Ninety’s Insurance Innovation Pulse is our monthly round-up of new ideas in the global insurance industry. We cover headlining innovations, top innovation themes and innovation analysis for the month. Ninety’s Idea Pulse dashboard provides visual indicators of monthly innovation trends by business lines, regions, and Ninety’s innovation taxonomy – the Ten Types of Insurance Innovation.
The data for this report is compiled from officially announced, ready-to-market innovations reported from leading insurers, reinsurers, and brokers across the world.
Our monthly round-up concludes with a showcase of five case studies of innovations from a cross-section of business lines and innovation themes. For the most part, the case studies chosen are representative examples of commonly recurring themes of the month rather than examples that focus on novel ideas or one-of-a-kind solutions.
- In May, Ninety recorded a total of 60 new ideas and announcements from insurance businesses around the world, not counting insurtechs.
- Sustainable insurance and sustainable value chains emerged as a theme in multiple innovations this month, alongside natural catastrophe, climate change and ESG risks.
- Life and prevention are back in focus for the first time this year with the obvious driver being Covid. Mental health prevention which dominated Covid innovations last year are back.
- Personal auto or motor insurance was mostly focused on telematics and UBI products. Bike insurance, another indicator of the new normal also featured.
- Technology themes centered around Digital Distribution platforms and marketplaces, telematics, data and connected tech. Unlike previous months, there was little innovation activity related to remote inspections and satellite monitoring tech concerning natural catastrophe risk management.
The Top Innovation Themes in May
Catastrophe Risk Management
|New Risk Assessment Models &Methods||Covid-19 Related||Cybersecurity|
|IoT/Connected Technologies||Digital Customer Platforms||ESG Risks|
Claims Innovation/ Automation
Insurance Idea Pulse Dashboard: May 2021
- We recorded 60 innovations announced in May. Taken together, April and May data indicate that pace of innovations has slowed in the second quarter of 2021. May innovation was more about expansion on existing themes.
- There were also instances of sustainable insurance, value chain and green initiatives indicating a shift towards moving from strategy to action from insurers on these topics. It remains to be seen how this initial trajectory moves in terms of pace and broader industry adoption.
- The impact of the current Covid-19 wave and its fallout was evident with some announcements in personal lines invoking a sense of déjà vu from last May. Usage-based insurance, prevention health and wellness and mental health support count among these ideas. UK observed Mental Health awareness week from May 10-16 and some ideas were launched to coincide in support of this event.
- Life and health lines accounted for 25% of innovative ideas – an ascending trend for both sectors that were lagging in the first quarter. Personal P&C accounted for a third of all ideas, a number of which centered around telematics, connected tech and UBI solutions.
- The US, UK and rest of Europe accounted for 88% of new ideas and announcements in May. In rest of the world, Asia accounted for the most ideas – ranging from preventive health and wellness to designing liability insurance for AI and
What this means for you: a Ninety Partner point of view
- Life carriers mustn’t be left behind. We’ve been calling for greater innovation intensity in life for years – it’s a hard space to innovate in! The trend here is upwards, and noticeably so. The competitive heat may be increasing.
- Don’t believe that Covid-related innovation is over. As vaccine programs ramp up, there is a temptation to move back to more classical forms of innovation. The data in May proves there is much still to do in this space, e.g. in mental health, as variants emerge and lockdowns get re-tightened.
- Get into digital marketplaces and distribution innovation. Open API approaches are emerging and gaining traction.
Five Innovations That Made Headlines in May
Allianz and SYNETIQ automate green parts sourcing.
Allianz Insurance and integrated vehicle salvage and recycling company SYNETIQ have launched a digital platform that helps vehicle repairers source green parts. The platform, mygreenparts, digitalizes the supply of recycled spare parts, facilitating the purchasing process for body shops and supporting sustainable repairs. When repairers generate an estimate for a vehicle repair, their software automatically notifies SYNETIQ’s stock control system of the parts required – within rules agreed with Allianz. This enables SYNETIQ to offer all matching items from its inventory of over 200,000 green parts.
Green parts are more environmentally friendly than their newly manufactured equivalent and they cost up to 75% less. SYNETIQ, which dismantles vehicles that Allianz has written off, ensures their parts are processed responsibly, with component inspection and full traceability. Offering parts that match repair standards and insurance requirements, it is the first-to-market solution for these two sectors.
Mygreenparts allows companies to measure and report the emissions and carbon savings they achieve and also captures data to identify trends to enhance fulfillment rates. The platform is expected to increase the proportion of green parts used in vehicle repairs. SYNETIQ ensures all Category B vehicles are dismantled on-site, rather than being re-sold to third parties – a fundamental stipulation for Allianz – guaranteeing that unsafe vehicles are permanently removed from the roads, and not sold for reuse in other markets.
