Insurers’ years of historic outcome data, customer relationships, fulfillment networks and tightly-honed underwriting models—not to mention their increasing data capabilities—will bring clear value to these partnerships. But automakers and fleet owners will bring closer customer engagement and, crucially, control of vehicle data. The winning customer propositions will combine the best from both sides.
Motor insurers need to position themselves at the center of the conversation with automakers and fleet owners to understand:
- Their ambitions for launching direct-to-consumer propositions
- Their willingness and capacity to share predictive vehicle data
- Their readiness for a proof of concept that embeds insurance in vehicle purchase/acquisition journeys
- How insurance cover plus the related services that insurers could bring to the table (e.g., breakdown cover, maintenance packages) fit into the wider suite of products that best meet driver needs
In preparation for the business models of the future, motor insurers will need to question and address capability gaps that leave them vulnerable to being overtaken. In particular, they should ask themselves:
- What are the unique assets and capabilities I can bring to a collaboration that will make me an indispensable partner?
- Are my distribution capabilities ready to insure on behalf of others?
- What vehicle data would benefit my underwriting and fraud detection capabilities? Is my data layer set up to ingest and evaluate huge volumes of data quickly? Could I build new, challenger underwriting models based on it?
- Am I flexible and easy to collaborate with on new propositions? How would I adapt my operating model and technology to support much closer partnerships with automakers? What would a proof of concept look like?
The inconvenient truth for today’s leading motor insurers is that change in the industry is often slow, until it is punctuated by a period of rapid development. No sooner will one automaker start offering a fully embedded suite of products through their vehicle as standard, than this will become customers’ base expectation across the market. Insurers who don’t engage now risk being left in the slow lane.
How Publicis Sapient can help
Publicis Sapient is well placed to support insurers who want to start these important conversations with automakers and other vehicle providers. We’ve worked with numerous manufacturers on their connected vehicle and data strategies and would be happy to facilitate these discussions.
Our team of strategy, data and customer experience experts can help motor insurers navigate a clear path through this period of change. We can support a rapid assessment of the opportunities available, supported by customer and market research, and turn an idea into a functioning proof of concept in a matter of months.