Lighthouse #17
Curating the best insurance, insurtech, innovation and leadership content for you.
Ron Arnold
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Innovation almost never fails due to a lack of creativity. It’s almost always due to a lack of discipline.
Doblin
Connected Car Data Yielding Striking Insights: Are EV drivers riskier? Super interesting report by Cambridge Mobile Telematics highlighting some stark divergences in risk profiles for EV drivers. According to the report:
> drivers of EVs are more likely to engage in risky behaviours like speeding and hard acceleration
> Tesla drivers demonstrate acceleration risks that range from 346% to 406% higher than the average internal-combustion engine (ICE) vehicle driver
> Tesla drivers also had 76% more cornering risk
> Tesla drivers are 35% less distracted by their smartphones than ICE vehicle drivers,
> drivers are 9% less likely to speed in their Teslas than in their ICE vehicles
> All of that said, Tesla drivers are 48% less likely to crash their Tesla than their ICE vehicle
For me, the report very much highlights the power of connected car type data. To date, mainstream insurers in Australia and NZ are doing very little in this space - happy to be corrected? Will this prove to be a strategic mis-step? Source: Repair News & CMT study
Agile - A Cautionary Tale: A cautionary tale about a traditional, large corporate making the shift to “agile”. The tale is not unique to ANZ. Well worth a read - including the discussion it generated on linkedin!: Source: SMH
Emerging Giants in the Asia Pacific: Great report by KPMG, rich with data and insights on the Emerging Giants in the Asia pacific. Some key takeaways:
> Asian economies are moving from suppliers to other nations to markets in their own right
> digital is now a major driver of growth, services are overtaking manufacturing!
> growing middle class, and smartphone penetration is fuelling a digital commerce sector
> Asia Pac is catching up with the US as a unicorn "creator"
> IMF forecasts predict stronger growth in Asia Pac emerging/developing economies than globally - 20% higher
> government funding and incentives play a key role in supporting entrepreneurs to start and scale their business
Source: KPMG
The future of home insurance: Super report by my colleague Sabine VanderLinden on the future challenges and opportunities in home insurance. The report draws on the perspectives of some industry leaders and while it focusses on the UK, there are many parallels in other markets like Australia and NZ. Well worth a read of you are serious about looking out and thinking about how you should approaching home insurance to ensure it remains a relevant. Source: bdeo
Amazon and delivery driver insurance: Very interesting article looking at how Amazon (and some others) think about insurance for delivery drivers. Amazon DSPs are the small business owners who contract with Amazon to do all the last mile deliveries:
“At the end of the day, the success of the DSP program is critical to Amazon’s mission,”
"Being successful from a financial standpoint means making money—and having access to affordable insurance. “That’s why there is a program through Amazon to offer insurance as a value-added service.”"
"We’re a little bit different, as well, from the traditional carriers. Our goal is not to make money on insurance. That’s not why we’re here,”
Quite a different take on how insurance may be embedded in a broader service offering.... Source: Claims Journal
Tensorflight improves data: I have been bullish about computer vision for quite some time. Tensorflight is one of several Insurtechs utilising imaging data to improve property insights for insurers. Others include Arturo (which IAG Firemark Ventures has invested in) and CAPE Analytics. QBE Ventures has invested in Tensorflight. These companies typically use data from a variety of sources including satellite, aerial and ground level. Tensorflight has just announced a partnership with the Intelligence Business of Airbus Defence and Space (Taufkirken, Germany), a global provider of geospatial data, intelligence and defence solutions, with the goal of ramping up its property analysis and assessment capabilities. The partnership will provide advanced optical 30cm resolution. This is super promising area. If you are in the commercial and residential property insurance game you should be looking at the opportunities this tech application provides. Source: Insurance innovation Reporter
Pet insurer Trupanion to access 20m customers: Pet insurance - an insurance vertical that is still very much in its infancy; at least in Australia. It is a product that has a value chain very much like health insurance, with the vet playing a critical role. Interesting to see this new partnership announced in the US between Chewy and Trupanion. Chewy is an American online retailer of pet food and other pet-related products with over 20 million customers and reported of the order of US$9b in revenue in 2021. Trupanion provides medical (pet) insurance for cats and dogs throughout the United States, Canada and Australia with over 600,000 pets enrolled. According to to the Chewy press release:
"Through this partnership, Chewy will offer customers both preventative care wellness plans and comprehensive insurance plans for accidents, illnesses and chronic conditions. In addition, it will help drive awareness within the pet parent community, simplifying the end-to-end process – from researching and purchasing pet insurance to filing, tracking and paying for claims – and provide access to additional Chewy Health services. All of this combined will increase pet parents’ access to affordable and high-quality health care offerings for their pets.
By partnering with Trupanion, Chewy will be able to leverage Trupanion’s patented software to pay veterinarians directly, thus reducing out-of-pocket expenses and increasing access to care. In keeping with their mutual brand commitment to surprise and delight customers, pet parents will receive the exceptional customer experience both Chewy and Trupanion are known for and convenient 24x7 access to a dedicated customer service team. These plans will be available for purchase exclusively on Chewy.com beginning in Spring 2022."
Looks like a smart move for Trupanion to get access to a large customer base, and one that offers the potential to provide an "embedded offering" and slick digital experience. If you are a pet insurer this would be one to keep an eye on...particular as Chewy looks like a switched on and innovative digital player!
Source: yahoo
American Family Insurance using Computer Vision to aid subrogation: Another interesting application of computer vision. American Family Insurance is partnering with Tractable (London) to apply its artificial intelligence (AI) solutions to the claims subrogation settlement process . Source: Insurance Innovation Reporter
InsuranceDekho has raised $100M in its latest round: The insurance platform is an aggregator/web comparison service for motor and health insurance. Initially it had over 20 motor and health insurance issuers and has since expanded into life, term, and retirement plans, among other forms of insurance. The largely digital platform lets users compare covers. It recently launched a "feet-on-street" programme called ‘InsuranceDekho Saathi’ to make insurance buying easier for those who don’t have access to the internet or feel uncomfortable transacting online. In Australia, web comparison services from the likes of Comparethemarket.com.au and Finder for motor insurance have not secured the same type of traction as they have in some foreign markets like the UK. CDR may be a game changer in the Australian market. Source: Asian News
InsuraGuest Technologies launches subscription based rental insurance: Under the subscription model the property owner or property manager can choose which insurance package they want for their property, depending on the level coverage and its limits; a cost that can be passed onto the guest during their stay. The cover can be turned on or off depending on the seasonality of the property's renters. This is quite an interesting spin on the transactional - rental by rental - type cover that some insurers are offering. Seems like a good evolution. Source: yahoo
RAC Insurance App Trial Successful: Great to see the RAC Insurance business advancing tech that helps save lives and reduce accidents. The RAC app which detects phone usage has just been through a trial with 800 customers. It is reported that it reduced phone usage by 60 per cent. The same proportion said that the app had helped them understand risk and encouraged better behaviours. Source: West Australian
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