The adoption of connected insurance paradigms enables significant benefits, both in terms of efficiency and growth. For example, market experiences and adoption cases in Auto field already show Insurers can reach benefits around -20% in MTPL claims frequency. A potential loss reduction of -40% is also expected for Connected Home insurance.
Reinforcement of risk-pricing & rating capabilities, thanks to the availability of real-time data applied on the insured entity
Enabling of customized/ behavioural tariffs (e.g. Pay-How- You-Operate)
Enabling of micro-insurance and contextual/slice offering (e.g. "on demand insurance")
Reinforcement of engagement levers of prospects through marketing Try- Before-You-Buy models.
Self-selection of less risky clients, thanks to the moral suasion carried out by monitoring devices
Attraction of digital/young customers
Opportunity of growth in sub- penetrated segments thanks to customized pricing
Fraud reduction, thanks to the real time monitoring
Loss ratio improvement, thanks to claims cost reduction (better prices thanks to data) and the claims frequency reduction (moral suasion)
Enabling broad spectrum of new value-added services, thanks to the ecosystem partners and technologies
Enhancement of retention levers for the best customers through dynamic and customized pricing
Opportunity of selective up/cross selling thanks to the deep knowledge of the customer and its context