Insurance Review 2019

INNOVATIONS INSURTECHS HOME INSURANCE BANCASSURANCE

Insurance Review 2019

EXPERT INSIGHTS

#EfmaIns19

Insurance revolution: optimize, transform and engageDramatic transformation will affect the insurance industry over the coming decades, causing a revolution within existing insurance firms. But how should insurers deal with this challenge, and what will the industry look like in the future?

At the Efma Insurance Summit we will seek to answer those questions. Bringing together leading insurance business minds, we will share their insights on the hot topics for today’s insurers while looking at how the industry will develop towards the year 2040. The Summit will focus on three key areas:

Optimization

Transformation and Innovation

Engagement and Partnering

Why should you attend? This event will make every minute relevant thanks to its enriched program, a fresh and lively format covering all the areas of insurance revolution and providing you with new opportunities to connect and partner with the SME Banking Summit taking place in parallel.

Who should attend? The Summit will cater for CEOs, Board Members, Heads of Departments, among other executives, at insurance companies, banks, InsurTechs, and FinTechs.

See the full agenda at www.efma.com/insurance19

Have a look on: www.efma.com/sme19

SME BANKING SUMMIT13-14 JUNE 2019 Vienna

INSURANCESUMMIT13-14 JUNE 2019 Vienna

Roman Pałac CEO - Chairman of the PZU Innovation Committee

Poland

Tetiwe JawunaHead Wealth Gauteng RegionStandard BankSouth Africa

Antonio Cano COO, Member Board of DirectorsAgeas Belgium

Andrew RearChief ExecutiveMunich Re Digital PartnersUK

Makoto OkuboGeneral Manager, International AffairsNippon Life Insurance Company (Nissay) USA

Jean-Marc PailholHead of Group Market Management & DistributionAllianz SEGermany

Timothy ShakesbyPrincipal ExpertEIOPAGermany

Gabriele HollmannManaging DirectorScor Global Life SEIreland

INSURANCE SUMMIT13-14 JUNE 2019 Vienna

3

Foreword

Welcome to Efma Insurance Review 2019.

It’s been a stimulating year to work in the insurance sector as the industry’s transformation continues to build momentum. During 2018, insurance companies implemented disruptive and strategic innovation strategies in order to deliver enhanced client and customer experiences. At the same time, collaborations between incumbents and insurtech startups are gaining traction. Read more in our article on page 29.

While technology, regulation and intense competition continue to bring new challenges, they’re also opening great opportunities. It’s been a privilege to see the innovations, insights and creativity of the Efma community as organizations position themselves to thrive in this rapidly changing environment. Efma members have led the way in innovation and transformation over the past year, and as part of a strong community, they will continue to do so in 2019.

Our focus throughout 2018 was on getting to know our members better, so we could customize and personalize our relationships with them. We enter 2019 with a global Efma community that is stronger than ever. To ensure every member of that community has all the tools and connections they need to succeed in an increasingly dynamic ecosystem, this year will see us focusing on creating the first ever connected network for an industry. Read more about this on page 6.

In this year’s Insurance Review, you will find an overview of the most significant issues and technologies that are affecting insurance companies across the world. It includes an in-depth overview of the latest research and thought leadership, and details of the innovations and approaches surrounding today’s hot topics, including Innovations in Insurance, Insurtechs, Home Insurance, Bancassurance and Expert Insights.

I hope you find this an inspiring and enlightening resource.

Vincent Bastid Efma CEO

A global non-profit organization, established in 1971 by banks and insurance companies, Efma facilitates networking between decision makers. It provides quality insights to help banks and insurance companies make the right decisions to foster innovation and drive their transformation.

Over 3,300 brands in 130 countries are Efma members. Headquarters in Paris. Offices in London, Brussels, Andorra, Stockholm, Bratislava, Dubai, Milan, Montreal, Istanbul, Beijing and Singapore.

www.efma.com

_

Production team: Boris Plantier,Executive editor

Sarah Gold,Writer

Lorette Masson,Graphic designer

EFMA REVIEW 2019

4 Efma Insurance Review 2019

Contents

03 | Foreword06 | A groundbreaking connected network – Vincent Bastid, Efma CEO08 | Efma around the world10 | Efma membership11 | Associate membership12 | Advisory services

15 | Expanding opportunities – René van der Poel, Efma Senior Advisor16 | Why insurtech is the future of insurance 18 | Digital technology helps MAPFRE meet new challenges20 | How disruptive innovation is improving PZU’s services22 | Liberty Seguros Brasil nurtures a culture of innovation24 | Innovation in Insurance Awards 2018 – global winners26 | Innovation in Insurance Awards 2018 – North American winners

29 | Collaborations between incumbent insurers and insurtechs on the rise31 | Fabric: a digital solution to life insurance32 | Cover Wallet: simplifying insurance for small businesses34 | Urban Jungle: an insurance solution for young renters36 | Souqalmal: an online insurance comparison tool 38 | Bayzat: optimizing insurance and HR for SMEs 40 | inCube: empowering financial firms through technology

43 | IoT in Home is close to take off44 | How HomeZada is revolutionizing home insurance 46 | Kevin by mitipi, your virtual roommate against break-ins

49 | Bancassurance in the digital world50 | ING and AXA build bancassurance proposition52 | Akbank and Aksigorta strengthen their partnership through digitalization

56 | Paul Bennett: Global Brand Director at AXA58 | Hunter Hoffmann: Brand & Creative Marketing at AmTrust 60 | Isabelle Conner: Chief Marketing & Customer Officer at Generali

ABOUT EFMA

INSURANCE INNOVATIONS

INSURTECHS

HOME INSURANCE

BANCASSURACE

EXPERT INSIGHTS

5

New entrants will take a larger part of existing and new insurance business. Amongst them are insurtechs, bigtechs, digital insurers and providers from outside the insurance industry (energy suppliers, telecom providers, social media companies, auto manufacturers and banks). These entrants are cooperation partners within the new insurance ecosystem.René van der Poel, Efma Senior Advisor for insurance

ABOUT EFMA


ABOUT EFMA

Efma is to build the first connected and trusted network dedicated to financial services professionals (members), with new and unique features about to be announced. CEO Vincent Bastid discusses the project.

A groundbreaking connected network

7

Bankers and insurers will soon have a dedicated professional platform based on strategic topics where they can find all they need for their current and future job

New competition and new challenges set the scene for the financial services industry as it enters 2019, said Vincent

Bastid, CEO of Efma. “Financial services firms face a raft of challenges including low interest rates, decreasing branch traffic, increasing credit risks, regulation pressure, liquidity abundance impact and crisis risks, and crumbling trust,” said Bastid. “Combined with the emergence of new potential disruptors, this has created a scary environment for established financial services institutions.”

Even as they rise to those challenges, financial firms must make sure they can deliver a better customer experience. “The customer has changed over the years,” said Bastid. “Beyond the basics of security, account management and relationships, each customer now expects real-time services, tailor-made to fit them with performance-based fees, financial advice based on peer group behaviors and social, economic and environmental responsibility.”

Over the past three years as CEO, Bastid has expanded the Efma community and put the organization at the center of a transforming industry. “Leaders, innovators and practitioners

in the financial services industry are building a stronger and larger international professional organization, Efma, that brings a framework to this industry transformation,” said Bastid. “Three years ago, 92 large international groups were Efma members, sharing their best practices and thinking about new challenges such as lower return on investment, PSD2 threats, new disruption, customer experience catch-up and open platforms. Now almost 140 large financial institutions – all leaders in innovation and transformation – have joined forces to reinvent financial services within the Efma community. Chaired by Citibank for three years, Efma has been given a new governance and energy to build a solid and involved community to learn, connect, innovate and engage with customers, prospects, regulator and an ecosystem of partners.”

Today’s Efma provides a unique environment for its members – and it’s about to deliver even more. “This Efma environment enables members to better know the market trends, detect low signals, benchmark themselves against the best in class, access to the world’s best innovative practices in financial services that are actionable in their own market, and get visibility and recognition for what they do best,” said Bastid. “However, getting inspired and checking trends are not enough to empower organizations against upcoming threats. That is why the new Efma governance has decided to set up committees to bring more tools and value to our members in the industry.”

A groundbreaking project is set to bring the Efma community even closer together. “Now that our industry has this Efma environment with a global, stronger and more committed community, we are ready to create the first ever connected network for an industry,” said Bastid. “Bankers and insurers will soon have a dedicated professional platform based on strategic topics where they can find all they need for their current and future job.”

The new connected network will:

• Liaise members with skilled peers based on each member’s individual expertise

• Provide multiple and omnichannel ways to connect, combining digital and physical channels

• Gather all types of content relevant to each topic

• Provide a unique and customized experience based on each member’s own usage

• Design specific topic-centered member journeys• Provide full access to individual personal

information, usage and preferences.

“Thanks to this connected network, thanks to the FintechVisor portal, thanks to the Efma exclusive webinar series, white papers, innovation case studies and reports, Efma members will be able to get in touch with the right people whether peers, experts or partners, create bridges within the ecosystem and save time and money,” said Bastid. “They will be able to set up appropriate one-to-one meetings, online exchanges and relationships to think about partnership, ecosystems and a wider scope approach to business in the face of flexible and global competition.” l


2019EFMA AROUND THE

WORLDThroughout the world, leading retail banks and insurance companies are seeing the benefits of Efma membership. This map shows, by country, the number of these organizations that are Efma members. Join us today and become part of the fastest growing forum for financial services organizations.

MILAN OFFICEItaly, Switzerland

Carlo Giugovaz [email protected]

STOCKHOLM OFFICEBaltics, Nordics, Poland, Georgia

Lukas Dzuroska [email protected]

MONTREAL OFFICENorth America

Eric Mac Nicoll [email protected]

ABOUT EFMA

ANDORRA OFFICEIberia, Africa & LATAM

Silvia Cunill [email protected]

9

ISTANBUL OFFICETurkey

Eylem Özen Bastürk [email protected]

DUBAI OFFICEMiddle East

Fahim uz Zaman [email protected]

SINGAPORE OFFICEAsia Pacific

Wai Ling Lee [email protected]

LONDON OFFICEUK, Ireland

John Berry [email protected]

PARIS OFFICEFrance

Vincent Bastid [email protected]

BRATISLAVA OFFICECEE, Russia, Germany, Israel

Lubomir Olach [email protected]

BRUSSELS OFFICE Benelux

Philippe Van Fraechem [email protected]

TOKYO OFFICEJapan

Tsukasa Makino [email protected]

SYDNEY OFFICE Australia, New Zealand

George Beatty [email protected]


ABOUT EFMA

EFMA MEMBERS ARE LEADERS AND INNOVATORS IN INSURANCE

Being an Efma member brings exclusive opportunities to connect, learn, innovate and engage.

Efma membership

Efma is a community of members, bringing together thousands of retail financial

services companies, retail banks, insurance companies and other financial institutions from over 130 countries around the world. A non-profit, neutral organization, Efma fosters innovation and sharing through a wide variety of resources and opportunities.

