In October 2017, Initio was invited to participate as speaker to the Insurance Breakfast organized by Comarch in Brussels & Luxembourg. For this event, we held a keynote about Connected Objects usage in Insurance. This is the synthetic resume and the slides of our presentation.

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IOT – Insurance of Tomorrow ?
Fall 2017
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Foreword
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Initio is a business consultancy firm specialized
in the Financial Industry.
Initio operates in the financial sector since 2008,
servicing a wide range of clients.
Our offering is focused on business consultancy
combined with project methodology in order to
assist our clients on the whole project cycle.
All our consultants have a background in the
financial sector and core business expertise
across business lines.
Initio is the international brand of the French group
Square.

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About the speakers
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Geoffrey Laloux,
Manager of the Business Line “Innovation & Digital Transformation”.
17 years of experience in digital transformation, from the Telecoms industry to the financial sector
through European institutions, always with a focus on innovation and customer centricity.
Geoffrey Rolin,
Senior Consultant, Digital Insurance
Since more than 9 years active in the Insurance & Banking sector in Belgium, from corporate
strategy to implementation of digitalization of sales & services flows.
Perle Nguyen,
Senior Consultant, Insurance.
Evolving in Banking & Insurance industries for more than 11 years, taking part in projects related to
CRM and Mobile App.

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Summary
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IoT : Insurance of Tomorrow ?
1. A short introduction
2. Initiatives and first returns on experience
3. Risks and Opportunities
4. IoTs will be game changers if…

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Summary
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IoT : Insurance of Tomorrow ?
Short Introduction
IoT : Google search

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Summary
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IoT : Insurance of Tomorrow ?
Connected Object according to Initio :
Autonomous sensor , connected to internet directly or via
third party device like a Smartphone, able to collect, send &
receive data, and eventually able to trigger some actions
without any human intervention.

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Summary
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IoT : Insurance of Tomorrow ?
Initiatives and first returns on experience
Once upon a time…
A family…
With different profiles and needs.

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Customer journey surrounded by IoT
in this continent, in a time not so far away …
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Shared car
GPS with detection – travel
insurance proposed as soon
as destination is abroad
Subscription directly on the
screen of the car (reception
by email of the contract)
Shared car
Ethylolock to start the car
+
Gamification on defensive
driving
Insurance Subscription
isn’t SCiFi
Already implemented in
Belux on shared cars :
DriveNow
Proposition to make
Ethylolock compulsory by
Governor of Antwerp

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Customer journey surrounded by IoT
in this continent, in a time not so far away …
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Warehouse
Water leak detectors
In case of damage : Call to
owner/plumber/broker
Private Flat
smoke detectors
Verisure already has
strategic alliances with
Swedish Insurance
companies for this
specific IoT
Connected detectors
(partnerships with BE
Insurance
companies)

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Customer journey surrounded by IoT
in this continent, in a time not so far away …
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Health
captor to detect heart attack,
connected with Health
platform. He is called by the
platform and tells them that
everything’s fine. He commits
to do a medical check up soon.
Health
member of a sport center. She
received a discount during
registration for sport articles
and face-to-face sessions
with a coach.
If he follows the whole
program, he has some
discount on her next premium
of life insuranceFitBit already has
strategic alliances
with UK Insurance
Companies
Discount on sport
subscription &
equipment by
insurance company
(MMA / France)

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Customer journey surrounded by IoT
in this continent, in a time not so far away …
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Pet Insurance
Captor to localize and make
real-time health check-upsBuddy already has
strategic alliances with
French Insurance
Companies (Assuropoil)
(with Belgian subsidiary)

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Customer journey surrounded by IoT
in this continent, in a time not so far away …
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Reminder !!
• This is NOT Science Fiction
• Concrete examples
• European partnerships between IoT and Insurance Companies
• Most are already in production
This might still seem like “pie in the sky” to many BUT it is a real opportunity to
leverage business and to gain competitive advantage

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IoT -A new Business model
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SMART HOME
Insurer
The adequate combination of connected devices/sensors and
insured risks enables an increase in Customer knowledge.
IoT brings a drastic increase of touchpoints.

