Top insurance companies in market share talk digital
March 27, 2019 5:37 AM
Simon Dawson/Bloomberg
Each year, the National Association of Insurance Commissioners releases market-share data identifying the insurers with the largest reach in the U.S. across business lines. We reached out to some of these leaders via email questionnaire to find out how they are leveraging digital as part of their success.
American Family
Home insurance market share rank: 7; 3.32%
Digital Insurance: Are you exploring smart home technology?
Yes. At American Family Insurance we’re committed to empowering our customers with the latest smart home technology so they can proactively protect their homes anytime from anywhere.
DI: What kinds of devices are you using?
A wide variety of devices from single stand-alone systems such as the RING Doorbell to more integrated systems such as the Frontpoint system.
DI: How are you getting them to policyholders?
All our programs are partnerships with different providers. Customers work directly with each provider to select a system or device that best suits their needs.
DI: What are some of the insights you've gotten through the program?
Customers want their insurance provider to offer everyday innovative solutions to protect the things that matter most so they can stay focused on what’s important to them.
Digital Insurance: Are you exploring smart home technology?
Yes. At American Family Insurance we’re committed to empowering our customers with the latest smart home technology so they can proactively protect their homes anytime from anywhere.
DI: What kinds of devices are you using?
A wide variety of devices from single stand-alone systems such as the RING Doorbell to more integrated systems such as the Frontpoint system.
DI: How are you getting them to policyholders?
All our programs are partnerships with different providers. Customers work directly with each provider to select a system or device that best suits their needs.
DI: What are some of the insights you've gotten through the program?
Customers want their insurance provider to offer everyday innovative solutions to protect the things that matter most so they can stay focused on what’s important to them.
John Hancock
Life insurance market share rank: 8; 2.8%
DI: Are you exploring the use of wearables at all?
John Hancock Vitality [features] a technology-enabled wellness program that provides customers with education, support, incentives, and rewards designed to help them live longer and healthier lives. The program covers a broad spectrum of healthy living including physical activity, nutrition, preventative screenings, and mindfulness.
DI: How are you encouraging customers to adopt this?
We offer two options. Vitality GO is a voluntary option [that] gives customers access to expert fitness and nutrition resources and personalized health goals through an easy-to-use app and website. Customers healthy habits are rewarded with discounts at Amazon, REI and discounts on wearables. Vitality PLUS [includes] savings up to 15 percent on annual premiums and valuable rewards for the everyday things they do to stay healthy.
DI: What kinds of devices are you using?
John Hancock Vitality PLUS policyholders have the option to receive a free Fitbit device with their policies or earn an Apple Watch Series 4 for as little as $25 for exercising regularly. The John Hancock Vitality program syncs with most wearables and apps on the market.
DI: What are some of the insights you've gotten through the program?
Our existing Vitality customers have overwhelmingly said they enjoy the convenience of the seamless digital experience that their wearable provides. We’ve discovered that even more value is created when people in higher-risk categories engage in our program. According to the recent global RAND study results, when Vitality is combined with Apple Watch, less healthy people show a 200% increase in activity levels (compared to a still very impressive 30% for others).
DI: Are you exploring the use of wearables at all?
John Hancock Vitality [features] a technology-enabled wellness program that provides customers with education, support, incentives, and rewards designed to help them live longer and healthier lives. The program covers a broad spectrum of healthy living including physical activity, nutrition, preventative screenings, and mindfulness.
DI: How are you encouraging customers to adopt this?
We offer two options. Vitality GO is a voluntary option [that] gives customers access to expert fitness and nutrition resources and personalized health goals through an easy-to-use app and website. Customers healthy habits are rewarded with discounts at Amazon, REI and discounts on wearables. Vitality PLUS [includes] savings up to 15 percent on annual premiums and valuable rewards for the everyday things they do to stay healthy.
DI: What kinds of devices are you using?
John Hancock Vitality PLUS policyholders have the option to receive a free Fitbit device with their policies or earn an Apple Watch Series 4 for as little as $25 for exercising regularly. The John Hancock Vitality program syncs with most wearables and apps on the market.
DI: What are some of the insights you've gotten through the program?
