loading
The latest developments across the P&C insurance industry regarding fraud, risk and compliance.
22 August 2017

On Demand Insurance Really Does Make the Customer King

Not very long ago companies were happy to call the customer ‘king’, for instance because of fast delivery or good service, but the specs of the product were determined by the supplier. As a customer, you either purchased the insurance…or you did not. This is changing radically. A good example of this is on demand insurance.

On-Demand-Insurance-Customer-Becomes-KingThe customer determines exactly what insurance he wants and when. Suppliers facilitate the demand based on advanced technology. An example is music services: the user decides when he wants to hear particular music and compiles his own collections. The provider assists by making suggestions based on previously-made choices.

The same principle applies to news: do people still read a morning newspaper for the news? News is spread virtually in real time and is available whenever it is convenient for the reader. The same applies to films and series by Netflix, HBO and other services. Large numbers of consumers and businesses are switching to Software as a Service. Clothing, electronics, groceries: the king decides when he wants to shop, when he wants to receive his order and has unprecedented online choices at his disposal. Technology makes this all possible.


InsurTech

Advances in technology also mean that the insurance sector is rapidly developing its services. This is called ‘Insurtech’. The rise of on demand insurance allows the customer to really become the king.

Insurance companies and particularly technology start-ups have come up with initiatives in this area. During DIA Amsterdam in May 2017, a 2-day insurtech and innovation event, around one hundred companies demonstrated the developments they are working on and that are already deployed in the market. Often ‘traditional’ insurance companies are involved in the cover. The entire front office is provided by technology providers such as TROV, Insureapp or Metromile, which are growing rapidly in size and scope.


On Demand insurance

on-demand-insuranceThese and other providers develop the technology that enables on demand cover. Currently the focus is on specific goods that are traditionally included in household contents insurance, travel insurance or car insurance. The object to be insured, for instance a camera, is offered via an app. Based on available cloud databases, the system determines the value and risk and the owner of the object immediately receives a premium proposal, after which he simply ‘starts’ the insurance. Do you only want to insure a camera for a weekend in the Ardennes and then put it back in your cupboard? This is possible and the premium and cover are adjusted and the insurance ends at the agreed time. The possibilities are infinite and development is still in the initial stages. The system is linked to a smartphone and, by becoming familiar with the consumer’s lifestyle, it makes offers and determines the risk based on this lifestyle. The app can remind the consumer when he is at Schiphol that his expensive camera is not yet insured, when getting into his car it can send him a message to remind him to activate the ‘cover per kilometre’ and when he is travelling by metro in Rome it can send him a warning that pickpockets are active, while the premium and cover may be temporarily adjusted at the same time.


Combat insurance fraud

In the meantime, various insurtech providers are offering insurance products under their own name in association with underwriters. On the other hand, insurers are seeking cooperation with these providers to develop this market segment – 80% of which consists of millennials born after 1980 – under their own name.

There are many changes taking place. What is not changing is the risk of misuse. Fraud prevention and detection are still needed. In this regard, technology is also a key element. For example, how do you determine whether the camera referred to in the example above actually did disappear last week? How do you determine whether the underwritten object is actually owned by the person using the app and how do you know enough about him to determine the risk and the premium?

A lot of steps have been taken to provide adequate answers to these questions. But developments are proceeding at a faster pace than ever before. Not only developments in the technology itself, but also in the way consumers deal with the technology offered and how they make their choice of products. The king claims his throne. Insurers and technology providers must think, develop and market together to make this new reality profitable.

Contact us

Cookie and Privacy Policy

1. Introduction

When you use this website, FRISS may collect information about your use of the website and the content offered. We believe it is important to handle your (personal) data with due care and confidentiality. When processing your personal data, we comply with the General Data Protection Regulation (Algemene Verordening Gegevensbescherming) and Article 11.7a of the Telecommunications Act (Telecommunicatiewet).

