The Financial Times short-listed Amodo among top 5 worldwide InsurTech Companies

AMODO COMPANY NEWS

The insurance sector prepares for disruption

According to Deloitte, around $2.6bn was invested in “insurtechs” in 2018, and $2.2bn in the first half of 2019, and deal sizes have been growing.

Insurers are also responding to changing demands from clients that face new risks and want to know how the insurance industry can help them. (FT)

It is hard, if not impossible, to identify an industry that did not have to adapt to new market dynamics, new competitive forces and new disruptive realities, all driven by data, digitalization, and technology. From shifting customer behavior to channel fragmentation, from digitalization to business or operating model innovation, few if any industries have remained immune. 

More than ever, insurers are facing a number of fundamental questions about their future, and the answer to a number of these questions is telematics technology. For insurers, this centers on smartphone telematics and harnessing the devices, which have taken a central role in seemingly all aspects of consumers’ lives, to tap into deep contextual and behavioral information that could forever change how the industry considers risk.

How did Amodo get into the top 5 “insurtechs”?

The Amodo platform enables insurers to develop a new category of products based on behavior and usage data. The platform collects data from smartphones and other connected devices in order to build holistic customer profiles, providing better insights into customer risk and customer product needs. Amodo’s technology and methodology are used by insurers around the world.

Amodo offers a number of tools for behavior change and reducing risk through prevention, as well as numerous opportunities for insurance carriers to innovate and monetize through innovative insurance business models and value-added services.

Fill out the form below and find out how Amodo can help your insurance company:

Unlocking the value of data

Implementing a telematics strategy is the start of the journey, not the end, as the real prize lies in monetizing the vast treasure trove of data it yields.

Data is the table stakes for growth and the ability to compete enabling vast commercial success, precision and accuracy of insight in an otherwise imprecise world. It gives the potential to move from commoditized, price-driven players to value creators. 

For insurers, this centers on smartphone telematics and harnessing the devices, which have taken a central role in seemingly all aspects of consumers’ lives, to tap into deep contextual and behavioral information that could forever change how the industry considers risk.

But is it all too good to be true? Will tapping into vast quantities of new data offer significant potential or does it create a whole new set of challenges that make the business case for moving beyond the traditional yearly purchase to an on-demand, usage-based model simply too hard to reconcile?

The benefits of smartphone telematics

Smartphone telematics offers a volume, variety, and velocity of data almost alien to an industry that’s relied on basic demographic and socio-economic profiling since its inception. The technology has the potential to catapult insurers from simply knowing who their drivers are and what they drive to understanding in minute detail how they drive, where, when and why.

The technological, analytical and data science skills required to understand and harness this data, knowing what to pay attention to, need building and nurturing. Not to mention the privacy, compliance and cybersecurity considerations that come with holding sensitive customer information.

All this requires leadership commitment and investment. Anyone who dismisses the implications of this new data, in favor of focusing solely on the opportunity is optimistic at best or misguided at worst. 

Three pillars of monetization 

Building a business case for both the technological and organizational investment in smartphone telematics hinges on three pillars. 

Risk reduction

Usage-based insurance isn’t simply a means to more accurate pricing, it holds the key to behavioral change. Understanding the realities of how individuals actually behave behind the wheel enables insurers to target higher-risk drivers and, with education and incentivization, help them to reduce risky driving

This risk reduction also means more loyal customers. Harnessing the data from smartphone telematics to redefine segmentation can yield significant rewards.

Better communication channel

The omnipresence of a smartphone and the permission given by a driver adopting telematics-augmented policy gives insurers the opportunity to engage in real-time, low-cost and contextual digital communications with the customer that’s actively using, and deriving value from, their app. Reliance on mass-communication channels can be replaced with highly personalized, highly relevant messages to a receptive audience, driving significant efficiency in marketing spend.

Improved retention

The relationship between a motor insurer and a driver has never truly been one of love and affection. In reality, motor insurance is a grudge purchase for many and especially painful for younger drivers or those in higher-risk occupations or geographies. But by pivoting to a personal dialogue centered on the insurer providing value, annual shopping around for better deals can be challenged by a more meaningful relationship that goes beyond the yearly invoice. If a motor insurer has had 12 months to understand the customer as a person and has responded by offering incentives and benefits based on who they are, the propensity to place value on this relationship beyond price alone can be increased.

What data to collect?

The data trails which emerge from smartphone telematics have almost limitless potential, but they can be daunting, to say the least. 