Efma organizes events, which its members can access at reduced cost. Throughout the year, our local and international events provide a rich environment where members can learn, exchange ideas and network with peers.

As a member all employees of your institution will also gain access to exclusive content including the Efma Regional Reviews; Efma Digest reports exploring key market trends and successful strategies; Voice of the Members reports on specific topics, written by an Efma senior advisor and including interviews with three or more members; and Champion Series reports focusing on an institution known for its excellence in a specific subject.

More than 1,100 case studies, detailing the latest insurance and insurtech solutions, are ready for member to explore at Efma’s online innovation in inurance portal.

Members can also access Efma Advisory Services, which offers a range of events including premium briefings, learning expeditions, tailor-made training sessions and more (see page 12). l

For more details, go to www.efma.com/joinefma or contact [email protected]

11

ASSOCIATE MEMBERS

Become an Efma associate member and network with some of the biggest names in the industry. As an associate member you can reach a captive audience of over 150,000 retail bankers and insurers from over 3,300 retail financial services organizations around the world.

Associate membership

Efma associate members are uniquely positioned to benefit from the exchange of ideas and experiences between different professions. Positioned as industry experts, associate members are the partner of

choice for Efma members when it comes to producing studies or speaking at industry events. They also have the exclusive opportunity to co-author a study with us. Associate membership also provides access to exclusive and unlimited content such as reports, articles, news stories and presentations, as well as our three innovation portals. A spectrum of networking opportunities, spanning international conferences, learning expeditions and councils, enables associate members to create invaluable relationships across the retail financial services industry, boosting visibility and improving credibility. Every associate member has a dedicated corner on the Efma webpage where content will be hosted even if it is not Efma co-branded – empowering them to share information including company mission, key content, contact information, specialist expertise and available solutions with Efma members across the globe. l

ABOUT EFMA

EFMA INSURANCE COUNCILS

Efma’s Insurance Council is an exclusive group of senior executives from leading insurance companies that meet three times per year and exchange on the latest ideas and industry developments, including topics like Artificial Intelligence, big data or roboadvisory. To date, the council brings together 36 members from 12 countries.

The council format is the result of members’ demands and feedback, and it comprises:

• Collaborative sessions • Industry expert presentations• Workshops• Out of the box sessions: insurtechs, visits, etc. • An informal gathering the evening before the meeting

Join the council to benefit from the discussion, to share ideas and best practices to improve business and to get to know your peers.

Find out more at www.efma.com/insurancecouncil


ABOUT EFMA

In a transforming industry new challenges are always just around the corner, from the impact of new digital customer expectations to the

implications of new technological developments. Covering the spectrum of topics that are most important to financial services institutions today, Efma Advisory Services draw on a wide range of quality insights and market research and the expertise of Efma’s experts, each of whom has extensive knowledge of industry best practices and case studies in their chosen domain.

Efma Academy Briefings can help you inspire your team and transfer knowledge through one- or two-day interactive training sessions at your premises. Each briefing can involve between 10 and 20 top and middle management participants. These tailor-made events include in-depth presentations on specific topics by an Efma senior advisor who is an expert in that area, as well as practical case studies.

We also offer Efma Executive Briefings to inspire your top leaders with insights from Efma’s community and senior advisors. Each session provides strategic insights, a chance to catch up

with peers and key learnings from Efma reports as well as an overview of recent trends in the financial services industry. Between one and three C-level executives can benefit from the sessions, where an Efma senior advisor will share in-depth expertise on a specific topic, including analysis of case studies.

Efma’s Private Learning Expeditions provide hands-on experience from a leading institution and an incentive for your most valuable employees. Up to 20 people from your institution will be able to discover one of the most innovative local markets worldwide, visiting a destination and institutions of your choice. It could be AI in Japan, fintechs in Israel or innovations in the UK. Participants can immerse themselves in the local culture with tour guides, gastronomy and meetings, draw on the hosting institution’s resources and explore cutting-edge technology and the latest trends in the industry.

In addition to customized events, AI Executive Certificate provides an advanced learning program for retail finance executives. l

Efma Advisory Services provide a range of highly customized events, delivering the expertise and resources to help members meet challenges head-on and turn them into opportunities.

Advisory services

13

George Beatty Senior advisor, Australia

George is a retail banking, marketing and payments specialist across Asia and the Middle East. He consults with banks and retail on digital transformation and fintechs on product innovation and growth. He does board and advisory work for consumer facing businesses.

John Berry Senior advisor, UK

John is internationally recognized for delivering cultural and customer-centric change in banks and helping to bring branch franchising to UK financial services. Since 2003 he has helped retail banks across the world improve their performance across all channels.

Datuk Michael Lor Chee Leng Senior advisor, Malaysia

Michael Lor is a strategic business transformation leader with extensive focus in retail banking, business transformation, strategy formulation, risk management and corporate governance, and human capital development. He has led award-winning transformation at banks across Southeast Asia.

Carlo Giugovaz Senior advisor, Italy

Carlo is a pioneer of digital banking who is recognized as one of Europe’s leading fintech thought leaders. After more than 30 years as a bank manager and management consultant, he founded Supernovae Labs, a business accelerator for fintechs and banks.

Tsukasa Makino Senior advisor, Japan

Tsukasa is senior research officer at The Tokio Marine Research Institute, and manager of IT Planning and Government and External Relations at Tokio Marine and Nichido Fire Insurance. He conducts international research in advanced IT, cybersecurity and singularity.

René van der Poel Senior advisor, Austria

René is a global bancassurance expert who provides consultancy and training services on bancassurance and insurance topics, in particular distribution, partnership development, digitization and innovation, regulations, strategy and operational execution.

Rudradeb Mitra Senior advisor, Poland

Rudradeb has more than 16 years’ experience in AI, including work with AI research groups, startups and helping to build an AI-driven insurance platform for Winterthur/AXA, Belgium. He is a well-known writer and speaker, and a product mentor for Google Launchpad and the Founder Institute.

Emel Temuçin Senior advisor, Turkey

Emel is an experience designer and digitalization consultant who works in the financial and technology markets and customer behavioral sciences. She is an expert in digital channels, marketing management, business planning, analytical skills, coaching and customer relationship management.

Yvon Moysan Senior advisor, France

Yvon is an expert in digital marketing, digital banking and big data and the founder and CEO of Saint Germain Consulting, a digital marketing consultant with expertise in banking, insurance and retail. He writes and speaks on topics including big data, IoT and fintech for the financial and retail industries.

Mark Holtom Senior advisor, UK

Mark is an expert in event-driven marketing (EDM) with a focus on the banking industry. He has worked as an independent consultant for the banking sector across the world. Mark founded EDM consultancy eventricity, which developed an award-winning software solution for banks.

Sandy Vaci Senior advisor, UK

Sandy is Chairman of the Credit Bank of Moscow, leader of UK-based consultancy Bay Devonshire, and a lecturer at several MBA schools. He does board and advisory work in Europe and North America, and helps micro, small and medium enterprise banks in Africa and Asia to improve their business practices.

Meaghan Johnson Senior advisor, UK

Meaghan is a customer journey, product and fintech expert with seven years’ experience working with digital teams at global banks, fintech startups and company builders. She increasingly consults banking executives on POC identification in the data commercialization, platform, marketplace and blockchain areas.

Efma Advisory Services provide expert insights, research and resources to help members achieve their goals.

More information on www.efma.com/eas


INSURANCEINNOVATIONS

Insurance is about protecting the way people live. New technologies have enhanced the ability of insurers to assess, manage and transfer risk. Thanks to this ‘superpower’ that is technology, insurers can do it all so much better if they not only accept and embrace insurtech, but truly become it.Matteo Carbone, a thought leader at Connected Insurance Observatory

15


Expanding opportunitiesEfma’s Senior Advisor for insurance, René van der Poel, shares his insights on the industry.

“During the past few years the insurance industry has focused on optimization and innovation, making

use of digitization,” said René van der Poel. “The industry will further develop towards more accurate risk assessment, proactive decision-making tools, portfolio expansion towards new micro segments and a better customer experience around mobile technology. The coming years will also be focused on the creation of a new ecosystem with new value chains, solutions and partners.”

Partnerships will be central to this ecosystem as more companies enter the industry. “New entrants will take a larger part of existing and new insurance business,” said van der Poel. “Amongst them are insurtechs, bigtechs, digital insurers and providers from outside the insurance industry (energy suppliers, telecom providers, social media companies, auto manufacturers and banks). These entrants are cooperation partners within the new insurance ecosystem. Partnerships are arising around new micro-insurance concepts. A good example already exists in China (Zhong An, owned by PingAn, Tencent and Alibaba). This will be further expanded to other countries and continents.”

Customers stand to benefit from these developments as digital insurers and insurtechs improve efficiency by lowering the costs of distribution and claims handling – leading to decreases in insurance premiums.

Van der Poel identified various technology clusters – from mobile technology and applications to blockchain – that promise exciting opportunities for the industry. Blockchain technology provides a protocol for the exchange of data by internet that will result in less usage of existing intermediaries and further expansion towards P2P insurance. Blockchain will also disrupt traditional reinsurance concepts.

IoT and social media will impact insurance costs and price setting and create new micro-insurance solutions for clients. Robo advice will lead to automated advice at lower costs as well as offerings calculated through algorithms. Artificial intelligence will be used around autonomous driving, claims processing and predictive analytics.

In addition, van der Poel said that cyber risks will provide an opportunity for insurers to expand in new product lines towards business and retail clients, while drones present opportunities for improved claims handling as well as drone insurance cover. l

New entrants will take a larger part of existing and new insurance business


Matteo Carbone, a thought leader at Connected Insurance Observatory and co-author of ‘All the Insurance Players Will Be Insurtech’, discusses the need for innovation across the industry.

Like many other sectors, insurance is seeing startups and other tech firms innovating one or more steps of the value chain traditionally

belonging to financial institutions. According to FT Partners, over the last three years, insurtech startups have raised almost $8 billion, and according to Matteo Carbone, they are the key to industry transformation. “In our hyperconnected world, risks are changing, digital assets are more valuable than physical ones and people no longer accept waiting to be served,” he

comments. “Software is also eating the insurance sector after it digested other industries.”

As a result, insurers face an extraordinary opportunity. “Today it’s unthinkable for an insurance company not to ask how it can evolve its model by considering which modules within its value chain should be transformed or reinvented via technology and data usage,” explains Carbone. “Insurance is about protecting the way people live. New technologies have enhanced the ability of insurers to assess, manage and


Why insurtech is the future of insurance

17

transfer risk. Thanks to this ‘superpower’ that is technology, insurers can do it all so much better if they not only accept and embrace insurtech, but truly become it.”

Many technologies have great potential to transform the industry, and Carbone believes that combined usage is the best way to exploit their value – but if pressed to pick one, it’s the Internet of Things (IoT).

“I see incredible potential in the hyperconnected world for insurance solutions based on sensors for collecting data about the state of an insured risk, and telematics for remote transmission and management of the collected data,” says Carbone. “IoT improves insurance profit and loss and allows insurers to share part of this value with the customer to increase product adoption. It enhances proximity and interaction frequency with the customer while creating a new customer experience, increasing retention and expanding relationships. IoT approaches also create and consolidate knowledge about risks and the customer base which will lead to the next generation of products and services. And IoT enables a new role for insurers by providing positive externalities for a sustainable society.”

