Insurance tap by Daniel Codd

INSURANCE

TAP

TRENDS ACROSS THE

PLANET V10.12

INSURANCE

TAP

TRENDS ACROSS THE

PLANET

Welcome to Insurance TAP – our look at what’s hot in the sector and who is leading the charge in brand marketing and product innovation. This issue highlights how Google took only 24 hours to become huge in car insurance and why Ford and State Farm Insurance have teamed up to track driver behaviour. We’ve also unearthed how Finnish insurer Kysy Vaikka has taken customer testimonials to a whole new live level. Finally, we highlight how innovative ‘drunk mirrors’ are being used by Allianz to highlight the dangers of drink driving and we dive into why a new piece of EU legislation could soon have women paying another £300 for their car insurance. It’s all here for your delight. Enjoy.

Insurance TAP // V10.12

Contents

Contents 01

Confused.com closes the gap on MoneySupermarket as Google steps in

Allianz delayed response drunk mirror

App alerts drivers when approaching other vehicles at dangerous speeds

Children’s health records on demand

Mobile app helps cyclists compile key facts in the event of a crash

DATA TRACKING APPLICATION LOWERS INSURANCE BASED ON DRIVING HABITS

Car insurance: why women face £300 rise in premiums

Tesco Bank has launched a new ad campaign for its Car Insurance

Standard Life secures RBS distribution deal

How much do you know about Life Insurance? infographic

In the News: AXA appoints former Royal Mail comms head

Insurance Company Has Existing Policy holders Advise New Customers

In the News: DIY know-how lost by “Do It For Me” generation

Getting In Touch

Confused.com closes the gap on MoneySupermarket as Google steps in

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Confused.com closes the gap on MoneySupermarket as Google steps in

Comparison website Confused.com this year achieved a 77% share of visibility in organic listings, when consumers searched for insurance-related terms such as ‘car insurance’, ranking it at position two just behind MoneySupermarket. It also saw an increase in its share of visibility from 32% to 61% in natural search, while MoneySupermarket dominated with 95%. Google’s move into car insurance this month has meant it has immediately gained visibility through the search engine results pages it controls.

Google’s first day of visibility, 11 September 2012, showed its visibility for car-insurance related searches in sponsored results going from 0% to 75%, equating to the comparison service being visible for at least 500,000 relevant UK searches per month from this point forward. This has meant Google has become the second most visible car insurance comparator in paid results, while MoneySupermarket remains on top and Confused.com is pushed to third position.

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App alerts drivers when approaching other vehicles at dangerous speeds

Platforms that enable vehicles to interact with each other have been in the works for a while and are expected to make driving even safer in future. Using smartphone technology available now, however, is the Safety Sight app, which warns motorists if they are heading too fast towards another vehicle. Developed as part of a collaboration between Sompo Japan and Nipponkoa insurance companies, the app uses the phoneâ&#x20AC;&#x2122;s camera to analyse what is going on in front of the car when the device is placed in front

of the windshield. The app separates vehicles from the other objects in the scene and determines their distance from the userâ&#x20AC;&#x2122;s car. If the car is moving too quickly towards the vehicle in front of them then the app emits a sound to warn the driver to slow down. For example, if the driver is travelling at 40 miles per hour, the alarm will sound if the speed is maintained at a distance of 16 meters from the vehicle ahead. In the event of a crash, the app will record video of the incident as well as how fast the vehicle was travelling.

It also shows up local police numbers as well as contact details for the two insurance companies in the case of an accident. The app helps to make motorists more aware of the vehicles around them in real time in order to improve their driving.

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Mobile app helps cyclists compile key facts in the event of a crash

Much the way State Farm’s Pocket Agent app helps drivers deal with the aftermath of an auto accident, so a new counterpart from New York Bike Lawyers – Flanzig and Flanzig – helps bicyclists do much the same thing. Specifically, the firm’s new Bike Crash Kit app aims to make it easy for cyclists to accurately record all the information they need at the scene of a two-wheeled crash. Available for free for both Android and iPhone, the Bike Crash Kit is designed to help cyclists gather all the necessary data after a bicycle crash. Specifically, it prompts them to get the driver and vehicle owner’s

name, insurance information, witness information, responding police officer’s name, report number, and precinct. Featuring utilities such as a camera, voice recorder, text notepad and drawing pad, it will also geo-tag the accident location, assist in taking photos of the accident scene and vehicles, record witness statements, and offer a sketch pad to diagram vehicle and cycle movement before and after the crash. If the accident involves a vehicle blocking a bike lane or was caused by a street defect such as a pothole, that underlying problem can also be documented using the app via photo or sketch. Finally, the app compiles

crash data in an organised format that can be easily e-mailed to the police department or other relevant organisations. Included in the Bike Crash Kit app there are also a wealth of facts for cyclists to know both before and after a crash and a brief introduction to Flanzig and Flanzig, including a link to its website.

