Carriers and Insurtechs are working together to reinvent big data practices to improve risk reduction at ITC Vegas 2022.
An engaging session at ITC2022 discussed big data practices and how insurtechs can work with insurers to incentivize risk reduction. A panel of experts representing the legacy perspective and the burgeoning Insurtech space led an in-depth discussion on the data and analytics trail during this popular morning session.
Speakers on this ground-breaking panel were Diyaa Shridi, CTO at SOMPO Digital Labs; Eugenio Gonzalez, partner at Plug & Play Ventures; Hemant Sarma, SVP, Global Head of Digital IoT at Chubb; and Jeroen Morrenhof, CEO and co-founder of FRISS. Elad Tsur, CEO of Planck, moderated the session.
The panel focused on the goal of improving risk reduction, a vision shared by providers across the risk and insurance ecosystem. The idea of encouraging preferred consumer behavior is not new to the insurance industry. Consider auto insurance discounts for policyholders who don’t have an accident or those who share telematics data to prove they are safe drivers.
But now the availability of big data has created a world where insurers can use data insights to incentivize risk reduction. With the proliferation of millions of data points of potentially useful information available to carriers, the battle is to determine what data matters – and how to proactively use that data to make better risk reduction and recovery decisions. subscription.
Insurtech solutions improve prediction and risk reduction with data insights
Panel leaders discussed how their solutions benefit incumbents.
Tsur spoke of the need for more accurate data insights: “Planck’s AI and machine learning algorithms have provided commercial insurers with a much faster, more complete and more accurate representation of commercial risk. Underwriters can now expand, deepen and interpret the range of data sources available, making business risk more searchable, accessible and quickly actionable.
He also explained how Planck’s solution is helping insurers reinvent their big data practices: “The ability to easily navigate real-time big data allows insurance companies to own the story and fill the risk awareness gap without the need for long forms or repeated customer contact. And the Planck platform provides additional predictive intelligence for risk data that traditional search cannot find. »
Hemant Sarma, SVP, Global Head of Digital IoT at Chubb, spoke about simplifying the customer experience by developing how big data can be used to improve results and incentivize risk reduction.
He said: “We used big data and tried to break down the underwriting for small business risks. We reduced the questionnaire from 20 questions to two by using available data instead of asking customers questions that we already know the answer to. From customer experience to back-end processes, all of these aspects are impacted by the use of big data and AI. »
Use data to build partnerships and reinforce a culture of transparency
A central theme of the session was how big data and analytics can help create and strengthen a culture of transparency and drive innovation through partnerships. By combining internal and external data, businesses can see new trends and patterns through the power of data analytics.
SOMPO Digital Lab’s CTO, Diyaa Shridi, further explained, “We bring real data from outside SOMPO – data generated by people and machines – to bring greater efficiency and unlock new value for customer experience and new business areas.”
Eugenio Gonzalez, Partner at Plug & Play Ventures, presented examples of big data capabilities that come from developing strategic partnerships. He recommended that carriers partner externally to achieve their goals.
“It is very important to build partnerships internally but also externally by working with startups.” Gonzalez ended his comments by reminding the audience of the tried and tested adage, “If you want to go fast, go alone.” If you want to go far, go together.
Speakers highlighted the importance of consumer trust, particularly in terms of how trust can be earned through a culture of transparency. Shridi reinforced the idea of transparency and having a “what you see is what you get” goal with customers. He suggested that having a detailed proof of concept and action plan is a way to gain trust by being transparent.
Sarma said, “The biggest use case (of IoT), as well as the biggest challenge in adoption, is trust.” Speaking of transparency, Sarma commented on the evidence of the benefits of customer-facing solutions and ways to incentivize policyholders to reduce risk: “We can track the return on investment and prove to the customer that the solution is worthwhile. Then we can incentivize consumers to use IoT devices through premium discounts and lower deductibles, which drives people to more IoT devices.
Continuing the discussion on consumer trust, Jeroen Morrenhof, CEO and co-founder of FRISS, added, “Insurance is about trust, both from the perspective of the consumer and the carrier. Consumer expectations are now higher. They expect instant help and support. Many of these consumer interactions are based on mistrust by default. Trust is very important and is easily shaken and hard to regain.
Morrenhof explained how FRISS solves the challenge of trust: “We believe that a better solution is to automate trust. We can learn all about a customer and know when to trust them or not, and then make decisions moving forward. We believe that insurers who can inspire this confidence in consumers can grow faster and be more profitable. »
Creating a relationship of trust with a customer that allows for certain unique benefits is not a new concept in business. Think of banks with known customers who enjoy the benefits of being trusted, like having immediate access to deposited funds, or travelers with a Global Entry pass proving they are trusted visitors, allowing them a faster access across international borders. But applying the concept to insurance — and automating it — is an innovative idea that could improve customer satisfaction while speeding up interactions.
Big data and risk reduction go hand in hand when carriers have the tools and technology to analyze the millions of data points they have accumulated. Insurtechs are filling this technology gap to help carriers manage, analyze and use their data to incentivize risk reduction and improve outcomes. &