December 16, 2021
Stellantis plans to use connected car services to offer usage-based auto coverage
What: Stellantis (formerly Fiat Chrysler) has been heavily investing in its tech and connected car services, generating 400 million euros annually from this technology. Now it’s leveraging that connection to launch usage-based auto insurance.
Chief Software Officer Yves Bonnefont said the group would move its vehicles from their current dedicated electronic architectures to an open software platform, leveraging partnerships. “We don’t want to do everything by ourselves,” he said.
Why it matters: Embedded insurance is just getting started. This automaker integration of insurance has at least 4 major benefits for consumers that are unique to embedded insurance:
- Easy Signup: Because there’s a lot of information already known by the insurer, the insurance form can be quite concise.
- Ready-to-go Payment: The insurance is integrated with an already-existing subscription service, with no need to set up payment.
- Ready-to-go Tech: The consumer doesn’t need to do anything to get started – no new apps, just sign up and go.
- Established Trust: The consumer already knows the car company and already trusts the brand. So Stellantis can leverage that trust to simplify the buying decision.
With these benefits, insurers and insurtechs that work with Stellantis’ open software platform will have a lot to gain.
Grisly accidents mean government regulation of e-scooters is about more than sidewalk clutter.
What: E-scooters are everywhere, and along with locals complaining about cluttering sidewalks, we’re also learning that these scooters can be really dangerous. E-scooters were the primary cause of 57,800 hospital visits last year and more than 70 people have died because of them in the past 3 years.
Why it matters: There’s probably quite a few gaps in coverage as liability hasn’t been fully ironed out for e-scooters. Because e-scooters represent a new risk that didn’t exist a few years back, this could be an interesting opportunity for an innovative insurance company. We asked our insurance AI and it suggested pairing with a renters policy.
Insurtech funding trends are showing the value of partnership models.
What: The funds pouring into the insurtech sector haven’t slowed down, but there’s a changing of the guard regarding the focus of insurtechs. Insurtechs are trending toward favoring a partnership model with incumbent insurers, with insurtechs seeking to disintermediate/disrupt incumbents seeing a decline in traction.
Why it matters: Partnerships are a big opportunity for both insurers and insurtechs. But alongside the partnerships we’re seeing a flight to quality; insurers are looking for insurtechs that have robust technical capabilities and a deep understanding of insurance.
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