Lighthouse #9
Curating the best insurance, insurtech, innovation and leadership content for you.
Ron Arnold
11eight | Linkedin | twitter
When the winds of change blow, some people build walls and others build windmills.
Chinese proverb
AI and the future of insurance: Good read from McKinsey looking at how AI will impact. Four key trends identified:
Explosion of data from connected devices
Increased prevalence of physical robotics
Open-source and data ecosystems
Advances in cognitive technologies
Source: McKinsey
Toyota introduces collision assistance: Claims represent of the order of 70-80 cents of every motor insurance premium dollar. Although it varies across countries, and there are some regulatory variations, many insurers have a pro-active approach towards "managing" car repairs. In Australia, claims, which are still mostly lodged on the phone, are directed to preferred repairers where the insurer has an agreed approach for the delivery of acceptable "cost, quality and timeliness outcomes".
But are Motor Vehicle Manufacturers going to disrupt the "the flow"?
Toyota has introduced Collision Assistance in the US. It is a just-in-time support service, now available to drivers within the Toyota and Lexus mobile app. The mobile technology combines guided accident documentation and access to claims and management services to assist drivers following a collision. Toyota transmits accident and vehicle telematics data to initiate the program. Collision Assistance is designed to let the customer choose how they’d like to handle the claim and repair processes, providing convenience and safety while also ensuring owners are informed about the process through completion.
This seems a very logical extension for Toyota and other manufacturers. If this type of proposition gets momentum amongst manufacturers over the coming years, it will be very interesting to watch how the "arm-wrestle" plays out between insurers and manufacturers regarding the "flow" of motor insurance claims.
This solution also has some potentially interesting impacts for players in the fleet management game.
Side Note: IAG in Australia offers some similar functionality with its Safer Journeys solution. Life360 offers a crash detection service through its innovative and popular app. Source: Coverager
Google reducing accidents? Great work by google saving on fuel, time and one would have thought reducing accidents! Making use of AI to improve traffic lights and traffic flows! Source: Business Today.In
Marshmallow raises $85m: Marshmallow is a UK based car insurance provider that uses a wider than traditional set of data points to underwrite and price for a more diverse set of customers. The London company — has raised $85 million in a new Series B round of funding at a valuation of $1.25b. Marshmallow’s valuation has nearly quadrupled since November 2020, and it has passed 100,000 policies sold in its home country, growing 100% over the last six months. Source: Tech Crunch
Vouch Insurance rasies $90m: Vouch focusses on business insurance for startups and high-growth companies, It has raised $90 million in new funding. Vouch describes itself as “a new kind of insurance platform” for startups that offers fully digital, “tailored coverage that takes minutes to activate.” Over the past year, Vouch has seen impressive growth. The company declined to reveal hard revenue figures, but said it saw “7x” increase in its customer base year over year and currently protects over $5.7 billion in risk across thousands of policies. Today, Vouch has more than 1,600 clients, including Pipe, Middesk, Neighbor and Routable. It is also the “preferred” business insurance provider to the customers of Silicon Valley Bank, Brex, Carta and WeWork. Y Combinator too also refers Vouch to its portfolio companies. Source: Tech Crunch
Serving the Underserved: Interesting article on the opportunity in micro and inclusive insurance. Swiss Re has estimated the global protection insurance gap at US$1.24trillion! Worth a read. Source: Insurance Business Mag
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