In­surance Ser­vices of To­mor­row

Silicon Luxembourg - - BUZZWORD -

WITH THE AR­RIVAL OF CON­NEC­TIV­ITY AND DIG­I­TAL TECH­NOL­OGY IN OUR HOMES AND CARS, THE IN­SURANCE MAR­KET OF OUR PAR­ENTS' GEN­ER­A­TION IS NOWHERE TO BE FOUND. FOND OF IN­NO­VA­TION AND NEW SER­VICES, TO­DAY'S CUS­TOMERS AND PROVIDERS ARE TURN­ING A TRA­DI­TIONAL PRO­FES­SION UP­SIDE DOWN. IN­SUR­ERS FACE PRES­SURE TO REIN­VENT THEM­SELVES IN OR­DER TO STAY UP TO DATE AND PRE­PARE FOR GAFA'S IM­MI­NENT AR­RIVAL. LIS­TEN IN ON OUR MEET­ING WITH CÉ­DRIC RO­CHET, CHIEF IN­NO­VA­TION OF­FI­CER OF BÂLOISE AS­SUR­ANCES IN LUX­EM­BOURG. IN­TER­NAL IN­NO­VA­TION

As the head of Bâloise As­sur­ances's in­no­va­tion depart­ment since the start of 2017, Ro­chet set up In­no­va­tion Lab (ilab) to help align the group's ap­proach with cus­tomer needs, and to an­tic­i­pate and test ideas. This in­no­va­tive pro­gram di­rectly en­gages em­ploy­ees.

"We met and in­ter­viewed a group of cus­tomers, in­clud­ing new­com­ers to the Lux­em­bourg mar­ket, us­ing a de­sign think­ing ap­proach. On the one hand, we found that they did not know the coun­try well and were of­ten in a state of stress when it came to find­ing a home, and on the other hand, that they were par­tic­u­larly open to dig­i­tal," Ro­chet ex­plained.

In this con­text, Baloise launched Good­start, the first fully on­line in­surance provider for young apart­ment ten­ants. This client seg­ment of­ten has fewer as­sets to in­sure, apart from elec­tronic equip­ment, and wants to be able to sub­scribe and pay on­line eas­ily and quickly.

"We con­ducted a little Test & Learn last sum­mer (2017) and in Oc­to­ber we launched a new ser­vice," Ro­chet said. It is this re­spon­sive­ness that the head of in­no­va­tion seeks to in­still within the group through in­ter­nal con­fer­ences or ideation pro­cesses. Launched in March, the ideation work­shop lasts three months and aims to in­spire ideas and con­crete im­prove­ments in the field.

"It's a fun­nel with three main stages: the ideation process, the re­al­iza­tion of the con­cept and the pre­sen­ta­tion of the busi­ness case to the man­age­ment. We want to in­still a startup spirit into Baloise!"

IM­PROV­ING THE CLIENT JOUR­NEY

In the value chain of an in­surer, there are two key mo­ments: on­board­ing and a claim. In the first case, the price of the in­surance is cal­cu­lated ac­cord­ing to the value of items and the con­tents of an apart­ment or house. Mak­ing a fair es­ti­mate and tak­ing ev­ery­thing into ac­count can be a chal­lenge for cus­tomers. In the sec­ond case, the path to declar­ing a claim is of­ten com­pli­cated, in­volv­ing many forms and count­less trips to the in­surance agent. To im­prove these pro­cesses, Baloise set up a part­ner­ship with French startup Valoo, who spe­cial­izes in on-de­mand in­surance and in­ven­tory of goods. "We all have work­books with our pa­per in­voices. With Valoo, you can take pic­tures of the prod­ucts you want to in­sure, and save your bills and war­ranties. You can also make your claims via an on­line chat. We have re­viewed our pro­cesses so that these re­quests are han­dled as quickly as pos­si­ble," Ro­chet ex­plained. "With Good­start we have a new ser­vice that of­fers faster on­board­ing and with Valoo the re­im­burse­ment for a pos­si­ble claim is sim­pli­fied."

These ad­di­tional ser­vices al­low the in­surance com­pany to go be­yond so-called con­ven­tional in­surance and reach a broader tar­get au­di­ence, be­yond dig­i­tal na­tives.

"We do not sell iphones. No­body is go­ing to jump on in­surance prod­ucts. It's up to us to in­no­vate and bring new ser­vices," he added.

The con­nec­tiv­ity of cars and homes al­lows in­sur­ers to help limit risks: "We are just at the be­gin­ning of con­nec­tiv­ity. We can­not yet imag­ine the ser­vices of to­mor­row. In a re­cent re­port, 75% of re­spon­dents were con­vinced that con­nec­tiv­ity is a tech­nol­ogy of the fu­ture. Seventy-five per­cent of re­spon­dents also think that it is a tech­nol­ogy that has not yet found its mar­ket and does not of­fer enough re­lated ser­vices," Ro­chet said.

THE IN­SURANCE LAND­SCAPE

Fifty-mil­lion Swiss francs: this is the amount al­lo­cated by Baloise Group to in­vest in and ac­quire star­tups. In 2017, for ex­am­ple, the group in­vested in US startup In­sur­data, which of­fers a 3D vi­su­al­iza­tion tool for cross-listed build­ings, in­clud­ing flood risk data, to help in­sur­ers bet­ter as­sess risk. Last year, the group also ac­quired Swiss startup MOVU and its move man­age­ment ser­vice. The lat­ter makes it pos­si­ble to op­ti­mize the whole mov­ing process, from check­lists to the move it­self to quotes.

"The ap­peal for Baloise is be­ing able to po­si­tion it­self within ser­vices that go be­yond in­surance and to be present at

"WE DO NOT SELL IPHONES. NO­BODY IS GO­ING TO JUMP ON IN­SURANCE PROD­UCTS."

the be­gin­ning of the cus­tomer jour­ney, for ex­am­ple when we know that they will move. In this case, the cus­tomer is ini­tially in­ter­ested in in­surance for a short pe­riod: the du­ra­tion of the move," Ro­chet ex­plained. "This is an event that is dif­fi­cult to cap­ture at the dig­i­tal level. Thanks to MOVU, we can now cover the client in Switzer­land dur­ing the move and then for the new home.

"GDPR reg­u­la­tion is com­ing soon and can be seen as an op­por­tu­nity, but also as a ma­jor chal­lenge if reg­u­la­tion suf­fo­cates in­no­va­tion.

"We saw this with our be­spoke car in­surance ser­vice Good­drive. For the sake of con­sumer pro­tec­tion, we chose from the out­set to strictly com­part­men­tal­ize per­sonal data so that we can­not make the con­nec­tion be­tween con­nected data and claims. We had to use macro in­di­ca­tors to cal­cu­late the driv­ing risk pro­file while re­spect­ing client pri­vacy. This is still the case, and the new reg­u­la­tions com­ing soon may be even more re­stric­tive," Ro­chet ar­gued.

By tack­ling spe­cific seg­ments of the value chain, star­tups have op­por­tu­ni­ties to part­ner with ma­jor in­surance groups. The real threat loom­ing on the horizon is the ar­rival of GAFA (Google, Ama­zon, Face­book, Ap­ple) to the in­surance sec­tor. Their mo­bile ap­pli­ca­tions al­low them to ac­cess all con­sumer data and be more spe­cific in their tar­get­ing than the in­sur­ers them­selves. A few months ago, Ama­zon re­cruited 200 peo­ple in Lon­don to work on in­surance ser­vices.

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