The Modern Mobility Product
Creating relevant insurance products for the changing mobility landscape has never been so challenging. Telematics has not yet reached its full potential, and the insurance industry finds itself already grappling with challenges linked to advanced driving assistance systems (ADAS), electric vehicles and shared mobility. If this wasn’t enough, a pandemic swings through, changing — at least in the short-term — consumer habits and preferences. Has there ever been a better time to rethink motor and mobility insurance products?
Riccardo Ricci, who leads Swiss Re’s Mobility & Fleet solution has found that the trends shaping the automotive industry need to be looked at holistically to be turned into a sustainable competitive advantage, and players ignoring them will likely fall behind. Let’s see a few examples.
Connected Cars, Engaged Customers
According to the observations on the portfolio powered by Swiss Re’s Coloride telematics solution, there is strong value in creating digital and fair products for customers. However, the experience matured across more than 25 countries worldwide is astonishingly unanimous: usage-based products need to be enhanced with value-added services to attract consumers and keep them engaged.
Data generated through connected vehicles must be leveraged across the insurance value chain, from underwriting and risk selection, to customer engagement and claims management. Long-standing insurance expertise is key to translate data into actionable insights to promote growth and improved portfolio performance.
Automation Drives Significant Product Changes
On the path to full automation, vehicles equipped with ADAS systems are not rare on our roads any more. Staying ahead of the curve means being able to distinguish in advance which features are more impactful on insurance risk, with forward looking models. Waiting for claims experience to indicate the way may be too late, and from the implementation of the Swiss Re ADAS risk score we learned that even sophisticated insurers may improve the predictive quality of their risk models by more than 20%.
Electrification: A Strong Impact on Insurance
Are electric vehicles truly different to those powered by combustion engines? Collecting data and experience is the only way to understand the challenges and the opportunities of this space. Leveraging more than 3 million connected electric vehicles and in partnership with OEMs, companies need to understand the need to create new customer journeys and insurance products, tailored to the owners of electric cars.
Shared Mobility Requires New Approaches
New mobility models are shifting the nature of insurance products and their distribution. Simple, usage-based, on-demand offerings need to be created, enabled by technology and underpinned by solid primary insurance know-how. The shared mobility projects currently supported by Swiss Re show that, given the multi-country nature of the shared mobility business models, partnering with large yet nimble players is key to achieving the right trade-off between localization and ease of doing business.
Now is the time to take strong steps forward in navigating the future of motor insurance with insurance clients and key industry partners, supporting them with advanced solutions. An ongoing journey, but one in which we are well equipped to understand the technological and consumer dynamics that make this such an exciting market and opportunity
About Swiss Re
The Swiss Re Group is a leading wholesale provider of reinsurance, insurance and other insurance-based forms of risk transfer. Dealing direct and working through brokers, its global client base consists of insurance companies, mid-to-large-sized corporations and public sector clients.
Riccardo Ricci
Lead Mobility & Fleet Solutions at Swiss Re
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