REPORT - Personalization - GlobalData

Thematic Research: Insurance
Personalization in Insurance
September 30, 2021 GDIN-TR-S039
Personalization in Insurance | September 30, 2021
| Contents
Executive summary ...................................................................................................................................................... 3
Players .......................................................................................................................................................................... 4
Thematic briefing ......................................................................................................................................................... 5
Trends .......................................................................................................................................................................... 6
Technology trends ............................................................................................................................................................ 6
Macroeconomic trends .................................................................................................................................................... 8
Regulatory trends ............................................................................................................................................................ 9
Industry analysis ......................................................................................................................................................... 10

Mergers and acquisitions ............................................................................................................................................... 25
Timeline.......................................................................................................................................................................... 26
Value chain ................................................................................................................................................................. 27

Product development ..................................................................................................................................................... 28
Marketing and distribution ............................................................................................................................................ 28
Underwriting and risk profiling ...................................................................................................................................... 28
Claims management ...................................................................................................................................................... 28
Customer service ............................................................................................................................................................ 29
Companies .................................................................................................................................................................. 30
Public companies ........................................................................................................................................................... 30
Private companies.......................................................................................................................................................... 32
Sector scorecard ......................................................................................................................................................... 34

Insurance sector scorecard ............................................................................................................................................ 34
Further reading........................................................................................................................................................... 37
| Our thematic research methodology ....................................................................................................................... 38
| About GlobalData .................................................................................................................................................... 40
| Contact Us ............................................................................................................................................................... 41
WWW.GLOBALDATA.COM © GlobalData Plc 2021 | 2

Executive summary
Investment in analytics – a driver of personalization – is set to Inside
rise ▪ Players
Global investment into the analytics theme within insurance saw record years in ▪ Thematic briefing
2018 and 2019, before falling in 2020 due to the pandemic. However, Q1 2021 saw ▪ Trends
sharp growth compared to the same quarter of the previous year, meaning it looks
▪ Industry analysis
like global investment into the sector is set to return to pre-COVID levels.
Investment into insurance analytics means there will be more companies creating ▪ Value chain
better insights from data, which can be utilized to make policies fit to individuals’ ▪ Companies
and businesses’ needs. ▪ Sector scorecards
▪ Further reading
Consumers want personalized insurance policies
▪ Thematic methodology
GlobalData’s UK Insurance Consumer Surveys consistently find that a significant
proportion of the UK population who do not currently have any personalized
insurance products would be interested in sharing data with insurers in return for ________________________________
financial savings and personalized policies. Yet there are consumers who have
significant concerns around sharing data as they perceive they are being judged by
insurers, or else have privacy concerns. This group may be hard to win over, but the
proportion of consumers who remain interested make the potential customer base Related reports
significant.
▪ Insurance Predictions 2021
The trend will only grow as younger consumers enter the market ▪ Wellbeing in Insurance
Our surveys also show that the younger the respondent, the less likely they are to ▪ Sustainability in Insurance
have privacy or usage concerns around their personal data and that they are more
▪ Climate Change
likely to be interested in personalized products. This is because younger generations
have grown up sharing data with companies across industries, often in exchange for ▪ Sustainability
free services or rewards. Growing up with online services also makes them less likely
to have concerns over sharing data due to being comfortable with the process.
________________________________
Personalization has a presence in all key insurance lines
Personalization has spread beyond personal lines to both life and commercial
insurance. All personal lines – motor, household, travel, and pet – have products
with some personalization angle. It has taken longer in commercial insurance, but Report type
the scale of savings possible through fleet telematics and more flexible working ▪ Single theme
brought on by the gig economy has driven progress. Meanwhile, the COVID-19 ▪ Multi-theme
pandemic has also accelerated this trend.
▪ Sector Scorecard
Leaders and laggards
Life
▪ Leaders: Vitality, dacadoo, YuLife, DeadHappy.
▪ Laggards: Health insurers not using wearables to personalize products.
Personal lines
▪ Leaders: Aviva, RSA, Lemonade, Hippo, Metromile, Root, By Miles.
▪ Laggards: Incumbent insurers continuing to offer traditional policies.
Commercial lines
▪ Leaders: Zego, Wrisk, Tapoly.

Players
The leaders in the personalization in insurance theme include both startups and traditional insurers. They both play
different roles in the trend. Startups are often more innovative and introduce new ideas, while incumbents are later
adopters or else invest in or partner with startups. It is often possible to see future trends in the insurance industry by
looking at what prominent startups are doing. Innovation in personal lines is often led by startups, whether it is
telematics or smart home technology; however, incumbents catch up quickly and have far more resources to bring ideas
and policies to market. Incumbents have realized that personalization not only makes premiums cheaper but can reduce
the likelihood of claims. As a result, policies with features such as telematics and activity tracking have become
widespread among leading insurers.
The key players in the personalization in insurance theme
Source: GlobalData

