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You buy life insurance that comes with a tool to enhance your health, or you buy a car that includes immediate auto insurance coverage. Consumers are being offered these types of package deals at an accelerating pace, as insurance providers strive to build a loyal and engaged customer base in a competitive environment and to make the most of new technologies and the explosion of connected data.
“One of the key trends in the insurance world is the growing number of contracts and partnerships between traditional insurers or insurance startups and other third parties who also want to reach consumers with their products and services,” says Doug Grant, partner at Insurance-Canada.ca Inc., an organization that provides independent information about technology and the business of insurance.
“Partnerships are allowing providers to innovate in some new and exciting ways. It’s another step in the insurance sector’s move towards stronger relationships and greater engagement with their customers, as well as novel approaches to providing rewards, in an effort to build loyalty.”
Another trend driving change in the insurance marketplace is the expansion of connected devices across all aspects of our lives and the flood of data produced by those devices.
“Consider telematics data to assess how a vehicle is operating; in the past, the data were stored in the vehicle and accessed by a specialist running diagnostics,” says Mr. Grant. “Now the data are being carried through the internet and are more widely available. As the volume of that information grows by leaps and bounds, so do the opportunities for unique partnerships and insurance offerings – and that means added benefits for insurance customers.”
Novel insurance partnerships and products
Manulife Canada partnered with Discovery Health to create the Manulife Vitality program, which offers lower premiums for term life insurance to policyholders who can show healthy habits, including by sharing data from smart fitness-tracking devices.
Sun Life in Canada launched Lumino Health – a website resource that provides health resources including information on more than 150,000 health providers (e.g., dentists, psychologists and chiropractors) across Canada. The information includes ratings on providers from Sun Life clients who have used their services, and after the COVID-19 pandemic arrived, Lumino Health joined with other partners to facilitate virtual appointments with appropriate providers.
Ford in the U.S. this fall announced a partnership with Metromile, a pay-per-mile insurance provider, to embed the Metromile insurance in new connected Ford vehicles. The auto manufacturer also entered into an agreement to share connected vehicle telematics data for usage-based insurance (UBI) products from State Farm.
And projects to harness data for larger-scale impact are also being created. Just one example: Ford Mobility has partnered with StreetLight Data on a program called Safety Solutions, which pools data for use by community planners looking to improve transportation safety.
Produced by Randall Anthony Communications. The Globe’s editorial department was not involved in its creation.