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DATA TRACKING APPLICATION LOWERS INSURANCE BASED ON DRIVING HABITS

Ford Motor Company has partnered in the US with State Farm Insurance to implement a system where a driverâ&#x20AC;&#x2122;s behavior on the road will determine the amount they pay for insurance. Instead of calculating insurance costs based on the predominate statistical analysis model, State Farm leverages a technology solution to collect data about how often an individual drives, how fast they go, and their average driving distance. The collaboration is made possible through Fordâ&#x20AC;&#x2122;s current dashboard platform, the SYNC app, which records pertinent driving data and communicates it with the corresponding smartphone application. Ford estimates that people who drive the national average of 1,000 miles per month can look to save 10% on insurance premiums, and a low-mileage driver could save up to 40%. 04

Tesco Bank has launched a new ad campaign for its Car Insurance

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Tesco Bank has launched a new ad campaign for its Car Insurance

The 30-second ad is the first television campaign from Tesco Bank in 12 months and has aimed to build on Tesco’s well known branding and advertising style. Taking Tesco’s red circle ‘Ping’ device and adapted it as a giant red ‘Ping’ appearing on car roofs as Club Card members buy Tesco car insurance. It has also

featured Tesco’s distinctive mnemonic musical theme and the pay-off ‘Every Little Helps’. The ad, airing across terrestrial and satellite channels, has come as part of a wider strategy to raise awareness of loyalty deals from Tesco Bank

available to Tesco Club Card’s 16 million card holders. It has been supported by extensive integrated activity including DRTV, national press, digital, email and DM to drive Club Card members online. View Video

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How much do you know about Life Insurance? infographic

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Insurance Company Has Existing Policy holders Advise New Customers

Insurance Company Has Existing Policy holders Advise New Customers WE â&#x2122;Ľ THIS!

Kysy Vaikka, a Finnish insurance company that uses current policy holders as advisers to potential customers. The company has recruited over 800 of its existing policyholders to work on a voluntary basis and provide live, one-on-one testimonials about its service to prospective customers. The customers-turned-consultants have agreed to be available from 9am to 8pm each day, enabling potential customers to contact them for phone

conversations to address questions and concerns. The site also features ten video messages recorded by customers at home on their webcams, discussing the claims process and what the company did to address their concerns. The service enables wouldbe customers to gain insight into the happiness or dissatisfaction of current policyholders and seek oneon-one advice.

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Allianz delayed response drunk mirror

Everyone knows you shouldn’t drive after drinking, but when drinking you typically don’t exercise your best judgment. If potential drunk drivers could be targeted before they step into the car – or even better, before they leave the bar – how many accidents could be avoided? Insurance company Allianz decided to take a chance and find out. They installed “Drunken Mirrors” in the bathrooms of bars and clubs. These mirrors look like normal mirrors, so it comes as a surprise when they pause just a moment too long before changing. In other words, the mirror’s own reactions are delayed to simulate how a person’s reflexes are slowed down after a couple of drinks. View Video 08

Children’s health records on demand

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Children’s health records on demand

Parents will always worry about their children’s health, but fortunately a number of innovations, such as Jerry the Bear and Pain Squad, are helping to make caring for them easier. Now a new platform called MotherKnows is joining them, offering a way for parents to check their kids’ medical records at any time. Available via the web and also as an iPhone app, moms and dads signing up to use MotherKnows first agree to release their children’s medical records, which are accessed under 265-bit encryption – the standard for hospital data and compliant with the Health Insurance Portability and Accountability Act. The details are not seen by those running the site, and are displayed only to

the account holders. Full records are obtained and presented in an easy-to-understand way. The idea is that parents can then access the data when filling out medical forms, visiting the doctor or registering their child, as well as generally staying more informed about their kids’ health. One-month subscriptions to MotherKnows start from USD 9.95 per child per month, which offers to update the medical record data four times per year. A Premium service – available for USD 249 per child per year – provides ten updates per year.

View Video

With privacy and data security a top priority, MotherKnows aims to put parents in greater control of their children’s health. Currently available only in the US. 09

Car insurance: why women face £300 rise in premiums

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Car insurance: why women face £300 rise in premiums banned from taking gender into consideration when setting premiums – and women will pick up the tab. According to the AA, the typical insurance premium for a male aged 17-22 is now above £3,000, while for a female it is £2,125. Men aged 23-29 pay an average of £1,840, compared with £1,200 for women. Only once men reach the age of 40 do their premiums come down to the same level as women (at around £700-£750).

