Swiss Insurtech dacadoo partners with Foresters Financial
Foresters Financial, the Canadian financial services provider for savings and insurance, has teamed up with the Zurich-based dacadoo which creates tools for enhanced digital health engagement.
The new IoT-enabled platform being developed aims to promote healthy lifestyle choices and lower payout claims. Foresters Financial and dacadoo’s strategy is based on a reward system. Forester customers who adopt healthier habits that result in better physical and mental wellness and greater community awareness will receive incentives.
Dacadoo currently supplies insurtech and health technology solutions to more than 35 of the top 100 life and health insurance companies globally via its Digital Health Engagement Platform, which offers services in more than 16 languages.
Data regarding customer behaviours will be gathered using wearable devices and app-enabled technology. Users will engage via a digital coach and other incentives that encourage interaction with the platform and even other users. The aim is to promote healthy lifestyle goals in a manner that sets long-term habits in place.
The incentive scheme rewards participants with points for reaching certain fitness and mindfulness goals, which can be used in the app’s online rewards store for items, donations to charity or through a gift card scheme.
While researching the new platform, Foresters Financial found that programmes which utilise IoT devices can influence customer behaviour and habits, thus reducing payout claims for insurers. The additional incentives make the service more attractive to potential new users.
The company has been operating for 146 years with a long-standing philosophy regarding the wellbeing of its customers. The partnership with dacadoo, it said, will modernise that approach.
Foresters also noted that although health insurance is less aggressive in IoT adoption than other sectors, wearable devices are effective tools in streamlining processes.
IoT and Insurtech
According to recent data by Allied Market Research, the role of IoT devices in the healthcare market is currently worth $136bn and will rise at a rate of 13% annually, to be worth $332.67bn by 2027.
Research also indicates that IoT patient monitoring will be the biggest share of the market in 2021, valued at $72.7 bn.
Patricia Adams, IT asset management expert at Landesk, recently told IoB, “In a lot of cases, hospitals and healthcare organisations are also giving away health monitoring devices such as Fitbits to encourage patients to take better care of themselves and for the healthcare provider to monitor the patient’s health at home,” she said.
“This not only gives them real-time information on things like blood pressure and heart rate, but it reduces the costs of the patient returning for emergency care as the devices are cheaper than having patients return for minor reasons.”
Jim Boyle, President and CEO of Foresters Financial, said he believed the partnership with dacadoo would help transform customer relationships with their health insurance. “Many Insurtech platforms in the market today focus on the physical and mental aspects of health, but they don't address the importance of purpose and giving back to your community, which has powerful wellbeing benefits,” Boyle said.
“Our platform will integrate all of these aspects and stands out because we're making it available to all of our members, not just the new customers.”
He explained, “Our members who focus on improving their wellness, while also giving back through volunteer activities, are everyday heroes to their families and communities.”
Peter Ohnemus, President and CEO of dacadoo, said Forester Financials’ unique customer philosophy made the insurer an ideal candidate for the platform. “As a leader in digital health solutions, it is exciting to collaborate with Foresters on their differentiated, purpose-driven approach,” he said.
Boyle added, “As the life insurance provider that believes in helping those who help others, we're proud to be creating this new platform that celebrates and rewards our members for their extraordinary commitment and accomplishments.”
TrueMotion insurtech acquired by Cambridge Mobile Telematics
One of the world’s leading telematics insurtechs, Cambridge Mobile Telematics, was launched in 2010 and powers 65 enterprise programmes in 28 countries.
Meanwhile, TrueMotion, which launched in 2012, has enjoyed significant success as a telematics operator, raising US$10mn in its seed funding round in 2010, and then partnering with the motor insurtech Noblr in 2019.
TrueMotion has also entered the European market, collaborating with LB Forsikring to promote safe driving in Denmark.
The joining of the companies means TrueMotion’s 150-strong workforce will join Cambridge Mobile Telematic’s already established team, along with their client list, which includes Travelers, Farmers, and Progressive.
The new company will focus on increased interest in using telematics for crash reconstruction in personal lines claims and more innovation in the telematics space.
Speaking about the acquisition, William Powers, CEO, and co-founder of Cambridge Mobile Telematics, described the move as an opportunity to explore new markets, expand throughout the US and bring telematics to a much wider customer base.
"With this acquisition, we will use our world-class talent, technology, and scale to help our partners overcome the complex challenges of global road safety,” he added.
Ryan McMahon, VP of insurance and customer affairs for Cambridge Mobile Telematics, explained that expanding the company with additional talent and customers would help meet the demands of a growing telematics market. He also quoted data from a study by J.D. Power which revealed that personal auto telematics users have doubled in five years to 16% of policyholders.
McMahon told the press, “This market is rapidly expanding, and building more capabilities is more important than ever,” McMahon says. “Both companies follow similar philosophies and grew up in similar ecosystems, and now we’re bringing those cultures together.”
He continued, “Telematics is absolutely the future of commercial auto and rideshare, and it’s kind of a step up beyond the normal telematics."
McMahon added, “We will not only widen our lead in smartphone telematics, but also use our combined talent to invent new products for risk measurement, contextual telematics, and crash mitigation across emerging mobile, IoT, connected-car, video, and sensing technologies.”
Five reasons why telematics is in demand
- It reduces fuel costs and increases operational efficiency. This is a consideration for most commercial fleets given the rising costs of fuel
- The technology enables fleet managers to plan operations with greater precision by providing exact locations, timescales, and speeds of vehicles.
- It improves driving standards and monitors driver behaviour, reducing detours and ensuring responsible driving.
- It helps fleet health and maintenance by monitoring the health of operational vehicles.
- It increases corporate social responsibility in terms of care for the driver, the vehicle, the impact of driving in terms of emissions, and also the security of the vehicle itself.
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