The CMO Survey - Highlights and Insights Report - Spring 2024
20210308 [square] cas-client-initio-ubi-en
1. CLIENT CASE
MARCH 2021
On behalf of one of the world’s largest automobile manufacturers’ insurance
divisions, Square supported the creation and implementation of two behavioral
telematics insurance products in ten European countries.
DEFINITION AND
IMPLEMENTATION
OF BEHAVIORAL
INSURANCE SERVICE
(UBI : USAGE BASED INSURANCE)
2. CONTEXT
The European management of one of Asia’s largest
insurance companies approached Square and
requested to materialize and market in Europe two
behavioral insurance products (UBI: Usage-Based
Insurance), exclusively intended for clients one of the
world’s leading automobile manufacturers.
The first product was based on the principle of Pay
As you Drive (PAYD), the connected and interactive
form of kilometer driven insurance. The second and
more complex product was based on the Pay How
You Drive (PHYD) model. In the PHYD model, the
driver is rated in real-time according to his driving
style. When the algorithm deems the driving to be
more prudent, the more significant the reduction
in insurance premium the insured will receive.
To
improve his driving - and consequently reduce
the cost of his insurance premium - the driver gets
a
sum
mary of his driving performance after each trip
and further tips on improving his score.
These two new types of insurances have in
common
that they entirely rely on the original onboard
sensors
in the vehicle and do not require any visit to a dealer
ship for installation, activation, nor
deactivation. As
a consequence, the insurance
underwriting process
can be fully integrated within the vehicle purchasing
process. For these same
reasons, viewing the score
and the provided driving tips had to be done in the
manufacturer’s mobile
application.
MULTIPLE CONSTRAINTS
In addition to the technical aspects, several constraints
had to be considered for the conduct of this project.
The first constraint was a technical integration
constraint. Since the products had to be marketed by
the automobile manufacturer’s insurance division, the
total engagement in the latter’s brand universe was
essential, both from a user experience point of view
as well as from the point of view of integration within
the manufacturer’s mobile application.
The homogeneity constraint was also to be taken
into account. With the automaker offering a single
mobile application for all European markets, it was
necessary to define an economic model
applicable
throughout Europe, from the United
Kingdom to
Poland and from Spain to the Scandinavian countries.
The third was the Time-driven constraint (temporal).
The
insurance products had to be launched
simul
-
taneously with automaker’s new flagship
model’s
Pan-Europe launch. Any possibility of postponing the
launch was excluded, leaving only eight months to go
from the concept stage to that of going to the market
with MMP (Minimum Marketable Product).
This project’s particularity lies in the fact that Square
had to carry out the project on behalf of the client -
the insurance company - in a technical and
organizational environment depending on the car
manufacturer’s priorities and objectives on which
Square had no control.
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3. SOLUTION
Square supported the client throughout the project ;
it independently took charge of all project mana
gement and, more particularly of the five crucial
stages of the project:
1. DEFINITION OF MVP
(MINIMUM VIABLE PRODUCT)
In association with the European management of the
car manufacturer and the insurance company, Square
gathered all the necessary elements to define the
legal, technical and economic framework in which the
2 MVPs (one for each product) had to be registered.
Once the MVPs were validated from a theoretical
point of view, the practical marketing methods were
defined country by country, with the support of the
car brand’s importers and the national repre
sentatives
of the insurance company.
2. ADAPTATION OF THE MMP TO LOCAL
CONTINGENCIES
Although the room for maneuver was limited, it was
still necessary to validate individual variations of the
MVP to make a viable product (MMP - Minimum
Marketable Product). Essential local particularities
had to be taking into account.
These local variations could also concern a specific
legal framework, that a collaboration with a third
party
insurer or a particular additional market
structure.
For each adaptation request, Square was responsible
for finding a solution applicable to exceptions while
remaining compatible with other markets and respec-
ting the right balance between commercial objectives
and the local players’ ability to comply with the
strategic visions of the project sponsors.
3. MANAGING THE IMPACTS OF THE COVID-19
CRISIS
Arising around halfway through the project, the
Covid-19 crisis and its strict confinement periods had
started with a significant and immediate impact on
the conduct of the project’s conduct. In a short
period, it was necessary to move from a working
method based on numerous international trips and
joint
meetings bringing together all the stake
holders
(more than 25), to exclusive remote
management
that favored bilateral validations.
4. SUPPORT DURING THE DEVELOPMENT PHASE
During the development and IT integration phases,
which were entrusted to the automaker’s technical
teams, Square continuously ensured that it guarded
the
interests and priorities of its client. We have been
extraordinarily prudent to keep the customer
experience as smooth as possible during crucial
stages such as managing multiple users, activating
telematic contracts, collecting GDPR consents, etc.
5. COMMERCIAL LAUNCH OF THE PRODUCT (MMP)
Square has assisted the national management of the
insurance company in finalizing the local marketing
of the newly connected insurance products through
sharing its marketing expertise and guiding its
contacts in defining the levels of rebates on insurance
premiums, by producing Q&As intended for first and
second level support teams, or by facilitating the
sharing of information with the car manufacturer’s
distribution network.
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4. CONTACTS
GEOFFREY LALOUX
Principal
+32 (0) 494 53 87 93
glx@initio.eu
BRICE BOLAND
Associate Partner
+32 (0) 490 11 25 63
bbd@initio.eu
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THE « PLUS »
SQUARE
+ The introduction and application of
Lean Startup and Design Thinking
in a traditional project management
environment (V Cycle)
+ A decisively pragmatic approach with
a «solution-oriented» spirit and a firm
acceptance to a better project mana-
gement approach in a complex and
multicultural environment.
+ Proven experience in the characteri-
zation and implementation of digital
products and services, coupled with
knowledge of auto insurance products.
+ The ability to intervene across the
entire digital chain, from defining the
user experience to the implementation
of performance indicators, including
managing queries related to the GDPR
or the marketing of products.
+ Broad and multisectoral knowledge
of best practices and trends in mobile
applications and digital innovation.
+ The guarantee of reaching the objec-
tives while respecting the budget.
+ The support of all consultants in the
«Digital» practice to swiftly carry out
market studies to assist the client in his
strategic choices.
RESULTS
Square’s involvement enabled the client to bring to
market, on schedule, two innovative insurance
products despite the COVID-19 crisis context.
With ten participating countries in the commercial
launch of MMP1, the initial target has also been
greatly
exceeded. Square’s mission also facilitated in laying
the foundations for an extension of the project to
countries outside the EU and the scope of the GDPR.
This ambitious international project’s success has
enabled Square to highlight its consultants’ versatility
and their capacity to adapt in a multicultural environ-
ment rapidly.