Thematic briefing
Personalization has become a key theme within the insurance industry. This has been driven by insurers, reinsurers, and
brokers holding more and more data on their policyholders and becoming more adept at learning how to store, analyze,
and use it. It has also been driven by other industries. Consumers around the world have become used to tailored services
from other types of service provider, whether it be recommendations from companies such as Amazon and Netflix or
even personalized banking, which is a more direct comparison to insurance. Digitalization has been a key driving force
behind this, with tailored policies generally bought and managed online.
Learning a consumer’s behavior and creating products for their needs ultimately benefits both provider and policyholder.
It allows the consumer to pay only for the level of cover they need, while also creating a better customer relationship
and thus improved loyalty for the insurer. Like most trends within the insurance industry, personalization started in
personal lines, where it is now an established part of the insurance process in motor, home, travel, and pet. It then
moved to life insurance and is now gradually entering the commercial space. Although it sounds like a new trend, the
principle of creating personalized insurance is not particularly unique. Telematics is perhaps the leading example,
whereby risk assessment is based on consumers’ driving; individuals can benefit from lower premiums if they drive safely
and show improvements. More recent advancements off the back of digitalization have seen products such as life
insurance go from personalizing a product by asking for a customer’s age, weight, and whether they smoke to tracking
their daily exercise and even mental health. Personalization is at the forefront of insurance innovation, as it is changing
the way insurance is packaged and sold. This trend will only accelerate as companies learn more and more about
consumer behaviors and needs.
The biggest obstacle for the trend is consumer concerns over handing over personal data to insurers. This could either
be due to not wanting to be judged on their physical activity, health, or driving, for example, or more likely because of
privacy concerns regarding their personal data. Yet the majority of consumers could be persuaded to exchange personal
data for financial savings according to our consumer survey results. This trend is even more evident among younger
consumers, which suggests that access to consumer data will become easier for insurers as younger generations enter
the insurance market,
Personalization is also a key marketing tool for insurers. Identifying which features different types of customers need
will help with targeted advertising. Even at a basic level, identifying key events for males or females in their 20s, for
example, or how they favor purchasing insurance will help providers target them with relevant policies sold via the ideal
channels and methods. More detailed behavioral knowledge can allow insurers to know that certain generations are
more likely to require specific insurance policies, such as renters’ insurance or travel insurance, or even more niche
products related to key life events, such as wedding insurance or life policies connected to mortgages.

Trends
The main trends shaping the personalization in insurance theme over the next 12 to 24 months are shown below. We
classify these trends into three categories: technology trends, macroeconomic trends, and regulatory trends.
Technology trends
The table below highlights the key technology trends impacting the personalization in insurance theme.
Trend What’s happening?

Artificial intelligence (AI) AI is an established feature of the insurance industry, albeit largely at a basic level at
present. Insurers and insurtechs often have a chatbot that can deal with simple
customer queries or help them along the quote or claims process. It is an essential part
of enabling the personalization theme as it helps insurers automatically analyze and act
upon the wealth of data they have.
The technology is already key to telematics, with its ability to detect bad driving
patterns and alert emergency services in the event of a crash, but the increased safety
of partly or fully autonomous cars will completely transform the industry.
AI also affects the automated home, where the combination of AI and Internet of Things
(IoT) introduces a new level of automation allowing a single voice command to trigger
a series of events. Certain platforms allow users to combine various tasks into a single
workflow, which is then triggered by a command word or phrase picked up by a smart
speaker. For example, the phrase “good morning” will induce a series of events such as
turning on a coffee maker and turning off the air conditioning. This can of course be
developed to sell insurance policies. This can help strengthen the connection between
consumer and insurer and increase personalization across a range of products.
See AI in Insurance.
Big data and analytics Big data and analytics are central to personalization within the insurance industry. Data
is what allows insurers to understand their customers and tailor the best possible
policies for them. Insurers have held vast amounts of data for years, but alongside
analytics this data is now becoming extremely powerful. The industry is learning how
to use this data, which is beneficial to both insurers and customers. This allows insurers
to not only understand their customers’ needs but also track changes in behavior over
the course of a policy. Indeed, this approach has been the driving force behind reward-
style programs seen in health and even motor insurance policies.
See Big Data in Insurance.


IoT The IoT describes the use of connected sensors and actuators to control and monitor
the environment, the things that move within it, and the people that act within it. Use
cases include the automated home, connected cars, wearable technology, smart cities,
and predictive maintenance for industrial machinery. For instance, IoT is at the center
of the connected home; without this technology, devices would operate in isolation,
reducing their functionality and making them less attractive to consumers.
Similar to big data and analytics, IoT has also been central to more personalized
insurance products. For data to be collected and analyzed it needs a web of IoT devices
interacting with each other successfully. For example, the linking of a smartwatch or
Fitbit device to a smartphone then back to the insurer is essential to any personalized
health insurance policy.
Smart speakers such as Amazon’s Echo and Google’s Home are popular consumer IoT
devices, and there are already some insurers allowing customers to purchase and
manage policies through such devices. Aviva was the first UK insurer to launch a “skill”
on Amazon’s Echo, which allows consumers to ask questions about policies and their
pensions. These devices work as a gateway, enabling users to control compatible
connected devices throughout their home without relying on a smartphone, making
them extremely useful. This can lead to insurance policies being completely connected
to devices in the home and thus personalized based on each household’s risk profile.
See Internet of Things (2021).
Wearable tech Wearables are essential to the personalization of certain insurance policies. Health is
the standout example, with the use of Fitbit and other devices designed to track steps
and other forms of exercise. This has also filtered down to the pet market, where
owners can purchase similar devices for their dogs.
COVID-19-driven changes in consumer behavior – including working from home,
increased digital media consumption, and the popularity of virtual fitness workouts – is
driving the adoption of wearables and increasing consumer IoT adoption. Driven by
COVID-19 and the boom in the home fitness market, GlobalData expects the global
wearable tech industry to be worth $156bn by 2024, up from $59bn in 2020.
Wearable technology vendors are integrating a range of health and fitness monitoring
options into their devices, aided by advances in biometric sensor technologies. For
example, Apple has patented a range of sensors for monitoring heart rate,
temperature, and galvanic skin response into its wearables range.
The data collected from these devices is perfect for creating tailored policies, and ones
that can change as consumer behavior improves. The main barrier is that insurers need
such devices to be classified as a medical device for the data to be robust enough to be
integrated into policies. For the incorporation of wearables into policies – as well as
their use in remote patient monitoring – it will become increasingly important to ensure
they are certified as medical devices by regulatory bodies such as the US Food and Drug
Administration, the European Medicines Agency, and similar accrediting organizations.
This will ensure the data generated is robust and that insurers are comfortable using it
in predictive analytics to establish health risks.
Legacy systems Unlike the other trends in this section, legacy systems have been impeding
personalization among traditional insurers. Insurtechs have been able to move forward
and adapt quickly, while many insurers have been held back by systems they have had
in place for years. As systems are constantly evolving in line with emerging
technologies, insurers and brokers stuck on old systems have struggled to keep up.
Insurers store data on these legacy systems, so being beholden to a dated system
makes data analysis and the creation of actionable insights much more challenging.
Source: GlobalData