The best strategy in defining what kind of data you need is to review what kind of customer you’re targeting. After creating the best and worst buyer personas, you’ll clearly see what information you need. 

After you’ve done the research, leave the data collection to us. Fill out the form and find out how we can help you get your insurance business on a new level with customers. 

Telematics Smartphone App as a powerful marketing machine

Amodo’s mission is to enable new digital insurance ventures in harvesting the value of the smartphone channel. We gather behavioral data to help insurers place the right products to the right users at the right time.

Motor insurers have been using telematics primarily to reduce driving risk and automate claims, which reduces the cost side of their business. However, to maximize the ROI of a telematics-based proposition, insurers should go beyond claim automation and risk prediction and turn their telematics apps into a powerful marketing machine. 

Converting users into insurance customers

If you look to learn more about your smartphone telematics app users, driving behavior data needs to be combined with other aspects of behavior such as engagement with the app, participation in challenges and contests, commuting patterns, as well as purchase behavior when available.

If implemented correctly, the analysis of different behavioral variables and making sense of these patterns lays the ground for powerful predicting capabilities.

The Amodo technology supports clients to use the collected data for segmentation and estimation of purchase probability among others. Behavior data should also be used as a basis for communication and engagement tactics. These are powerful tools for changing behavior and reducing risk through prevention.

However, the effects of such campaigns can also be of a short-term nature. Which is why it must be combined with long-term incentives such as policy discounts. Based on the analyzed data, insurers typically have around 6 months to turn new app users into more loyal users and potential policy buyers.

Providing both short-term and long-term value is the key to keeping users. Users need to perceive they get value from using the app, or they will lose motivation to participate. Consistency in the implementation of targeted marketing actions and providing clear value to users has led, in some cases, to the increase in conversion rate by up to 100% within less than two years.

About Amodo

The Amodo platform enables insurers to develop a new category of products based on behavior and usage data. The Platform collects data from smartphones and other connected devices in order to build holistic customer profiles, providing better insights into customer risk and customer product needs. Amodo technology and methodology is approved by insurers around the world.

Fill out the form below and find out how you can benefit from our technology:

Connect with your customer through smartphone data

Telematics technology can provide a lot of value to insurers and its importance will only grow in the future.

Aftermarket telematics devices are a preferred option when it comes to meeting the actuarial expectations on data reliability and in-car telematics technology importance is on the rise. 

Nonetheless, smartphone-based solutions continually gain on adoption and popularity for a number of reasons, just some of them being good economics, independence on the car manufacturers, and the mere fact that you need a smartphone in any of the above scenarios to ensure communication back to the customer.

Seeing through the prism of data collection capabilities, a smartphone is just one of the tools for usage and behavior data collection. However, thinking in terms of a customer relationship, communication and engagement a smartphone is the best tool to achieve these business goals.

Our technology helps achieve insurers goals

Our goal is to assist insurance companies to achieve lower claims through self-selection and behavior change. Our clients have reported up to 15% lower claims by using the Amodo platform. However, to get the return on investment only by harvesting that one particular business aspect takes a lot of time and effort.

That’s why these 3 business aspects should not be overlooked:

New product creation

The capability to create new products and thereby differentiate, address new market segments and consequently drive more revenues.

Customer engagement

Engage with the customer in order to collect more data, learn about their personal needs and habits, and consequently create higher loyalty by addressing them individually through personalized products and services.

Customer communication

Address the engaged customer base through the smartphone channel to drive up-sell and cross-sell insurance products and services and consequently drive more revenues.

When it comes to the subject of driving more revenues through up-sell and cross-sell, smartphone data becomes essential. Through the data provided by smartphones, insurance companies can learn about their users’ customer journeys even after they leave their cars on a parking lot. And this is why smartphone, even as a data collection tool only, has more value than a telematics box ever will. A telematics box connects you with the car, a smartphone connects you with the customer.

Fill out the form and find out how to turn smartphones into valuable data collection tools:

Usage-based insurance: thinking beyond the black box

From shifting customer behavior to channel fragmentation, digitization to business or operating model innovation, few if any industries have remained immune to the digital transformation. 

Some may argue that the insurance sector has lagged others in confronting disruption or seeking to be the disruptor. Insurers are facing a number of fundamental, if not existential, questions about their future which will be very different thanks to telematics.

