Instant insurance, where is Italy?
Back in ItalyInsurtech, i.e. the application of digital technologies to the insurance world. The latest data presented by theItalian Insurtech Association (IIA), the association that brings together over 200 operators in the insurance industry. L’Insurtech Investment Index 2022 prepared by IIA and processed from the Fintech & Insurtech Observatory of the Polytechnic of Milan. But at what point is heinstant insurance?
We spoke to about it Marco Fornari (pictured), CEO of telepass estate agentsthe insurance broker Telepass Group which, on behalf of the customer and in the absence of authorization from insurance companies, carries out research activities for insurance products that are best suited to the specific needs of customers in the field of mobility. The formulas, both instant and subscription formulas, are not subject to a fixed term and involve the debiting of the current account that the customer has indicated for the payment of the Telepass services.
What is instant insurance?
L’instant insurance is a digital insurance model that allows customers to purchase insurance for a specific risk type, tailored to their exact needs and agreed upon at the exact time they may need it, and only for the time required. It is a practice that has only recently emerged, as digitization and technology have made it possible to streamline the processes for drafting a policy, which usually take a long time.
In contrast to the traditional insuranceWhile instant insurance tends to cover risks over long periods of time without the possibility of service interruption or change, it is designed to cover very specific, “vertical” events or situations and for a limited period with limited offers amount, suitable for mobile sales due to the simplicity and speed of the purchase process. However, these new products will not replace traditional insurance offerings they integrate and enrich it. The categories of most interest are Travel & Sports, Mobility, Home & Devices, and Health.
When does the insurance cover start??
The effective date of insurance coverage may be different: it can be immediately starting from a date and time specified in the contract. Skiing and urban micromobility, for example, require thisActivation of instant protection (also typical ofembedded insuranceor the insurance coverage offered as an additional service together with the purchase of a product or service) while for the Travel Policy The effective date of the guarantee can be postponed (active before departure).
Telepass Broker uses an innovative solution for arranging policies for skiing and soon for mobility linked to the use of all its services: in practice, whenever a specific situation arises, such as using the ski pass, the customer can obtain the rental of the ski pass scooter or motorway entrance in compliance with the legal provisions, a notification asking you to subscribe to instant micro-reportingt, with immediate effect for the entire duration of the insured event. The policy is automatically converted to a seasonal or annual policy when the latter sum insured has been reached.
How can you get instant insurance??
The entire process of activating and managing instant policies, from estimate to signing to payment, is done in one way completely digital and can be performed by different devicesB. PCs, smartphones and tablets, and is therefore very easy and fast. There is generally an online form with the information required for insurance coverage and the corresponding cost estimates. There are a few simple information and acceptance steps to complete regarding distance selling legislation, the legal and compliance aspects related to insurance distribution, data protection and the management of personal data.
The convenience of taking out policies via the Telepass app is that the customer has the option of charging the cost of the insurance to the account linked to the Telepass contract, to which the Telepass fee and all associated services have already been charged . This streamlines and simplifies the process of underwriting policies.
What are the advantages of immediate insurance?
In addition to the possibility of insuring certain risks for limited periods of time and thus theextreme flexibility of the products and adaptability to the specific needs of the customerhas immediate insurance very transparent insurance and price conditions, to precisely adapt to this type of “quick and smart” sale, without the need to present paper documents or wait for the insurer’s risk assessment, unlike traditional policies, which generally require many steps and verifications before being activated . Instead, they can be signed in no timeanytime and from anywhere. Much of the credit is due to thisartificial intelligence and atadvanced data analysis: Automation and digitization of processes represent one of the main differences between traditional and instant policies.
What instant insurance solutions are there in Italy?
The instant insurance offer comes in three forms in Italy:
- traditional companiesbasically focused on the travel part;
- Brokers with digital platforms with an open supply for the retail market, a formula based on passively waiting for demand;
- Non-Insurance Dealer (utilities, e-commerce), which are based on the trigger, i.e. the active offer to the customer due to the imminent need (example: ski insurance).
Telepass falls into the latter category with its offer. When activating the service, for example the ski pass, it also offers combined insurance.
At what point is Italy in instant insurance?
The Italian instant insurance market is silent relatively young and developingwith few consolidated and even less established players compared to other European regions in terms of purchase penetration and on-demand policy awareness.
But that has to be said The offer is evolving: If the first examples in Italy were limited to very specific and not exactly everyday needs, above all travel insurance (e.g. assistance, flight delay, luggage) or accident insurance for non-competitive sports activities (e.g. skiing for a day), Yes, now insurance services appear on the market that can be activated in instant mode, but with a longer term, most often combined with certain goods, such as household appliances (e.g. washing machine, dishwasher, oven, etc.), electronic devices (HI-FI , LCD LED TV, etc. .) smartphones and tablets.
In this scenario, where instant insurance is constantly evolving in Italy, the Telepass offer is also expanding and is currently focused on mobility services related to classic cars (car insurance, accidents on the highway) and travel around the world (skiing). , travel) and to the person (accidents outside the home)
What is the difference between instant insurance and on-demand insurance??
The difference is very subtle. Instant insurances can be viewed as a subset of the larger group Insurance on demanda model based on the logic of subscription economytypical of entertainment realities such as streaming platforms that offer customers the ability to quickly select and purchase the product that best suits their needs through digital marketplaces.
On-demand insurance can take several forms: in addition toinstant insurancecharacterized by on and off politics, which refers to very specific moments and situations, we also find Pay-per-use or usage-based policieswhose prices and properties depend on the actual use of the item/service to which the insurance relates, included (or embedded) This is insurance protection offered as an add-on along with the purchase of a product or service and currently accounts for more than 70% of premium income and is expected to see the greatest growth. An example of the latter two categories is the insurance sales offer from the Telepass Group, whose Best Tariff system is linked to the purchase of a service, for example a ski pass.