By Carlo Alberto Minasi, Head of innovation – Area financial services ERNST & YOUNG
The creation of an innovative insurance solution requires to switch from the logic of discount application to an added value mindset. The ability of a company to propose increasingly customized services to its clients, with the help of advanced tools such as Data & Analytics, will represent a relevant alternative to the typical “price war” of such a competitive field as the auto insurance. This solution will be the starting point of a new business model that could change the approach to the client –whose contact with the company is typically limited to the drafting of the insurance contract, renewal and car crash report and management- and to maximise service quality. In such a context, Italy – in spite of being a worldwide leader in the black box market- seems to be incapable of exploiting this new, strategic asset and to improve its customer experience standards. Today, telematic products only seem to have the purpose of resulting in insurance discounts with no significant impact on customer engagement. Far too large inadequacy considering the fact that the market is willing to compensate the acquisition of data with added value. Insurance discounts first, and additional services as well. Discounts – as downgrade in terms of economic value- surely represent the easiest way for companies to hold customers data; however, since this strategy has the effect of eroding the margins of an increasingly less profitable business, could not represent the most appropriate solution.