The concept of telematics and the technology behind it is by no means new. The sector is facing a collision of forces, each of which in isolation may not be enough to catalyze significant change, but in concert are creating opportunity and risk in equal measure.

Hyper-connectivity

We no longer “go online”, we’re just “online”. The quality of data, long a concern for insurers evaluating their telematics strategies, continues to stride ahead, with 4G connectivity reaching some of the most rural areas and talk of 5G rollout already dominating. 

Coupled with the incredible ubiquity of the smartphone and its ever-pervasive role in our lives, consumers have never been more connected to the world around them. 

In India, for instance, researchers forecast more than a billion smartphones will be sold in the country over the next five years. In Western Europe, smartphone penetration per capita has reached almost 70 percent. The prominence of these devices and their influence on our now increasingly app-based lives shows no sign of abating.

Growing expectations

Empowered consumers expect more from businesses than ever before. We’re no longer only compared to our peers, but to products and services from other industries. Some attribute the growing expectations to Amazon, Netflix, or Uber. But whoever you credit, or blame, for your customers’ heightened definition of value and expectations, it’s inescapable – and ignoring it isn’t an option.

Shifting behaviors

Owning a car doesn’t necessarily hold the allure it once did, at least for the younger generation. A combination of financial pressures improved urban public transport, environmental concerns, and the immediacy and flexibility offered by the sharing and gig economies are changing the automotive sector. Millennials, already the world’s largest demographic cohort, have greater freedoms than previous generations and are shunning the traditional path to car purchase and historical patterns of transport usage.

Simple economics

The insurance sector’s reliance on age, occupation, postcode, and brand of car to serve as a proxy for risk is imprecise, to say the least. And it’s not just insurers that are finding themselves hamstrung by legacy profiling. Consumers, especially in their early driving years, are increasingly expressing frustration with carrying the cost burden of bad drivers, similar in socio-economic status, but potentially radically different in behavior.

The looming threat of automation

Myriad societal and regulatory questions are either unanswered or yet to be asked, but like it or not, automation is coming to the insurance industry, with accounting and advisory leaders KPMG predicting the sector could shrink by as much as 70 percent by 2050 due to “autonomous vehicle technology, a rise in on-demand transportation and shifting of liability to manufacturers”.

These forces are creating many opportunities for insurers willing to embrace change and adapt. Consumers increasingly understand the value inherent in their personal data and that they can offer contextual information about their behavior with ease in exchange for tangible benefits from the businesses with whom they choose to share it.

Advances in connectivity, data reliability and the wide penetration of smartphones mean the traditional black box, with its associated cost and practicality issues, is no longer the only option for insurers and drivers seeking a fairer, more accurate approach to assessing risk and setting premiums. 

App-based smartphone telematics is creating an opportunity to lift the motor insurance sector out of the margin-eroding, price-focused situation that aggregators have helped to create; to change the conversation with drivers from price to value, from savings to safety.

A message to insurers

Embrace the smartphone, for it’s more than just a phone. Stop looking at risk as something you manage, and take the advantage to influence it. Stop assessing who wants to drive, and start understanding how, when, where and why they really drive. And use this to find ways to become “sticky” by being a more valuable part of your customers’ lives, not just an annual mandatory purchase.

Fill out the form for more valuable insights on how motor insurers can adapt to meet customer expectations: 

Reduce unwanted driver behavior with telematics

Telematics technology has enabled insurers to learn, almost in real-time, about the driving behavior of their customers. But as the data is collected, they are also realizing the power of telematics to effectively change driving behavior.

Avoiding risks

Are telematics users more prone to less risky driving? Can the use of telematics apps really have an effect on their driving?

A clear “yes” is the answer to both questions. Our latest research, based on several years of data across several countries, provides strong indications confirming these answers.

Our analysts investigated how engagement (in terms of a number of months users used the apps) and the number of trips recorded on average per month affect risky driving indicators: over-speeding instances per trip and risky maneuvers (ABC: acceleration, braking, cornering).

The data indicates that every additional month of using the app significantly decreased the average trip speeding time between 5 and 15%. Moreover, the number of risky ABC maneuvers per trip declined between 15 to 20% with every additional month of app usage. 

User engagement expressed as the number of trips recorded per month has a strong and significant effect on the improvement of driving behavior.

However, a certain caution in the interpretation of such results is also necessary. Numbers may vary not only due to differences in local conditions or driving culture but also based on the type of incentive and reward programs offered by the insurance companies.

