When Regulator says Open Your Data to the Banks, the Insurers have to listenThe new customer, the Digital Native wants to work digitally, wants to compare and wants usually all (basic) financial information in one digital view. His ‘Internet shaped DNA’ doesn’t understand and in the long run will not tolerate offline traditions and patterns of classical incumbents, I assume. Two of these customer needs have already been the base of a lot of successful inventions and startups in the past years. All of us working in the insurance sector know and respect the power of digital aggregators. Since some years the customer can now work digitally and compare. What still wasn’t satisfied is the need of Consolidated Digital Views. Some startups in the last years tried to fulfill this requirement, with more or less average success. Far away from the success of implementing the Digital and Comparing Capability. But times might change now. The ‘Digital Insurance Folder Idea‘ gets a second chance with PSD2, I think.
Gone are the DaysWith the PSD2 directive the regulator tells the banks to open their data. But not only open ‘their’ data, but to open a lot of customer data and subsequently also a lot of insurance data. Third Parties, Startups and also traditional incumbents can now satisfy the third basic need of the customer: The one place for all their insurance data. Automatically, with one click. Gone are the days as the customer had to manually add his insurance data into web interfaces or activate long taking, in-transparent and risky manual data and account transportation processes. Gone are the days as the legal situation was unclear and consequences unpredictable. One might say it’s only the header data of the insurance contracts, but it’s an entry, a starting point. The days of the manual, error prone and complicated creation of The One View are over now, if you ask me. With one click and some Machine Learning in the background! Once the user has established a relationship with the new or old Third Party (activating the new third capability by linking his bank accounts) the steps to Detail Data, Contract Management, Change and New Business are minor ones, I predict. In some years nobody will remember that one had to handle every insurance contract form different insurers differently. What this means in terms of customer relationship, interactions and loyalty everybody has to find out on his own. I’m just asking myself, if the regulator really has understood that he also opened implicitly the insurer’s data, when he forced the banks to become more open? Were the insurers allowed to have had an opinion in advance?
ExcecInsurtech 2018 – In a NutshellIt was a pity that I couldn’t attend longer the brillant organized and inspiring ExecInsurtech 2018. But even with only the few bits I took with me I predict 2019 will be the year of PSD2 Insurance. I saw a lot of interesting solutions and ideas. On a high level these could be sorted into one of these three categories:
- PSD2-Aggregation – Creating Multi-Insurance- and Account-Views with the help of PSD2
- PSD2-Contract- and Account–Management – Comparing and offering Insurance alternatives with the help of PSD2 and KI
- PSD2-Advisor – Full-fledged full-automated Robo Insurance Advisor with the help of customer account- and transaction-information and KI
Masterclass PSD2 and OpenInsuranceTogether with our classroom participants we discussed, if PSD2 derived Open APIs could also be a trend for insurance. After the exchange of some controversial views we answered the following polls: These polls and our classroom results are far from being representative. But with the solutions I saw at ExecInsurtech, the feedback I received and the discussions I led I believe I see a trend. And an interesting question remained in the room: How should/could the existing and traditional world handle and react to it?
The first OpenCologne meeting at AXA in Cologne was a success. At least if one considers the No-Show-Rate of zero and the demand for participation in advance. But also from other perspectives I believe this initial meeting was a valuable one. More than 25 individuals, different insurers, Fintechs and experts synchronized on their views on Open APIs and created interested and constructively one common understanding and definition for OpenCologne: OpenCologne is a Self-Service and standardized, freely available B2C Insurance API controlled by the customer with Strong Customer Authentication and Consent Management provided, implemented and powered by the insurer. My impression of these first three hours: It’s time for an Open API movement beyond banking. (Sketchnoting OpenCologne Results – Credits to Alexander Huth – Talanx) As one outcome this understanding now has to be communicated and synchronized internally by every participant. Everybody clearly needs to understand: OpenCologne is an important business strategy (decision) and not just integration technology. A smaller working group of five insurers (Alte Leipziger, AXA, Generali, Gothaer, Talanx and Uniqa) and two Fintechs (Friendsurance, Kasko) has been formed and will meet end of November again at Insurlab Germany. Every member, as a homework, has now to reflect which Business APIs from their perspective could/should be included into a technical and secured B2C OpenCologne container accompanied by corresponding and proving use cases. In the following two days in November or December we will find out if the group can identity one common set of Business APIs and can define a ‘compromise of appetite’ for API openness and API standardization. Besides a first governance and operating model should be identified. Based on the given results, detailed in a decision template, every incumbent has then to decide if there’s a base to continue and to implement OpenCologne. Hopefully end of the year we’ll know if we’ll continue to transforming insurance from ‘Insurance to Go‘ to ‘Insurance to Stay‘. We’ll keep you posted. Your OpenCologne Group.
Kommenden Dienstag treffen sich für ein sehr aktuelles Thema namhafte Vertreter der Versicherungswelt, bunt gemischt aus traditionellen Versicherungsunternehmen und Startups, erstmalig in Köln bei AXA. Der Name OpenCologne ist hierbei bewusst Programm – Köln erster Austragungsort und Open das Leitthema der Veranstaltung. Mit an Bord sind Vertreter der Zurich, Generali, Talanx, DEVK, Gothaer, Uniqa, Alte Leipziger und AXA, aber auch Startups wie Friendsurance, Schutzklick, Kasko, Element und eine Reihe weiterer Experten. Zielsetzung des ersten Aufeinandertreffen ist die offene, aber durchaus gewollte und zielgerichtete Diskussion offener Standards für vom Kunden kontrollierte, regulierte und grenzenlos einsetzbare B2C APIs:
- Glauben die Teilnehmer daran, dass die Reduktion der Informations-Asymmetrie durch Öffnung ihnen und allen Teilnehmern einen Mehrwert bietet?
- Ist ein gemeinsamer Standard in Summe wertvoller, als proprietäre Offene APIs vom jeweiligen Teilnehmer?
- Finden die teilnehmenden Protagonisten einen gemeinsamen Nenner und ein Verständnis für eine erste Implementierung, für eine API, wie es diese im Bereich von Banken in Deutschland schon lange gibt und ab Ende 2019 auch Europaweit geben wird (PSD2)?