Macroeconomic trends
The table below highlights the key macroeconomic trends impacting the personalization in insurance theme.

COVID-19 The global pandemic is going to have significant knock-on effects in terms of
macroeconomic trends around the world. It will have a major impact on insurers and
reinsurers. The biggest short-term impact has been the shift in working trends, with
considerably more people around the world now working from home – whether on a
flexible basis or more permanently. While it looked as though this was a measure to
combat the pandemic, it now looks set to outlive it. This will have a significant impact on
consumer behavior. Most notably in terms of driving, many commuters around the world
would have previously driven to work (or to train stations on their way to work) every
weekday. Such mileage will be considerably reduced, which will challenge traditional
motor insurance policies. Motor insurers will face challenges from pay-per-mile insurers
offering highly personalized policies that can save consumers money.
China China’s aim – set by its government in 2017 – is to be the world leader in AI by 2030, and
the country is investing heavily to make this happen. Chinese facial recognition
companies are in a particularly good position, given the government’s efforts to identify
and track its 1.4 billion people. China’s social credit system rates each citizen's
trustworthiness and is based on a network of over 200 million surveillance cameras and
ubiquitous facial recognition.
China is a huge player within the insurtech trend and has companies both receiving and
investing large sums of money in insurance technology. It is home to the best-funded
insurtech in the world, Zhong An, and one of the leading incumbents in the insurtech
theme, Ping An. Ping An ranks first in GlobalData’s thematic insurance scorecard, where
we rank leading insurers based on how well they are doing across 10 key categories.
China’s expertise within the insurtech and AI themes makes it one to watch for
developments in personalization in the coming years, as it could establish itself as a
market leader.
Digitalization of the Younger generations (millennials and below) are digital natives who have grown up using
younger generations online channels. The digitalization of services such as Netflix in entertainment, Airbnb in
accommodation, and Uber in transport means this demographic has become accustomed
to streamlined digital services from businesses. This means the insurance industry will
find it difficult to attract this demographic through phone and postal services with long
forms and waiting times, as this will not be appealing. This is an area where digital
challengers have been able to stand out, with increasing use of apps and much faster
policy quotes. Younger generations are also far more comfortable sharing personal data
and will expect at least basic forms of personalization in their digital insurance policies,
as this is what they are used to from other industries.
Source: GlobalData

Regulatory trends
The table below highlights the key regulatory trends impacting the personalization in insurance theme.

General Data The EU’s GDPR came into force in May 2018. Firms that do not comply with the regulation
Protection Regulation can face fines of up to €20m ($23.3m) or up to 4% of the company’s annual global
(GDPR) turnover (whichever is higher). Non-compliant businesses should not expect their
insurance to cover the associated fine unless they are located within Norway or Finland.
This is particularly notable for insurers looking to specialize in personalization policies.
The collection and usage of big data are an essential part of creating and evolving policies,
but the fines for non-compliance with GDPR are huge – and would be crippling for most
startups. They would also be damaging for larger insurers, both due to the scale of the
fine and the reputational damage that would follow.
Data privacy In addition to cybersecurity risk, IoT ecosystems also raise data privacy concerns for both
consumers and employees. A case in point was the data leak suffered by Ring in 2019,
where hackers breached Ring home security cameras to digitally intrude into family
homes, harass children, and even demand ransoms. A 2020 survey by the World
Economic Forum identified safety, privacy, and trust as the biggest risks for consumers
using IoT devices. The survey also highlighted consumers' lack of awareness about the
data collected by IoT devices – a problem that persists across the IoT value chain. In
addition to common IoT security standards, regulators will also have to address
widespread data privacy concerns within the consumer IoT domain. Data privacy will
always be a key concern for insurers looking to increase personalization within their
policies. The more personal data they hold and use for their customers, the more they
need to be aware of the potential threats and how to keep the data secure.
Source: GlobalData

