He will be on a panel doing a Ted-Style talk on Commercial Insurance Next Generation Business Models with Moderator, Insurance Nerd, Nick Lamparelli on June 18th. The conference is being hosted by the Silicon Valley Insurance Accelerator (SVIA). It is not too late to come to this event.
Register Here and use discount code NICKL15 to get 15% off your registration!
Q1 – Jeremy, can you describe your company and your role?
At Avinew, we are focused on reinventing auto insurance for semi-autonomous and autonomous vehicles. Our mission is to enable the safety, value, freedom, and fun that comes with autonomous driving. I am the Chief Operating Officer at Avinew and am responsible for implementing our vision with excellence. We intend to have the best customer experience in auto insurance– one that is built to work with new car safety features and help make driver and passengers safer.
Q2 – What are some of the fundamental problems with the current state of the personal lines insurance business model?
As we move to a connected world with high tech homes, vehicles and risk data become available in real time, traditional backward-looking risk algorithms become much less valuable in predicting risk.
Many of today’s insurers seem to be hampered by existing tech infrastructure and/or traditional ways of doing things that slow innovations.
In auto insurance, technology and innovation need to keep up with the auto industry, iOT, and AI and presently does not seem to be keeping pace with any of these rapidly evolving industries.
Q3 – If you had to rate the following items in terms of how they will impact the next generation of insurance business model, how would you rank them?
Product design- 2
Buying experience- 3
ability to finely tune underwriting- 1
claims experience- 4
Q4 – How important is it for insurance to be delivered abstractly as a service OR having insurance being a delivery vehicle for other products or services?
I would argue that insurance can no longer be an “abstract” service in the world where cars are at least partially driving themselves, everything is connected and risk can be measured in real time. The promise of insurers as protectors is going to become much more relevant to people in the years to come.
Q5 – In the past, insurance companies have struggled with issues around adverse selection (attracting customers with a worse risk profile than anticipated) and morale/moral hazard (where customers risk behavior changes, once they have insurance in place). In the quest to maximize customer experience, how do next-generation business models avoid the trap of adverse selection and moral/morale hazard?
Accurate, real-time data is the kryptonite of these behaviors. By creating a transparent relationship with your customers and using data to make them safer– we can hopefully deter these behaviors.
Q6 – How much of the execution of new business models has to do with technology vs the culture of the company?
In the world in which we live now, both technology and culture are of paramount importance in creating new business models. You cannot have only one or the other–both an innovation-friendly culture and strong tech are mandatory.
Q7 – What role do you see for agents/brokers in next-generation business models for insurance?
Customer service remains critically important as we approach this next generation, but that customer service may come from a new place vs. the traditional neighborhood agent.
Q8 – How much will new insurance business models need to radically depart from the traditional insurance business model that has served as the foundation for the insurance ecosystem for over 100 years?
As everything around us is changing and evolving, can we expect the insurance ecosystem to stand still? No way. It won’t. Of course, the regulatory environment and necessary customer protections remain, but the customer experience needs a wholesale reinvention and the current underwriting model will only be a small part of next-gen underwriting.