The impact of Iot, Wearables, Insurance PaaS, Self-Service Analytics, Big Data & Algorithms and other technologies on insurance company structures, work processes and culture is enormous. Yet sometimes commentary forgets the disruption the "Uber effect" has on products.
Uber- world's largest taxi company owns no cars
Airbnb- world's largest accommodation provider owns no property
FaceBook- word's most popular media owner ctreates no content
Bitcoin- world's biggest bank but no cash
As these new enterprises change the way consumers buy and use services the insurance companies need to plug product gaps in the market. So, with Uber, there was the gap between a driver being covered by their own motor insurance (Driving on private business) and when driving with passenger ( Uber Insurance). But that gap was a crucial one now covered by "rideshare coverage".
Too price these gaps and introduce innovative products insurance companies need internal and external data, Big Data and Predictive Analytics covering all the consumers, business and connected devices.
A challenge not for the faint hearted but to be faced by the brave.
Or look at Uber. There used to be a gap in insurance coverage where an Uber driver would be covered by their own auto insurance when they were off the clock, covered by Uber’s insurance when driving a passenger but covered by neither when they were looking for a customer. Just like with Airbnb, Uber drivers could get their coverage canceled if they tried to file a claim when they were using their car for commercial purposes. Your best solution was hoping you picked up a whole lot of passengers to cover the cost. But in the last few months, we’ve seen rideshare coverage expanding. First it was small companies like Metromile, but major insurers like USAA, GEICO, Farmers and MetLife are all stepping up to provide some form of rideshare insurance.