Skip directly to search

Skip directly to content

 

Insurance Industry Trends from DIA Prime Time

 
 

Next Gen Insights | Robert Anderson |
15 December 2020

INTRODUCTION

What are the latest technology trends in the world of insurance? This is exactly what DIA Prime Time was designed to answer. The Digital Insurance Agenda (DIA) conference went online this year, being rebranded as DIA Prime Time to reflect this approach, and it offered four hours of informative content daily for five days. 

HIGHLIGHTS

There were many things that struck me about the conference this year. Let’s take a look at just three of the highlights.

Mixing InsurTechs and established players

One of the most impressive things was the great representation, not only of InsurTechs but also of established players. You had the likes of GeoX, CyberCube, and Snapview mixing with Hiscox, Generali, and Allianz. This shows that there are not only new companies trying to shake things up in the insurance industry, but that the big names are willing to experiment as well. 

As has been said by many experts in the past decade, the insurance industry is going through a marked time of transition and transformation. If you don’t keep up with the pace of change, you will likely become obsolete. DIA Prime Time has shown that some insurance companies have listened to the cautionary tales of the likes of Kodak, who aren’t afraid to cannibalise existing products in order to launch new ones. If ever there was an exciting time to be in insurance, it is now. 

Mixing technology and people

There is an increasing emphasis on using customer experience as a differentiator between insurance providers. This includes thinking about how we can use technology to, somewhat ironically, provide a more human touch. 

There are horror stories of companies that got this wrong in the past. For example, the story of Ciaran O'Neill and his family getting stranded for two days in the middle of winter because their car recovery service only included repatriation of their car, but not of the family. My own experience of a car recovery service has likewise been dismal. The one time I had to use it, I was stranded on the side of the road for over eight hours while my car recovery service kept sending me automated texts every hour saying that they were coming imminently. In March of this year, Ei Group, the UK’s largest owner of pubs, found that, while their insurance covered notifiable diseases, they weren’t covered for Covid-19 because the policy didn’t explicitly mention Covid-19 by name. 

People don’t want to be caught out by the fine print. They want to know that they are valued and to receive the service that they are paying for. InsurTechs are using technology to try to balance things back in the customer’s favour. One of the highlights of DIA Prime Time was the session on the importance of empathy for the insurance industry. It’s interesting, though, that we are only now focusing on something that should have been fundamental all along. 

Mixing theory and product demonstrations

The final highlight of DIA Prime Time that I’ll mention is the mix between theory and product demonstrations. It’s one thing to say that you know how to do something, but it’s another to show it. DIA Prime Time had a nice balance between theory and product demos and therefore was informative on both the intellectual and the practical level. It was great to not only hear about so many new products and services but also to see how they could be applied to real-world use cases. 

TRENDS

The following trends became apparent during the five days of the conference. 

Embedded insurance

People don’t like to buy insurance; instead, they see it as a “necessary evil”. The more we can hide insurance from the end consumer, the easier it will be to sell it. This is not a new idea, though. For example, look at a car manufacturer’s warranty, which is just a specific type of car breakdown insurance in a different guise. If something breaks in the first three to five years, they agree to fix your car “free of charge”. 

However, as we all know, nothing in life is free. The warranty cost is actually priced into the total cost of the car. Embedded insurance is taking this concept and applying it to other use cases. Wakam and Penni.io were just two of the InsurTechs that presented how their products can help embed insurance. 

Data augmentation

In this information age, data is everything. The theory is that the more data you have, the more competitive you can be. However, this theory needs to be refined: the more insights you can derive from your data, the more competitive you can be. It’s not about providing more data; it’s about augmenting the data that you have in an intelligible way. 

GeoX is one InsurTech that stood out here. They take aerial imagery and, using AI, render three-dimensional models of an area. Thus, they know how tall a building is and whether there are any hazards nearby, such as tall trees or a river that’s likely to flood. This gives property insurance companies actionable intelligence that they can use to refine their rating models.

