AI & AUTOMATION: PREVENTATIVE INSURANCE
Someone to watch over me Technology that predicts and helps protect policyholders against a range of threats is shifting the image of insurers The overwhelming majority of us have for too long accepted that the only contact we will have with our insurers is at the point of renewal or claim. But a growing band of nimble and progressive companies are pushing hard to turn those traditional industry values on their head by proactively working with their customers to both reduce risks in an ever-more complicated world and, vitally, build satisfaction, happiness and loyalty. One such player at the vanguard of the preventative insurance revolution is Paris-based Moonshot Insurance, an insurance-as-a-service platform spun out, in 2017, by French industry giant Société Générale Assurances. Using data as the cornerstone of its operations, Moonshot Insurance started by offering parametric-driven cover for the travel industry, automatically triggering claims for policyholders without them having to prove loss or, indeed, even notify the insurer. “We can detect that the flight is late in real time. We can detect that you missed your connection. We can detect that you have lost your bag, which you have registered at the airline desk. All this helps us to bring a new customer experience,” says co-founder and CMO Nicolas Serceau. “Say you are waiting at the airport and the flight is late. We will straightaway send you a voucher to grant you access to an airport lounge so that you can rest and wait for the departure time of your flight.” Serceau is convinced there is a vast and largely untapped potential for parametric insurance linked to weather-related events in particular, ranging from agriculture to tourism, using photo data analysis taken from satellites and real-time monitoring of water temperatures, for example. “There are billions and billions of assets
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to be insured,” he says. But with reducing risks and improving customer experience still very much its ethos, Moonshot Insurance is now moving into new preventative markets, including a soon-to-be-introduced, groundbreaking cyberbullying policy in partnership with mobile app Bodyguard, to help parents protect children against online harm. The Bodyguard app uses natural language processing (NLP) algorithms to detect and analyse the contents of messages on most commonly used social media platforms, to block inappropriate content in real time and alert parents. It will first be offered in France, Germany, Italy and Spain but the insurtech is already assessing a move into the UK market, despite added complexities caused by Brexit. “Cyberinsurance is moving a step forward by helping to prevent the risk from occurring with this early detection,” says Serceau. “We include FAQs or best practices on how to use social networks as well, and how to manage bullying.” Lisa Orme, Capgemini And, if the app isn’t able to prevent the risk from occurring, then the insurer will take on the cost of addressing any consequential impact on the child. The company is also using preventative insurance to protect against identity theft. “We have a preventive solution that will detect your personal data on the dark web – for example, if your credit card number is detected on the dark web, we will send you an alert,” Serceau says. “To me, that’s the great benefit of parametric insurance and preventive insurance. They bring benefits to the insurer because they will reduce its risk. They bring benefits to the client because Prevent and protect: they give great experience. Insurers are rebranding “For the first time in insurance, the their image
If insurers are not nimble enough and they don't use this time now, they should be looking over their shoulders because big tech are not too far behind
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