Industry analysis
Investment in the personalization theme is set to pick up after a pandemic-hit 2020
The key technology theme driving the personalization trend is analytics. Insurers collect and store vast amounts of data,
but it is analytics expertise and programing that allows them to create valuable insights on customers from this data. Big
data and IoT are the foundations for personalization, but insurers have held data for years without properly utilizing it
until the analytics theme began to unlock key insights. Consequently, this theme has seen considerable investment in
recent years and has been the key enabler behind the rise of personalization in insurance.
The value and volume of investment deals in the analytics theme in insurance dropped in 2020 after reaching record
highs in both categories in 2019. This was obviously heavily influenced by COVID-19, with economies around the world
at a standstill and investor confidence extremely low. Q1 2020 saw the second-highest number of deals completed on
record at that point (33), while Q3 2019 registered the second-highest total deal value on record at $960.1m. This
indicates that interest and developments in the analytics theme were growing before the pandemic, and that this growth
should return once economies around the world reopen. There were further signs of the market recovering in Q1 2021,
when the value of deals increased by 74.8% despite key countries around the world re-entering lockdown as COVID-19
hit hard again at the start of the year. This suggests investment in the theme will be strong in 2021 – and could even
surpass the 2019 records.
Global investment in insurance analytics, Q1 2015– Q1 2021

Investments were showing signs of growth before COVID-19 hit hard in 2020
Source: GlobalData’s Smart Money Analytics

The US is the hub for analytics investment

The past three years have seen investments in analytics in insurance all around the globe. Our data shows that the US,
the UK, China, India, and Germany are key insurtech hotspots, although significant deals were completed in over 50
countries across the world. The US saw 1,843 analytics deals completed from the start of 2018 to H1 2021, which is
considerably higher than the UK (573), China (439), India (325), and Germany (133).
The biggest investments during this period were received by Ping An Medical and Healthcare in China in Q1 2018
($1.15bn), Bright Health in the US in Q4 2019 ($635m), Root Insurance in the US in Q3 2019 ($350m), Beijing Internet
Technology in China in Q3 2020 ($320m), and Bright Health in Q4 2018 ($200m). This shows that health and motor (Root)
are leading the way in terms of generating insights into customers in the insurance space. Personalization is more
widespread in health and motor policies, with consumers more accustomed to the tradeoff between giving access to
personal data for cheaper premiums than with other lines, which makes them strong investment prospects.
The US and the UK are hubs of analytics investment in insurance

Insurance investment in analytics by location and number of deals completed
Source: GlobalData’s Smart Money Analytics
Consumers are willing to share data in exchange for financial rewards

GlobalData’s 2020 UK Insurance Consumer Survey found that while few policyholders are already using devices to track
their behaviors across various lines, a significant proportion would be interested in these policies if they received
sufficient financial rewards. This shows that the potential size of the market is substantial and that insurers are correct

to focus on it. This approach benefits customers in the form of cheaper premiums, but in exchange they need to share
personal data. Telematics is the most embedded form of technology within insurance products. Black boxes are the
traditional form of telematics policies, but the advancement of smartphones and apps means tracking apps have become
almost as popular with consumers and insurers. This form of telematics is likely to continue growing as it is free to install,
making the process more affordable and straightforward for consumers.
Dashcams are the most popular form of tracking technology for UK drivers
Source: GlobalData’s 2020 UK Insurance Consumer Survey
Although various forms of tracking devices in motor insurance policies are well established in the UK, most drivers hold
traditional motor policies. Yet many consumers who do not hold a usage-based product would be interested in one if
they felt the savings were large enough. This shows that there is potential for the market to continue to grow. Nearly
two thirds of respondents who did not have a telematics policy responded that they would be interested in getting one
if the savings reached a certain level. The largest proportion of these consumers cited a 30% saving as the required level,
but 9.3% and 18.7% would consider it for 10% and 20% savings respectively. A further 6.9% indicated they were not
interested themselves but would be for their children. UBI has traditionally been popular with first-time drivers because
policies for younger drivers are typically more expensive, which is likely to have influenced these parents’ thinking.

Over a third of consumers would take out a UBI policy if savings reached 30%
There will always be a sizable proportion of consumers who do not want any form of personalized policies, whether that
is due to concerns over sharing data or wearing/fitting devices, or simply just not wanting to share certain data with
insurers. That is reflected within our consumer survey results. As the chart below highlights, the majority of respondents
are not interested in pay-per-mile insurance or premiums tailored around gadget-generated insights or lifestyles.
However, a much higher proportion are potentially interested in these policies than already have them. This means there
is scope to grow the market considerably in the coming years.
Pay-per-mile insurance has great potential due to COVID-19. With many people across the UK continuing to work from
home (or at least having more flexible work schedules), mileage has been reduced. This has increased the opportunity
for pay-per-mile insurance, as it will lead to savings for many consumers due to their new lifestyles. In total, 38.1% of
respondents indicated they do not have pay-per-mile insurance but would consider it. This survey was conducted in Q3
2020, so it is likely that many people realized they would continue working from home at least part-time for the
foreseeable future. Therefore, this percentage is likely to rise in 2021 as working from home practices look set to remain
beyond the end of the pandemic.

