The nation that invented the heart of the car at the dawn of the 20th century might struggle to adapt to the coming electric era.

Elizabeth Behrman in Bloomberg Businessweek April 2019

Might that be a metaphor describing those auto insurers that ignore the digital rubber hitting the analogue tarmac? Relying on old business models and making profit from premium finance and various add-ons now under threat from regulatory authorities.

Then there is the digital disruption from Tesla that collects more data from its vehicles than any insurer and it thus in a better position to underwrite risk for Tesla drivers. Today it relies on a traditional carrier for embedded insurance but in the future?

Tesla is streets ahead (sic) of other auto manufacturers when it comes to software and data management. All the might and money of VW data mastery does not make! Despite a $50billion plan to beat Tesla its inability to integrate the disparate software and sensors in the new e-Golf short-circuited the plan.   

Shelley Palmer describes GM's plans to change the world  

Palmer says "We are 14-19 years away from America’s largest automaker forcing a transition away from fossil fuels. Let that sink in for a minute, then develop a few investable hypotheses for this timeline. "

That timeline is very short! GM might have only made small steps to embed insurance in its offering leveraging OnStar but one small step for GM and........

The there are the OEMs and don't forget them. German giant BOSCH manages millions of vehicles and triages mobility needs globally. 

It is at the heart of managing and preventing risk.

Insurers talk enthusiastically of ecosystems and so they should but as the trend moves to prevention  rather than cure and away from vehicle ownership to mobility as a service they will have to strive hard to be at the value-add end of the ecosystem rather than the commodity end. 

It is no coincidence that I wrote of the insurance CIO/CTO dilemma a few days ago.That was driven by insurance CIO Duncan Douglas of Columbia Insurance. 

He says"  The dilemma arises when a CTO/CIO is hired or directed to digitally transform the organisation. A killer strategy without trauma or taking resources away from keeping the core systems running. Duncan says this approach is doomed to failure."

Then: "Digital disruption is a not a technology strategy; it is a Business Strategy that tightly integrates technology. "  

This requires much more than just UBI auto insurance and disrupters like ZEGO and others are forging ahead in this area.

As you develop this strategy remember that the moment a customer really needs help is when the vehicle breaks down or worse still driver and passengers are involved in a road-traffic accident. That is when the runner literally hits the road. Whatever strategy you adopt make sure the claims management platformdelivers the service the customer desperately needs from beginning to end. Automation is not enough as triage and vehicle repatriation across borders involves the optimal combination of digital and human integration.

 Would love to hear you views- email me at Mike.Daly@360Globalnet please.