An EU ruling means insurance commpanies must end gender discrimination, and female drivers under 40 will be hit hardest. Testosterone-fuelled young males are, all the statistics suggest, a danger on the road. Thrillseeking young men are prone to drive too fast, late at night, and cause horrific fatalities. Young males are 10 times more likely to be killed or injured than a

driver aged over 35. The typical insurance claim by a young male adds up to around £4,500, compared with £1,200 when the driver is middle-aged, whether male or female. It’s the main reason men pay around 40% more than women for car insurance until the age of 40, when accident rates and claims tend to equalise between the sexes. Yet from 21 December, insurers will be

What will happen when the directive comes into force? According to Gocompare.com, Britain’s women are in for a shock. Most are unaware of the ruling and the huge impact it is likely to have. Gocompare’s head of motor insurance, Scott Kelly, says: “We expect to see premiums equalised at the higher male rate rather than the lower rate for females. If that is the case, women drivers will see their premiums rise by just over £300 on average, but for younger age groups the increase could be as much as £2,000.” The scale of the premium increase – on top of the inflation-busting rises of recent years – means some young women who do not have to renew their insurance until January may save money by terminating their policy before the year end and starting a new one before 21 December. 10

Car insurance: why women face £300 rise in premiums

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Car insurance: why women face £300 rise in premiums But for older women, as Michael Winner might say, it’s a case of “calm down, dear...” Unisex insurance rates will have virtually no impact on men and women above 40-45 as they are already treated as near identical risks at that age. Indeed, there may even be a very small bonus: the AA’s figures suggest that women over 50 pay about £10 a year more in car insurance than men, so they may be in line for a small reduction. Young men will also benefit, with estimates that they will see 10% or more clipped off their premiums. For now, the major insurers are silent about how they will price their policies for the unisex era. Money asked Direct Line and Aviva for quotes, but they refused to give specific figures, citing competition reasons. Aviva would only go so far as saying: “Young males are likely to see their premiums fall, and young female drivers are likely to see their motor premiums rise.” At Direct Line, Gus Park, director of motor insurance, said: “We were disappointed with the ruling, but now it is going to become law we’re focused on minimising the impact of the gender directive. It’s hard to be sure what is going to happen to prices within the market. Many customers will not

However that would suggest a huge surge in revenue for car insurance companies from their female customers. In reality, the Association of British Insurers doesn’t believe all premiums will rise to the higher male rate, though it does think they will head that way. Overall, it reckons premiums for males will fall by up to 10%, but rise for females by around 25%.

be adversely affected. However, people shouldn’t panic; they should wait for their renewal quote from their insurer and contact them if they have any concerns.” Many people will be justified in asking why the insurers don’t just split the difference, with male and female insurance rates equalising halfway between the current rates. But Kelly explains: “If a 20-yearold male is being correctly priced for the risk he presents, then the insurer won’t want to charge less than that. Instead, women will have to be charged more.”

A research paper for the ABI last year argued that the ban on the use of gender will result in an overall loss for consumers, as insurers will have less riskbased information to go on and will thus charge more overall. It also said the ban will not mean all women and men pay the same. “For example, a 27-year-old male driver from Swindon who drives a 2-litre BMW, and travels 15,000 miles each year, would need to be offered the same premium as a 27-year-old female driver from Swindon who drives a 2-litre BMW and travels 15,000 miles each year. This does not mean that, on average, male drivers in the insurer’s book would be charged the same premiums as females.” But one thing insurers can’t do is ignore the ruling. The ABI fought a long battle to maintain insurers’ exemption from EU gender equality rules, but were finally defeated in a European Court of Justice ruling in March last year. The court gave insurers until 21 11

Car insurance: why women face £300 rise in premiums

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Car insurance: why women face £300 rise in premiums number of miles driven and the car’s location. Safer drivers will be offered discounts of up to 20% off their insurance, although currently the trial is limited to 5,000 motorists.