Artificial Intelligence / Machine Learning

Artificial Intelligence (AI) and Machine Learning (ML) have been touted for a while now as the next big thing in insurance, but they really started to gain traction in recent years. AI/ML is all about identifying normal trends and building use cases for outliers. 

For example, LocalTapiola uses AI to identify water usage patterns in partnership with Grohe. When an outlier happens, such as a burst water pipe, AI can immediately flag it and thereby greatly reduce the amount of water damage. This is especially important for church buildings, which often remain unoccupied for a majority of the week. 

There are other areas where InsurTechs are using AI/ML, such as:

  • Blancco for fraud reduction
  • CyberCube and F-Secure for internet security
  • Kasko2go, Vesttoo, and A4E for rating and underwriting support
  • CamCom for remote inspection for instant claims settlement

The message is clear: we can use AI/ML to do things faster, cheaper, and better than when solely relying on manual effort.

Insurance in a box

Insurance platforms have been around for a while, but they remained rather traditional. Granted, some of them have recently added a ‘digital’ front end or moved to the cloud. But without the required changes to the underlying architecture and infrastructure in order to make these services truly digital, such cosmetic changes amount to little more than smoke and mirrors. 

However, there are InsurTechs that offer truly digital insurance platforms, like CCS, INSTANDA, and ELEMENT. They can scale on demand, offer the user interface and experience expected by today’s customers, and provide the customisation required by insurance companies to differentiate themselves from their competitors. These digital platforms free insurance companies from having to maintain legacy IT platforms and enable them to focus on what truly matters, which is to provide a great customer experience for the two key touchpoints: policy onboarding and claims management.

CONCLUSION

We have seen more insurance companies wanting to adopt a digital agenda recently, and attending conferences like this one is a way to keep abreast in a rapidly changing landscape. While all the trends highlighted here can help businesses, the best way to have an immediate positive impact on your customers is by improving the user engagement and experience. Leveraging the potential of data augmentation and AI/ML could be very valuable here. 

DIA Prime Time was a rather informative and at times entertaining conference. Conditions permitting, DIA will move to Munich next year and will coincidentally be held during Oktoberfest. I already have my beer stein out in anticipation of it – the conference, not Oktoberfest. I hope to see you there. 

Robert Anderson

Principal Architect

Robert is an enterprise architect with 20+ years of IT experience and Endava’s principal architect for the insurance industry. His focus is on emerging IT trends, specifically those supporting customer experience, and ensuring that business objectives are met through strategic architecture. Robert has a proven track record of driving change through the adoption of best practices and industry standards. In his spare time, he is a photographer and has had his photos published in magazines, newspapers and photography sites around the world.

 

Related Articles

  • 17 December 2019

    Demystifying omnichannel and making it a reality

  • 07 May 2019

    Failure to launch - Why contactless in the US is behind the rest of the world

  • 08 April 2019

    Get Emotional - How Feelings Dominate Decision Making

  • 04 February 2019

    Can a business thrive in the age of continuous innovation?

  • 07 January 2019

    Delivering Business Value at Speed: A Recipe in Three Steps

 

From This Author

  • 12 January 2022

    Buy or Build? A Game-Changing Question in Insurance

  • 09 March 2021

    Insurance Insights: Cloud Migration

Most Popular Articles

Are Phones About to Become the New POS Terminals?
 

Payments | Septimiu Mitu | 12 May 2022

Are Phones About to Become the New POS Terminals?

Current Challenges in the Transportation & Logistics Industry
 

Transportation & Logistics Insights | Brian Estep | 22 March 2022

Current Challenges in the Transportation & Logistics Industry

4 Buy Now Pay Later Trends Set to Disrupt the Industry
 

Payments | Annmarie Mahabir | 22 February 2022

4 Buy Now Pay Later Trends Set to Disrupt the Industry

Buy Now Pay Later: Will Regulation Burst the Bubble?
 

