ICTA Nomination: Sonnet Puts The Focus On The Customer

2017 ICTA Nomination. Technology by Guidewire and Deloitte.

On top of Guidewire technology including the rating engine, underwriting rules and product model, the Sonnet solution layers real-time analytics including predictive underwriting and rating to deliver tailored recommendations. It also enables third-party data enrichment and fraud control. Ultimately, this complex technical foundation allows for a simple, clear and beautifully designed customer experience at Sonnet.ca.

Sonnet uses a deeper and broader range of real-time third-party data sources than any other competitor in Canada to provide individualized, detailed quotes to customers after answering just a handful of questions.

We’re rewriting underwriting, from intuitive website language to easily understood policy documents, working closely with Canadian regulators to provide insurance information that is clear so our customers know what they are purchasing and why.

Implementation and Deployment

Economical Insurance partnered with Deloitte in January 2015 to commence work on a digital direct channel unlike anything in the Canadian market. In a relatively short 17-month period, Sonnet was created using a state-of-the-art data warehouse, sophistication in analytics, and an always-on experience that is fully digital. Sonnet launched with personal home insurance in May 2016, and expanded into personal auto insurance in August 2016.


Our solution drastically increases speed to market. Our ability to modify and optimize products and pricing ensures that Sonnet is a responsive and agile platform that responds to evolving customer preferences and competitive pressures.

While building the Sonnet business case, Economical conducted extensive research to understand the needs of Canadians and designed an insurance experience to address unmet consumer needs. Our understanding of the market, and our ability to validate this knowledge through real-time performance data and customer behavior adds to our competitive advantage in the market.

The experience of building Sonnet and combining the Guidewire platform with an extensive data warehouse has given Economical hands-on capability and strategic insight into how the digital infrastructure is best applied in our business.

While direct and broker channels are managed completely independent of each other to avoid channel conflict, our research, partnerships, and institutional knowledge give us a differentiated view that will significantly benefit Economical broker partners as we rebuild our policy administration system using much of the same technology, data, and analytics capabilities.

Business Impact

Given the newness of Sonnet, we’re just establishing benchmarks but believe our accomplishments coupled with our innovative approach warrant this entry.

Award-Winning Canadian Innovation

Sonnet is truly innovative. The simplicity of the experience hides technical complexities, resulting in a first-of-its-kind Canadian InsureTech offering. Sonnet is differentiated by the ability for customers to quote and bind their policy solely online. Customers get a hands-on insurance policy and online account management anytime, anywhere – on any device.

Sonnet received a 2016 Guidewire Innovation Award – an annual program recognizing brands globally that adapt to market changes and evolving customer needs in innovative ways.

Targeting a Specific Behavioural Segment

Sonnet was designed for a specific segment of Canadian insurance consumers – those preferring a digital solution. Market research validates this segment is most likely to agree that “the Sonnet website is made for people like me” (Kantar TNS Research).

Sonnet also boasts exceptionally high net promoter scores. Three quarters of active customers would recommend Sonnet and our products (Sonnet Net Promoter Score Research).

Positive Public Response

Initial reactions to Sonnet have been positive, with favourable media coverage by BNN, The Globe & Mail and insurance industry trade publications.

About Sonnet

Launched in 2016, Sonnet Insurance Company (Sonnet) is a federally regulated insurance company. Our mission is to provide Canadians with an easy, transparent, and customized way to buy home and auto insurance online to protect where life’s most important moments happen. Experience the future of insurance at Sonnet.ca.

About Guidewire Software

Guidewire (NYSE: GWRE) delivers the software that Property/Casualty (P/C) insurers need to adapt and succeed in a time of rapid industry change. We combine three elements – core operations, data and analytics, and digital engagement – into a technology platform that enhances insurers’ ability to engage and empower their customers and employees. More than 260 P/C insurers around the world have selected Guidewire. For more information, please visit www.guidewire.com.

About Deloitte

Deloitte provides industry-leading audit, consulting, tax and advisory services to many of the world’s most admired brands, including 80 percent of the Fortune 500. Our people work across more than 20 industry sectors to deliver measurable and lasting results that help reinforce public trust in our capital markets, inspire clients to make their most challenging business decisions with confidence, and help lead the way toward a stronger economy and a healthy society. For more information, visit deloitte.com.

Source: Sonnet

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