The average understanding of IoT across different insurance markets, however, is low. Carbone demystifies numerous common misperceptions surrounding innovation in insurance in his book, the first of its kind dedicated to insurtech across international markets. “This book explains why I believe that the key enablers for the achievement of strategic goals in insurance will be insurtech. It provides a critical review of insurtech at an international level, along with concrete frameworks to rationalize these waves of innovation across all insurance markets.”

“The book affirms a clear and bold thesis: insurtech can make the insurance sector stronger and therefore more capable of achieving its strategic goal: to protect the way people live!” concludes Carbone.l

Matteo Carbone is a thought leader at Connected Insurance Observatory and co-author of ‘All the Insurance Players Will Be Insurtech’



Digital technology helps MAPFRE meet new challengesMAPFRE’s commitment to meeting their customers’ insurance needs anywhere at any time demands constant innovation. Here are five innovations that are transforming the company’s client and employee experience.

Antonio Huertas Mejías, MAPFRE’s President.

MAPFRE’s insurance services dominate the Spanish insurance market and serve 30 million customers worldwide. It is

the main multinational insurer in Latin America and one of the top non-life European insurers by premium volume.

Innovation has long been part of MAPFRE’s DNA, but a fundamental shift within the industry is demanding a step up. “That’s why we created MAPFRE Open Innovation (MOi),” explained Antonio Huertas Mejías, MAPFRE’s President. “This sees us allocate more than 100 million to innovation, together with more than 600 million annual investment in technology.”

On the strategic side of innovation, MAPFRE has set up Knowledge Centers worldwide, to ensure that MAPFRE remains in the forefront of emerging innovation trends. MAPFRE’s startup radar aims to connect the company with entrepreneurs so that innovation can be leveraged and directed to the relevant stage of the value chain. “In addition, innova, MAPFRE’s first intrapreneurship program, sees our own people – our single greatest asset – show us what they’re made of by submitting proposals for MVPs that we can execute internally and scale up as needed,” Huertas added.

MAPFRE’s disruptive innovation initiatives include insure_space, an insurtech accelerator launched in Madrid in November 2018. This provides a unique environment in which 19 smart founders can develop innovative solutions oriented toward the automobile, homeowners and health business lines. Additionally, MAPFRE has created a “dedicated investment vehicle (to the tune of 25 million) to actively seek out disruptive innovation in the insurance sector, focusing on applied artificial intelligence (AI) and big data.” Finally, MAPFRE is joining forces with universities and business schools to harness the next generation’s creativity and bring their ideas to life. l

19

myShop MAPFRE

myShop MAPFRE is a platform for the inspection and maintenance of clients’ vehicles, which is helping to position MAPFRE as a customer-oriented company. The platform connects MAPFRE clients who need auto maintenance and repairs outside the insured environment directly with the company’s network of associated garages through the myShop MAPFRE and myShopPro MAPFRE apps. Clients are also granted access to exclusive discounts, and receive reminders of important dates for vehicle maintenance.

Virtual reality training for automobile loss adjusters

MAPFRE is leveraging virtual reality as an attractive training method for its automobile loss adjusters in Spain. The solution reflects the high-level technology being used in the auto industry, such as connected and autonomous vehicles and advanced driver assistance systems. Developed by Cesvimap, a R&D and innovation center specializing in the automobile sector, the solution offers a new way of learning. With no need for physical resources, it also reduces the high costs associated with traditional on-site training and increases the security of trainees and trainers.

Digital supervision of property repairers

MAPFRE has developed a digital tool that simplifies the supervision of property repairers. Via a video call between repairers and their supervisors, the tool allows remote photos to be shared, which in turn produce drawings that can be integrated immediately into the company’s files. This enables rapid decision-making and shortens the time and interventions necessary. It also avoids unnecessary visits and inefficient displacements, contributing to greater customer satisfaction.

Digital hospital module

MAPFRE realized that without 24-hour staffing in hospital networks, unplanned issues and claims couldn’t always be addressed. The company saw it as an opportunity to provide a differentiated and personalized digital hospital module that could provide support to customers at any time. They created a portal which allows users to interact directly with an expert and resolve any doubts that may arise.

Biometric signatures to sign your insurance policy

MAPFRE is the first insurer in Spain to use biometric signatures when customers take out insurance. Inspired by digital transformation across the sector, this solution guarantees security for clients and improves operational efficiency by reducing administrative tasks. As a result, MAPFRE saves paper, printing and storage costs and can focus on adding value to their services.



How disruptive innovation is improving PZU’s servicesPZU, the largest insurance group in Central and Eastern Europe, has built a strong reputation as an innovation leader. Here we take a look at five of the company’s recent projects that showcase its disruptive success.

Marcin Kurczab, Innovation Director at PZU

With over PLN 300 billion of assets, PZU provides life and non-life insurance as well as investment, pension, healthcare

and banking products to approximately 22 million customers across Poland, Estonia, Latvia, Lithuania and Ukraine.

In order to keep up with rapidly evolving technologies and increasingly demanding customers, PZU has made innovation a fundamental pillar of the group’s strategy. In particular, PZU strives to take into account three key aspects of innovation: readiness to accept increased risk; openness to experiments; and a continuous learning process.

PZU’s Innovation Lab analyzes around 2,000 solutions and ideas every year, of which 12 to 15 innovations are tested. Marcin Kurczab, Innovation Director at PZU, revealed that over

150 PZU employees are involved in these projects and that decisions are made by an Innovation Committee.

When testing and implementing innovations, PZU follows three key rules. The first is to “think big, start small”. This means splitting innovation projects into smaller components to accelerate the process of verifying effects and customers’ reactions. The second rule is to “talk less, do more”, since PZU believes that great results can be achieved by working hard. The third rule is “failure is part of the model”. Accepting the risk of failure is necessary to keep up with the pace of technological change and to know in which direction to take a project. “Not to try is much worse than failing. The most important thing is to not be afraid of failure and to learn and improve constantly,” affirms Kurczab. l

21

Here’s our pick of PZU’s top five innovations to date that have disrupted the market:

PZU GO

PZU GO is a tiny beacon that can be self-installed on the windshield of any car. It detects accidents and notifies the PZU Alarm Room, which immediately contacts the driver. When a call is answered, PZU organizes concierge and assistance services. If there is no answer, PZU contacts the emergency services.

“With this solution, PZU aims to help to cut Polish road deaths. PZU GO covers all drivers and passengers, while taking into account that, according to the European Automobile Manufacturers' Association, the average car age in the EU is over 10 years,” comments Andrzej Skasko, Director of CRM and Technology Development at PZU.

Before-You-Call

The Before-You-Call service is the first solution in Poland in which the insurance company puts the customer’s concern first.

Recognizing that, in a stressful situation, the customer’s priority may not be making a claim, PZU offers help before the claim is even reported. If the customer wants to register a claim during this first point of contact they can, however, PZU also allows them to do so at a later date.

Artificial intelligence in claims handling

PZU now uses artificial intelligence (AI) to support its employees in car insurance claims handling. In particular, in the process of damage liquidation, PZU uses cost estimates and extensive photo documentation of the damaged car. AI algorithms analyze photos for visible damage. AI is also able to name a specific part of the car and note the extent of damage. It can then qualify the part for repair or replacement.

“Thanks to this innovation, PZU employees are relieved of scrupulous documentation analysis. The solution increases the quality of service and shortens the decision-making time. The solution ensures customers receive the highest standard of service,” asserts Grzegorz Goluch, Managing Director for Claims and Benefits at PZU.

Data Lab

The Data Lab project is an analytical environment set up with top data science startups in Poland that enables rapid prototyping of advanced data science projects. By using the latest technologies and analytical techniques as well as large datasets, PZU is able to test business hypotheses faster, and improve quality of service, customer experience, personalization and optimization.

One of the projects realized in Data Lab is instant quotation when buying property insurance via the internet. This solution enables PZU customers to very quickly receive a quote after providing only a limited amount of information about the building.

Speech and Language Translator S.A.L.T.

There are approximately 50,000 users of sign language in Poland. With roughly 40% of the

insurance market share, PZU found itself in position to help a significant proportion of these people.

In everyday affairs, deaf people encounter communication barriers and often require a family member to translate for them. PZU wanted to help deaf people, regardless of where they live, to effectively communicate with their insurance and financial services providers. Through a three-way video call between the customer, a sign language translator, and a PZU consultant, available free of charge via the PZU website, deaf customers can now get all the information they need in a confidential and sensitive manner, remotely and without involving others.



Liberty Seguros Brasil nurtures a culture of innovationLiberty Seguros Brasil, the seventh largest insurer in Brazil, is taking advantage of innovation to advance the insurance market and prepare itself for new opportunities.

With 1,800 employees, 15,000 brokers and agents and 1.9 million active customers, Liberty Seguros Brasil is

a growing player in a hyperconnected market. 65% of Brazil’s 209 million-strong population are connected to the internet, 51% of which are connected all day. The company strives to explore new opportunities for innovation and aims to foster a culture founded on empathy, collaboration and learning by doing.

“In order to build a strong and consistent innovation culture, we must start by empathetically understanding the maturity stage of our employees towards the subject, and mapping our biggest gaps, compared to where we aim to be – collaborative, experimental and agile,” comments Silvio Eduardo

de Andrade, Head of Strategy and Innovation. “By having this overview and along with our strategical future view of ourselves, we have developed activities to change our employees’ mindset and give them autonomy to foster new thoughts and to question the status quo.”

The company is organized to promote true collaboration between different areas and teammates. Each area has its own role, according to the lenses of desirability (human), feasibility (technology) and viability (business), and is committed to producing results. By minimizing the uncertainty surrounding new opportunities, the company seeks to create differentiation and growth and promote a culture more open to the unknown.

Liberty Seguros Brasil implements its beliefs through four execution levers: fostering an innovation culture and the mindset required to transform the business; exploring new fields and opportunities through trend mapping and research projects; investing in developing, prototyping and piloting innovative value-adding solutions; and creating new sources of innovation through partnerships with startups, research centers and universities. These four levers ensure the company is prepared for market transformations. l

23

Here are three of Liberty Seguros Brasil’s top innovation projects:

Next5

Next5 is Liberty Seguros’ exploration, development and disclosure model for global trends that will shape the future of the business in the next five years. It aims to serve as a basis for strategic company definitions and a driver of change within the industry.

Next5 presents a report in Portuguese, Spanish and English, detailing 27 trends ranging from social change to how new technologies can affect the way people live, work and do business. Aimed at revolutionizing the way insurers perceive new innovations in their industry, it features real case studies from other industries and countries, and in-depth explanations of each trend.

NAVE

NAVE is Liberty Seguros’ innovation culture transformation center. Market penetration of insurance products in Brazil is low, meaning much of the population is not covered by existing offers. To be ready for new demands, the company needs to inspire people to think differently and in a user-centered way.

