On-Demand Insurance in the Cloud with Vlocity
Vlocity’s Digital Technology Enables New Forms of Protection.
The On-Demand economy is changing consumer expectations
As consumers become more accustomed to on-demand services from taxi rides to food delivery to music, it’s not surprising that on-demand insurance and micro coverages are becoming the next generation of insurance. Simple transactions with no paperwork done from a mobile device are commonplace for Millennials and younger generations and they will come to expect the same for insurance. Investments in companies like Trove, Sure, and Metromile show the momentum behind this type of protection.
Insurance carriers today are looking for growth opportunities and ways to close the insurance gap and on-demand and micro-protection offer one avenue for reaching the uninsured market. Cap Gemini reports that on-demand insurance is attractive to customers who previously did not consider themselves candidates for lump-sum insurance as it provides the flexibility to draw down coverage when they feel they most need it.
An important part of selling this type of insurance is the ability to “nudge” consumers at the right time about the need for coverage, as described by Andrea Silvello and Celia Clinciu in “A Nudge Towards Microinsurance.” Insurance is not a fun or exciting purchase and often is “sold, not bought,” so carriers need the intelligence to be able to reach a customer who is a prime candidate for insurance and offer an easy if not fun way for them to get coverage.
Carriers need the intelligence to be able to reach a customer who is a prime candidate for insurance and offer an easy if not fun way for them to get coverage.
Technology Enables New Forms of Insurance and Insurance Delivery
Technology is playing a key role in making all of this possible for carriers. Cloud-based digital platforms providing straight-through processing, microforms, and the ability to leverage IoT data create the ideal infrastructure for offering instant coverage from a mobile device. Setting rules to trigger proactive alerts based on certain data allows you to surface offers for coverage at the optimal time.
Vlocity and Salesforce have leveraged their cloud platform to build these capabilities into an app and demonstrate how easily on-demand insurance can be delivered. Targeted at policyholders, the “Vella” mobile app can guide the user through simple questionnaires about their assets using Vlocity’s microforms and provide real-time quotes for coverage using Vlocity’s cloud-based rating engine. Once recorded, on-demand protection for personal items such as a laptop or artwork or even a pet can be can be turned on or off at any time with the swipe of a finger using the payment information set up in the user’s profile.
By combining Salesforce IoT with the geo-productivity platform, MapAnything, Vella also leverages vehicle telematics and other IoT sensors to provide mileage-based auto insurance so that you essentially pay for coverage only when you’re behind the wheel.
With this type of app a carrier can configure real-time alerts to notify a policyholder when they should consider adding protection. For example data from your phone when you are in a foreign location can trigger an alert to suggest travel insurance. This nudge to consider a small amount of protection keeps insurance top of mind when it may otherwise be overlooked.
As carriers move more of their operations to the cloud, the increased access to data and an agile, digital platform makes the business of providing coverage-on-demand feasible. The number of applications will grow for both consumers as well as businesses, and new and innovative forms of protection can be developed.