- Where Insurance & Technology Meet

Be there for your policyholders when they need you most

As auto insurance premiums converge due to increased competition, policyholders are beginning to place more importance on both peace-of-mind and engagement when evaluating their relationship with insurers. While price is still the critical factor impacting policyholder acquisition, how insurers engage with their policyholders and create peace-of-mind drives retention. Directly following a crash is the point… Read more »

Nudge Theory and Insurtech – Happy Bedfellows?

Richard Thaler’s Nobel Prize-winning “Nudge Theory” is finding its way into tech and, specifically, insurtech.  Will this be a happy relationship, or cause for putting up fences? Coming together… Thaler contends that (1) positive reinforcement and (2) indirect suggestion can affect the way humans think and behave, and therefore the outcomes of that behaviour.  On… Read more »

Is UBI Facing A Future That Isn’t UBI?

For the last decade, insurers have sought to change automotive underwriting by relying on real data from vehicles, rather than using proxies such as drivers’ estimates of mileage driven, traffic tickets, and accidents. However, as the industry in poised for rapid expansion, a leading expert is suggesting that it is already a failure. But there… Read more »

23 Hours of InsurTech

Last week, we had a 23-hour opportunity to take stock in our readiness for the digital incarnation of insurance. As that time passed, we found some answers — and many more interesting questions. So we’re planning to do it again with a larger team of experts. Setting the pace and the place setting … Matteo Carbone, Founder and… Read more »

The Rollout of Automated Driver Assistance Systems and the Impact to Insurance Costs

Long available as high-end luxury vehicle options, Advanced Driver Assistance Systems (ADAS) are now offered on a number of 2017 vehicle models. For example, Toyota Safety Sense offers an ADAS bundle that will be included as standard on the majority of Canadian models starting with the 2017 model year. How is the insurance industry responding… Read more »

Increasing Policyholder Retention through Telematics-Driven Claims

Auto insurance has one of the highest Net Promotor Scores™ of any industry, yet nearly all auto insurers struggle to engage with their policyholders in a positive and constructive way. Telematics can play a significant role in improving engagement and improving claims management. Low engagement, combined with highly price elastic customers, leads to the insurance… Read more »

InsurTech: Going Hard or Hardly Going?

To avoid being ‘disrupted,’ and – potentially – to improve the balance sheet, some insurers are driving experimentation of Insurance Technology (InsurTech). However, some initiatives are geography-specific and, from a global industry perspective, the commitment is underfunded. Is this just the nature of today’s innovation paradigm, or are we treating InsurTech as a lower priority?… Read more »

Platforms and Insurance: Where the Bulldozer Meets the Road

In a 1989 speech to brokers, a bank executive offered an analogy to explain changes he saw to distribution: “If you see a bulldozer paving a road, heading towards you, you need to decide fairly quickly, ‘Do I want to be part of the bulldozer, or be part of the road?’” Twenty-five years later,  a… Read more »

Counting on the Future: More Than All Our Fingers and Toes

The title of the recent Insurance-Canada Executive Forum (ICEF2015) was “Emerging Threats and Opportunities.”  In hindsight, we might have been well served by including a less subtle sub-title; something like: “Learn to Use Analytics or Die.” Question for you: What do you think is the state of our industry in deploying and understanding analytics? A… Read more »

Is the Telematics Plateau Coming Early?

We’ve followed Telematics/Usage-Based Insurance (UBI) for some time now.  There has been significant progress, and there is an assumption that it will have a 25% market share over time. Of late, however, some folks are suggesting that UBI could plateau early just as other forces start to shape the next generation of automobile insurance. Usage-Based… Read more »