The Perfect Storm in Insurance (Part 2)

The Perfect Storm in Insurance (Part 2)

Written by Roger Peverelli and Reggy de Feniks - Founders The DIA Community on 5 Oct, 2021

In the first part of the interview ‘The Perfect Storm in Insurance’ we learned that we have entered a new era: consumer perceptions and behaviour changed permanently, insurers have a more digital mindset and a higher sense of urgency and insurtechs are now on the turn of a next chapter.

So, what should incumbents and insurtechs focus on in the next decade?

Just like the title of the book Insurtech 2030: il futuro e gia qui, we should look beyond the current demand. This rise in demand for all sorts of online, digital and remote services to entire back ends is likely to stay even after the crisis is over. But this is all just deferred maintenance. These investments are about catching up, repairing the past, but not about taking a leap forward, creating a new future.

Can you already identify some examples, some glimpses of the future, of key areas to reimagine customer relevancy?

“Yes – most are still nascent - but expect them to be mainstream in the course of the next decade.

Take Health. I already mentioned, you need to think beyond your regular health plans. Assist customers in improving their lifestyle. Helping them to exercise more, to eat healthier. There is a lot of room to shift from only covering risk, to rendering pro-active and preventive services as a substantial part of the offering. So, platforms that combine self-tracking, data and all sorts of incentives to help customers with healthier habits will become even more relevant than they already are. Think of how insurers such as Ping An in China, AIA in Southeast Asia, John Hancock in the USA, Manulife in Canada and not to forget Generali in France and here in Germany are working with the Vitality concept of South African insurer Discovery. Irish Life is doing similar things with dacadoo. Achmea in The Netherlands launched Actify. By playing an active role, or even taking the lead, in promoting a healthier lifestyle these companies also increase their social impact.”

You mentioned ‘Connected Living’ is a key consumer trend. How can insurers tap into this trend? Do you already see glimpses, or successful use case here as well?

“More and more connectivity at home, and all the new data streams that come with it, open up all sorts of new opportunities for insurers to add new value, and to become ‘Always Part of Life’. The more time we spend at home, the more important such services become. New services that help customers manage their house better and decrease the total cost of ownership for instance.

With people working more from home, also after the crisis, the importance of cyber security will further increase.

Also think of aging populations. The 60-plus generation is the fastest-growing consumer group and enjoys an increasingly higher spending power. This ‘Silver Economy’ is a golden opportunity. Elderly want to stay in their house longer, while their children want to be sure their parents are safe, leading to a rising demand for remote solutions.

Ideally, we would think of smart propositions combining life, health and home insurance with IoT, property services, cyber solutions and all kinds of personal healthcare services. The condominium platform of Reale Mutua in Turin in Italy is a perfect ‘first glimpse’, with home related services tapping into the elderly way of living, also including digital healthcare services and security and safety.”

These are nice examples in health and home. Do you also have such a ‘first glimpse’ for car insurance?

“Sure! I don’t know about you, but not that long ago I realised that I am currently driving about a third of what I was used to. A third! And the funny thing is, that my car insurer is still charging me the same premium … It made me realise I’m paying way too much. I’m probably not the only one who thinks this. When people use their car less this will lead to an increase in the demand for simple solutions that reflect actual usage. It is probable that covid will p">

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