UK is a case in
point29
. In the UK there is an employment law concept of a ‘worker’ – someone with less employment
rights than an employee but more than a self-employed contractor. The Tribunal ruled that Uber
drivers are workers with rights including the right to the minimum wage, pension contributions (via
auto-enrolment), holiday pay and whistleblowing protection from dismissal/discrimination. Uber
immediately said it would appeal against the ruling. The key in determining worker status is the amount
of control that the business exercises over the individuals.
What restrictions and expectations are put on an individual
provider of product or service beyond just the safety and
quality of service to consumers? In Uber’s case, this
involved the control that their app created, as well as
penalties and other restrictions.
b) Tax reporting. Platforms track exactly how much a provider gets paid. How and should this be
reported to authorities? What does this mean re sharing personal data with authorities and the
resulting privacy issues?
c) Health and Safety. Who is taking responsibility for the Health and Safety of providers and consumers
for a service? A man was killed by a falling tree branch in an Airbnb rental in Texas in 201530
. The
resulting claim was not against Airbnb but the house owner.
d) Planning permissions/zoning regulations. Some owners are buying properties and then letting them
out through, say, Airbnb to maximise return. In some areas, letting is only permitted for a certain
number of days of the year. Airbnb announced in November 2016 that it is to ban landlords from
renting out homes in London, UK, for more than three months a year to dampen fears that it is fuelling
London’s housing crisis31
. However, in any case, UK law prohibits short-term rentals of more than 90
days over the course of a year without planning permission. Airbnb has not prevented users of its
website from exceeding this limit. In December 2016, Airbnb and New York City resolved a lawsuit
brought by the company challenging a law it argued could expose it to significant penalties for
advertising short-term apartment rentals32
. San Francisco recently tightened legislation as well, due to
the perception that Airbnb renters were adding to a housing crisis33
.
e) Equal access e.g. disabled access. To what extent do drivers, homes need to provide for ease of
access?
Shared economy platforms want to appear as just that – platforms for a provider and consumer to transact
business with no special relationship by the platform provider with either. The more ‘control’ a platform exerts,
the more appropriate regulation comes into play.
There is a tension here. On one hand, this ‘arms-length’ relationship is helps to develop a vibrant market.
However, that position creates issues with (non-)regulation of services. This possibly creates riskier situations
“The more ‘control’ a sharing
economy platform exerts, the
more appropriate regulation
comes into play.”
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due to unregulated services and unfair competition in comparison with other companies who have to meet the
cost of following regulations for existing services.
There is a case for insurer involvement in resolving this tension, which we will call out as an opportunity shortly
but, first, let’s bring the problem to life a little more by examining the recent Uber case above:
• The agreement with the passenger makes it clear that Uber is not a party to the contract between the
driver and the passenger34
.
• The driver’s agreement with Uber says that Uber accepts no liability for the driving service35
.
• Uber does not do any form of driver assessment other than checking that the driver is able to
communicate adequately in English and he or she can produce originals of a National Insurance
certificate (right to work), driver’s licence, a Public Carriage Office licence (£300pa – checks age,
drivers licence – must be over 3 years old, right to work, character - 'enhanced' criminal records
check, medical fitness, route finding and map reading skills assessment from an accredited
assessment centre), a Private Hire Vehicle licence (£100pa - checks car ownership, hire insurance and
car worthiness, car under 5 years old), a current MOT certificate (car worthiness) and a valid insurance
certificate.
Anything further such as advanced driving training, regular checking of cars, would create more ‘control’ and
yet it would reduce risk.
2.6 Big business is acquiring
Large businesses are now seeing access-over-ownership as part of
their model - another way of business thinking about extending
and targeting its customer base.
BMW have linked up with JustPark36
, Wyndham with Love Homes
Swap37
, Accor Hotels with One Fine Stay38
, Ford with Chariot39
, etc.
With brand reputation at stake, one can foresee more checks being introduced by the parent, and a
corresponding reduction in risk.
“Large businesses are now
seeing access-over-ownership
as part of their model.”
Opportunity:
There is an opportunity for insurers here to reduce risk by working with platforms to add further
checks e.g. claim history, driver telematics.
One can also see that as regulatory matters get resolved, the platforms will offer training, etc., and
they will become mainstream businesses. If insurance companies do not partner early, they could
miss out.
Opportunity:
Shared economy platforms present the opportunity to extend the customer base for an insurer.
They also present an investment opportunity in their high-risk portfolio which could result in a
financial return and/or a link with a major brand in a sector as trade through the platform grows and
‘traditional’ brands see their businesses affected.
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2.7 Sharing Economy platforms are acquiring competitors and advanced tech
capability
There have been a number of deals made by the platform businesses themselves.
Over the last year or so, October 2015 to December 2016, one has seen examples of acquisition of
competitors to cement their position and extend geographic reach.