NAVE fosters an innovation culture through all business areas, empowering people to identify opportunities, understand scenarios, and test and learn from concepts before investing more energy. It is inspired by design thinking approaches and the tripod of empathy, collaboration and prototyping. Over 30 events have been held since its launch, encouraging all employees to bring ideas for new niches and channels.

Self-Appraisal Experience

The Self-Appraisal Experience process was built by bringing together the knowledge of different teams in order to offer the best experience to the client appraisal process. It uses a predictive mathematic model to quickly define the probability of accepting the risk. Liberty Seguros’ previous process of sending an appraiser to the client’s house or workplace was time-consuming, lasting up to three days. In contrast, the new process takes up less than two hours of the

client’s day.

A web tool means that clients don’t need to download an app, enabling them to do their appraisal quickly and when it’s convenient for them. It can be applied to different appraisal processes such as vehicle, house and store, as well as for different situations such as pre-inspection – to start the contract with the company – or claims processing.



Innovation in Insurance Awards 2018- Global winnersEfma and Accenture’s third annual Efma-Accenture Innovation in Insurance Awards showcased the best examples of insurance technology innovations, attracting 320 entries from 237 institutions in 45 countries. Winners were announced in June at the Awards Ceremony in Paris. View the full repository of innovations at www.efma.com/innovationininsurance.

Submit your innovations for the 2020 Awards at www.efma.com/innovationininsurance

AXA Winterthur won the Artificial Intelligence award for its SIRI-Bution, which uses natural language processing to provide quick answers to employee questions by unlocking complex business data.

www.efma.com/innovationininsurance/innovation/siri-bution-democratize-your-data-2

Nexar won the Insurtech award for its Automated Accident Reconstruction via Mobile Phone Application, which uses AI and the onboard sensors in smartphones to capture collision footage and data and generate collision reports in minutes.

www.efma.com/innovationininsurance/innovation/automated-accident-reconstruction-via-mobile -phone-application

Victor won the Underwriting award for Alternus, a property insurance solution that gives risk managers greater capital diversification by offering a price discount from alternative capacity providers, which is then passed directly to the insured.

www.efma.com/innovationininsurance/ innovation/alternus

AXA WINTERTHUR, SWITZERLAND

SIRI-Bution

NEXAR, ISRAEL

Automated Accident Reconstruction via Mobile Phone Application

VICTOR, USA

Alternus

http://www.efma.com/innovationininsurance/innovation/siri-bution-democratize-your-data-2

http://www.efma.com/innovationininsurance/innovation/siri-bution-democratize-your-data-2

http://www.efma.com/innovationininsurance/innovation/automated-accident-reconstruction-via-mobile -phone-ap



http://www.efma.com/innovationininsurance/ innovation/alternus

http://www.efma.com/innovationininsurance/ innovation/alternus

25

KBC won Best Disruptive Product or Service for its Digitization of the KBC Home Policy. The data-driven platform simplifies the process for getting homeowners insurance by asking customers just three questions and providing an immediate quote.

www.efma.com/innovationininsurance/innovation/digitization-of-the-kbc-home-policy

AXA Winterthur won the Connected Insurance & Ecosystems award for its FlexCash platform, which helps SMEs manage their cash flow by enabling them to pre-finance their accounts' receivable invoices and receive payment immediately.

www.efma.com/innovationininsurance/ innovation/flexcash

PZU won the Customer Experience & Engagement award for its Speech and Language Translator (S.A.L.T.) contact-center service for the deaf. It provides a tripartite video connection between the customer, a sign language translator and a PZU consultant through a mobile device or computer with webcam and internet access.

www.efma.com/innovationininsurance/ innovation/speech-and-language-translator-s-a-l-t-deaf-people-service-via-contact-centre

KBC, BELGIUM

Digitization of the KBC Home Policy

AXA WINTERTHUR, SWITZERLAND

FlexCashPZU, POLAND

Speech and Language Translator (S.A.L.T.)

Tokio Marine & Nichido Fire Insurance Co was named Global Innovator for products including its Connected Safety Drive Support and Rescue System all-in-one IoT device for auto insurance customers; its Insurance Hero Marine edutainment smartphone app to teach youngsters about insurance products; and a series of innovative products to support social movements, including work-from-home insurance and accepting same-sex partners as a ‘spouse’ on insurance contracts.

www.efma.com/innovationininsurance/innovation/tokio-marine-nichido-fire-insurance-co

TOKIO MARINE & NICHIDO FIRE INSURANCE CO, JAPAN

Global Innovator

Bank Millennium won the Claims Management award for its Travel Assistance button which instantly connects customers with the insurance company even without an internet connection, avoiding international roaming costs.

www.efma.com/innovationininsurance/innovation/first-travel-insurance-in-mobile-app-with-travel-assistance-button

BANK MILLENNIUM, POLAND

Travel Assistance button

http://www.efma.com/innovationininsurance/innovation/digitization-of-the-kbc-home-policy

http://www.efma.com/innovationininsurance/innovation/digitization-of-the-kbc-home-policy

http://www.efma.com/innovationininsurance/innovation/flexcash

http://www.efma.com/innovationininsurance/innovation/flexcash

http://www.efma.com/innovationininsurance/ innovation/speech-and-language-translator-s-a-l-t-deaf-people-se



http://www.efma.com/innovationininsurance/innovation/tokio-marine-nichido-fire-insurance-co

http://www.efma.com/innovationininsurance/innovation/tokio-marine-nichido-fire-insurance-co

http://www.efma.com/innovationininsurance/innovation/first-travel-insurance-in-mobile-app-with-travel-assis

http://www.efma.com/innovationininsurance/innovation/first-travel-insurance-in-mobile-app-with-travel-assis



Innovation in Insurance Awards 2018- North American winnersEfma and Accenture announced the winners of the first Innovation in Insurance Awards, North America chapter, held at the Boston Public Library. The awards ceremony celebrated the best of innovation in North America and acts as a benchmark for excellence across the insurance industry.

The winners of the Efma-Accenture Innovation in Insurance Awards in North America are:

USAA

USAA was named North American Innovator for fostering a collaborative and creative corporate culture in the last year, illustrated through new developments like its “Employee Innovation Program,” which includes hackathons, coding competitions and challenge-based innovation training; “USAA Labs,” a community that encourages members to provide feedback on new USAA innovations, concepts and pilots; and strategic investments in new talent and technologies.

MetLife US

MetLife US won for Best Customer Experience, Product or Service Innovation with “Cogito – Real Time Customer Service Coaching,” an Artificial Intelligence software program that helps phone-based representatives be more confident and empathetic, thereby improving customer satisfaction, Net Promoter Score, and operational efficiency — all without a complicated, expensive IT overhaul.

Traity

Traity won the Insurtech category for “Trustbond,” insurance underwriting that helps gather the customer’s reputation from various data sources. It replaces the traditional rental deposit with a surety bond.

Munich Reinsurance America

Munich Reinsurance America won for Best Claims, Underwriting, IoT or Ecosystem Innovation for “LossDetect™.” Loss Detect is a customized technology-driven risk management solution to mitigate clients’ auto losses and prepare for the future of mobility.

27

“We received a higher number of submissions from North America than expected during this year’s

Innovation in Insurance Awards,” said Vincent Bastid, Efma’s CEO. “We are excited to put their innovative projects under the spotlight during our first North American edition in Boston. Congratulations to this year’s winners for their achievements.”

The winners were selected through a panel of judges, comprising senior executives from leading insurers in North America. Each entry was assessed using three criteria: its originality; its strategic capacity to generate long-term competitive edge and return on investment; and its adaptability for use in other markets and countries.

“We are pleased to see North American insurers embracing innovation to enable a whole new level of personalization and convenience for the customer,” said Jim Bramblet, North America insurance practice lead at Accenture. "By embedding intelligent solutions such as AI, machine learning and analytics into every business process, insurers could reap material financial improvements in annual profitability while building longer-term loyalty with their customers.” l

INSURTECHS

It’s clear that insurers and insurtechs see collaboration as the key to success in the evolving industry ecosystem, with re-imagined customer experience at its heart. Finding the right chemistry between collaborators to create a sustainable, agile position in the industry is the key to determining who will be future industry leaders.Anirban Bose, CEO of Capgemini’s Financial Services Strategic Business Unit

29

INSURTECHS

Collaborations between incumbent insurers and insurtechs on the rise The key to enhanced customer experience lies in collaborations between insurtechs and insurance incumbents, according to Capgemini and Efma’s World InsurTech Report.

The report is based on surveys and interviews with over 140 executives from traditional insurance companies and insurtech firms

across 33 markets in the life, non-life, and health insurance lines.

A clear conclusion emerges from the report: insurtech firms are set to transform the industry. They are redefining the customer experience, delivering widespread efficiencies, and creating new business models.

With investment in the insurtech sector increasing at a compound annual growth rate of 36.5% between 2014 and 2017, and increasing disruption and competition from bigtech companies, it’s no surprise that incumbents see collaboration as the key to staying in the game.

Almost 96% of insurers said they were looking to collaborate with insurtech firms in some way. The vast majority (77.9%) said that ‘partnering to develop a new solution’ was their preferred approach, while 75.8% favored a SaaS approach to engaging with insurtechs. In contrast, only 32.6% said they were considering acquisitions.

When asked about the benefits of collaboration, 77.2% identified ‘improved ability to enhance customer experience’, 59.5% ‘faster time to market’, 46.8% ‘new digital capabilities’, and 40.5% ‘competitive advantage over peers’. Insurtech categories that are being considered for short-to-medium partnerships include data specialists (identified by 62% of incumbents), claims management solution providers (51.9%), front-office solution providers (51.9%), and technology specialists (55.7%).

Alongside the rise of insurtechs, traditional insurers believe that a new wave of competition is likely to come from a combination of manufacturers and bigtech firms. Among incumbent insurers, 81% identified Amazon as the primary source of potential competition, with 59.5% pointing to other bigtechs (such as Alibaba) and manufacturers. l

Key figures

67.1% of incumbent insurers believe that insurtechs could ‘redefine customer experience’ (with 91.7% of insurtech executives agreeing).

36.7% of incumbents said that insurtechs could ‘bring in new business models’ (versus 58.3 % of insurtechs).

35.4% of incumbents felt that insurtechs would ‘enhance incumbent insurers’ capabilities’ (33.3% of insurtechs agreed).


Expert’s view

“New competition requires incumbent insurers to be agile and innovative. Collaboration with the right insurtech partner will facilitate the journey to attain the right position as industry disruption continues.”

Vincent Bastid, Secretary General of Efma.

Expert’s view

“It’s clear that insurers and insurtechs see collaboration as the key to success in the evolving industry ecosystem, with re-imagined customer experience at its heart. Finding the right chemistry between collaborators to create a sustainable, agile position in the industry is the key to determining who will be future industry leaders.”

Anirban Bose, CEO of Capgemini’s Financial Services Strategic Business Unit and Group Executive Board member.

31

Insurtech Profile

Year Founded: 2016

HQ: New York, USA

Specialties: Life Insurance

INSURTECHS

Fabric: a digital solution to life insuranceAdam Erlebacher, Co-founder and CEO of startup Fabric, tells Efma how digital technology is simplifying life insurance.