1.1.  Controller

The controller of the processing of personal data is:

FRISS Fraudebestrijding B.V.
Orteliuslaan 15
3528 BA
Utrecht

This processing of personal data is registered with the Dutch Data Protection Authority (Autoriteit Persoonsgegevens) in The Hague under reporting number m00004997.

1.2.  Purposes of data processing

There are several places on our website where you can fill in your (personal) data. We will explain the purposes of the various instances of data processing below.

Filling in the contact form or sending an e-mail

If you fill in the contact form on our website or send us an e-mail, we will only use the (personal) data you provide for the purpose or purposes for which you filled in the contact form or sent the e-mail.

Download form

If you download files on our website (such as e-books, whitepapers or reports), we will use the (personal) data you provide for one or more of the following purposes:

  • for the execution of an agreement, for example to send you the e-book, whitepaper or report you have chosen;
  • for the formation of an agreement, for example by contacting you by telephone or in writing.

Newsletter

If you fill in the application form for the newsletter on our website, your (personal) data will be used to send you the newsletter. Each newsletter contains a hyperlink at the bottom of the message that you can use to unsubscribe.

In addition to the personal data you provide to FRISS yourself, FRISS may collect, record and process additional (personal) data if you use the (web) services of FRISS. This concerns the following personal data:

  • data from the used equipment, such as a unique device ID, version of the operating system and settings of the device you use to access a service;
  • information about the use of a service, such as the time at which you use the service and the type of service that is used;
  • location details from your device or derived from your IP address that is provided to us when you use a particular service;
  • data available from external sources. We may receive information about you from public or commercially available sources.

1.3.  Provision of (personal) data to third parties

Your (personal) data will never be provided to third parties without your permission, unless we have an obligation to do so pursuant to legislation or regulations or you have given permission for this.

1.4.  Security of data

FRISS respects your privacy and ensures that personal data are handled confidentially and with the utmost care. All processed (personal) data is stored exclusively in secure databases. These databases are only accessible to employees of FRISS, to the extent that this access is required by virtue of their position. FRISS makes every effort to secure these systems against loss and/or any form of unlawful use or processing.

1.5.  Inspection, correction and deletion of data and the right to object

You can view your data that is processed by FRISS at any time and free of charge and, if you so wish, modify this data or have it deleted. You can also object to receiving information about products, services or content of FRISS. If you wish to make use of one of these options, you can send an e-mail to the Data Protection Officer of FRISS via privacy@friss.eu or write to the following address:

FRISS | fraud, risk & compliance
Attn. Data Protection Officer
Orteliuslaan 15
3528 BA Utrecht.

2. Cookies

When using this website, information about your use of these services and other websites may be collected by or on behalf of FRISS, for example by means of cookies.

A cookie is a small file that is sent along with pages of a website and stored by your browser on the hard disk of your computer. We use cookies to remember settings and preferences. You can disable these cookies via your browser.

2.1.  The purposes for which FRISS uses cookies

On our website we use cookies for the following purposes:

  • for statistical purposes, in order to analyse the use of FRISS websites. This allows us to keep track of the number of visitors and see which parts of our website are popular. We use Google Analytics in order to track and consult these statistics. On this website you can find explanations about all cookies that may be placed by Google;
  • for what is known as ‘targeting’ purposes, if you have used the download form. By targeting we mean building a profile of you based on your surfing behaviour on our website, after which we may contact you by telephone or e-mail based on the interests you have shown in order to offer you FRISS services that you may be interested in. We use HubSpot in order to track and consult these statistics. On this website you can find explanations about all cookies that may be placed by HubSpot;

3. Changes to this Cookie and Privacy Statement

FRISS may make changes to this Cookie and Privacy Statement. All modifications will be published on this page. We advise you to consult this Cookie and Privacy Statement regularly, so that you are always aware of the content of the current Cookie and Privacy Statement.

 

Subscribe