You want to protect the things that are of value to you, but the way in which you do this will change significantly in the years to come. Below are eight trends that will change the claims and insurance market, paving the way for innovative methods of value management.
1. Increased use of sensors
In a smart home sensors can detect, for example, who is at your front door, whether the gas has been left on or whether a water pipe is at risk of freezing. This prevents loss or damage and reduces claims for insurers – who are increasingly offering lower premiums to consumers who utilise smart technology. We also see this trend within the Mobility sector; for example, sensors are able to register whether drivers brake sharply, accelerate smoothly or negotiate corners in a controlled manner.
2. Payment with privacy
The data registered by all of those sensors help to prevent loss and damage, but are also valuable for car manufacturers, insurers and other parties. Drivers and home owners become suppliers of big data. Sometimes this is intentional in exchange for lower premiums, as a reward for a safer home or for safer driving, but this may also be unintentional.
3. Managing value on the blockchain
Over the next 5 to 10 years, blockchain technology will revolutionise the transactional world. It will be possible to store, authenticate and verify contracts, agreements and ownership documents at a fraction of the current costs. However, blockchain can also be used as an irrefutable way of recording claims history and state of repair. This will have an impact on, for example, the value of a car when this is sold, or when taking out insurance.
In 2015 approximately 1.5 billion was invested in startups which, by using smart technology, makes insuring value quicker, easier and more personal. Often a completely new business model is used, such as insurance on demand. For instance, Australia-based Tröv offers insurance that is managed entirely by smartphone, which enables cover to be modified on a product-by-product basis at any time. You could insure your laptop but not your bicycle, or only insure your bicycle when it is actually in use.
5. Different methods of insurance
In other areas too, insurance models will undergo a transformation. In the near future, we will see more and more examples of peer-to-peer insurance, which is an insurance model where insurances are combined to form a group, as are the insurance claims made within this group.
6. Self-driving cars
Google has been working on the Google Driverless Car since 2005, and many large car brands, including Volvo, Lexus, Nissan, Audi, Mercedes-Benz, Ford and Renault, are performing tests with prototypes. The first self-driving cars won’t be available until 2020, but these will have a major impact; it is anticipated that the reduced frequency of accidents could ultimately reduce claims by 65 to 90 percent.
7. Sharing is here to stay
The ‘sharing economy’ has become part of our society. Increasingly cars, houses or equipment for example are loaned to strangers. Although this ends well in most cases, there is always a risk that the items on loan get damaged. For that reason, we see increasing numbers of startups that focus on insuring loaned items. For example, Cuvva based in Britain already offers car insurance by the hour.
8. Extreme customer focus
The aforementioned trends will result in increased collaboration between insured parties and insurers to prevent loss, but should loss occur, insurers will increasingly be committed to restoring value promptly and smoothly; the insured party will decide how to submit claims; there will be immediate clarity and compensation in kind will be organised. There will be a close interrelationship between man and technology. Smart integrated platforms for claims management and chatbots which deal with simple matters efficiently will create time for human contact with customers and for the empathy that is required.
Would you like to know more? These trends are based on the ‘Visie door Data’ (Vision through Data) reports by CED and the Baken Adviesgroep: Moving forward in Mobility and Moving forward in Property. These reports are presently only available in the Dutch language.