US-based startup Fabric was conceived with the mission of simplifying life insurance. Co-founder and CEO Adam

Erlebacher developed the idea after trying, and struggling, to buy life insurance for himself.

“I started online filling out what I thought was the beginning of an application, but it turned out it was just a lead form. I couldn't actually buy anything online. Ten weeks and three meetings later, I had bought the simple policy I had wanted at the outset. This was only after incessant upselling by the agent to purchase permanent insurance,” explains Erlebacher.

It occurred to him that more people, particularly new parents, would buy coverage if they could do so in a few minutes on their phone. Taking this as their motivating question, Erlebacher and co-founder Steven Surgnier created Fabric. Their solution was to construct an entirely digital process for purchasing insurance policies. “We’ve found that two out of three Fabric customers purchased a policy from us on their first visit, within minutes,” says Erlebacher.

Fabric has simplified the buying process and made it transparent across all platforms. “Most of our traffic is mobile, and we find that the majority

of our purchases happen outside of business hours. While we offer support from licensed producers, the vast majority of our customers purchase a policy on their own. Our customers start with Fabric Instant, an accidental death product that you can buy on your phone in about two minutes. Customers can then optionally apply to upgrade their coverage to Fabric Premium, a 20-year term life policy. All policies are issued by Vantis Life which is rated ‘A’ by A.M. Best.”

More developments are expected from the company as it continues on a path of success. “We are building technology that will allow us to bring the immediate buying experience that our customers love to a variety of other products,” says Erlebacher. “We’re excited to take the covers off those new technologies soon.” l


Insurtech Profile

Year Founded: 2015

HQ: New York, USA

Specialties: Insurance, General Liability, Workers Compensation, Small Businesses, Cyber Liability, Commercial Property Insurance, Commercial Auto Insurance, Professional Insurance, Employment Practices Liability (EPLI)

INSURTECHS

CoverWallet: simplifying insurance for small businessesSmall businesses often face significant challenges when taking out insurance. Inaki Berenguer, CEO and Co-founder of CoverWallet, explains how his company has simplified the entire process.

Having gone through the cumbersome experience of obtaining insurance for two of his previous business endeavors,

Inaki Berenguer was compelled to come up with an easier solution. “I experienced firsthand how confusing, time-consuming and complex it was for businesses to get coverage. I was surprised at the time because there was no simple way to buy insurance online,” explains Berenguer.

In response to this problem, Berenguer, together with Rashmi Melgiri, founded CoverWallet. The tech startup, established in 2015, offers a stress-free way for small businesses to understand, buy and manage insurance online. “Leveraging data, design, and technology, we have taken a process that used to take days, and an application that was two dozen pages long, and reduced it to minutes,” adds Berenguer.

Recognizing that small businesses are the engine of the global economy and that 75% of

33

US businesses underinsured by 40% or more, CoverWallet’s objective is to make it extremely easy for small businesses in the US to get the insurance coverage they need.

“We provide a full end-to-end solution for businesses across all sectors to help them to compare types of policies, purchase insurance and manage it all through our online platform,” says Berenguer. The direct-to-customer platform offers policies from leading insurance carriers to small businesses, providing insurers the benefit of an additional distribution channel to reach businesses.

In May 2018, CoverWallet also launched a B2B platform for carriers and agents in order to serve small business customers in a more seamless manner. “Carriers can now leverage CoverWallet’s technology for real-time quoting, underwriting, binding, billing, and servicing capabilities. This contributes to improved overall productivity and reduced technical and

operational costs for agents and carriers.”The reaction to CoverWallet has been extremely

positive so far. Berenguer maintains that it is the much-needed online solution for today’s small businesses, who cannot do without digital. “There are 30 million small businesses in the US alone and, by 2020, more than 60% of them will be owned by millennials and gen Xers.” CoverWallet customers describe the platform as fast, reliable and easy-to-use, adding that it solves a lot of problems historically associated with offline insurance processes.

CoverWallet has also began its international expansion through a European partnership with Zurich Insurance Group and a launch in Spain. The company aims to continue its geographical development and plans to further its mission of facilitating insurance coverage to include businesses of all sizes. l


Insurtech Profile

Year Founded: 2016

HQ: London, UK

Specialties: Home Insurance, Mobile Commerce, Insurance

INSURTECHS

Urban Jungle: an insurance solution for young rentersJimmy Williams, CEO of Urban Jungle, shares how his personal experience inspired him to make it easier for young renters to buy and manage insurance.

Urban Jungle was born in 2016 out of Jimmy Williams’ personal struggle to gain affordable insurance while renting a house

with friends. “We were all young professionals who had started to build up bits of furniture and accessories that we cared about and were key in making our rental feel like home,” he explains. “But we found that insurers saw people living in shared accommodation as a big risk, even though we were actually pretty sensible. We really struggled to get good cover! It struck me at the time as unfair, and I felt like the odds were stacked against me.”

Before creating Urban Jungle, Williams was set on gaining experience in the industry to better understand its challenges. His work as a

35

consultant for various insurance companies only confirmed his suspicions that insurance companies were facing many limitations. “Insurers and brokers were, and still are, relying on legacy technology and that’s one of the reasons that a lot of customers are still having such negative experiences,” he admits. “I thought it was the perfect opportunity to jump in with a clean technology stack and make a real difference.”

Today’s customer expectations have been shaped by the slick, intuitive, and instant service provided by the likes of Netflix and Deliveroo. Williams realized that in order to deliver similar levels of customer experience in insurance, the sector had to undergo a technological transformation. “Tech is already revolutionizing how so many sectors work, and that makes experiences with traditional insurers even clunkier. Instead, insurers are using technology which hasn’t been updated in years, and it feels like a dotcom version of what our grandparents had,” he explains.

Thanks to his own experiences, Williams recognized the importance of hearing what young people have to say about their insurance wants, needs and expectations. “With the rise of generation rent, the risks that renters are facing are changing and evolving, as a lot of people are getting married and starting families before buying,” he says.

Williams has also been very careful in his hiring process, ensuring that “we have team members with backgrounds in insurance, e-commerce, media, and tech. It means that we can draw on

knowledge from lots of different areas, and we’re not just approaching insurance from a traditional perspective.” In addition, Urban Jungle is working with insurers to help them to improve products and increase eligibility among renters.

“We’re keeping our fingers on the pulse to make sure that our products are better suited to our customers and genuinely work better for less. Essentially, we’re making insurance better by using tech to speed everything up and cut out a lot of the questions that don’t need to be asked.”

The company has big plans for its next steps. “At the moment we’re growing at an incredible rate, so it’s hard to imagine what the company might be up to in a month’s time, let alone a year,” he concludes. “We’ve been really pleased by our growth, and our customer base is doubling every three months. We’ve already got a lot of exciting new ventures in the pipeline, and I suspect we’ll have added a lot more products for renters, and also be moving into new segments. We want to be there for every step of our customers’ insurance journey, starting from their first rental. This basically means that nothing’s ruled out, so watch this space!” l


Insurtech Profile

Year Founded: 2012

HQ: Dubai, UAE

Specialties: Comparison Site, Financial Services, Personal Finance, Insurance Aggregator, Car Insurance, Home Insurance

INSURTECHS

Souqalmal: an online insurance comparison toolAmbareen Musa, Founder and CEO of Souqalmal.com, explains how she created a go-to source for online insurance.

A move to the United Arab Emirates (UAE) presented Ambareen Musa with an opportunity to close a gap in the market.

“After moving to the UAE, I realized there was no platform available where I could compare my personal finance options,” says Musa. “There was clearly a need to introduce a conveniently accessible and unbiased platform where users could do their research related to banking products all in one place, without having to get in touch with individual banks.”

The absence of an insurance comparison tool in UAE prompted Musa to create her own company, and in May 2012 Souqalmal was born. “The concept was to create a platform which not only allows an increased level of transparency to the banking industry in UAE, but also promotes a level of financial literacy never seen before.”

“Souqalmal.com is the most trusted banking and insurance comparison platform in the country,

offering the widest selection of coverage to UAE residents,” says Musa. “With its instant quotes, the platform provides unprecedented levels of ease and convenience for time-crunched residents who want to buy the best insurance products that suit their requirements.”

37

According to Musa, financial education has always been at the core of the company’s growth strategy. Its blog ‘The Money Doctor’ is one of the most popular financial awareness blogs in the UAE. “Not only is our blog immensely popular among our users, it gets us more than half of our total traffic. Designed as a go-to for all things personal finance, the blog has helped to make Souqalmal.com a household name and a trusted brand.”

The future has a lot of exciting things in store for the company. “After having closed our Series B round of investment and pulling in US$10 million in funding just over a year back, our team has been busy launching new business lines and expanding our scope of business,” Musa explains. After successfully launching travel, yacht and bike insurance verticals last year, Souqalmal plans to expand its list of insurance comparison and purchase services and to cement its position as the go-to source for anyone looking to buy insurance online in the UAE.

Looking ahead, Souqalmal also plans to scale up investment in technology and marketing, and build on its synergies with strategic investment partners, such as tech-savvy GoCompare. This international partnership promises to further

improve their users’ experience. “We also want to build a regional presence and expand to newer geographies in the near future. With our ongoing collaboration with the Saudi Arabian Monetary Authority to further its financial awareness goals and with Riyad TAQNIA Fund being one of our lead investors, we aim to expand our online presence in Saudi Arabia,” concludes Musa. l


Insurtech Profile

Year Founded: 2012

HQ: Dubai, UAE

Specialties: Health Insurance, HR Solutions, SaaS

INSURTECHS

Bayzat: optimizing insurance and HR for SMEsTalal Bayaa, CEO and Co-founder of Bayzat, founded the company to help small and medium-sized enterprises (SMEs) save time and money.

A discussion about the fragmented yet competitive nature of the financial services market in the United Arab Emirates (UAE)

inspired Bayaa to create Bayzat. After being approached by numerous companies for group health insurance, Bayaa realized there was significant room for improvement of the customer experience. “We did not choose the insurance industry because we like it, we chose it because we did not like it and wished to improve the industry,” he explains.

39

Bayzat’s insurance team aims to make it easier for individuals and corporations to find different options for their medical insurance. “What sets us apart from other insurance brokers is our technology,” says Bayaa. Their online platform, called Bayzat Benefits, enables users to compare over 100 policies in real time.

In addition to providing health insurance, Bayzat Benefits also functions as a human resources (HR) automation platform, encompassing four modules that help to simplify clients’ work life. “Our objective is to help SMEs in the region save time and money,” Bayaa reveals. The multifunctional platform “allows companies to manage insurance, payroll, employee records and time off.”

The Health App enables users to access all their policy information: network, inclusions and other benefits. “You can even look for hospitals and clinics in your network by searching for a symptom. This way you avoid going out of network and save money since you don’t have to pay out of pocket.”

The Payroll module makes closing payrolls, auto-generating pay slips or approving reimbursements seamless, quick and efficient. “We use bank level security, so you don’t have to worry about the safety of using Bayzat Benefits for payroll.”