Significant numbers of UK consumers could be interested in a range of personalized insurance policies
One point of encouragement for insurers is that people aged between 18 and 29 are more likely to already have these
technologies, while those who do not are more open to the idea of them. This attitude alone should see personalization
increase across all lines of insurance. Our survey found that 10.9% of this age group already had pay-per-mile insurance,
compared to 5.2% of all respondents. Meanwhile, 45.0% of individuals in the 18–29 segment do not have pay-per-mile
currently but would consider it, compared to 37.7% of all respondents. This suggests younger consumers are still the
best to target for pay-per mile insurance despite them already having higher penetration.
This trend is also reflected in policies where premiums are related to gadgets. 11.3% of 18–29-year-olds already use
gadgets while a further 42.0% would consider doing so, compared to 5.2% and 37.7% of overall respondents. Similarly,
9.6% of 18–29-year-olds hold a health insurance policy with premiums based on their lifestyle and 41.3% would consider
doing so, compared to 4.4% and 32.1% across all respondents. These results suggest that resistance to personalization
of insurance will decline over time as more younger consumers take out policies.

Over a third of UK consumers would wear an activity tracker in return for financial benefits
Overall, our survey shows consumers are more likely than not to wear an activity tracker if they are promised healthy
behavior will be rewarded by their life insurer. The two “likely” options combined for 41.6%, while “unlikely” responses
totaled 35.2%.
Privacy concerns remain for many

However, there will always be some consumers that insurers cannot reach. This proportion could be reduced going
forward by understanding why people are against aspects of tailored or personalized policies and what they object to.
The key concerns are getting a device fitted, having to send data to insurers for it to be graded, and sharing personal
data at all. Of these three issues, having a device installed is the standout issue for motor insurers, with nearly half of
respondents selecting it. The other two relate to collection and use of personal data and combined received 70.2% of
responses from consumers who did not want a UBI motor policy.

Those not interested in UBI policies have a range of concerns
Note: Respondents could select more than one answer.

The biggest obstacle to personalization is insurers convincing consumers that they will collect and securely store personal
data without any mishaps. The past few years have been filled with stories of leading companies around the world hit
by large-scale cyberattacks where customers’ personal data has been hacked. This trend has undoubtedly contributed
to consumers’ concerns. In total, 83.2% of respondents stated they are either concerned or slightly concerned about
loss, theft, or misuse of personal data, while 4.1% indicated they are so concerned they would consider buying insurance
against this. This leaves only 12.6% of consumers who are not concerned about this possibility. This emphasizes the scale
of the barrier insurers must overcome if they want to hold and analyze more data to create increasingly tailored policies.
Younger consumers are slightly less concerned about how their personal data is used. 75.2% are either concerned or
slightly concerned, compared to 83.2% for all respondents. Meanwhile, 19.4% are not concerned compared to 12.6%
across all respondents. While these are not huge differences, they suggest the size of the potential market will slowly
expand as younger people come into the insurance space. This trend is likely to continue, as young people growing up
in the digital and social media age will be far more accustomed to the tradeoff of gaining a service or product at cheaper
rates in exchange for sharing personal data.

UK consumers remain concerned about what happens to their personal data
The picture for life insurance is similar, with over half of consumers not wanting to wear a device. This is a barrier that
insurers must eventually overcome – making devices smaller, subtler, and perhaps not particularly visible could help. In
addition, data privacy concerns are also a major issue in this space. Two responses – “it’s sharing too much personal
data” and “I have privacy concerns” – are directly related to concerns around insurers holding sensitive personal data.
In both cases, significant proportions of survey respondents cited these options, which will be hard to overcome. The
other reasons focus on consumer concerns around their ability to maintain sufficient activity to earn rewards and
cheaper premiums. However, similar to telematics, even these individuals may be tempted if they are shown that the
potential savings can be significant enough.

Not wanting to wear a device is the main barrier to personalization in life insurance
Note: Respondents could select more than one answer.


Case studies
Personalization is entering the commercial market, with motor leading the way
The general trend with insurance is that innovation and digitalization happen in personal lines and then eventually move
into commercial lines. This is particularly evident within the personalization theme. As mentioned earlier, telematics is
well-established within personal lines and is now starting to move into commercial motor and fleet policies. This has
partly been driven by insurtechs moving into commercial motor in recent years and using their technology expertise to
modernize the product.
This trend has accelerated post-COVID-19, as insurtechs have increasingly targeted the commercial motor insurance
landscape, offering UBI policies for fleets. Before the outbreak, Zego and Cuvva were the only two providers in the UK
with a focus on short-term commercial motor insurance coverage. These products targeted gig workers or short-term
vehicle rentals. However, the virus has impacted businesses and their supply chains differently. Some businesses
experienced an increase in demand for goods and services, while others experienced a temporary decline in commercial
vehicle usage. The impact of the pandemic ultimately created demand in the market for flexible commercial insurance
services. Additionally, with the virus creating further economic implications, there has been an increased need for
businesses to save money.
In May 2020, insurtech Zego launched UBI coverage for fleets ranging from 20 to 200 vehicles. It then purchased
telematics company Drivit in December 2020 to bring real-time driving behavior data in-house, which will help it build
more tailored, data-driven insurance policies. This paves the way for Zego to launch its own product using driving
behavior and working habits data gathered from integrations with company apps such as Uber. Zego previously
partnered with Uber Eats in September 2018. This partnership offers a pay-as-you-go service that drivers can switch on
and off. It is not overly reliant on big data but will give Zego access to a wealth of relevant commercial data that can be
utilized for Drivit.
Zego also announced it was partnering with RSA to offer flexible insurance for van fleets in May 2020. While this is closer
to the traditional insurtech theme of partnering with an established player and offering digital expertise to help improve
their products, it does highlight Zego’s increasing interest in the commercial motor market.
Insurtech Flock – a commercial drone insurance specialist – followed Zego’s move and launched connected commercial
fleet insurance in November 2020. Both Zego’s and Flock’s products have been well received in the market. Zego became
the UK’s first unicorn insurtech, while Flock’s connected insurance was selected by luxury vehicle renter THE OUT as its
designated insurance partner.
The trend of UBI products in commercial lines is also spreading outside of the UK. In April 2021, US insurer Farmers
launched a new UBI commercial motor insurance program called FairMile. This is a usage-based commercial motor
insurance program in Washington State. Business owners pay insurance premiums only when their vehicles are in use;
they also have access to the FairMile app, where they can track their usage
Incumbent commercial motor insurers will need to catch up with the rapidly changing market trend, especially as
insurtechs challenge this space. The shift in the market means that telematics will no longer be viewed as a tool for
businesses and insurers to mitigate their risk but rather as a tool that will also influence premium prices. Insurers that
do not integrate these services risk falling behind on two fronts: firstly, in terms of attracting clients; and secondly, in
terms of being able to capitalize on driving behavior data, which is becoming increasingly valuable for learning how to
price premiums.
Other examples of insurers bringing personalization into commercial insurance are Wrisk and Tapoly. Wrisk utilizes its
innovative Wrisk Score to promote transparency and show customers exactly why they are being charged their premium
amount. The Wrisk Score is essentially the customer’s individual risk profile and is based on a set of questions each
customer is asked. Meanwhile, Tapoly offers digital commercial insurance to freelance and self-employed workers. It
offers cheap, flexible digital policies based on when individuals are working.

