Only in Asia today but shows its ambition. Tesla already has the driving data to make better pricing decisions and its cars reportedly are 40% safer than other autos with CEO Elon Musk planning on achieving 90%.
Connected autos and trucks are changing the technology stacks that deliver services and the enterprise that owns the stack will be the one to own the market. Will auto manufacturers, the software vendors or the insurance carriers own the stack? Read "Digital Transformation and Industry Stacks"
Is this the real alternative to insurance carriers and intermediaries especially as autonomous cars start to replace the human driven variety?
The strength of carriers lies in their potential to offer bundles of different kinds of insurance particularly in an ever more connected world:-
- Smart Homes
- Digital devices including phones & tablets
- And, of course, people
- On the move with phones/tablets
- Travelling by plain, train, taxi
- The elderly in retirement homes
- The elderly in care and nursing homes
Most people buy different classes of insurance from different insurers and this is the motivation for innovative insurers to offer the ideal match for each customer fine tuned by the connected data that becomes available.
To achieve that one hurdle faces them - the core systems of record in the back-office that are generally legacy.
- Costly to replace
- Definitely not customer friendly
The answer lies in the new Digital Platforms that;
- Lets the customer use their phones/tablets for an excellent customer experience
- Adding self-service to provide additional information and track the claim's progress
- With the capability to manage the complete customer journey from FNOL to claim settlement
- Links to the supply chain of body shops, service workshops, vehicle hire etc
- Delivering one single digital record for each claim for the while supply chain
- And links securely to the core systems of record so that those strengths are still utilised
That gives insurance carriers a strong defence against competitive pressures like Tesla and in other fields Lemonade and Trove to name two.
Better than that, a proactive form of attack to grow the business even as the consumer is offered new and innovative products from new kinds of insurance service provider.
We’re actually currently doing that. We’ve been doing it quietly, but in Asia in particular where we started this the majority of Tesla cars are now sold with an insurance product that is customized to Tesla that takes into account – not only the Autopilot safety features – but also the maintenance costs of the car. It’s our vision in the future that we will be able to offer a single price for the car, maintenance, and insurance in a really compelling offering for the consumer – and we’re currently doing that today.”