iStock.com
handbook
MOBILITY SERIES - PART TWO
Gaining the upper hand How brokers can defend their turf in the mobility space, as digital disruptors such as directs, OEMs and vehicle subscription services start to crowd the market B Y S C O T T C O B E R , National Practice Leader — Transportation, BFL Canada
T
he shift to mobility is bringing further disruption to the distribution channel for brokers across many insurance verticals. This gradual disruption has already started to make an impact on personal property and automobile lines. First, it was Economical Insurance launching Sonnet Insurance in 2016 and then Onlia Insurance launching in 2017. Onlia Insurance is a joint venture of Fairfax Financial Holdings Limited and Achmea Canada Holdings Inc.
32
April 2021 | Canadian Underwriter
Consumer choice and willingness to share data in exchange for a quote to bind gives Sonnet and Onlia a first-adopter advantage in helping these carriers learn consumer mobility buying behaviours. Millennials are the anticipated target audience, but the reality is that quoting and binding insurance coverage appeals to any consumer looking for a seamless and efficient online experience. When a consumer gives consent to use their data and answers a limited number of underwriting questions to confirm
coverage through their smartphones, antiquated insurance brokerages are on notice. In theory, online direct insurance companies should have lower premiums by cutting out broker commissions, increased claims efficiencies, and limited bricks-and-mortar costs. Apart from direct insurance companies, other potential disruptors to the broker channel in the mobility space may include automotive original equipment manufacturers (OEM). It’s predicted that they may launch mobility insurance