As per our UK Top 20 General Insurance Competitor Analytics, RSA, Allianz, and Aviva accounted for 36.3% of the UK
commercial motor market in 2019. Of the top three, RSA offers one of the most comprehensive fleet telematics offerings,
having launched Smart Fleet in 2015. However, as of Q2 2021 none of these leading insurers have created commercial
motor insurance products that financially reward businesses for “good” driving habits or offer discounts based on how
their fleets are used. Instead, commercial motor premiums are dominated by flat annual fees.
Lemonade positions itself as an insurer for millennials

Lemonade specializes in utilizing its customer data to gain insights into behavior. It uses AI tools to derive insights from
the vast amounts of data it has and looks to turn this customer data into actionable insights. This leads to more and
more personalization and tailored products for new and existing customers. A key part of Lemonade’s success to date
has been targeting its policies at millennials. This is a generation that insurers have traditionally struggled to win over
due to being behind other industries in terms of digitalization.
Lemonade’s main aim since it entered the US housing market in 2015 has been to simplify insurance and the purchasing
process. This includes relatively straightforward methods such as eliminating insurance jargon and writing about policies
in a very clear, simplistic manner. It also relies heavily on its chatbot Maya, which can explain and sign up consumers in
minutes, enabling potential customers to avoid long phone calls and complicated signup procedures. It was also one of
the first providers to offer renters’ insurance, which is very much targeted at millennials who are struggling to buy houses
due to stagnant wage growth and increasing house prices around the Western world. This is a form of personalization
as the company has tailored its whole approach and branding based on targeting a certain demographic – and in doing
so has been extremely successful to date.
Lemonade uses big data to help predict risk and quantify losses by creating customer risk groups. Its AI algorithms gather
data to create customer segments; this effectively splits customers into groups of similar profiles, which allows
Lemonade to learn from their behaviors and improve parts of its service accordingly. This ensures customers are paid
within three minutes and can receive an insurance quote within 90 seconds. The system analyzes catastrophe data in
real-time, meaning it automatically alerts Lemonade’s claims team about potential emergencies. Its claims bot is called
Jim, which according to Lemonade is the first notice of loss for 96% of its claims and can manage the entire claims process
without human intervention. Jim can judge the nature and severity of the claim while also assessing the likelihood of it
being dishonest.
Lemonade uses AI to interact with customers
Source: Lemonade

The insurtech also announced in April 2021 that it is set to enter the car insurance market by launching Lemonade Car.
It is expected to offer customers the opportunity to bundle home, pet, life, and motor insurance – providing a one-stop-
shop for consumers’ main personal insurance needs.
Aviva personalizes digital marketing and customer acquisition

Personalization can also be a key feature on the marketing and customer acquisition side, as the more granular data
insurers have the better they can target relevant customers with relevant products. Aviva launched ADA (Algorithmic
Decision Agent) in July 2019. This personalized automated tool aims to help Aviva be more specific and relevant for its
customers. It focuses on digital marketing and identifying the right customers, as well as on what the customer’s next
best action is. It utilizes machine learning to trawl through vast sets of Aviva’s historical data to predict what each
individual will want in the future. This allows Aviva to personalize offers and news in customer emails, while tailoring ads
on individual customer portals. The insurer claims it has experienced a double-digit increase in click-through rates on
offers thanks to ADA.
The data utilized to date has been transactional data on products consumers purchased, demographic data on
customers, behavioral data on contact history, and clickstream data from visits to Aviva’s website. Several features have
been added, including the dates of customer actions, which allows the company to target certain customers at
particularly timely stages, such as prior to renewal.
It is hard to quantify the impact of ADA. It does not specialize in one particular line but is looking to make improvements
in customer acquisition across all personal lines. Aviva did make a marginal gain in personal household insurance in 2020,
boosting its market-leading share from 10.3% in 2019 to 10.5% in 2020. However, it lost market share in both the travel
and motor insurance lines in 2020, which indicates it is not yet identifying desired customers on a large enough scale.
Personalization in the US market is led by well-backed telematics startups

