Insuranceciooutlook

CIOs Eyeing on these Top 5 Insurtech Drifts Shaking Up European Auto Insurance

By Insurance CIO Outlook | Tuesday, September 03, 2019

Booming insurtech innovations are revolutionizing the way auto insurance is operating.

FREMONT, CA: Insurtech startups are revolutionizing the way insurance is operating. The European insurtech industry has exploded in recent years, with several startups coming up with new products and services, easing the process of buying insurance for the consumers. Similar is the case of auto insurers, and startups are dramatically transforming this industry with innovative tech offerings. Here is more about the top innovations and ventures going after auto insurtech for the CIOs to eye on.

• Telematics Device

Telematics device can record information about driving behavior pertaining to the speed of driving and the distance covered. Auto insurers can use these devices in special and safe driver programs which will help save money on insurance premiums by monitoring driving behavior. The critical advantage is car insurance savings.

Octo Telematics, the telematics and data analytics provider for the auto insurance industry in the UK, is delivering insight most relevant to auto insurers through telematics. Its integrated insurance telematics is giving automotive business partners unrivaled access to insurers globally.

Germany based PI Labs is another startup providing vehicle data, including position, driving time, acceleration, and speed. Auto insurance companies might leap and embrace the power of telematics for creating avant-garde insurance products shortly.

• Mobile Apps

The auto insurance industry is overwhelmed with offers, and companies are at the edge of competition, creatively attempting to bag clients and customers. There are numerous ways to manage this challenge, and one of them is developing a mobile application. By designing a mobile app exclusively made for car insurance holders, insurers can significantly increase the chances to succeed. Apps can facilitate communication and claims between drivers and insurance companies. 

Cuvva is a flexible car insurance platform along with offering ongoing insurance schemes for infrequent drivers. With its mobile insurance app, the platform allows the users to get an instant quote by entering the registration number and approximate value of the car.

London-based startup Brolly’s mobile app has three distinct features, including locker, advisor, and shop, making the insurance operation streamlined and easy for people.

• Predictive Analytics

Insurance companies require volumes of data to develop innovative products and deliver on the needs of their customers. This reliance on data will only grow in the future to meet the increasing and aggressive competition. Investing in predictive analytics can help auto insurance companies explore new channels for growth as big data allow them to streamline pricing and personalization. These tools can help companies determine the optimal price for a new product or service, and avoid losing money by guessing or testing different pricing options. They can also automatically adjust insurance prices based on predefined specifications.

Predictive analytics plays a significant role in flagging auto insurance fraud or duplicate claims. With these tools, auto insurers can create behavioral models of customers to understand and evaluate risks better. It helps target new customers and predict churn. With predictive analytics auto insurers no longer need to guess what the buyer will do, but they can forecast customer behavior.

Cystellar is a UK startup offering cloud-based big data platform, which helps improve data-driven decision-making.

Digital Fineprint combines open data available online with auto insurer’s data to create a single view of prospects and customers and then better predicting customer needs.

• Virtual Insurance Agent

Customers are demanding instant, personalized, and simplified information from their auto insurers. The conventional auto insurance industry is rethinking the way they communicate with their customers. Virtual assistants come in handy here. It is a quick and easy way to serve customers and insurance agents anytime, anywhere.

Auto insurers can support their agents and customers by providing instance service or product information and allowing customers to quickly purchase insurance and redeem coverage at the time they want. Artificial intelligence-powered virtual assistant leveraging natural language processing and deep learning to understand the context and create personalize human-like a response.

Lisa is a Spain-based insurtech startup that allows users to obtain an immediate budget, in less than 90 seconds, with several options of coverage of professional liability with its virtual assistant.

• Cybersecurity​

With auto insurance companies actively entering online, one of the most complex issues they face is creating a secure environment for the collected data. An insured willing to share the information which has a high potential of getting exploited and can lead to dire consequences. It is possible to guard this vulnerable data, and insurtech companies are providing solutions for that with the help of advanced technologies.

London-based Threat Informer is an insurtech startup providing cyber risk intelligence to the auto insurance industry. It delivers tools to transform the way security is handled.

Today, digital technologies are completely revolutionizing the automotive insurance industry. Now it’s becoming more apparent that those insurance companies which don’t embrace automotive telematics, predictive analytics, artificial intelligence, and many others into their product offerings. CIOs have a more significant role to play in ensuring companies to make these technologies available to their consumers. Auto insurance firms are abandoning legacy and aging business models to cope with changing and rising demands.  

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