Innovation is not the first word that often comes to mind when we think of the insurance industry. In particular motor insurance is considered, for many people, a necessity that they would rather do without if they could.
But consumer car ownership and usage habits are forcing a change to the model and a typically slow-to-move sector is being forced into fast action. For insurer organisations, partnerships with the right technology and distribution partners are the key to staying ahead of the trends. Victoria Price, Allianz UK’s Director of Broker Proposition, joined Wrisk’s Christen Smith on stage at BIBA to discuss how strong partnerships can be the winning formula fueling innovation, better customer outcome and profitable growth.
“The landscape within the motor insurance sector is undergoing a fundamental shift as we see flexibility become the number one priority for consumers. The way they approach their automotive experience is totally different to even just 10 years ago, and with that the insurance journey has to change to keep up. Short-term insurance propositions are really taking off and it isn’t just younger people who are looking for flexible motor insurance. Those living in cities need more options for example, as parking is at a premium, as well as those are both environmental and cost conscious. Owning a car part-time or just on occasion is very much a choice now.”
As one of the biggest general insurers in the world, Allianz has large data pools from across the world, from which it can spot trends in some markets that could eventually spread across all markets. The internal consensus is that the trends are showing the motor insurance sector is undergoing a significant evolution right now.
Victoria notes: “We are seeing some very interesting dynamics in the mobility sector; consumer technology is having an impact in a way that no one really saw coming. E-scooters and bikes have created a trend for very short-term insurance needs and that has filtered into car insurance. This is presenting a difficult distribution problem, alongside challenging, untested risk.”
Victoria and Christen agreed that this is where partnerships start to come into their own. And it isn’t just the insurers benefiting from these partnerships - brokers, MGAs and technology providers can push the envelope with new solutions whilst benefiting from the guidance of the insurers who have the history and experience of navigating emerging trends and risks in the past.
Christen added: “As the old saying goes, two-heads are better than one. Bringing together the expertise and experience of complementary organisations can lead to the development of a proposition that a single company wouldn’t be able to bring to market.”
This is certainly the case for Allianz and Wrisk who initially started working together after Wrisk brought to market the first subscription based car insurance product in the UK. The familiar buying model - akin to the ‘netflix experience’ was a hit with consumers and Allianz saw the potential.
“Insurance is one of those products that is never going to change overnight. That gives the sector an advantage in that we get to see what is working elsewhere, on a global scale. We then get to learn lessons and create something that will meet the needs of the end-customer in our environment. It can lead to a win-win situation.” explains Victoria.
She added: “The overarching trend in many consumer sectors is tech and digitisation - and that is hitting insurance hard. Convenient insurance - seamless and embedded purchase journeys, as well as easy to self-serve policy management - is the direction of travel. Our customers are demanding automation - they don’t necessarily want to talk to anyone. This is a very different model and hard for us to get our heads around as insurance is fundamentally a people business. Partnering with businesses like Wrisk, who are on the pulse when it comes to technology, helps us to move towards a digital-first approach while maintaining our customer service values.”
It's a sentiment that Christen echoed: “Partnership is vital to the future of the sector; insurance organisations have a core business to focus on and typically aren’t set up to create whole new platforms. While technology businesses have vision and digital prowess, they lack scale and impact when they are starting out. Working together is pretty much the only solution to delivering future-fit propositions that are scalable for growth.”
Victoria agreed: “Wrisk and Allianz have such a strong partnership because we are both building to be ready for whatever comes. If the market shifts, we will be there to meet the new challenge as it happens. It takes some courage to make bets on what might be down the road. It takes vision to imagine tomorrow’s innovation and be close to right. And it takes trust that your partner can deliver it, efficiently and effectively. Those are the key elements to a great partnership. If you can bring those elements together everyone benefits.”
A strategic platform partner helps you build a future-fit foundation and empowers you to achieve your strategic goals.
- Unlock new revenue streams with flexible and embedded solutions
- Drive operational efficiencies with automation and streamlined process
- Deliver exceptional digital experiences to your customers
- Gain deep data insights to inform strategic decision making