New, technology savvy players like CareValidate are entering the insurance sector, bringing the full force of their innovative, disruptive, opportunity-laden power. This will alter the terrain on which incumbents compete, bringing changes not unlike those seen in banking, auto and home insurance to senior living liability.
The insuretch vision in senior living is not just a vision any more. CareValidate has entered into a partnership with a leading risk retention group and captive insurance company for assisted living communities. The bedrock principle for this partnership is to provide technology enabled senior living liability insurance to the insureds. Goals of the partnership include:
All insureds will be part of the SafeSense Connected Insurance platform within 2 years
Facilities will use SafeSense Quality of Care data to improve care and reduce claims
CV exchange will be used to access targeted risk management services and content
InsurTech partnership will be featured at the National Risk Retention Association
The RRG will use SafeSense dashboard to:
integrate real time Quality of Care data into underwriting
provide discounts/credits to operators based on SafeSense score
conduct Quality of Care competitions to improve resident care within insureds
create marketing materials to promote differentiation from competition
incentivize senior living brokers to promote the new digital insurance offering
We believe that the risks insurtechs like CareValidate present to traditional business models are real, as digital innovation relentlessly redefines the next-generation insurance ecosystem. Incumbents must adapt or lose market share, this much is known. In particular, they will have to address the much higher level of customer engagement that the insurtechs are attaining. Adaptation will bring benefits in many operational areas, leading to cost improvements, better capital allocation, and greater revenue generation. Insurers need to analyze the innovation landscape, compare their in-house technological capabilities with insurtech solutions, and consider their options for moving forward—from digitizing operations to acquiring or partnering with insurtechs.