Time Off is a module to ease the process of

leave applications and approvals, by approving or denying a request within seconds. It also tracks an employee’s leave to avoid discrepancies.

There is also a module to store employee records which uses optical character recognition (OCR) technology to read the document, so that manual input of data is not required. “This module also reminds you of upcoming renewal dates and helps you to avoid fines and penalties.”

The future looks bright for the insurtech. More than 100 SMEs are already using the Bayzat Benefits platform to automate their HR processes and streamline their insurance experience. When asked about the company’s plans for the next year, Bayaa disclosed that they plan on introducing new features to the platform and aim to significantly increase the number of its users. Without giving away too much, Bayaa shared that Bayzat wants to build “a world-class employee experience for every SME in the region!” l


Insurtech Profile

Year Founded: 2013

HQ: Paris, France

Specialties: Health Insurance, Life Insurance, Savings

INSURTECHS

inCube: empowering financial firms through technologyHead of Strategy and Development at inCube, Valérie Dray, discusses how the company’s platform, Polyseme, has revived the role of the lifetime partner in financial services.

Philippe Lepeuple, founder of inCube, conceived the idea for the company following a meeting with an executive of

the French Insurance Federation who expressed the need to ‘save life insurance’. Together they discussed the new financial, regulatory, fiscal and client challenges the industry was facing.Indeed, inCube emerged at a time when the French life insurance industry was experiencing negative net flows for the first time. “Guaranteed funds in euros were becoming less and less attractive for the client, straining profitability for insurers and worrying supervisory bodies. Moreover, the attractiveness of life insurance taxation was regularly being questioned,” explains Dray, inCube’s Head of Strategy and Development.

In addition, hyper-rationalization, as a consequence of European regulations on the distribution of insurance products and the duty to advise, was increasingly restricting companies, their distributors and clients. Dray adds that “the client relationship was poor, asymmetrical, and generated more defiance than commitment.” Sales pitches hinged on complicated financial aspects rather than responding to clients’ needs. According to Dray, this “intensified mistrust of such products, which complicated the client experience and the relationship with their advisor.” Technology was also having an impact. The entry of artificial intelligence, based on high levels of data collection and learning, began to increase calculation power, reactivity and proactivity, but at the risk of dehumanizing the customer experience.

inCube was conceived to address these strategic issues. “Faced with a much-criticized

savings business model, increasingly misaligned with the client relationship and the opportunity presented by technology and digital, inCube had the conviction to put finance back in the role it should never have left: serving the client’s life projects and ‘giving meaning to saving’,” explains Dray. inCube does this by leveraging emotional intelligence, notably through digital technologies and algorithms.

The inCube solution, Polyseme, is a white-labeled, bespoke and multilingual platform, connected to the organization’s existing environment. It is a “simple intuitive digital platform for bankers and insurers which enables the client to steer their savings through their life projects,” says Dray. “Clients have access to a veritable savings and personal insurance coach through the contract management dashboard. The solution gives back autonomy to the client, as well as the possibility of asking their ‘enhanced’ advisor for help whenever they desire. inCube manages and optimizes the client’s savings investment according to their decisions and the contract events directly integrated at the partner’s back office.”

41

“PolySeme gives advisors a unique, close relationship with clients, founded upon achieving their projects,” adds Dray. “It supports the obligatory advisory steps. Clients are autonomous and advisors capitalize on client knowledge to intervene in key moments with high added value. PolySeme integrates services accessible via partners’ web platforms and can be deployed on current stocks of contracts or new business.”

For inCube’s partners, the solution addresses several strategic levers including assets and inflow, with higher levels and frequency of deposits; respect for regulatory directives including risk profiles, DDA, GDPR and PRIIPS; improvement of client value and data enrichment; and better distribution performance. The result is empowering for financial firms, reestablishing their role as a lifetime partner that serves their clients’ projects, hence generating client commitment. “inCube offers return on emotion for the customer and return on investment for partners,” Dray summarizes.

Involving four years of R&D and modeling, two years of software development and over €3.4 million of investment, inCube was created by a team of experienced entrepreneurs from the insurance and financial services industries as well as startups. “The principles, solution design and algorithmic approach were developed by

the founding partners,” explains Dray. “A proof of concept was produced in 2014, in the form of a mobile app with the support of CNP. In 2015, the April Group took a capital share of inCube to finance the incubation and development of the PolySeme platform.”

“Three priorities guided the work,” says Dray. “First, to build an original client experience that is smooth, opening the way to an augmented client relationship. Second, the algorithms needed to ‘blend into the background’, making way for meaning. And finally, the priority was to create a perfectly modular tool that can be integrated into the environments of future partners.”

While inCube was initially designed to be deployed in a client/advisor version, its development is moving on apace. “The team is already working on developing a full web self-care version, in which the client is autonomous from beginning to end, and a hybrid solution with a call center, remote advisor and co-browsing,” says Dray. Having started with life insurance, inCube now plans to integrate other financial products (other investments, credit) and retirement. The solution has already attracted the interest of foreign insurers and Dray reveals they “are in discussions with the UK, Ireland and Portugal and have just signed a partnership with one of the big five French bank and insurance groups.” l

HOME INSURANCE

In the IoT home environment, innovation has grown at record pace. The internet of things (IoT) is a great lever to generate new touchpoints beyond the traditional underwriting and claims interactions, as it offers opportunities in the fields of prevention (such as leakage detection) and advice (such as security measures at home).

43

HOME INSURANCE

IoT in Home is close to take-offIoT holds significant business opportunities for insurers, according to an Efma research initiative supported by Roland Berger.

Over the last few years, the internet of things (IoT) has developed exponentially across most markets,

and in the IoT home environment, innovation has grown at record pace. Insurance companies have not yet been able to extract business value from this rapid evolution. However, there are considerable business opportunities up for grabs if they actively adapt their marketing and sales approach and decide to partner with the best integrators.

IoT in Home is typically composed of three main universes: Security (intrusion alerting, hazard prevention, locking), Comfort (control of power, heating, lighting, outdoor appliances) and Care & Wellness at Home (lifestyle monitoring, telehealth and so on).

The IoT market is typically structured around two main go-to-market models: IoT as a product and IoT as a service. IoT as a service is becoming the dominant model and represents the main growth opportunity for insurers. Alongside insurers, its competitors are mainly software firms and security and assistance companies.

Interviews with 20 European insurers have highlighted three main business opportunities for insurers. First, insurers can enrich customer experience and increase customer loyalty. IoT is a great lever to generate new touchpoints beyond the traditional underwriting and claims interactions, as it offers opportunities in the fields of prevention (such as leakage detection) and advice (such as security measures at home).

Customized pricing and risk management is the second opportunity. IoT enables more personalized underwriting based on increased data flows and a keener understanding of risk factors and behavioral elements, along with better managed claims costs in terms of frequency and severity. Clients seem increasingly willing

to transmit their data if they receive improved services or lower prices in return.

IoT is also a valuable opportunity to develop non-insurance revenue streams. In continental Western Europe, IoT in Home is still a small market, but growth in the next five years is expected to follow an S-curve and insurers are well-positioned to capture up to 40% of the market value as distributors.

To reap the benefits of fast-growing IoT, insurers should take into account two strategic recommendations. The first piece of advice is to develop a clear, differentiating modular offer and sales force, tailored to specific client segments and enabling insurers to increase the frequency of touchpoints. Secondly, in order to secure success as distributors, insurers will have to identify and build partnerships with the future winners of integration, with the best technology solutions. l

Download a copy of the report at: www.efma.com/study/detail/28864

http://www.efma.com/study/detail/28864

http://www.efma.com/study/detail/28864


HOME INSURANCE

How HomeZada is revolutionizing home insurance Elizabeth Dodson, Co-founder of HomeZada, shares how insurance companies can grasp opportunities to connect with customers during key parts of the homeowner journey.

HomeZada is a unique platform enabling homeowners to manage all the data about their home in one simple solution.

HomeZada assists with tracking home inventories, home maintenance tasks and remodeling projects and all the financial details related to their home such as home valuations and mortgage pay offs.

“Our homes are one of our largest assets and yet they are also our largest expense. By managing these details, homeowners can manage their time and money while also keeping a home safe, healthy and functioning,” explains Dodson.

According to Dodson, “insurance companies focus most of their marketing on securing net

45

new customers while they miss opportunities to stay connected and relevant to their existing customers.” HomeZada’s digital home management system offers insurance companies the chance to connect with their current customer base, enhancing customer engagement and experience as a result. “With the insurance company and/or agent’s branding in HomeZada, the customer knows that it was their insurance provider that introduced them to a valuable solution to help manage their home,” emphasizes Dodson.

When the HomeZada solution is introduced or gifted by the partner – insurance, mortgage, real estate and retail companies – significant brand value is built. Customers really value relevant products and solutions during specific phases of their homeownership journey. “By using digital home management solutions like HomeZada, insurance companies are able to provide useful solutions to help their customers to manage their life. This is a much more effective way to engage with customers than simply selling them more insurance.”

Dodson points out that insurance companies themselves also have a lot to gain from

HomeZada’s solution. “When a home inventory is created, homeowners can cross reference the contents of their home with their insurance coverage. If their insurance coverage is not enough or they have questions for the insurance provider, then this sparks a discussion between the customer and the insurance provider. This discussion could result in providing customers with the appropriate amount of coverage to meet the customer needs. This is a win-win for all parties.”

As the insurance industry evolves and insurers seek to grasp opportunities to connect with their customers, HomeZada expects solutions like theirs to become increasingly popular. “As more and more policy holders look for more advanced opportunities to connect with their providers, insurance companies can be on the forefront of connecting with their customers,” explains Dodson. “Using technological solutions that bring more awareness prior to a claim will help to set expectations, build a great brand and customer service relationship, and process claims more efficiently after a loss. All of these scenarios have the customer’s best interest in mind without sacrificing the business needs.” l


HOME INSURANCE

Kevin by mitipi, your virtual roommate against break-insMeet Kevin by mitipi, your virtual roommate who protects your home by simulating presence with lights, shadow and acoustics.

Conceived in 2016 by Helvetia’s Innovation department as part of their smart home ecosystem, Kevin by mitipi aims to prevent

the psychological damage caused by break-ins. The concept originates from a simple reasoning: people no longer feel safe in their own home after a burglary, and thus break-ins need to be prevented, period. Kevin complements Helvetia’s existing insurance business model since it proactively prevents damage that is covered by home insurance.

The risk of a break-in can be drastically reduced when it appears like someone is at home – even when you are not – since the one thing burglars want to avoid is confrontation with the victim. Kevin mimics your presence, convincingly making it look like someone is moving around and carrying out everyday tasks.

Setting up Kevin is easy: all you need is power and a Wi-Fi connection. A companion app offers the user the option of entering their preferences.

The simulation will take these preferences into consideration, as well as external data such as weather conditions and the time zone. The algorithm then decides when to play different daily activities, over a week-long period. Kevin will activate himself as soon as the user leaves their home. If the user chooses not to connect Kevin to the internet, a standard simulation (without defined preferences) will be played, and the user will need to remember to activate the device via the buttons when leaving home.