Examples include:
• Dutch car sharing company SnappCar acquired Swedish competitor FlexiDrive to “strengthen its
position” in Scandinavia40;
• Amsterdam-based bike sharing service Cycleswap was acquired by American competitor Spinlister41;
• Manila-based Flyspaces, an Airbnb for workspaces, acquired its Malaysian counterpart 8spaces42.
In addition, there were several acquisitions of advanced technology companies in order to build that
technology into the platform or use in future services.
Examples include:
• New Delhi-based mShipper acquired Pune-based
technology company Spieler to strengthen its technical
capabilities like predictive analysis, app enhancement, web
services and much more43
;
• ChangeCoin, best known for letting people tip each other
with bitcoin, joined with Airbnb44
;
• Uber acquired Otto which has been focusing on self-driving technology that can be fitted into trucks
that are already on the road45
, as well as Geometric Intelligence, an AI company that develops machine
learning more efficiently from less data46
.
2.8 Associations and standards are forming
Sharing Economy UK47
formed as a trade association for platforms in March 2015. It had 19 members at
launch, and by the time of writing, this was approaching 100. It is an indication of how the sharing economy
has grown over the last couple of years.
Sharing Economy UK have been and are working with the UK government on regulation (and deregulation).
Speaking at a recent Westminster eForum48
event, Debbie Wosskow, Chair, Sharing Economy UK (SEUK) and
Chief Executive Officer, Love Home Swap49
, said that she saw four key areas of activity:
• Accommodation
• Transport
“There is an opportunity for
insurers to share technology
and embed risk algorithms
into the platforms as part of a
partnership and/or as an
investor.”
Opportunity:
There is an opportunity for insurers to share technology and embed risk algorithms into the
platforms as part of a partnership and/or as an investor.
Conversely there are also opportunities for insurers to extend geographic and segment reach and to
use the platforms’ advanced technology in their systems e.g. AI.
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• Skills
• Other - food, fashion, finance, etc.
She iterated that platforms want to be able to do more than they are doing but are prevented by regulation for
reasons stated earlier in this paper.
Sharing Economy UK have also worked with Oxford University and PricewaterhouseCoopers to launch an
independent kite-mark, the sharing economy Trust Seal50
. This was launched in September 2016.
Trust Seal is a set of Good Practice Principles to set out minimum standards for sharing economy businesses
to ensure that they act with integrity and maintain professional standards in order to convey a sense of trust
and good standing in the market, and with both providers and consumers of services.
The performance criteria are assessed over 8 broad principles of good practice including:
• Identity verification
• Criminal and background checks
• Education and employment history checks
• Transparent communications
• Customer help and support
• Secure payments, clear pricing and refunds
• Insurance and guarantees
• Data protection
We take these moves as yet more signs that the sharing economy is maturing.
2.9 Trust systems are developing
As stated before, trust is a fundamental building block of the sharing economy. Trust has been defined as “a
mobilising mechanism allowing individuals to navigate the environmental complexity of modern society and act
on expectations despite extant risks.”51
.
How do you establish and maintain trust among strangers engaging in shared economy transactions?
From the above research52
, there seem to be several mechanisms in play:
• Trust in the internet itself for online transactions;
• Verification processes by the platform as already discussed above;
• Most sites rely on a rating system: a reputation system, in which providers (sometimes) and customers
can rate and leave comments;
• The presence of photos so one can see who one is dealing with and what one is booking invokes trust;
• A provider and client’s ‘social footprint’ e.g. links to Facebook and LinkedIn accounts to ‘verify’
identities;
Opportunity:
Insurers should be involved in such associations to enhance brand reputation, affect policy and build
relationships.
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• Good website design - the interface, the user experience design and general branding;
• Customer service - a high level of accessible, responsive customer service e.g. 24/7;
• A good refund and cancellation policy;
• Information: the more, the better - good descriptions, provider ratings, verified emails and telephone
numbers, etc.
Regarding the rating system, i.e. star ratings, most show 1-5 stars. At the Westminster eForum event53
, one
provider was intending to go to 1-7 stars as most customers were tending to score 4 or 5 stars, which was not
providing enough differentiation. Low ratings can mean deactivation, e.g. no longer being an Uber driver or
customer.
Taking these observations and applying them across several platforms, it would be possible for an individual to
create and build a portable, trustworthy reputation by assembling and leveraging their aggregate digital
footprint. However, there are also clear privacy issues here.
Trust Seal (from 2.8) goes some way towards demonstrating good practice by a single platform provider but
does not go further in creating a ‘trust score’ for individuals – both providers and customers. There have been
a number of start-ups who have tried to develop such trust systems, but these have not fully achieved their
aims, e.g. TrustCloud54
.
Screening services exist such as First Advantage55
– which is one of the largest providers of background
checks in the collaborative economy working with Uber, Airbnb and others. First Advantage is a global
corporation and they are a combination of three brands - LexisNexis, First Advantage and Verifications, Inc.
They check; identity, criminal records and industry specific records e.g. motor vehicle, evictions.
