On 1 and 2 June 2016, FRISS partnered with Marketforce during The Future of Nordic Non-Life Insurance in Copenhagen. It is the Nordic’s leading yearly strategic conference on non-life insurance. Insurers come together to gain in-depth insights on the latest developments in the ever-changing insurance industry. The question FRISS answered: How do you build a profitable online portfolio? As an online insurer, it’s difficult to know your customer. The face-to-face connection is lost. So the likelihood that you build a unhealthy online portfolio is huge.
100% online insurer
Hot topic during this year’s event was the expansion of direct insurance channels. Together with InShared, the first 100% online insurer in The Netherlands, FRISS explained how an online insurer can build and maintain a healthy portfolio. Key to success: effective risk assessment at underwriting. It’s important to know your customer. By doing screenings upfront, the likelihood of fraud in your online portfolio decreases. During the underwriting process you need to have a clear picture. To get one, you need to answer 3 basic questions like:
- Who am I doing business with?
- Am I allowed to do business with them?
- Do I want to do business with them
Healthy Online Portfolio
InShared was established in 2009 as a totally new initiative. The concept received a lot of (media) attention and this resulted in an enormous increase in new applications, all coming in via the relatively anonymous internet. Obviously, the new insurer not only attracted honest customers, but also “bad risks”. At first, these bad risks seemed to have a huge impact on the combined ratio and validity of the online portfolio. However, at the event in Copenhagen, Business Unit Manager Mars Samsom from InShared explained how the company was able to build and maintain a profitable portfolio together with FRISS. Today, InShared is the most successful online insurer in The Netherlands.