Kevin represents a rather disruptive innovation in burglary prevention. The device is so original because it offers a holistic plug-and-play experience. Often, competing systems notify the user only after a break-in has already happened.

47

Other burglary prevention systems do exist, but are predominantly manual and static solutions, based on old-fashioned time switches for lights, which are unlikely to convince a burglar that someone is home.

Two distinctive features of Kevin by mitipi have been patented: firstly, the way Kevin imitates movement through the usage of angles and the arrangement of LEDs; and secondly, a software logic that determines which activity would make sense at a specific time of the day.

From its conception in early 2016, it has taken two years to get Kevin by mitipi to market. Shortly after a functional prototype was presented at CES in Las Vegas, Kevin raised over CHF 100,000 of funding on Kickstarter, reaching 215% of the initial target. Kevin has already been pre-sold over 535 times and has received extensive media coverage from Forbes, CBSi, Blick, FAZ and BBC. In addition, a community of over 3000 newsletter subscribers and 700 Facebook likes has been built around the product.

The project was initially developed within the Helvetia Innovation department, and soon gained support from external agency Zühlke. During the second year of development, a holistic startup team of four members was built in Zurich, encompassing sales, robotic software

know-how, communication skills and expertise in user experience. The team is now supported by three programmers and a designer in Serbia. Moreover, an industrial design agency as well as an electronics engineering partner support Kevin’s development.

Currently, the team is in the selection process of a trustworthy production partner in Asia. Looking ahead, the team’s next challenge is to place Kevin in retail stores across the globe. A Swiss retailer has already agreed to order and get Kevin in their stores and the dialogue with Amazon has begun. The team also plans to market the product, which will be available in German and English, in Austria, Germany, the UK and the USA. l

BANCASSURANCE

The future of bancassurance will probably exceed the bancassurance partnership. It will go to other platforms and ecosystems… insurance companies also have to be in these ecosystems – maybe we can generate our own sub-ecosystem or we can be part of an ecosystem with our bank partners.

Tolga Gunes, Head of Bancassurance at Aksigorta

49

BANCASSURANCE

Bancassurance in the digital worldIn the latest installment of Efma’s Insurance Webinar Series, held on 9 April 2019, Efma Senior Advisor René van der Poel discusses the growing role of digital technology in bancassurance.

Bancassurance partnerships have been developing strongly for the last eight years, and the outlook continues to be

positive across Europe, Asia, South America and Africa. René van der Poel, Efma’s Senior Advisor specializing in insurance, asserts that “the digital area is now the key to getting the right solution”.

Alongside traditional bank and insurer partnerships, new types of cooperation models incorporating fintechs and insurtechs are arising. Catalyzers such as IT firms and bigtechs are also playing a new role. Nevertheless, van der Poel notes that the key factors for success remain the same as over a decade ago, as mentioned in the KPMG report “The power of alliances” from 2016: a clear partnership strategy; an efficient operating model; attractive products; compelling incentives; and effective training. However, these factors must be increasingly aligned with digital technology.

Pure fintech-insurtech partnerships are indeed becoming more common, and according to van der Poel, they are set to continue displacing traditional bancassurance partnerships. “N26, which has established its banking in Austria and Germany, will not look at traditional solutions but instead will seek interesting solutions from insurtechs,” he cites as an example.

These new players are able to support traditional insurers in several regulatory aspects such as GDPR, the insurance distribution directive (IDD) and cyber risks. “In addition, they provide support around all aspects of the insurance value chain – products, claims, sales processes and payments – and across a combination of channels,” explains van der Poel. While the sector is currently investing large amounts in mobile apps, he nuances that “the real solution will be a coordinated approach.”

Co-creation between banks and insurers is also a rising trend. Van der Poel draws on his own

experience from a few years ago when he was working on a bancassurance partnership. “We created fully out of the existing line of business – we allowed five to seven relatively young people from both sides to come together and co-create totally new solutions.”

Partnerships within ecosystems are emerging too, for example within the domains of electric mobility, car sharing and health. Efma’s Insurance Summit, which will bring together the biggest players in financial services in Vienna on 13 to 14 June 2019, aims to foster these types of partnerships and to create innovation hubs. “Many companies are already creating innovation hubs, leading to a concentration of efforts and of knowledge,” adds van der Poel.

When it comes to managing data in bancassurance, van der Poel sees it as an opportunity to be seized. “If data insurers and data banks combine in the right way, you also get synergies,” he comments. Likewise, blockchain holds great potential for the bancassurance sector. The use of blockchain will lead to increased efficiency and will serve to optimize pricing and risk assessment, to create smart contracts and new insurance products and to reach out to new clients. l


Suzanne Akten, Managing Director and Tribe Lead of the ING-AXA Bancassurance Partnership, gives Efma an insight into the bancassurance’s business model.

BANCASSURANCE

ING and AXA build bancassurance proposition

According to ING’s Managing Director, ING Group’s customers are becoming more and more mobile. “We had 3.7 bn

engagements in 2018 (twice the engagements vs 2016), and 70% of our interactions with customers were mobile. Our strong focus on personalizing our digital interactions has increased our digital (x2 vs 2016) and mobile (x6 vs 2016) sales. As a result we have been able to diversify our income and improve profitability,”

Akten comments. So far, the insurance industry remains largely traditional. In 2017, “88% of European insurance was sold through agents and brokers, 8% sold through face-face bancassurance and only 0.1% was sold through digital bancassurance.”

ING realized that in order to meet customers’ changing needs, a traditional face-to-face business model would no longer suffice. “I appreciate that there is still a high conversion of customers on call centers and a much higher conversion rate on face-to-face. But that’s why we need to remove the friction barriers that are causing customers to call in the first place,” explains Akten.

As a result, in summer 2017, ING issued a global request for proposal, with the aim of “cracking the industry”. After a long review process, ING decided to team up with AXA in a strategic venture to deliver brand-new, transparent and customer-centric protection, as part of a global ecosystem encompassing living, mobility and wellness (commonly known as traditional non-life, health and protection insurance). This marks a significant change in ING’s strategy. “We will no longer be pushing products but will be answering our customers’ pain points from those three angles of their life stage development,” affirms Akten.

In September 2018, the bancassurance launched a joint team of 15 employees in Paris which is set to reach around 150, with the mission of serving 13 million of ING’s 38.4 million-strong customer base, across six markets. ING and AXA’s approach is to co-create a brand new

51

business model, bringing together data analytics, central proposition build, IT, claims, pricing and servicing. “This allows our six markets to plug in to our central program through APIs and connect with the personalization mechanisms that we’re building within those local markets.”

“The business model was built on being mobile-first, focusing on a low operating cost model that is completely aligned from the top line, with KPIs on customer satisfaction and delivery,” adds Akten. This ensures that ING maintains its brand ethos of keeping its customers one step ahead. “As long as you can bring the experience to a frictionless level and bring value to the engagement, I think mobile-first or mobile-only is an option. We are starting our business with that philosophy.”

Despite being a highly regulated market, when asked about regulatory challenges, Akten sustains that “you have to look at regulation as a positive development. In order to build transparent, empowering and self-diagnostic protection, you’re already meeting a lot of those requirements.” Indeed, ING often goes above and beyond. “We ensure that both sides – bank and insurance – are 100% committed to following local regulations. As we build our global proposition, we ask our compliance, legal and regulatory teams to join our sprints so that they’re fully involved.”

When it comes to utilizing data from both sides, ING and AXA aim to bring the power of their combined knowledge to the customer, while ensuring the highest levels of data privacy. “We work on anonymous based use cases to create the right customer value for our customer. From this we aim to develop UX and data features that empower our customers to create their own protection and ensure they are not under or over protected.”

Upon joining forces with AXA, ING also believed in bringing fintechs to the table. “They have an edge and specialism that we don’t necessarily have the time to build, and they can bring enormous speed and energy to our partnership. We’re currently in dialogue with several fintechs to improve our whole proposition, whether it be from a customer experience perspective, through data diagnostics or other parts of the journey that they can expedite,” Akten reveals. “We can give them scale and together we can form a much stronger partnership.” l


BANCASSURANCE

Tolga Gunes, Head of Bancassurance at Aksigorta, tells Efma the story behind the company’s partnership with Akbank and the main challenges the bancassurance is now facing.

Akbank and Aksigorta strengthen their partnership through digitalization

Aksigorta, one of Turkey’s top three insurers, has teamed up with Akbank, one of the country’s three biggest private banks to co-

create a business model for a new bancassurance partnership. Together they account for 7% of the domestic bancassurance market, and 13% of Aksigorta’s total business comes from the bancassurance.

Currently, branches are still the bancassurance’s main channel, but call centers remain important. In the last few years, there has been an increase in digital transactions worldwide. “Akbank has some 7 million active customers, of which 4 million use mobile,” explains Gunes, Head of Bancassurance at Aksigorta. “96% of Akbank’s total transactions take place through direct banking channels. This figure was 68% just four years ago,” he adds.

One of the current trends in the European banking sector is the decrease in the number of branches and walk-in customers. Indeed, in the last 10 years, 50,000 branches in the EU have closed down – the equivalent of 21% of the total number. In order to keep up with the pace of transformation in the sector, Akbank and Aksigorta are investing large sums in digital. However, according to Gunes, digital brings two main challenges. “The first is that insurance products are generally very sophisticated and have a complex sales process – writing these products to digital is tougher than a regular bank product. The second bottleneck is that you are competing with bank products because everyone wants to be in mobile landing products.”

“Now we are currently selling two products – travel and motor insurance – and we have more products in the pipeline. We are also working

53

on performance marketing so that we can catch customers through social media or web and then close the sale through calls from our centers. We are trying to create a digital environment that integrates the physical world with human touch and digital capabilities,” continues Gunes.

While the Turkish bancassurance faces tough regulation and compliance requirements, its ethos has always been to behave like a fair trader. “We are actually very happy about this regulatory challenge because these kinds of regulations are very important to improve the insurance business in the long term.”

Projecting ahead, Gunes believes that new cooperation models will come into play. “The future of bancassurance will probably exceed the bancassurance partnership. It will go to other platforms and ecosystems that can catch more of the customer lifecycle. Ecosystems like Amazon and Alibaba are rapidly growing and improving, and will generate 30% of global revenue by 2025. Insurance companies also have to be

in these ecosystems – maybe we can generate our own sub-ecosystem or we can be part of an ecosystem with our bank partners.”

Bigtechs like GAFA also represent a significant source of competition, according to Gunes. “Compared to insurance companies, they have a big advantage since they know the customers better than us and the customers love them – they’re attractive brands. The most important point is that these companies have innovation and technology in their genetics.”