A well-trimmed incentive program can lead to dramatic changes in engagement, driving behavior, both leading to reduced claims. Usage-based insurance programs need to be trimmed to motivate long-term and regular use of the apps, but insurers should not be afraid to combine them with short-term campaigns as well. As we can observe, the key to reducing claim risk seems to be in user engagement.

Did you know that users of the Amodo app have a 60% lower probability to be involved in an accident with fatal injuries?

Fill out the form and find out how to prevent risk with the help of telematics:

Digital Broker: taking the insurance business to a new level

While adoption of technology among insurance players has been slower than in other industries, today’s insurance consumer is more connected than ever before. It is therefore not surprising that consumers expect their insurance providers to adapt and evolve towards the digital landscape, driven by their digital interactions in other industries.

We see more and more brokers partnering with technology providers and adapting the digital business model in order to build holistic profiles of their customers and to provide unique personalized insurance propositions. 

Digitalization enables the broker to automate operations while:

  • Achieving higher efficiencies, 
  • Changing the insurance product creation process, 
  • Understanding the unique needs of the insurance customer.

Technology companies or InsurTechs are providers of technological expertise, who can push the industry forward with innovative solutions, providing brokers with more time to focus on management and improvement of customer engagement and experience, which in turn leads to increased retention and business growth.

According to the Applied Digital Broker 2018 Survey, based on more than 1,300 independent brokers (across the UK, Ireland, U.S., and Canada), brokers that transition to a fully digital business model experience 156% higher revenue per employee (RPE). 

Further, RPE increases by 37% for brokers that provide clients a mobile app, 18% for brokers that digitally connect with insurer partners and 60% higher for brokers that adopt data analytics solutions.

Partnerships between InsurTechs and brokers with P&C offerings can provide various benefits for the broker.

Digital broker benefits

Insurance brokers are able to distribute their insurance products directly through digital smartphone channel and provide the next generation of personalized insurance products and services to existing customers, as well as attract new ones. A better understanding of customer needs will enhance their engagement and create a better, more personalized customer experience. Consequently, this will ensure the differentiation of such brokers in the market and strengthen customer loyalty. 

Did you know that Amodo Clients achieve up to 32% conversion from download to policy purchase?

Fill out the form and find out how you can digitalize your insurance company:

Whitepaper – tech revolution in the auto insurance industry

This whitepaper gives an answer to tech leaders looking for a new strategy in this current digital revolution.

Topics included in this publication:

  1. Usage-based insurance – thinking beyond the black box
  2. Time to get real with relationships
  3. Five challenges and opportunities in going digital
  4. Unlocking the value of data

This Raconteur’s Digital magazine sponsored by Amodo, provides valuable insights on how Insurance players must adapt to meet customer expectations.

FILL OUT THE FORM FOR A FREE DOWNLOAD:

Whitepaper – customer engagement as the critical success factor in changing drivers behavior

This whitepaper gives valuable insight to insurers on how to build and maintain relationships with customers for a better ROI.

Why you should download it:

  • The research is based on a large dataset with vigorous scientific statistic analysis.
  • It explores the correlations and causations between the driver’s activities and their quality of driving during the course of one year.
  • It describes what it really means to have an engaged customer and the monetary value of such a customer base.

It is a short and useful read with only 16 pages and 5 informative graphics representing one year of data with one million analyzed driver journeys.

This research reveals the way insurers can leverage on engaged users to improve their churn.

Whoever runs the customer relationship in the mobility project, especially in insurance, should consider creating a comprehensive customer engagement program in order to get the most from the usage-based program.

It includes precise release planning, and appropriate mechanisms in order to assure short-term, mid-term and long-term engagement. Also, it has to be locally relevant to achieve market adoption and ensure results.

Amodo provides a leading customer engagement suite for insurers with software built to ensure a long-lasting and sustainable relationship for both parties.

customer engagement as the critical success factor in changing drivers behavior

FILL OUT THE FORM FOR A FREE DOWNLOAD:

Whitepaper – Customer communication strategies for usage-based insurance programs

This whitepaper gives valuable insight to insurers on how to efficiently manage communication with their customers.

Why you should download it:

  • It includes research on close to 50 different insurance companies that offer telematics-based insurance products.
  • There is also a good overview of the current market situation on the topic of customer communication in the insurance business.
  • It provides guidelines to insurers on how to successfully manage efficient communication and straighten relationships with their customers.

FILL OUT THE FORM FOR A FREE DOWNLOAD