Payments | Annmarie Mahabir | 01 February 2022

Buy Now Pay Later: Will Regulation Burst the Bubble?

How to Create a Company Culture that Encourages and Withstands Failure
 

Innovation | Teodora Chetan | 14 January 2020

How to Create a Company Culture that Encourages and Withstands Failure

The Digital Economy is an Upgrade of Smart Cities and Communities
 

Innovation | Andrej Kotar | 10 May 2022

The Digital Economy is an Upgrade of Smart Cities and Communities

The Metaverse Evolution and Learning from the Games Industry
 

Next Gen Insights | Thomas Bedenk | 30 March 2022

The Metaverse Evolution and Learning from the Games Industry

Remote Working: The Good, the Bad and the Ugly
 

Next Gen Insights | Teodora Chetan | 02 September 2020

Remote Working: The Good, the Bad and the Ugly

Insurance Insights: Intelligent Underwriting Workbench
 

Insurance Insights | Gareth Miller | 30 March 2021

Insurance Insights: Intelligent Underwriting Workbench

 

Archive

  • 17 May 2022

    Advantages of a Yard Management System

  • 12 May 2022

    Are Phones About to Become the New POS Terminals?

  • 10 May 2022

    The Digital Economy is an Upgrade of Smart Cities and Communities

  • 05 May 2022

    hello! I’m Sumita Davé

  • 03 May 2022

    Physical Automation in the T&L Industry

  • 28 April 2022

    zdravo! I’m Andrej Kotar

  • 26 April 2022

    Open Banking in the US

  • 20 April 2022

    hello! I’m Paul Maguire

  • 19 April 2022

    Digital Automation in the T&L Industry

  • 12 April 2022

    How Do Banks Embrace Embedded Finance – Have the Fintechs Already Won?

  • 06 April 2022

    ESG Data Architecture is a Business Imperative – How to Get Started

  • 05 April 2022

    hi! I am Roy Murphy

  • 05 April 2022

    Modernizing the Shipping and Cargo Process

  • 30 March 2022

    The Metaverse Evolution and Learning from the Games Industry

  • 29 March 2022

    Do Androids Dream of Trading Electric Sheep for Digital Wood? An Introduction to Automated Game Design

  • 23 March 2022

    Real-Time Payments in Australia – Why Corporates Should Get on Board

  • 22 March 2022

    Current Challenges in the Transportation & Logistics Industry

  • 16 March 2022

    bok! I’m Sanja Cvetkovic

  • 15 March 2022

    Rapidly Transforming: Healthtech Trends in 2022

  • 08 March 2022

    How to Digitize Warehouses and Distribution Centers

  • 01 March 2022

    Top Challenges in Warehouse and Distribution Centers

  • 28 February 2022

    Tackling CIB Legacy at its Core

  • 23 February 2022

    salut! I am Isabela Buhai

  • 22 February 2022

    4 Buy Now Pay Later Trends Set to Disrupt the Industry

  • 15 February 2022

    salut! I’m Natalia Ciobanu

  • 14 February 2022

    Product-Led Innovation – a Q&A with Joe Dunleavy

  • 01 February 2022

    Buy Now Pay Later: Will Regulation Burst the Bubble?

  • 31 January 2022

    Innovation Will Spur Ireland’s Race to the Top

  • 28 January 2022

    The Value of Digital and Automation in the Product Returns Process

  • 26 January 2022

    Virtually Disrupted? Keeping Pace with Accelerating Customer Expectations

  • 19 January 2022

    The 3 Big Ps in Modern Insurance: Personalisation, Prediction and Prevention

  • 18 January 2022

    An Introduction to Mobility as a Service in the US

  • 12 January 2022

    Buy or Build? A Game-Changing Question in Insurance

  • 12 January 2022

    hello! I’m Paul Willoughby

  • 11 January 2022

    Payment Service Providers 2.0

  • $name

We are listening

How would you rate your experience with Endava so far?

We would appreciate talking to you about your feedback. Could you share with us your contact details?