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Issues to tackle / Constraints
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• Privacy (capture confidential /personal data)
• GDPR (problematic of data management)
• Data protection (hacking, cloud )
• Digital signature (how to subscribe a contract with a device)
Regulatory
constraints
• financing
• set up /distribution
• removal at the end of the contract
• Aging / replacement
Logistical
constraints

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Issues to tackle / Constraints
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• Availability of data scientists
• IT architecture
Data management
• Agile Methodology – working with POC and MVP
• Digital Mindset of Employees
Internal
Organisation
• Making client perception change on IoT, not intrusive but
opportunity to be better protected.
Marketing

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Opportunities
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• Tailored made premiums
• “bad risks” are priced at the right price
• Potential collapse of the whole mutualisation system
Premium
• Reduce the number of claims by improving prevention
• Reduce uncertainty on each claim will reduce technical provisions
to cover the risk
Claims
• Improve Customer Centricity by tailored made risk calculation
• Increase in Customer satisfaction and loyalty by increased
customer centricity
Marketing

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Opportunities
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• Modernise image of the traditional insurance sector
• Opportunity to capture Media Attention
• Increase employee attractiveness & Customer Interest
Brand
Improvement
• Competitive advantage by 1st mover on other players (old-
fashioned insurance companies)
1st Mover
Advantage

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IoT will be game changers if…
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IoTs will be game changers if…

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IoT will be game changers if…
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Data Privacy is respected and reinforced:
• Data collection and exploitation must be in line with
legal requirements (GDPR, Privacy, Loi Evin…)
• Security must be hacker-proof. It’s a major concern for
customers and a real threats.
• Data management must be transparent: Like Ad-
blockers, Consumer distrust of the commercial
exploitation of data may give rise to different forms of
IoT or Data-blockers.

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IoT will be game changers if…
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Customers perceive IOTs as a source of benefits
and not a threat:
Mass adoption of IoT (on voluntarist basis) will be
possible if IoT are marketed like “good for those who
do more” and not like “bad for those who don’t respect
the rules”.
Barriers to adoption:
• Awareness
• Lack of perceived value
• Price
• Concerns about privacy & security
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Yes Maybe if… NO
IoTs adoption willingness by consumers

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IoT will be game changers if…
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IoTs are integrated in a (new) customer centric
relationship model.
IoTs, mobile apps and online applications are offering more
contact points between insurers and customers.
Those opportunities must be exploited and integrated all along
the customer life cycle.
IoT must be used not only to propose personalized tariffs, but
also to trigger real time business decision
Customer
Core
Business
activities
Non Core
Business
activities
CRM & Data analytics
Marketing Actions

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IoT will be game changers if…
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New profitable business models are defined:
New product design methodology like design thinking
and agile project management must also be integrated
into corporate culture
Personalization of risk assessment must be transformed
into concrete (and profitable) new products and services.
• Pay when you drive (use)
• Pay how you drive (use)
• Micro insurance and contextual / slice offering

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IoT will be game changers if…
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Collected data must be injected into an ecosystem:
Data must be acquired (in part) from external companies to
be internally enriched and then reinjected (resold) to other
ecosystems.
Data Ecosystem

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IoT will be game changers if…
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Collected data are injected into an ecosystem:
New profitable business models are defined,
IoTs are integrated in a (new) customer centric relationship model,
Customers perceive IOTs as a source of benefits and not a threat,
Data Privacy is respected and reinforced,
IF
and
and
and
and
THEN
IoT =
Disruption

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in conclusion
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IoT = Insurance of Tomorrow

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CONVENIENCE
PROVIDER
Ecosystem and “open”
data architecture
Deeper Market
Segmentation
Operational excellence &
Cost Cutting
Agile
pricing
in CONCLUSION
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Smart Insurance Ecosystem
Real Time Risk
Assessment
Contextual
Risk
Prevention
Automated
Claim
Management
Deeper
Customer
Relationship
New P&S

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IoT = Insurance of Tomorrow

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IoT = Insurance of Tomorrow
Questions ?

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CONTACT
www.initio.eu
Brussels Luxemburg
Boulevard Brand Whitlock, 60
Brussels, 1200
Belgium
+32 (0)2 669 77 44
brussels@initio.eu
153-155 rue du Kiem - Entrée D
8030, Strassen
Luxembourg
+352 277 239
luxembourg@initio.eu