December to bring in unisex rates, with the biggest impact expected in Britain, Spain and Ireland, where gender-based pricing is most commonly used. Ian Crowder, a spokesman for AA insurance says: “The ruling abandoned fairness in favour of equality. We were one of the voices saying it shouldn’t happen, but it has, the ECJ has ruled, and that’s now the end of the debate.” Supporters of the ruling argue it was never fair that gender should have come into premium calculations – plenty of young males are safe, cautious drivers, and plenty of young females are tearaways. Why should either be judged on gender? Instead, what the ruling is likely to spark is a switch to “telematics”, where your premium is based on the data transmitted from a mini-computer in your car, which will record when you drive, where, and at what speed, as well as how hard you brake, or even corner. That may mean young males will still be charged a lot more than young females, but it will be because of driving profile, not gender. Telematics, also known as “pay as you drive”, is still in its infancy in the UK, making up only 3% of motor policies sold so far, and an early experiment by Aviva was less than successful. But as young females in

particular face much steeper premiums, more will be tempted to opt for insurance based on telematics. A telematics deal usually starts off as relatively expensive, but as data builds up about the driver’s habits and style, safe driving is rewarded by lower costs, with potential premium refunds. As Coverbox, a telematics insurer, says: “The box also allows us to check your miles, the times driven, where you keep the car overnight, and if it is different then we can decrease or increase the premium accordingly during the year.”

Meanwhile, the EU gender directive affects all insurance products, not just car insurance. So from 21 December it will be illegal to use gender as a basis for discriminating in the pricing of pension annuities and life insurance. Women will again lose on life insurance; historically they pay lower premiums as they enjoy longer life expectancy. But there is a small payback when they hit pensionable age. Currently women receive lower annuities than men because they live longer, but the ruling will mean women may have to be given higher pension incomes.

Aviva is trialling a telematics “app” called RateMyDrive on smartphones, which can monitor acceleration, braking and cornering as well as the 12

Standard Life secures RBS distribution deal

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Standard Life secures RBS distribution deal Standard Life has entered into a five-year platform distribution agreement with Royal Bank of Scotland (RBS). Under the deal, the insurer will deliver a range of RDR compliant investment solutions, which will be available to RBS, NatWest and Ulster Bank customers via the Standard Life wrap platform. From December, the platform will deliver investment solutions through in-branch advisers with a range of RDR-ready products available including ISAs, SIPPs and onshore and offshore bonds. A non-advisory service is planned for 2013. Customers will be able to invest in RBS, NatWest and Ulster Bank investment funds using Standard Life tax wrappers, with assets being managed by Standard Life Investments. Standard Life’s chief executive UK and Europe, Paul Matthews, comments: “This agreement further enables us to capture assets across the value chain, developing innovative investment solutions for customers which are easily accessible via our platform.”

AXA appoints former Royal Mail comms head

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Axa Appoints former Royal Mail comms head Stephenson has spent the last year working as MD for the New York based agency Prosek, and will remain advisor to the CEO. He has previously held senior positions within leading PR agencies Smithfield Consultants and Citigate Dewe Rogerson. He also spent four years on the Board of the Conservative Party and became the youngest ever President of the Conservative Convention, chairing the 2004 Party Conference. AXA UK has appointed former Royal Mail Group PR head Richard Stephenson as director of corporate affairs. Stephenson was poached by the insurance giant from a role at agency Prosek Partners, which he joined after his time at Royal Mail.

Stephenson said: ‘I am especially attracted to the company’s reputation for adopting progressive ideas. AXA remains the only insurance company to have banned referral fees from personal injury lawyers and has taken a lead on the “compensation.

He will start in the role today and oversee all external communications, internal communications and public affairs. Working closely with CEO Paul Evans, he will report to Cheryl Toner, group marketing and communications director.

DIY know-how lost by “Do It For Me” generation

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DIY know-how lost by “Do It For Me” generation

Home maintenance and improvement know-how is being lost through the generations as grown-up children turn to mum and dad for help with their DIY, according to new research from Aviva.

own homes, with the toolbox of mum and dad most frequently called upon for garden maintenance (47%), painting (46%) and building and assembling furniture (34%).

More than half (55%) of empty-nest parents are called upon to help with improvements at their children’s homes, carrying out jobs that would cost around £1,280 a year if undertaken by a professional.

Some even call on parents to help with bleeding radiators (9%) and changing light bulbs (8%).

Parents surveyed typically spend 51 hours a year working for children aged 20 to 40 and living in their

It also appears that the “Do It For Me” generation is in no hurry to learn tasks for themselves – if unavailable, 42% of parents believe their children would leave jobs until they are around and 40%

believe they would hire a tradesman rather than tackle the task themselves. Commenting on the findings, Aviva’s director of home insurance, Heather Smith, says: “While the majority of us cherish our homes and take pride in making them our own, it seems the knowledge and willingness to take on these tasks ourselves is diminishing over time.”

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Getting In Touch

Getting in touch

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Sources: Springwise, CMI, Digital Buzz, Telegraph, PSFK, Mashable, Mintel, Stylus, Advertising Age, Creativity-Online, Activative, Statefarm, TechCrunch, The Drum, Business Insider, Brand Republic, Guardian, Insurance Daily