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Actions matter: insurance professionals speak with AM BestTV about how customer behavior drives coverage, pricing, even insurance marketing.

"Immediately [the Streetwise I Drivers Club telematics app] will start telling you how you're driving. Are you hard-braking? Are you speeding? Are you cornering too fast? ... [It will] tell you, 'Good driver. You're doing great.' For your good driving, it gives you rewards you can immediately start using to shop with great discounts on things like Kate Spade, restaurant certificates, sweepstakes and auctions. The reward piece is unique, and it is app-based.

"It also can provide you discounts from multiple carriers. As an agency that represents multiple carriers, our app will allow you to take your driving data and say, 'Well, Carrier A will give me a 10% discount, but maybe Carrier B will give me a 15% discount, rewarding me on my driving behavior.'"

Rob Slingerland

CEO and President

Answer Financial

"It's this new source of data I that's different than the structured, managed data that we've seen in the past ....

"You'll start to see smart home, smart office data. You'll start to see wearable data. We'll be collecting that for years, and trying to correlate it back to claims, but we'll also be using it to decide what kind of risky behaviors are these people engaging in.

"Maybe on a more macro level, we'll be able to use the data. [For example], here's a construction site, and everybody's wearing a device that helps manage and track the risk there. We're also looking at social media data. A lot of the companies that are selling predictive analytics are also helping insurers leverage this world of growing data."

Jeff Goldberg

Senior Vice President of Research and Consulting


"Probably the number one behavioral issue that's causing [a rise in frequency of car accidents] is distracted driving. We are currently engaged with regulators and legislators all across the country, trying to let them know this is going on....

"There will be some states that need tighter laws on distracted driving, no hand-held telecommunications devices and such. Other states are going to need to build up their enforcements.

"I go to many places where it's illegal to talk on the telephone while you're in the car, and there's the guy going 35 down the interstate while we're all zipping by at 70.There's a big gap in enforcement in that. We think that there's a lot of progress we can make in that area."

Joe Woods

Vice President, State Government Relations


"This is not happening yet but can be imagined in the near future, where we see new companies that are completely outside of the insurance business and not traditionally interested in the insurance business but very much able to use big data, which, because they have so much knowledge on specific sets of data, could potentially break into the insurance world and disrupt it in different ways.

"Companies like Google, Apple or Uber--they start having so much data on specific behaviors that potentially could estimate the risk associated with these behaviors in a way that is very sophisticated even for insurance companies."

Riccardo Baron

Vice President

Swiss Re

"What we're now doing is looking at how policyholders' behavior changes during the lifetime of a policy. How can we make things relevant to them through the lifetime of the policy?

"The industry is waking up to the fact that the consumer wants to have a better experience. They want to get more back from the relationship they've got with the insurer, rather than just being underwritten, given a policy and then waiting to the day when a claim has to be made."

Neil Sprackling

Managing Director

Swiss Re

"We're using technology in our modeling, in our rate output, but also in distribution and the disintermediation of the market and loss control, which is quite exciting. That's going to help the industry and also in terms of the risk that we are covering.

"The brick and mortar business is much different today in terms of technology, how people are consuming, the changing behavior of consumers."

Liz Kramer

P/C Treaty Strategy Manager

Gen Re

"Digitization has the impact of changing the social behaviors of the buyer. It has the potential impact of changing the speed at which people want answers. All of that is relevant. It impacts big data, the ability to accumulate information and to respond to that data.

"In all cases, digitization will have an impact on the industry.

"Now, all threats are also opportunities. As far as I'm concerned, the forward-looking company should take threats like digitization and have them work to their advantage."

Tony Kuczinski

President and CEO

Munich Reinsurance America

"Probably the single biggest thing that all insurers, and in particular mutuals, are thinking about: Are our consumers and customers changing the way they think about how they want to buy insurance? Do they still want to buy from the local company? Do they still want the one-on-one personal service?

"Or are they going to be open for the more data-driven, digitalized experience where they're buying insurance on a smartphone or they're buying it from their computer terminal or their PC at home.

"We're hearing about that change and that trend. We haven't really seen it demonstrate itself yet, but being ready and understanding what the insurance company of the future looks like, whether it be a mutual or another type of insurance company, is really what they're thinking about."

John Taylor

President and CEO

Ontario Mutual Insurance Association

"Programmatic advertising or behavioral advertising, also called behavioral targeting, enables you to target specific individuals based on the actions they take in their everyday browsing. This is something that's been around for years on the retail side. If you buy shoes, you'll probably see those shoes following you as you're browsing.

"The same thing [is happening] on the insurance side. If somebody is looking for insurance for golf and country clubs, our client ad banners will start appearing based on the visits. The actions they take allow us to identify if they are a club executive or a specific type of buyer. Then we can hit them with the messages through the ad banners, as well as once they come to our landing pages on our clients' websites.

"It's the next step in the insurance marketing phase."

Richard Look



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Title Annotation:A Global Conversation
Publication:Best's Review
Date:Feb 1, 2017
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