December 3, 2019

Examples of insurance collaboration and much more

Examples of insurance collaboration continue to hit the headlines, with multiple initiatives coming to market over the last few weeks. Increasingly, insurance companies understand the opportunities offered to them by insurtech innovation. These examples are proof that both sides recognise they are stronger working together than competing. Other news includes multiple mergers and acquisitions, a new MGA and insurance technology insights. As ever, we also have a look at what is new in the world of regulation.

Insurance topics in the spotlight last month

Examples of insurance collaboration

  • Axa XL Risk Management Solutions: Axa XL have recently revealed their Risk Innovation Incubator, Cube. The initiative supports clients who want to test innovative ideas to improve their risk profile.
  • Direct Line partnership: Direct Line Group partners with car subscription service Drover. Under this partnership, Drover will benefit from the insurance experience of Direct Line. In like manner, the Insurer is reportedly “thrilled to be part of this unique customer proposition”
  • Allianz and Microsoft: The article Allianz is partnering with Microsoft to drive insurance industry innovation explains that the partnership is a bid to “digitally transform the insurance industry”. Through the partnership, Allianz will move core pieces of its global insurance platform, Allianz Business System, to Microsoft’s Azure cloud. They then plan to open-source parts of its core to improve and expand capabilities.
  • Allianz forms a new partnership with Dinghy:  And Allianz again, this time working with start-up insurtech Dinghy that provides insurance to the freelance work force. Speaking about this collaboration, Nick Hobbs the Director of Broker Markets at Allianz said “With insure-as-you-work solutions expected to become more prevalent, partnering with Dinghy represents a great opportunity for Allianz.” Further details can be found here
  • RSA Ireland partners with BAE Systems: RSA Ireland has adopted the BAE Systems NetReveal counter-fraud technology. Read more detail
  • Halifax Home Insurance works with Trov: Trov have launched a renters programme with Lloyds Banking Group. The Lloyds Group are also using Trov’s back office suite. Jeremy Ward, Head of Home Insurance for Lloyds Banking Group said “Working with Trov, we’re taking the hassle out of home insurance for renters, giving them peace of mind that their belongings are covered should the worst happen.”

Mergers & Acquisitions

Insurer News

  • HSBC launch Select and Cover: HSBC created a big industry buzz as they launched an insurance by subscription Reginald Warlop, their Global Head of Wealth and Insurance, said this product is in direct response to increased demand for flexibility and personalisation.
  • Fitch ratings for 2020: Revised Fitch Ratings for 2020 were reported this month. The revised ratings include a more positive view for the London Markets and a revision for UK non-life insurance to negative. This contrast reflects high claims inflation and a weak pricing landscape for both home and motor insurance.
  • Scheme Serve Annual Schemes Premium Index: This new index reveals some interesting market statistics, including the three most profitable schemes for insurance brokers. These are excess of loss; employers liability and public Liability.

Claims

  • Social Media catches fraudster: As a Strava user, the story Another fraudulent claim foiled by Social Media made me smile. Basically, the claimant asserted pain and suffering was affecting his ability to run and cycle…but at the same time Facebook and Strava posts were documenting all his cycling activity.

Managing General Agents:

Technologies in focus

Automated cars

  • What do motorists think of driverless cars? British drivers are very sceptical about driverless cars according to research from Compare the Market. In fact the article, Motorists snub driverless cars reports that 80% of people surveyed are worried about the safety aspects.
  • Self-Driving Trials: British drivers may be sceptical, nevertheless UK’s most advanced self-driving vehicle trials gets underway. The project is led by Five AI in partnership with Insurer Direct Line Group and UKs Transport Research Laboratory.

Blockchain

  • Axa culls blockchain based insurance product: Headline Axa drops Ethereum-based flight insurance platform alerted the market to the fact that Axa’s two year experiment with Fizzy, the flight delay product, has ended. Axa reportedly said Fizzy failed to meet commercial targets.

Insurtech

  • Zego awarded an insurance licence: The London based company Zego is the first Insurtech to be granted an insurance licence. Commenting in the article Insurance licence granted to Zego, Sten Saar, the Zego Chief Executive said “The licence is also an essential ingredient in our mission to transform the insurance sector, by creating flexible policies which better reflect risk and truly cater to the fast-evolving world of mobility.”
  • Cuvva gears up for expansion: Cuvva raises £15 million  in a funding round that has ‘exceeded expectations’. Cuvva are a pay-as-you-drive insurance specialist. They now plan to target the long- term market with a pay-monthly product as a result of this investment.

Regulation

Financial Conduct Authority (FCA) Regulation Round Up

  • Finalised guidance for insurance product manufacturers and distributors: This finalised guidance document clarifies the FCA expectations for design and distribution of insurance products.

Other Regulation information

  • New guidance from the Information Commissioners Office (ICO): This fresh guidance has been released by the ICO on the usage of special category personal data. Special category data includes information on genetic and biometric identification.