Design Engineering
Showcase 2020

Insurers have the opportunity to expand their offering to provide an all-round property management service. This allows them to ultimately reduce risks and therefore reduce losses and claims, truly allowing customers to live life in comfort.

Value Proposition: A Proactive Personalised Risk Manager

• Insurers can shift from reaction to prevention to support customers as a personalised risk manager.
• Real-time monitoring through IoT can reduce hazards and automate the first notification of loss. This can reduce the chance of loss but also the degree of risk.
• Insurers have the opportunity to transition from a payer to a partner, by also providing a broad range of maintenance and recovery support services, as part of an enhanced property management offering.
• The new value proposition is driven by customer values of prioritising speed, being available on-demand, delivered with transparency and empathy.
  
  

Operating Model: Artificial Intelligence-Driven Underwriting

• Real-time monitoring through new customer touchpoints leads to a substantial increase in data points on insureds.
• Enhanced data can improve underwriting models through the reduction in asymmetric information.
  
• This allows for smaller risk pools with improved loss ratios. Artificial Intelligence will need to be used to drive the new underwriting models, given the volume of data.

Operating Model: Partners Outside the Industry in the Home Ecosystem

• To deliver the new value proposition, insurers will need to operate and share data as a part of an ecosystem.
• The customer is at the centre of the ecosystem and value is delivered through a network of partners.
• Insurers have a choice if they want to be an ecosystem orchestrator, convener or service provider. As an orchestrator, they would have control over the customer relationship and data. As a convener, they work in close partnership with a subgroup of the ecosystem. As a service provider, they act invisibly supporting another ecosystem player to provide Insurance to customers as an ancillary offering.

A design-led process was used throughout the project, considering business, technical and customer requirements in parallel. Tools used included:

• Literature Review;
• IoT Pretotyping;
• Morphological Analysis;
• Expert Interviews at Lloyds of London;
• Attending the Global InsurTech Summit;
• Interviews with customers and generative design game;
• Iterative UX prototyping using Atomic Design Principals;
• Service Blueprints;
• Kano Model Feature Validation.