Like banking before it, could insurance be about to have its own digital revolution?

One way to ensure it keeps up with the demands of modern consumers is through insurtech. A subset of fintech, insurtech utilises smartphone apps, …

In the past few years, the banking industry has been transformed almost beyond recognition. After remaining virtually unchanged for years, many customers are no longer reliant on physical branches, able to bank and budget from a smartphone and computer, with banks under pressure to keep pace with the digital offerings of challenger or digital-only banks.

With that in mind, it is surprising that another key element of the industry, the insurance sector, has not followed suit.

According to global management consulting firm Accenture, insurers are now under pressure to “evolve and reinvent themselves before disruption, caused by emerging technology and insurance startups, overtakes them”.

However, a study by PWC has found that only 28% of the insurance industry has explored partnerships with fintech companies and less than 14% actively pursue insurtech programmes.

One company trying to change this is By Miles. The company is the first in the UK to offer pay-as-you drive insurance, and with its simple model of only charging customers for what they use (plus an upfront cost to cover the vehicle when it is parked), it is hoping to be one of the driving forces in giving insurance a much-needed update.

By Miles co-founder James Blackham told Verdict that due to a lack of innovation, insurance is now playing catch-up. With the likes of Monzo and Starling shaking up the banking sector, challenger insurance may be next:

“We were thinking about the insurance industry and if you think about the overall space of fintech, in banking you’ve got people like Monzo coming up and challenging established banks. We felt that nothing had really changed in the world of insurance and particularly car insurance.

“Direct line came around in the 1980s and meant that you could buy the products over the phone instead of going to a high street broker to buy it, and that was an innovation, and then comparison sites came along and you can buy it online, and that was an innovation but you’re still buying the same thing. Nothing’s really changed and you ask customers their perception of the products and its pretty awful. So it’s similar to banking in that the circumstances are right for new banks to come in and offer stuff.”

The insurtech revolution

One way to ensure it keeps up with the demands of modern consumers is through insurtech. A subset of fintech, insurtech utilises smartphone apps, wearables and automation to better analyse insurance data and provide a service based on customer needs, updating an area that until now has lacked personalisation.

It may be difficult to transform insurance into a product that appeals to consumers, but Blackham believes that through embracing insurtech, insurance can go from a necessary expense to an innovative product that consumers are more eager to interact with, in the same way that many consumers have taken control of their personal finances through fintech services:

“If you buy car insurance, you buy the same product that our parents’ generation would’ve bought. It’s seen almost universally as something that is disliked, and that’s unfair so we set out to apply a similar principle [as digital banking] to create products that customers love and trust and are fairer in the insurance industry as there hasn’t been any innovation or disruption so far.

“The opportunity is there to take an unloved consumer product that touches just about everyone in the UK…that really hasn’t changed in 40-odd years.”

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By Miles is re-thinking how car insurance operates by enabling drivers to pay for what they use rather than a flat rate. It also utilises insurtech to offer a range of features, empowering customers to make insurance work for them:

“The mobile app allows you to see all the journeys that you’re doing in real time and see how much you’re spending. There’s a whole load of other features that we have made available. The miles tracker can turn your own car into a connected car. With features like find my car for example…we’ve got a function called car medic which will be able to tell you what a problem is and this is how serious it is. There’s a whole bunch of value-added things.”

As with banking, it may soon be necessary for insurance providers to offer a wider range of digital options such as this, or risk becoming irrelevant for younger consumers. With startups rethinking insurance, traditional brokers are under pressure to up their customer service, tailoring products to match a variety of needs and make them immediately and easily accessible. Consequently, a report by Accenture reveals that investment in insurtech has doubled over the past year.

Blackham believes that the rise of disruptive technology such as driverless cars and car sharing will make a shift toward a different model of insurance necessary:

“If you listen to what car manufacturers are saying, they are putting billions into connected, autonomous, electric and shared, and specifically around autonomous and shared cars…in that world insurance naturally has to become more use-based because if I’m on a journey and the whole journey the car is driving itself, or 90% of the journey, you don’t want to be paying insurance for that.

“That’s not on me – the only time I want to pay for insurance is when I’m behind the wheel. So that’s usage-based. And in a sharing economy, I own a car but I never drive it myself as there are other people driving it under their own insurance then I don’t want to be paying for driving risk, I only want to be paying for parked car risk. In general, to realise the vision of car manufacturers, insurance has to change as well.”

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Weekly Direct Line Insurance Group plc (LON:DLG) Ratings on Mar 15, 2019

Total analysts of 8 have positions in Direct Line Insurance Group PLC (LON:DLG) as follows: 3 rated it a “Buy”, 0 with “Sell” and 5 with “Hold”.

