Helping digital platforms reduce their risk exposure
The sharing economy is a new and dynamic industry that falls outside of the definitions of traditional insurance, which means the establishment of risk factors can be challenging. Connected Insurance (CI) created a data-driven risk platform that powers the next generation UBIs, driving the space forward.
Tal Cohen, co-founder and CEO of CI explains, “Usage based insurance policies are becoming more common in commercial insurance for the sharing economy which is a relatively new industry with limited exposure history. Traditional insurers are using traditional risk models that they use for similar products, and they add a big buffer for the unknown risk factors.”
Cohen says this results in low accuracy pricing, which is based on few risk factors and a black box that customers can't understand or control. By differentiation, CI breaks the insurance paradigm, which is based on black box pricing, which is costly and always behind smokes and mirrors.
“Our technology employs pricing models with much higher level of granularity, as it works with many more data points currently ignored by additional insurance companies. We provide our clients in the sharing economy transparency on their insurance costs and empower them to control and reduce costs by making educated decisions,” he says.
Extending their services into the marketplace has been achieved by a collaboration with some of the world’s leading insurance players. Yaron Zurr, co-founder and CCO of CI, says the partnership with Apollo ibott – the UK-based reinsurer entity that is behind many innovative sharing economy solutions, has been instrumental in expanding CI’s market presence.
“Together with our strategic insurance partners, we are at the forefront of what I call Transparent insurance based on big data. Our technology empowers our partners to make a better insurance offering to their sharing economy platforms”
Zurr continues, “We [CI] believe that the insurance eco-system with all its players (From the reinsurers all the way to end the brokers) should become a contributor and enabler to the businesses they serve. We provides a solution that empowers our partners to make a better insurance offering to their client, as well as solution for the digital platforms to manage their self-insurance and enable them to offer even more relevant protections to their end clients.”
Technology-driven innovation and CI
Our disruptive platform uses the latest technologies to process and aggregate data, says Zurr. “We're using machine learning models to process millions of transactions per day, in order to find scientific correlations that predict risk and exposure. We translate them to insights that are shared with our clients.”
CI’s full-stack solution connects and serves all parties: the digital platform, the broker, the claims administrator, and the reinsurer. Connecting everyone under the same platform, says Cohen, creates transparency, leads to better insurance pricing, and ultimately allows sharing economy companies to reduce their total exposure costs.
Cohen explains, “We provide the digital platforms essential tools such as: Risk & utilization dashboards to help the platforms manage their insurance costs and control their risk; Connected Claims module integrated into the digital platform helps them to streamline the claims handling process; tools to manage the self-insurance part better than most advanced carriers; and tools for rapid creation of embedded Insurances that gives the ability to offer the end user the most appropriate insurance at the right time and context.”
The result is a seamless delivery of services and a satisfactory customer journey, concludes Cohen, who adds, “CI’s digital platform can optimise their [the customers’] insurance pricing by focusing on the lower risk usage and really avoid the higher risks.”
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