Our existing Vitality customers have overwhelmingly said they enjoy the convenience of the seamless digital experience that their wearable provides. We’ve discovered that even more value is created when people in higher-risk categories engage in our program. According to the recent global RAND study results, when Vitality is combined with Apple Watch, less healthy people show a 200% increase in activity levels (compared to a still very impressive 30% for others).
State Farm
Homeowners market share rank: 1; 18.42%
DI: Are you exploring smart home technology?
State Farm is always looking at how we can leverage new technologies to adapt to the changing needs of our customers. We believe innovation will help our customers for years to come. We envision an intelligent home that increases our customer’s awareness of what happens in their homes, and empowers them to control and protect their family and possessions. RedLabs – State Farm’s innovation and research department - has several test projects they’re currently working on related to smart home technology, but we’re not at a place to share anything right now.
What we can share is several years ago, State Farm began forming affinity relationships with leading home control and monitoring providers. Customers who have a Canary system qualify for a local home burglar alarm discount for homeowners and renters insurance. Customers with ADT can received a monitored-alarm discount. For more info, customers should check with their local State Farm agent to see what discounts are available in their area specifically.
DI: Are you exploring smart home technology?
State Farm is always looking at how we can leverage new technologies to adapt to the changing needs of our customers. We believe innovation will help our customers for years to come. We envision an intelligent home that increases our customer’s awareness of what happens in their homes, and empowers them to control and protect their family and possessions. RedLabs – State Farm’s innovation and research department - has several test projects they’re currently working on related to smart home technology, but we’re not at a place to share anything right now.
What we can share is several years ago, State Farm began forming affinity relationships with leading home control and monitoring providers. Customers who have a Canary system qualify for a local home burglar alarm discount for homeowners and renters insurance. Customers with ADT can received a monitored-alarm discount. For more info, customers should check with their local State Farm agent to see what discounts are available in their area specifically.
Travelers
Homeowners insurance market share rank: 6; 3.82%
DI: Are you exploring smart home technology?
Travelers has several ongoing initiatives to assess the value that smart home solutions offer and how they can help our customers protect their home and property. This includes our partnership with Amazon to launch the first-of-its-kind Travelersdigital storefront on Amazon, which offers customers discounted smart home kits to help protect their homes from some of the most common causes of loss. We also have a pilot in California with tech firm Notion to offer discounted smart home sensors to select home insurance customers in the state.
DI: What are some of the insights you've gotten through the program?
We are in the early stages of our work with Amazon and in smart home technology, thus our primary goal is to learn how best to leverage the potential for these innovative devices and offerings to help us deliver what our customers want and need. Via this partnership with Amazon, we’ve learned that in particular, our agents are a critical resource in helping to increase adoption by helping customers to understand and access smart home technologies.
DI: Are you exploring smart home technology?
Travelers has several ongoing initiatives to assess the value that smart home solutions offer and how they can help our customers protect their home and property. This includes our partnership with Amazon to launch the first-of-its-kind Travelers
DI: What are some of the insights you've gotten through the program?
We are in the early stages of our work with Amazon and in smart home technology, thus our primary goal is to learn how best to leverage the potential for these innovative devices and offerings to help us deliver what our customers want and need. Via this partnership with Amazon, we’ve learned that in particular, our agents are a critical resource in helping to increase adoption by helping customers to understand and access smart home technologies.
John Quinn/Bloomberg News
Progressive
Auto insurance market share rank: 3; 10.99%
DI: Snapshot is one of the oldest UBI programs in existence. How big is it?
Progressive has collected more than 25 billion miles of driving data and has found key driving behaviors – like actual miles driven, braking and fast accelerations – carry more predictive power than traditional rating variables. Customers can choose to participate in Snapshot either by using a device that plugs into their vehicle OBD port or through Snapshot Mobile which is offered via an app on the customer’s phone.
DI: How many policyholders does this translate to?
We do not release number of policy holders at this time, but we can tell you that in 2018, we had $ 5.5 Billion in net written premium from UBI policies.
DI: Who are the tech partners you're working with as Snapshot expands?
We are working with True Motion for the Snapshot Mobile App and Xirgo for the Snapshot plug-in device.
