Digital Affinity Deals "Rappi-dly" accelerated by Chubb!
Hilario Itriago, Managing Director at INSURT3CH.
This week Chubb announced the launch of a new, 100% digital offer for home and cellphone insurance, to which more than 10 million clients of the Latin American SuperApp Rappi will have access to. This is not the first such deal Chubb has announced, let alone completed in LATAM, it is however and perhaps, the most consequential in the race for what I call "Digital Affinity Deals (DADs)", a race that by the way Chubb is running alone, because despite the financial muscle other international carriers or brokers may have, no competitor has invested in the digital capabilities to challenge them. The digital offering available in the Rappi App was developed using the integration capabilities of Chubb's not so secret weapon, Chubb Studio, a global digital distribution platform for insurance products, something competitors don't have and are not developing, at least not in LATAM.
Some players, large and small, are developing their digital strategies and are "dipping their toes" using apps for services such as Pay As You Drive (PAYD), which is a step in the right direction, but the new Affinity Deals will no longer be managed through back-office Microsoft Excel sheets or web-services that take weeks to setup, the new deals will be "APInity" ones (i.e. API-based information exchange between the parties that requires no human touch). If you are an insurance carrier, a broker, even a services company in the value chain like a TPA (Third Party Administrator), and you are not able to operate under an APInity framework, count your business deals because they are about to be less very soon.
The previous points bring me to my final thoughts, which are around the ability to deliver APInity in an independent way. Not all Chubb competitors need to follow the leader and through millions at a Chubb Studio type of platform, nor pretend they are a software company and try to develop it themselves, all they need to do is be brave and contact knowledgable people that bring the best of both worlds together fast, insurance business fundamentals with technology driven capabilities There are few of us out there, most people know who we are, and we have developed as sophisticated platforms as Chubb has, to give its competitors a chance to compete as soon as today!
Head of Digital Business for Chubb International ?? | Business & Team Builder | Digital Pioneer & Forward thinker | Searching for brave minds to reimage insurance, delight customers and narrow the protection gap ???
3 å¹´Many Thanks Hilario for the mention to Chubb. You were always a believer since day 1. We are very thankful to our partners, we'll keep with humbleness doing our best to filling their insurance vision.
Director of Insurance Practice for APAC, EMEA, & LATAM at Celent
3 年Hilario Itriago thanks for sharing. What Chubb is doing is impressive. As an incumbent, using enabling technology such as APIs and a digital framework to facilitate digital partnerships is something to note. I think that as valuable as the tech is their execution capability. Having said that, they are not alone executing at scale. Their peers in Asia, such as Zhong An, have made the ecosystem model their core business model with huge success. At the core of each digital MGA or Neo-insurer is the API capability. Think Qover in Europe, Slice Labs and Lemonade in North America, Mecubro in South America. Last but not least, another example of incumbent playing this game is AXA XL which we’ve recognized twice in the last two years as model insurer in Celent for ecosystem building (cyber and construction). I believe this is becoming the norm for insurance.
Open Finance Co-founder Sekure| Latitud F4 | Fellow at Parallel18 | Insurtech | Fintech | Open Insurance
3 å¹´Great post!! This is what we want to bring to the industry with Sekure Plataforma Digital de Seguros a tech enabler that empower insurers and brokers to create, launch and scale digital insurance programs through our insurance API that easily integrates to third party digital platforms
Group CEO at Genasys
3 å¹´Great post. The exciting part is that the technology needed to do this is now widely available and more cost effective than ever. Digital platforms can allow carriers to keep control of their products and dynamically render changes in structure and pricing, without the need for affinity partners to make any changes. This drives down costs and speed of change on both sides.
| Expert- Consultant| MC Consultants| ??Insurance Elephant??|Insurance Advocate
3 å¹´Demand is there. Digital platform use is there (smart devices). Tech building blocks are there. Rappi , Chubb or whomever- opportunities are there. Excellent reminder, Hilario Itriago that not only underserved LatAm markets exist but experienced 'guides' are waiting to show the way. Rokk3r