The US has become a hub of insurtech investment. One of the leading reasons for this is its telematics-based smart motor
insurance policies. Root and Metromile are two of the leading insurtechs in the world in this area.
Root requires potential customers to go through a trial period of up to 30 days, during which it tracks a wide range of
driving behaviors to decide whether or not they are a safe enough driver to insure. Its app tracks driving behavior via
smartphone sensors. Root allows customers to manage their policies through its app, stating that claims can be settled
within three minutes. The company believes it only offers insurance to good drivers; this allows it to offer cheaper
premiums to its policyholders, which is a form of group personalization of its customers.
Metromile also focuses on offering the cheapest premiums possible. It offers pay-per-mile policies, which are often
cheaper for younger drivers, who are generally perceived as riskier by traditional insurers. It also has an AI-assisted
system that can process claims and instigate payouts in minutes. Meanwhile, in the UK, By Miles records how much a
person drives and only charges them for when they use their vehicle. To date, By Miles has raised $30.1m in funding.
These two pay-per-mile insurers are certainly ones to watch in the immediate future. Their combination of being
extremely well backed financially and in an area we expect to see strong growth could make them both key disruptors
within the motor insurance market.
Vitality leads the use of personalized health insurance and is now looking to expand
Vitality has long been a leader in the use of big data, IoT devices, and predictive analytics to offer highly personalized
policies in the life and health sector. Its Vitality Health product innovated by focusing on encouraging positive behavioral
change and promoting healthy lifestyles, thus reducing risk and claims payouts. It offers discounts on smart devices and
rewards for meeting various exercise goals. It will remain a key player in this market, but it also entered the UK motor
insurance space in spring 2021 after partnering with Covea.
As per our UK Top 20 General Insurance Competitor Analytics, Covea was the 10th-largest private motor insurance
provider in 2019, with gross written premiums in excess of £382m ($515.5m). This partnership will allow Vitality the
opportunity to reach a large customer base, benefiting from both the knowledge and reputation held by Covea in this
highly competitive segment.

The new product, called VitalityCar, is expected to be based on Vitality’s Shared-Value Insurance model, which uses
incentives to reward customers for positive behaviors. Given how the model has helped set the company apart from its
competition in the life and health insurance markets, it would not be unreasonable to expect similar levels of success in
the motor space. The launch will also be aided to some extent by the Financial Conduct Authority’s review into pricing.
This is expected to shake up the market from the current status quo and allow for innovative new products such as
VitalityCar to become more competitive, as consumers become increasingly interested in products that offer more
features than traditional policies.
The COVID-19 pandemic may also benefit the launch of VitalityCar. Many incumbents have had to reduce their
investments in new product development; this means that in the short term, competition from similar policies should
be relatively low. This should help Vitality become established in the market, and its experience collecting, managing,
and analyzing big data should prove invaluable.
DeadHappy offers highly personalized services in the life sector

Personalization does not have to be driven by key technology themes and thus require specialist data analytics – it can
be driven by branding and letting the customer tailor the experience for themselves. One example of this is DeadHappy
in the UK life insurance sector. The digital life insurer looks to simplify products and bring younger people into the life
insurance space. It was formed in 2013 and has raised £11.3m ($15.3m) to date. It offers quick policy quotes through its
app as well as its Deathwish product. This is a tweak on traditional life insurance, as it allows policyholders to allocate
their money towards very specific, sometimes eccentric causes. Examples listed on the company’s website include a
season ticket to a friend’s or family member’s favorite football team and funds to build a statue of the policyholder,
which highlights its quirky nature.
This also highlights that insurers (and especially insurtechs) do not always need complex data analytics processes to
stand out; instead, they can appeal to consumers’ imaginations by allowing them to tailor their own policies. The
insurtech offers other features that increase the sense of personalization. For example, it offers a pay-as-you-go model,
so customers can increase, decrease, or break coverage depending on their life circumstances.
AXA and Microsoft have partnered for a health and wellbeing platform
AXA and Microsoft are collaborating to provide a digital healthcare platform to simplify the healthcare journey. It
includes a self-assessment tool and medical concierge. The partnership was announced in April 2021, following a pilot
program trialed in Germany and Italy in 2020. This included a self-assessment tool, teleconsultation, and medical
concierge. The partnership will lean on Microsoft’s expertise in cloud technology; the presence of a tech giant could help
reduce customers’ concerns around how safe their personal data is. It is set to be launched in the UK in 2022, as well as
Belgium, Spain, and Switzerland.
The digital platform aims to connect AXA’s customers to this personalized e-health plan during every step. It includes a
range of services such as a self-assessment and prevention tool, a medical concierge, a teleconsultation interface, a
digital document vault, home care services, and a directory of healthcare professionals.
The automated home is one of the most advanced forms of personalization