Services e.g. SafeShare56
, La’Zooz57
are attempting to use blockchain58
technology to secure digital contracts
and financial transactions. Blockchains can be thought of as an automatically notarised ledger. They alleviate
the need for a trust service provider and have the potential to reduce systemic risk and financial fraud.
Opportunity:
Bearing in mind data protection issues, an insurer could sell the shared economy platforms a licence
to access their risk data. This would mitigate risk by revealing, say, claim history. The value to a
platform would be ‘how much economic and reputational improvement will result from access to
trustworthiness data about providers and customers’.
Again, bearing in mind data protection issues, an insurer could get access to data from platforms.
This would provide extra ‘risk’ information about the customer of the insurer. Obviously, the platform
needs to make it clear that data will be shared and this could affect motivation to use the platform
services. However, this could, in the end, turn away riskier customers, improve the service and allow
customers to share in any savings.
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3. Conclusion
Let us conclude by summarising the emerging trends of the sharing or collaborative economy:
• There is a culture and market shift towards access rather than owning;
• Sharing economy platforms are providing secondary insurance but could move to primary;
• Other insurance offerings are emerging specifically for this economy;
• Services are being used by certain demographic cohorts which make targeting and risk profiling
easier;
• Regulation is being adjusted and is increasing;
• Big businesses are acquiring platforms as they see access-not-owning as part of their business
models;
• Sharing economy platforms are acquiring competitors for geographical expansion and/or advanced
tech capability;
• Associations and standards are forming;
• Trust systems are developing.
This economy is maturing and provides many opportunities for insurers:
• Creating blended/hybrid policies - standard insurance plus extensions for shared economy services
provision and/or use;
• Providing insurance solutions for specific platforms;
• Obtaining access to the platform client base – both providers and customers of the service, extending
geographic and segment reach;
• Sharing broad risk data for focused cohorts in order to insure risk for a platform;
• Investing in emerging platforms for financial return and/or a future link with a major brand;
• Sharing technology;
• Helping to create standards and networks;
• Working with platforms on data matching in order to increase trust and decrease unsafe activities.
Insurers should embrace the sharing economy and create a strategic plan which results in action on one or
more of the opportunities presented.
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AUTHOR
Geoff Knott is a Non-Exec Director of Ninety. He has a background in IT, has started several companies, had
a corporate career with IMS Health and Dun & Bradstreet where he was a Senior VP on the European Board.
He has been a CEO of a medium sized charity and helps many start-up businesses, social enterprises and
charities. He publishes research on many social issues.
ABOUT NINETY
Ninety focuses on agile digital transformation within the global insurance industry. We develop and build
customer-centric and technology-powered propositions with our partners, and use a set of tried-and-tested
best-practice methodologies to boost digital maturity levels for our insurance clients.
To discuss any part of this report, or to have us help you consider the implications of the sharing economy on
your insurance business, contact Ian Hitt on ian.hitt@ninety.co.uk or +44 (0)7789 070909.
Ninety is part of a wider group whose purpose is social change. Ninety’s belief is that good business is the
best way of achieving that. We have adopted a challenger model that seeks to bring social change and good
business together. Ninety’s vision is to generate £1bn for social investment over a 30-year period. To fulfil the
purpose and vision, Ninety has built an ecosystem that is open to participants, and is designed to sustain a
large, compelling organisation. In common with the other businesses in that ecosystem, Ninety gives 90% of
its profits to charitable causes and initiatives, and shares the other 10% with its people.
Recent white papers by Ninety Consulting:
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“The Connected Home & The Insurer”: http://tinyurl.com/connectedhomeinsurance
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“The Omnichannel Insurer (part 2)”: http://tinyurl.com/omnichannelinsurerpart2
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Commercial in Confidence Page 15 of 15
44
http://uk.businessinsider.com/airbnb-buys-bitcoin-startup-changecoin-2016-4
45
https://techcrunch.com/2016/08/18/uber-acquires-otto-to-lead-ubers-self-driving-car-effort-report-says
46
http://siliconangle.com/blog/2016/12/05/uber-buys-gemetric-intelligence-expand-push-ai
47
http://www.sharingeconomyuk.com/
48
http://www.westminsterforumprojects.co.uk/
49
http://www.lovehomeswap.com/
50
https://sharingeconomytrustseal.com/
51
Trust in the Sharing Economy: An Exploratory Study. Katie Findley University of Warwick Centre for
Cultural Policy Studies 2013.
52
Trust in the Sharing Economy: An Exploratory Study. Katie Findley University of Warwick Centre for
Cultural Policy Studies 2013.
53
http://www.westminsterforumprojects.co.uk/
54
https://trustcloud.com/
55
https://www.fadv.com/products/industry-solutions/sharing-economy.aspx
56
http://www.econotimes.com/SafeShare-Releases-First-Blockchain-Insurance-Solution-For-Sharing-
Economy-181326
57
https://www.bloomberg.com/news/articles/2015-09-16/this-israeli-ride-sharing-app-is-the-utopian-hippie-
uber
58
https://en.wikipedia.org/wiki/Blockchain_(database)