Embedded Insurance-as-a-Service and Digital Claims Platforms combined and designed to increase the speed and quality of claims management.
The impact can be seen in the customers of both these innovative companies.
Qover names Revolut, Deliveroo and Decathlon as users and Five Sigma Hippo, INSHUR, Kin and NYC insurer TSC Direct.
Embedded insurance is gaining traction in all sectors to offer simpler user experience and journeys for buyers of products and services.
Banking has been quicker off the mark to digitally transform than the insurance industry so it is significant to see Revolut innovating with embedded insurance.
Revolut, like many a Neobank, aims to reinvent itself, provide the best UX and value-add services for customers. What better than to enable customers to add insurance at point of sale when buying for example: -
- Tickets to events
- Travel by train, air and taxi
- Purchase protection with goods
- Extended Warranties
Qover helps its customers identify and develop customised insurance products with the very best user experience.
Adding in the very best claims experience so that customers enjoy complete life-cycle value is a next step of continuous innovation and the Qover-Five Sigma partnership opens that opportunity.
This does not put other digital claims platforms in the shade as claims vary from the simple accidental damage to complex building and property damage from catastrophic (CAT) events. No one digital claims platform provides a complete solution across all perils, countries and US States or Swiss Cantons.
Last week Insurtech World asked why Home Insurance is stuck in the mud with analogue workflows and processes.
Evaluating every platform on the market The AA Insurance in he UK chose Synergy Cloud for all home and contents digital claims from simple to complex and needed the capabilities to deal with subsidence, personal injury, escape of water and even vehicle damage.
It takes a wide range of capabilities to cover that which is why they needed digital claims technology developed with the intimate knowledge and detailed human experiences of insurance adjusters, underwriters, fraud experts, financial & reserving experts and supply chain professionals. All combined in an optimal platform combining automation and human engagement.
It is interesting to consider how these digital insurance platforms might be integrated to cover every eventuality. There ae so many offerings available it must be confusing at times for insurers, banks, retailers, eCommerce specialists, distributors, repair networks and so on. And the announcements continue all the time.
Take a question I posed in April: - Car manufacturers or traditional insurance carriers. Who will win the tech race?
Auto OEMs offer embedded insurance at the point of sale/lease of vehicles.
What better than to add digital claims as well. But it is not only the manufacturers. Last week one of the largest automotive retail and service companies in the U.S described a technology ecosystem which enables an authentic online car-buying and selling experience.
"The partnership with Salty further proves our dedication to a complete digital experience while continuing to drive our omnichannel strategy," said CEO & President David Hult. "Asbury customers spend almost $350 million on insurance every year, and they deserve a state-of-the-art customer experience that includes the opportunity to protect their vehicle purchases."
Salty and Ashbury Automotive group make it easier to buy insurance.
Why not embed claims management as well? You can be certain that Tesla plans that as well as offering insurance. You can see a great battle of competition, collaboration and co-opetition as carriers, auto OEMS, auto distribution networks and Mobility-as-a-Service providers all seek to satisfy thee needs of customers.
The permutations of partnerships and vendors is great. Take a simple application- applying AI to speed up auto accident inspections combining images, virtual inspections , AI and vast amounts of data.
Olivier Baudoux of Mitchell describes the partnerships necessary to deliver optimal outcomes.
"For instance, through Mitchell Intelligent Open Platform, carriers can select the AI that best meets their needs. That includes AI algorithms developed internally, provided by Mitchell or delivered through third parties such as Tractable or Claim Genius. The AI output is used to produce a partial or complete appraisal. "
See AI and Its Impact on Automotive Claims by Olivier who is senior SVP of global product strategy and artificial intelligence for Mitchell’s Auto Physical Damage division .
And in the background the march to autonomous vehicles proceeds in parallel with governments planning the wholesale move to electric vehicle sales only in the 2030s onwards. That will disrupt all active parties in this field as insurance moves from the driver and vehicle to product liability insurance over time.
For now just look at the number of innovative digital claims platform companies that have moved beyond start-up to fully fledged scale-up with the funding to match. And the APOI architecture and capabilities to leverage partnerships like those described by Baudoux
Look back above at Revolut continuously reinventing itself- leading carriers, reinsurers and brokers will do the same.
Carriers have always had the giant core insurance platforms like Guidewire, Duck Creek, Majesco and so on. They deliver practically anything you want as long as you have the time, deep pockets, loads of developers.
Innovative insurers driven by the pandemic and customers' expectations have driven deeper into the digital realm with new generation digital claims platforms that offer enhanced integration with core and other systems. Typically they are "No-Code or Low-Code" meaning that insurers themselves can continuously improve without being depended on a vendor's/SIs developers or internal ones who are too busy om maintenance and bug fixing of core systems.
Examples of these include : -
These all include business accelerators to make deployment faster and simpler but if you are smitten with the idea of building rather than buying you have the no-code transformation platforms that speed up innovation like: -
They can help you address transformation across the whole enterprise rather than just digital claims. It depends on your ambitions, goals, strategies and internal capabilities as to which approach is best for you.
I commented recently on the Jeff Bezos core competence of speed to innovate, deploy and continuously improve as key to success. With the options like those above there is no reason for insurers, brokers and MGAs to lack speed of innovation these days.
Qover’s insurance solutions are available in real-time through Open APIs or white labelling that can be easily and quickly integrated into any digital platform looking to make insurance part of its strategy. Five Sigma’s unique capabilities with rapid configurable digital claim workflows enable a high degree of automation all through the First Notice of Loss (FNOL) to the claim settlement process. The claim platform also features modern communication tools that allow for email, SMS, phone calls and live video with end-customers.