Per Synetiq, Mygreenparts is a major initiative in a more sustainable future for body and mechanical repairs, and a significant step towards a circular economy for the sector.
Munich Re-owned HSB launches cover for smart farm technologies.
Munich Re owned Hartford Steam Boiler (HSB) has brought to market HSB Precision Ag insurance, that Covers Farm Machinery and Electronics in the Cab. It’s protection for the latest farming risks, including coverage for stationary equipment, electronics in the cab, key farming implements, and cybersecurity threats.
The product is designed for large commercial enterprises and smaller family farms. Precision Ag provides a choice of insurance endorsements and loss prevention services designed to stack and work together without the potential gaps of some standalone farm insurance policies. It covers the physical breakdown of equipment and the failure of microcircuitry and firmware for sensors, monitors, cameras, and other electronics inside the cabs of tractors and combines.
Per HSB, Precision Ag is the first product with microelectronics protection for farm implements. In addition to equipment breakdown and cyber insurance, Precision Ag includes HSB’s Internet of Things sensor solutions to help prevent losses on farm property. HSB has also offered agribusiness risk management services by HSB specialists. The plan is offered through property-casualty insurers who partner with HSB to add coverage for their farm policyholders.
Swiss insurer Helvetia invests in car subscription service provider.
Helvetia’s VC arm Helvetia Venture Fund has invested in German car subscription solution provider FAAREN. The 2018 start-up enables stakeholders within the industry to launch a car subscription product within hours using its software solution. FAAREN enables car dealers to offer their vehicles to customers in a self-defined subscription model using a customizable white-label software. In addition, FAAREN offers its partners a marketplace for car subscriptions on its own website “www.faaren.com” to reach a wider audience of customers. As a result, car dealers can quickly and easily open up a new business section and still remain in direct contact with customers as contractual partners.
FAAREN handles all subscription-related processes for its partners digitally. The company offers the technical infrastructure, the integration of a white label, customer acquisition, credit checks, payment management and other services. FAAREN’S business model can be summarised as XaaS or “Everything as a Service”.
Helvetia’s rationale for the investment is to participate in the car subscription market, which has built up momentum in recent months. Per Helvetia, the car subscription market is growing continuously and is forcing the car dealerships and other industries to actively participate in the market. FAAREN, with its car subscription marketplace and white label software, is able to turn any company into a car subscription provider. These leverage effects make FAAREN an attractive investment.
Chubb to offer digital home and mobile insurance in Mexico through an embedded insurance ecosystem.
Chubb has launched 100% digital home and mobile phone insurance offering in Mexico to Rappi Super App’s more than 10 million users. Chubb’s partner Rappi is a Latin American unicorn headquartered in Colombia. Super apps are all-in-one digital platforms that offer a wide range of virtual products and services similar to China’s WeChat. Rappi offers services ranging from food, drug store and supermarket deliveries to airline and concert ticket purchases and digital payments.
Insurance products and services available on the Rappi app include mobile phone theft or damage protection, coverage for fraudulent internet purchases and identity theft, and home insurance and contents protection. The coverages are affordable and the customer experience is seamless and fully digital.
Rappi’s new digital insurance offer was developed using the digital integration capabilities of Chubb Studio, Chubb’s global digital product distribution platform. The platform enables Chubb’s partners in retail, e-commerce, banking, fintech, airline, telecommunications and other industries to add digital insurance options to their own product and service offerings, as well as the ability for their customers to submit claims 100% digitally, within their own ecosystems and platforms.
Zurich and QBE insurance offer mental health risk management solutions to UK businesses.
Ahead of Mental Health Awareness week in UK from May 10 to 16, Zurich and QBE insurance announced separate innovations to support awareness and action on the issue of employee mental health.
Zurich offered free mental health education to UK businesses regardless of whether they were Zurich customer in the form of a free to download Zurich Risk Advisor (ZRA) app. ZRA is a digital risk assessment tool that enables companies to understand their mental health exposures and then provide recommendations and insights linked to industry benchmarks. Zurich Resilience Solutions, part of Zurich Insurance Group has developed the solution.
QBE also launched a customer self-assessment tool to enable companies to assess their mental health and wellbeing strategy and develop an improved, more holistic risk management strategy. Mental health charity Mind and organizational safety consultants Anker & Marsh guided the development.
The QBE tool is a digital platform with a series of targeted questions that enable an organization to establish how they currently benchmark in terms of the mental health support they provide to their employees. The questions are supplemented with suggested improvement programs.
The self-assessment is structured into systematic strategic sections that enables customers to record their progress through the development process. This includes reviewing organizational culture and responsibilities, monitoring of wellbeing, employee engagement, workplace design and organization, training, tools and networks available and transparency and accountability.
These are only 5 examples out of 60+ that we have collected in May. To buy access to the data reach out to us at firstname.lastname@example.org