DI: Snapshot is one of the oldest UBI programs in existence. How big is it?
Progressive has collected more than 25 billion miles of driving data and has found key driving behaviors – like actual miles driven, braking and fast accelerations – carry more predictive power than traditional rating variables. Customers can choose to participate in Snapshot either by using a device that plugs into their vehicle OBD port or through Snapshot Mobile which is offered via an app on the customer’s phone.
DI: How many policyholders does this translate to?
We do not release number of policy holders at this time, but we can tell you that in 2018, we had $ 5.5 Billion in net written premium from UBI policies.
DI: Who are the tech partners you're working with as Snapshot expands?
We are working with True Motion for the Snapshot Mobile App and Xirgo for the Snapshot plug-in device.
Chubb
Home insurance market share rank: 9; 2.87%
DI: Are you exploring smart home technology?
Smart home technology and IoT sensors are advancing Chubb’s evolution from a model of 'repair and replace' to 'predict and prevent,' which will fundamentally change the relationship between insurers and their customers. Chubb recently announced that it will partner with Hartford Steam Boiler Inspection and Insurance Company, a unit of Munich Re, to begin installing innovative Internet of Things technology in the homes and businesses of Chubb policyholders. By actively monitoring the home through smart devices and IoT data, we will be able to predict and prevent damage. For example, while our homeowner is away on vacation a smart device in their home alerts Chubb to a change in water pressure and a potential water valve leak. Chubb can alert the homeowner that there is a problem before there has been a flood and provide service options to address the issue.
DI: What kinds of devices are you using?
The program is made available through HSB's partnership with GROHE, with sensors powered by theGROHE Sense Guard system, an intelligent water security system that detects water leaks, alerts the homeowner and shuts off the water supply automatically to prevent severe damage to the home.
In two other programs, advanced IoT sensors that monitor temperature, vibration and humidity changes, powered byHSB's Sensor System s, will be installed in clients' homes to help prevent damage to valuables such as fine art and wine collections, and, on the commercial side, in businesses and entities with environments sensitive to these factors.
DI: What are some of the insights you've gotten through the program?
The HSB program is still in early days of rollout and testing for both personal and commercial lines clients but we also have prior experience with the use of sensors. The customer experience is critical, requiring thought in the marketing, installation by professional providers and monitoring thereafter.
We are carefully assessing the technology, data analytics and sensor installation to ensure there are no false alarms and the installation process is seamless for customers before expanding the rollout of the new program.
We have both personal and commercial lines clients on-board to participate in the testing phase. While early, clients clearly recognize the value of the having sensors installed in their homes and businesses to alert and potentially minimize damage and disruption.
DI: Are you exploring smart home technology?
Smart home technology and IoT sensors are advancing Chubb’s evolution from a model of 'repair and replace' to 'predict and prevent,' which will fundamentally change the relationship between insurers and their customers. Chubb recently announced that it will partner with Hartford Steam Boiler Inspection and Insurance Company, a unit of Munich Re, to begin installing innovative Internet of Things technology in the homes and businesses of Chubb policyholders. By actively monitoring the home through smart devices and IoT data, we will be able to predict and prevent damage. For example, while our homeowner is away on vacation a smart device in their home alerts Chubb to a change in water pressure and a potential water valve leak. Chubb can alert the homeowner that there is a problem before there has been a flood and provide service options to address the issue.
DI: What kinds of devices are you using?
The program is made available through HSB's partnership with GROHE, with sensors powered by the
In two other programs, advanced IoT sensors that monitor temperature, vibration and humidity changes, powered by
DI: What are some of the insights you've gotten through the program?
The HSB program is still in early days of rollout and testing for both personal and commercial lines clients but we also have prior experience with the use of sensors. The customer experience is critical, requiring thought in the marketing, installation by professional providers and monitoring thereafter.
We are carefully assessing the technology, data analytics and sensor installation to ensure there are no false alarms and the installation process is seamless for customers before expanding the rollout of the new program.
We have both personal and commercial lines clients on-board to participate in the testing phase. While early, clients clearly recognize the value of the having sensors installed in their homes and businesses to alert and potentially minimize damage and disruption.