Social media is seen as a risk management obstacle Focus is on the - PowerPoint PPT Presentation

 Social media is seen as a risk management obstacle  Focus is on the risk of being ON social media  This ignores the risk of NOT being on social media  “Failure to embrace digital exposes the industry to considerable risk”  Changing ways of doing business, changing conversations and changing demographics.

 Gartner & ACORD:  Most P&C and life insurers “underestimate the disruption coming from future industry conditions and are not prepared to respond to new threats.”  “Insurers overestimate the reliance that consumers have on agents, brokers and traditional channels, not realising the potential threat that new competitors represent and the power of these consumer-friendly and recognised brands.”  Insurers continue to focus on local competitors

 McKinsey Institute  “Some tech and tech-enabled firms destroy more value for incumbents than they create for themselves, and many gains are competed away in the form of consumer surplus.”  “Incumbent industry leaders cannot focus simply on defending their current market niche. Firms with vision, optimism, and agility can realize enormous opportunities—if they are willing to disrupt their own operations before some new challenger does it for them.”  So, has there been any change?

 Friendsurance  Connecting via social to pool small claims  Receive 50% premiums back  PeerCover  P2P insurance  Everyone is insurer and insured  Oscar  Health insurance provider, not just insurer  Gen Y focus, customer focus  Bought By Many  Niche insurance groups, finding each other online

 Your first premium is calculated via traditional criteria  Pool your premium in an online group (public or private)  Group pays claims and leftover money remains in the pool  Safer the drivers in a group, the more likely you are to get a discount on your renewal  More people in the group the bigger your protection and the more the claim cost is spread  Transparency is key

 Covers the “excess” gap  Customers pool a third of their excess & get back up to 3x with group approval  PeerCover charges a small fee if the claim is paid out  Fairer outcomes, less strict definitions and T&Cs  Niche insurance areas work well – if the group – not the insurer – believes it’s valid then it will be paid

 French peer-to-peer insurance service  Users “mutualise” their deductible, with a chosen group  Customise how much contributed mutually for each person  Don’t need to do anything to existing policies  InsPeer keeps a small percentage of the claim paid by the insurer  Customers can increase their deductible with existing insurer and reduce premiums

 “Save up to 75% with Inspool – a car insurance that unites and rewards polite drivers”  Pick the people in your pool (e.g. no hooligans)  Get premiums back if you don’t claim  Focus on making insurance not only fair, but actively not unfair  “95% of people end up paying for the 5% of hooligans”  Don’t pay for:  False claims, profit margins, overheads, commissions, bad drivers

Jointly  “Car insurance reinvented” Gaggel  “A better way to insure your phone”  Gaggel with friends and family for refunds or reduced premiums Hudddle  “Sharing the cost of insurance” - get up to 50% back each year Common Easy  Netherlands, niche social groups Kroodle  Telematics - KroodleScore determines your premium – social bonus Google  Already in the aggregator space, but with a secret play into auto?  Changing customer expectations

 A new kind of insurance  “no more paying for nothing”  “no more middle-men”  “there’s no need for insurance companies anymore”  “unlike oldschool insurance”  “insurance just got better”  “changing the way insurance works”  “the future of insurance”  “Insurance for modern society”

 Transparency  “complete transparency”  “your renewal never jumps without warning”  “a fairer system for everyone”  “we show you exactly where your money has gone and what it’s been used for”  “no nasty surprises come renewal time”  “It’s all in your hands”

 Money  “unlike traditional insurance, your money doesn’t go into our bank account”  “only pay for your insurance. NOTHING ELSE.”  “if your PeerGroup doesn’t claim, then you get all your money back”  “service is completely free if there are no claims”  “saving customers time and money that can be spent on the finer side of life”  “you don’t have to pay for fraudsters”  “You don’t have to pay for someone’s fancy office”  “You don’t have to pay for someone’s Christmas Party”

 Fun  illustrations, cartoons, real people, no stock-photos  Colourful  lots of primary & tertiary colours, bold, non-corporate  Amusing  retro and vintage, cute, humourous & tongue-in-cheek  Current web design elements  simple, scrollable, mobile friendly, gifs, video  Not insurance-y

 Play to your advantage  Knowledge  Position  Reputation  Focus on customers  Customer empowerment is here  Industry is “out of step with consumer wants and needs”  Customers want companies to be:  timely, transparent, bold, humble and trustworthy  Mean it, don’t just tick a box

 If insurers want to retain customers and acquire new ones, there is no choice but to adapt  Change the internal conversation, the culture, ask the hard questions, invest the time and money  Embrace the opportunity  Remember, innovation isn’t about technology  Not if, but when.

Dr AMY GIBBS @ANZIIF @AmyGibbsPhD