Insuring a Slice of the On-Demand Economy Risk
From the moment they “tap the app on” to the moment they “tap the app off” Uber and Lyft drivers generate a fusion of personal and commercial automobile insurable exposures. Recognizing the Blue Ocean market opportunity to provide hybrid personal and commercial automobile insurance, Slice Labs, Inc. (Slice) is emerging in the insurance marketplace as an intermediary to offer Uber and Lyft drivers the insurance they need to purchase to protect themselves, their personal vehicles being used as ride- share vehicles, and their passengers.
NetVU2016: Emergent Coherence of Vertafore’s Tactical Initiatives
Vertafore executives briefed insurance industry analysts and press about their 2015/2016 tactical initiatives – product management approach, geographic expansion into Canada, partnerships and acquisitions, and infrastructure enhancements – at the NetVU 2016 event held March 3 – 5, 2016 in San Antonio, Texas. Market Insight Group attended the event and feels that there is an emergent coherence of Vertafore’s tactical initiatives that we haven’t previously felt in past years.
In this QuickNote report, we discuss Vertafore’s 2015/2016 tactical initiatives and our concomitant opinions.
The Future Isn’t What It Used to Be
This article is based on an initiative that I was part of when I worked in the actuarial department at John Hancock in the late 1960s to forecast the future life insurance marketplace.
Many years later, while I was a senior consultant in the financial services practice of Arthur D. Little, I wrote this article based on the lessons we learned from the John Hancock project for Best’s Review. A.M. Best’s published it in February 1991 in Volume 91 No. 10 of the Best’s Review Life/Health Insurance Edition.
I thought the lessons discussed in the article, including understanding the shortcomings of “trying to predict a future insurance market” and the issues that insurers need to consider – aging population, required products, bundling versus unbundling of life insurance products and services, customer and agent service considerations, customer and market segmentation, and changing mix of distribution channels, continue to have relevance for the 21st century insurance industry.
I received permission from Best’s Review to post this article on my company web site. Per A.M. Best’s requirements, I have not changed a single word or punctuation.
Google: Insurance Industry Catalyst For Change?
Google launched its Google Compare aggregator service in the US on March 5, 2015. The service enables automobile insurance customers to compare rates from a small (but growing?) number of insurance companies to purchase automobile insurance in a small (but growing?) number of states. Since the launch, several related insurance events have occurred. Naturally, there were the predictable doomsday predictions that the insurance industry will shortly end as we know it. (No, it won’t.) There was also the predictable gnashing of teeth and loud wailing by insurers and insurance agents. Even though we don’t believe Doomsday is approaching (at all), the insurance industry must factor in the implications of Google Compare’s emergence in the insurance value chain as a collector of vast amounts of insurance business acquisition and declination data.
Rise of Insurance Mobility Weavers
Mobility is becoming life’s platform writ large: society’s go-to environment for commerce, work, and entertainment. A set of technology vendors has been emerging with mobility solutions to enable insurers to conduct business on life’s platform. Market Insight Group calls these technology vendors “mobility weavers” because they weave digital artifacts together, including apps, data, insurance business functions, and native capabilities of a device, into a mobile solution. As mobility continues its quest to become truly ubiquitous, insurers will simultaneously face the imperative of using mobility solutions to conduct commerce and provide service.
Vertafore’s Partnership Announcements at NetVU 2015 – First Impressions & Opinions
Vertafore executives took an opportunity at the NetVU 2015 Conference to brief industry analysts and the press about a portfolio of new partnerships the firm has created with Birst, Microsoft Surface, and Mitek. Market Insight Group believes that Vertafore is taking the correct actions to broaden the manner in which the firm goes-to- market. However, we don’t think that Microsoft or Birst will fulfill their objectives with producers or carriers, respectively, for reasons we discuss in the report.
Guidewire: A Snapshot
Guidewire entered the marketplace as a pure-play P&C insurance systems of record technology vendor in 2001. Within the past few years, the company has extended its strategy to include data, analytic, and mobile capabilities.
We believe this growing portfolio of data-driven, analytic, and mobile solutions is a logical extension of Guidewire’s initial strategic intent. Guidewire is striving to put the company in position to better support insurers’ seemingly eternal, and still unfulfilled, quest to become customer-centric.
An Insurance Customer-Facing Value Chain: A Modest Suggestion
Every business, regardless of industry, only has two processes: getting customers and keeping customers. Every other process a company uses must support one or both of these two processes. Insurers, and the technology vendors that (want to) support insurers, should accept that reality by managing the insurance value chain entirely as a set of customer-facing activities. The insurance customer-facing value chain consists of two interdependent systems: systems of engagement (SoE) and systems of record (SoR).
Pitney Bowes: Going-to-market with a new strategy to support insurance digital commerce and communication
In April 2014, at the Pitney Bowes Analyst Event, Pitney Bowes (PB) discussed the initiatives the $4 billion (revenues) company is undertaking to write the next chapter of the corporation’s 93-year history. PB executives decided that to be competitive for another century, they should honor the company’s heritage but transform the company’s strategy. They did this by expanding the Go-To-Market (GTM) solution portfolio to support digital commerce and communication.
Oracle and Salesforce Strengthen Their Commitment to Industries
Oracle and Salesforce, two technology firms known worldwide for creating solutions on a “horizontal” basis have decided to strengthen their portfolio to support specific verticals. Each of the technology firms chose the insurance industry as one of the selected verticals.