Direct Line Insurance Group plc (LON:DLG) Corporate Logo

Direct Line Insurance Group plc (LON:DLG) Ratings Coverage

Total analysts of 8 have positions in Direct Line Insurance Group PLC (LON:DLG) as follows: 3 rated it a “Buy”, 0 with “Sell” and 5 with “Hold”. The positive are 38%. The firm has GBX 424 highest while GBX 339 is the lowest target price. The average target GBX 371.44 is 3.47% above the last (GBX 359) price. Since October 2, 2018 according to StockzIntelligence Inc Direct Line Insurance Group PLC has 35 analyst reports. On Wednesday, January 23 the stock has “Buy” rating by HSBC. On Thursday, January 24 BNP Paribas maintained Direct Line Insurance Group plc (LON:DLG) with “Outperform” rating. On Thursday, March 14 the rating was maintained by Goldman Sachs with “Neutral”. On Thursday, March 14 the firm has “Neutral” rating by BNP Paribas given. On Tuesday, December 11 the stock of Direct Line Insurance Group plc (LON:DLG) has “Outperform” rating given by RBC Capital Markets. The stock rating was downgraded by Deutsche Bank to “Hold” on Wednesday, November 14. On Thursday, November 8 UBS maintained Direct Line Insurance Group plc (LON:DLG) with “Buy” rating. The stock rating was upgraded by Deutsche Bank to “Buy” on Tuesday, October 9. In Friday, November 2 report RBC Capital Markets maintained the stock with “Outperform” rating. On Friday, December 14 Goldman Sachs maintained the shares of DLG in report with “Neutral” rating. Listed here are Direct Line Insurance Group plc (LON:DLG) PTs and latest ratings.

14/03/2019 Broker: Goldman Sachs Rating: Neutral Old Target: GBX 352.00 New Target: GBX 360.00 Maintain

14/03/2019 Broker: BNP Paribas Rating: Neutral Old Target: GBX 390.00 New Target: GBX 370.00 Downgrade

06/03/2019 Broker: JP Morgan Rating: Overweight Old Target: GBX 375.00 New Target: GBX 360.00 Maintain

06/03/2019 Broker: UBS Rating: Buy Old Target: GBX 390.00 Maintain

05/03/2019 Broker: Peel Hunt Rating: Add Old Target: GBX 400.00 Maintain

05/03/2019 Broker: Shore Capital Rating: Buy Maintain

01/03/2019 Broker: Peel Hunt Rating: Add Old Target: GBX 400.00 Maintain

27/02/2019 Broker: UBS Rating: Buy Old Target: GBX 390.00 Maintain

27/02/2019 Broker: Peel Hunt Rating: Add Old Target: GBX 400.00 Maintain

27/02/2019 Broker: Goldman Sachs Rating: Neutral Old Target: GBX 352.00 Maintain

The stock decreased 0.50% or GBX 1.8 during the last trading session, hitting GBX 359.Currently Direct Line Insurance Group plc is after 0.00% change in last March 15, 2018. DLG has also 1.31M shares volume. The stock underperformed the S&P 500 by 4.37%.

Direct Line Insurance Group plc provides general insurance services and products in the United Kingdom.The company has 4.90 billion GBP market cap. The firm operates through Motor, Home, Rescue and Other Personal Lines, and Commercial divisions.The P/E ratio is 10.85. It offers personal motor, home, and rescue insurance products, as well as other personal line insurance products, including travel, pet, and creditor products; and commercial insurance products, such as business, van, and landlord insurance products for small and medium-size entities.

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Direct Line Insurance Group plc (LON:DLG) Weekly Ratings as of Mar 15, 2019

In total 8 analysts cover Direct Line Insurance Group PLC (LON:DLG). “Buy” rating has 3, “Sell” are 0, while 5 are “Hold”. (LON:DLG) has 38% bullish …

Direct Line Insurance Group plc (LON:DLG) Corporate Logo

Direct Line Insurance Group plc (LON:DLG) Ratings Coverage

In total 8 analysts cover Direct Line Insurance Group PLC (LON:DLG). “Buy” rating has 3, “Sell” are 0, while 5 are “Hold”. (LON:DLG) has 38% bullish analysts. With GBX 424 highest and GBX 339 lowest target, Direct Line Insurance Group PLC has GBX 371.44 average target or 3.47% above the current (GBX 359) price. 35 are the (LON:DLG)’s ratings reports on Mar 15, 2019 according to StockzIntelligence Inc. On Tuesday, November 6 the firm earned “Buy” rating by Shore Capital. On Tuesday, October 2 the rating was maintained by Peel Hunt with “Add”. On Monday, January 21 the firm has “Equal Weight” rating given by Barclays Capital. On Thursday, March 14 the rating was downgraded by BNP Paribas to “Neutral”. On Monday, January 28 the stock of Direct Line Insurance Group plc (LON:DLG) has “Equal Weight” rating given by Barclays Capital. On Friday, November 23 the firm has “Equal Weight” rating by Barclays Capital given. On Friday, December 14 the rating was maintained by Goldman Sachs with “Neutral”. The stock rating was upgraded by Deutsche Bank to “Buy” on Tuesday, October 9. On Tuesday, November 6 the stock of Direct Line Insurance Group plc (LON:DLG) earned “Buy” rating by UBS. On Thursday, November 22 the company was maintained by UBS. Listed here are Direct Line Insurance Group plc (LON:DLG) PTs and latest ratings.