Insurtech partners might be able to fill the gap, and have already attracted 2 billion dollars’ worth of investment worldwide. Yet insurtechs face substantial challenges too. “The main challenge is that all insurance companies now behave more like an insurtech, since they cannot leave all the innovation and technology improvement to a third party. For example, we are investing in AI and robotic improvements. The second challenge is that insurtechs have to offer the right solution for the problem, at the right time.” l


EXPERT INSIGHTS

55

In the past, good products coupled with a strong sales force were enough for an insurance brand to succeed. Today, it is much more complex – a brand has to excel across all dimensions to win.Isabelle Conner, Chief Marketing & Customer Officer at Generali


EXPERT INSIGHTS

Paul Bennett: Global Brand Director at AXAPaul Bennett, AXA’s Global Brand Director, tells Efma about successful brand differentiation in today’s insurance industry.

AXA aims to be an encouraging partner in its customers’ lives. ”People are at the very heart of our identity system which has

been designed to work across all touchpoints and applications in an appealing and flexible way,” says Bennett, who leads AXA’s global brand definition and management, global advertising and brand optimization.

Traditionally, financial services have been difficult to market, especially when compared to other industries such as FMCG and luxury. Particularly in insurance, the customer relationship was regarded as transactional, rather than meaningful. Bennett explains that “the value only came during a claim – which, for many customers,

didn’t happen. So it’s up to us to be more customer-led and come up with solutions that are frequent, useful and very valuable in customers’ lives – by their definition not ours!”

AXA has achieved ‘meaning’ across its communications notably through its recognizable mark, ‘the Switch’, which embodies AXA’s purpose to empower its customers. According to Bennett, “through the Switch our customers become the heroes and AXA is the enabler that allows people to make plans for the future and get more from life.”

Visual details also help to distinguish AXA’s brand from its competitors. ”A very optimistic and forward-looking photography style and headlines that are short, direct and bold, using imperative call-to-actions, resonate with our customers’ needs, fears and dreams for the future. We also have very colorful and playful illustrations that help us to convey abstract concepts or difficult subjects in a delicate way.”

AXA engages key audiences with meaningful content through different advertising channels. “We leverage mass media channels and complement media such as TV with online through high audience publishers to stand at the crossroads of consumer media consumption,” Bennett continues. “On top of those, we add presence on differentiating channels considering the strong competition faced in the insurance sector.” For example, AXA has taken advantage of digital and outdoor advertising placements in the Paris Airports and Hong Kong Airport, where people tend to be more open to advertising.

57

Content marketing has become a key marketing pillar. “It allows us to create an emotional connection with consumers and to efficiently develop a sense of proximity with the brand,” explains Bennett. “A great example of this is the content piece called ‘Reflections’ that we did last year, based on consumer insight that found we all have hidden or latent ambitions, but 95% of the time personal, self-created obstacles get in the way, preventing personal progress. As a brand we want to ignite people’s confidence as a catalyst for positive action, so the idea is to encourage people to express their hidden true ambitions and fears to themselves in front of a mirror. We reached 26 million views on YouTube and Facebook within two months with a much smaller media budget compared to a traditional campaign.”

Data equally plays a key role in becoming more customer-centric. “Data allows us to better activate media with messages adapted to clusters of consumers who share homogeneous needs or online behaviors. Data is also helping us to better

understand the consumer journey across the marketing funnel and better measure our business impact. Consequently, it allows us to optimize our media strategy and increase the level of business we generate through our media investments.”

Brand monitoring is essential too. “It is important to determine the level of monitoring we want to have according to the business stakes and define the way we will monitor our campaigns before activating them. Our monitoring setup is based on several key steps: ensuring a safe broadcasting environment; sharing information internally with all teams involved; setting the right trackers to monitor performances, brand preference and ad verification; and social listening.” l


EXPERT INSIGHTS

Hunter Hoffmann: Brand & Creative Marketing at AmTrustHunter Hoffmann, Vice President of Brand & Creative Marketing at AmTrust Financial Services, explains why he finds financial services an exciting industry to market.

AmTrust is known in the US as a trusted brand for small businesses and globally as a challenger brand that provides

innovative and new approaches to managing clients’ risk. “My goal is to create a cohesive experience across all of the different channels worldwide where people are interacting with the AmTrust brand and its products,” explains Hunter Hoffman, Vice President of Brand & Creative Marketing. Hoffman oversees all of AmTrust’s marketing communications with their agents, partners and clients, utilizing different disciplines including graphics, copywriting, PR, social media, web production, video and events.

While financial services can be difficult to market, Hoffman sees it as an opportunity to come up with original campaigns. “When I was at business school, the focus was squarely on traditional brand management. I remember doing an exercise where we had to figure out which levers we could pull to boost the market share of a failing brand. I asked why PR wasn’t included and the professor said because it has no impact, something I respectfully disagreed with,” admits Hoffman.

Today, most marketers in financial services recognize the importance of PR and quality content in building brand identity. Unable to offer traditional 3-for-1 deals on commercial insurance, Hoffman stresses that “you have to be more imaginative and holistic in how you try to build brand awareness and affinity. The challenge is that financial services marketing needs to be evaluated over a longer time period.”

AmTrust’s marketing strategy nowadays relies on several key aspects: trades, search engine optimization (SEO), content marketing, data and crisis management. According to Hoffman, the focus is currently on trades, “both within the insurance industry to reach our core commercial agent and broker audiences and in verticals across our different industries”, and SEO, to ensure the company stands out when people search for topics where they can provide value.

Content marketing is also essential for building a story and a long-term brand identity. Rather than hard selling a product, “you’re selling the feeling that ‘this is the type of company that gets me and understands the issues I’m facing,’” he explains. “You’re offering value first and then trying to build on this positive sentiment with more direct communications related to specific offerings that

59

meet the needs of your target audience.” Through their blog, videos and custom reports,

AmTrust communicates a range of key messages to their main audiences, especially insights on recent developments and emerging risks. “In terms of building the brand overall, our videos focusing on our deep and mutually beneficial agency relations, and those that bring out the life and spirit of our employees, help to position AmTrust as a brand people want to partner with,” adds Hoffman.

Data is an important tool for understanding AmTrust’s audiences as well as the channels to reach them. Data helps to answer crucial questions: “are we increasing awareness and affinity for AmTrust in the right places? Which tools work best and what’s the right balance across channels and mediums?” says Hoffman. “It all needs to be measured and informed by our own data, Google Analytics, the results we’re getting with our publishers and how this is impacting sales in areas we’re targeting.”

As for online branding, AmTrust relies on monitoring services for traditional and social media with real-time alerts. “My principles for social media are similar to the doctor’s oath – first, do no harm. Especially in financial services, there’s not likely to be many instances where you would knowingly move forward with a campaign or post that carries major known potential risks – we can’t be as daring as consumer brands in this area.”

When a crisis does happen, Hoffman reveals that AmTrust follows typical PR principles. “Get the facts first, find the quickest way to resolve the situation, if possible, and don’t say anything you can’t be absolutely sure you won’t have to take back in the future. And, take it offline as quickly as possible – you don’t want to be out there in public arguing the specifics of any issue. Even when you win, you’re likely to lose in the long run.” l


EXPERT INSIGHTS

Isabelle Conner: Chief Marketing & Customer Officer at GeneraliThe woman behind Generali’s Customer & Distributor transformation, Isabelle Conner, spoke to Efma about company’s brand and its use of digital channels.

Isabelle Conner believes there has never been a more exciting time to work in financial services. As the entire industry evolves, insurers

must rethink the way they market their services to consumers. This is where Conner steps in. “Marketing has to be the engine of any big corporation, so my role is to drive transformation and ensure that Generali is at the forefront of the industry,” she explains.

Conner’s role covers five main areas: “digital enabling of our advisory distribution network; best-in-class service and proposition innovation; seamless mobile and web connection between Generali, agents and clients; using customer feedback to deliver service improvements across all touchpoints; and becoming a first-choice brand.”

Generali aims to become a life-time partner for their customers, says Conner, by combining simplicity and innovation with empathy and care. “This combination is extremely rare in insurance, an industry that’s traditionally been reactive, transactional and limited to protection. We want to shift the mindset and be proactive, relationship-based and integrate protection, prevention and assistance into a service that is tailored to customer needs.”

While Generali has secured strong and personal client relationships, Conner identifies three major customer trends that are shifting the industry:

61

customers are more demanding; they increasingly value the overall customer experience; and they seek personalization. “The experience that they have with other industries, and hi-tech companies like Amazon, Google, Apple, Uber, TripAdvisor etc. shapes their expectations towards insurance companies as well. For example, if they can purchase anything with a single click on Amazon, they expect the same speed and easy process in renewing their policies,” says Conner. “In the past, good products coupled with a strong sales force were enough for an insurance brand to succeed. Today, it is much more complex – a brand has to excel across all dimensions to win,” she summarizes.

Data and technology enable Generali to tackle these new demands head-on. “Figuring out how to mine and leverage this data is the first challenge. Ten to twenty years ago, we looked at data based on income and socio-demographics. Today, the most valuable client data is about customer behavior, attitudes and preferences. This allows us to segment and tailor the offering to individuals,” Conner explains.

For instance, the internet of things (IoT) has many applications in smart insurance, allowing clients’ actual behavior to influence services and prices. “Leveraging IoT helps us to design ecosystems that incentivize safer, healthier behavior every day, as well as providing clients with a great experience. For example, at EuropAssistance, we use artificial intelligence with the elderly to track their habits within their apartment so that if they fall, a loved one is notified immediately.”“We also have several technically competitive advantages in the roll out of new eco-systems. We are leaders in telematics and we have the Vitality license for continental Europe – health insurance that rewards you with discounts based on how much you exercise, how well you eat, etc.”

Digital channels are also key – for the client and the insurer. “Existing clients often have zero interactions with their provider in 12 months. Seeing an email or social media post from an agent adds value in return for their premium.” The impact of digital marketing is also measured more easily. “In the past, it took weeks or even months to measure the results of a TV or a print advertisement. The reach of an email campaign or social media post is now immediately quantifiable. Using analytics to better understand customer behavior and to design campaigns often leads to increased marketing performance and higher return on investment.”

Generali also turns to content marketing to attract customers. “Content helps us add value to consumers by engaging them in a story that connects with consumers in real-time. Content marketing can also be fully tailored to the audience; we can target each segment on their preferred channels with topics of their interest. In addition, it is a cost-effective way to reach hundreds of thousands of prospective clients with an email newsletter or a social media post,” says Conner.

The company’s T-NPS program – which has surveyed over 17 million customers so far – helps Generali closely monitor customer feedback. “This feedback enables us to close the loop with our clients immediately, solving any problems that might occur. We are also very transparent about what customers think about our brand. We currently publish customer feedback in a dozen markets, making it easy for those who wants to do business to read feedback from existing clients. This is a very helpful tool in increasing the public’s confidence in the Generali brand.” l

Insurance Review 2019May 2019

A global non-profit organisation, established in 1971 by banks and insurance companies, Efma facilitates networking between decision-makers. It provides quality insights to help banks and insurance companies make the right decisions to foster innovation and drive their transformation. Over 3,300 brands in 130 countries are Efma members.

Headquarters in Paris. Offices in London, Brussels, Andorra, Stockholm, Bratislava, Dubai, Milan, Montreal, Istanbul, Beijing, Tokyo and Singapore. Learn more www.efma.com.

Documents

Insurance Review 2019