14/03/2019 Broker: Goldman Sachs Rating: Neutral Old Target: GBX 352.00 New Target: GBX 360.00 Maintain

14/03/2019 Broker: BNP Paribas Rating: Neutral Old Target: GBX 390.00 New Target: GBX 370.00 Downgrade

06/03/2019 Broker: JP Morgan Rating: Overweight Old Target: GBX 375.00 New Target: GBX 360.00 Maintain

06/03/2019 Broker: UBS Rating: Buy Old Target: GBX 390.00 Maintain

05/03/2019 Broker: Peel Hunt Rating: Add Old Target: GBX 400.00 Maintain

05/03/2019 Broker: Shore Capital Rating: Buy Maintain

01/03/2019 Broker: Peel Hunt Rating: Add Old Target: GBX 400.00 Maintain

27/02/2019 Broker: UBS Rating: Buy Old Target: GBX 390.00 Maintain

27/02/2019 Broker: Peel Hunt Rating: Add Old Target: GBX 400.00 Maintain

27/02/2019 Broker: Goldman Sachs Rating: Neutral Old Target: GBX 352.00 Maintain

The stock decreased 0.50% or GBX 1.8 during the last trading session, hitting GBX 359.Direct Line Insurance Group plc has volume of 1.31 million shares. Since March 15, 2018 DLG has 0.00% and is . DLG underperformed by 4.37% the S&P500.

Direct Line Insurance Group plc provides general insurance services and products in the United Kingdom.The company has 4.90 billion GBP market cap. The firm operates through Motor, Home, Rescue and Other Personal Lines, and Commercial divisions.The P/E ratio is 10.85. It offers personal motor, home, and rescue insurance products, as well as other personal line insurance products, including travel, pet, and creditor products; and commercial insurance products, such as business, van, and landlord insurance products for small and medium-size entities.

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Witad Awards 2019 Write-Ups: Vendor Partnership or Alliance Professional of the Year—Marisol …

“But what I did see is that there is a blurring between functions of technology and business, especially with emerging technology coming to the …

For Marisol Collazo, winner of this year’s vendor partnership professional category in the annual Women in Technology & Data Awards, the path to technology was not one she had expected. Collazo is currently a managing director and global head of strategic partnerships at the Depository Trust & Clearing Corp. (DTCC), although her background is not in technology—she started her working life as a lawyer and still continues to practice law. “It was certainly not the deliberate path I charted by any means,” she explains. “But what I did see is that there is a blurring between functions of technology and business, especially with emerging technology coming to the forefront. The path to getting into the technology space is now different, as it is determined by understanding industry trends. The value of having industry experience before starting to work with technology is knowing how to integrate technology into the financial workflow.”

Collazo adds that she feels she brings a set of unique skills to the DTCC, which allow her to identify and focus on what needs to be experimented on in the space. It is this advice that Collazo would like to impart to women interested in working in financial technology. “Look at the trends in the industry and figure out what your unique perspective is,” she advises. “These days, technology is not just coding because emerging solutions have driven the need for more diverse skillsets. For example, there’s more demand for legal expertise and business skills because of the emergence of smart contracts. Carve your own path to technology and use the experiences you’ve had to provide a unique perspective.”

Partnerships are essential to the DTCC’s work as a clearing utility. Collazo points out that the organization relies on other parties involved in projects that are not the utility’s core work, like developing and embracing emerging technologies like blockchain and artificial intelligence.

One of Collazo’s most significant projects is the migration of the DTCC’s Trade Information Warehouse to a blockchain network, collaborating with third-party partners like Digital Asset, a New York-based distributed-ledger technology specialist. In the past year, Collazo and the DTCC have identified a number of new partnerships including those with Symphony to integrate chat functions, and connecting Xceptor for additional data capabilities.

Collazo mentors women and people of color and assists them in navigating the DTCC landscape and is a board member of the nonprofit group, Women in Derivatives. She also actively supports increasing the number of people of color in the industry by working with the DTCC’s Hispanic and Latino Business Professional Network.

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