The automated home incorporates a range devices and appliances, including speakers, TVs, fridges, ovens, washing
machines, thermostats, lights, and security cameras. These devices can connect with each other through a platform or
hub, allowing users to control them either via an app or website or by using voice commands.
GlobalData estimates that the global automated home devices market will be worth $93bn by 2024, up from $66bn in
2020. This highlights the extent to which smart devices will be present in homes across the world. This therefore
represents a huge opportunity for insurers to both personalize and simplify home insurance policies.
Aviva leads the way in the UK. It is the market leader for household insurance according to our 2020 UK Insurance
Consumer Survey. Aviva acquired majority shareholding in smart home technology provider Neos in 2018, in addition to
a partnership with LeakBot. Technologies such as leak detectors and smart doorbells can improve the safety of

households by spotting risk early before incidents happen. Aviva and Neos split in 2021 as Neos was sold to Sky, but
Aviva is expected to remain a key player in this space.
Travel insurance sees less personalization than the other main personal lines
Travel insurance is much cheaper than other key personal lines such as household and motor, so there is less scope for
insurers to add personalization features. Essentially, the product is so cheap that it is hard to bundle in too many features
and still make a profit as the savings can never be that significant. However, a few providers still try to innovate and
personalize policies in order to stand out.
In 2019, HSBC launched its Pick n Mix insurance product (which is now known as Select and Cover). This subscription-
based offering enables UK customers to choose a minimum of three types of cover from a range of options (including
travel insurance), costing from £19.50 ($26.30) per month. Customers can change one selection per year if needed but
have to maintain a minimum of three products. Based on our market share data, HSBC has a relatively competitive
presence in the travel market – partly due to its underwriting partner Aviva. This offering allows consumers to tailor their
personal lines products, and as a result they are perhaps more likely to purchase travel insurance within that bundle.
The most innovative aspect of travel insurance traditionally has been GPS tracking. Various providers have offered
consumers travel cover that automatically starts once the app detects the customer has entered a new country. This
traditionally costs $1 or £1 per day and can be enabled or disabled by pressing a button within the app. Sterling Bank
still offers this form of travel insurance, while O2 and HSBC have trialed it for periods in the past. This is particularly
personalized as it allows consumers to pay only for the exact time they are abroad, meaning it links directly with their
lifestyles. This style of personalization is more about making it as easy as possible for consumers to purchase insurance
as it is automatic, cheap, and can easily be enabled or disabled. Due to the smaller margins in travel insurance, this is
likely to be a key trend going forward.
Pet insurance follows trends in the health space, albeit at a much lower level
Personalization is also a trend within the pet insurance market, with activity trackers and reward programs increasingly
available for pet owners. A key trend for the product in recent years has been to humanize the pet; mimicking the health
insurance market is an extension of that. This can range from a relatively small thing (such as the policy being addressed
to the name of the dog or cat) to much larger aspects (such as offering tangible rewards for certain levels of activity). As
pets and veterinary services have become more and more expensive in recent years – with pet prices increasing
significantly amid COVID-induced lockdowns – it is even more important for insurers to help prevent them getting lost
or injured. GPS trackers offer good potential for this reason.
The most established provider of such tracking devices is PitPat. Its devices strap on to a dog’s collar and can provide
location services as well as data on how much exercise the dog has done. It has formed several partnerships with leading
insurers, working with the likes of Co-op Insurance and RSA (which also invested in PitPat) in recent years.
Our 2020 UK Insurance Consumer Survey found that only 11.8% of people with pet insurance used a smart device or tool
to manage their pet’s health. While that is a relatively small number, it shows that tracking devices already hold some
ground in the pet market. A further 46.9% of respondents said they did not currently use one but would consider it in
the future.
Joined-up insurance could be the future of personalization

As insurers hold more and more data on their customers – and gain a better understanding of their lifestyles and how
to derive actionable insights from them – they could move away from simple single insurance products and offer
personal insurance as one flexible product. Aviva has trialed this to an extent with My Aviva, which was a subscription
service whereby consumers paid monthly for any three products of their choice. They could swap products in or out and
pause coverage at any time. The end policy was personalized as it included just the personal lines they needed cover for.
This product has been discontinued but showed intent in the area from insurers.
Another example of this is the partnership between two leading insurtechs, Hippo and Metromile. Hippo is a specialist
home and home renters’ insurer in the US, while Metromile is a pay-per-mile motor insurer also based in the US. They

have joined up to launch a combined homeowners and motor policy. Customers will be able to purchase pay-per-mile
auto insurance and home insurance from the pair and receive a 15% discount. The benefit for customers is clear, as this
single product covers two key personal lines. Meanwhile, the insurers can afford to give a discount as they are essentially
upselling to customers. This policy was launched in 2021 and is extremely personalized. Aside from pay-per-mile motor
insurance, the homeowners insurance policy includes smart technology and assesses real-time data to reduce the risk
of claims. Hippo provides homeowners with access to a protective home insurance platform and smart home
technologies such as carbon, smoke, and leak detectors. Hippo’s platform includes educational features such as regular
blogs related to home insurance topics, as well as proactive alerts enabled by AI and data.
As the benefits of such policies to both customers and insurers are clear, we expect to see more joined-up and
personalized products such as this. While they will mainly come from one insurer, the possibility for specialist insurtechs
to link up and provide consumers with both of their services in one package is an interesting trend to monitor.

Mergers and acquisitions

The key M&A transactions associated with the personalization in insurance theme since January 2020 are listed in the
table below.
Date Acquirer Target Value ($m) Target company description

announced
01-Jun-21 First Midwest Bancorp Old National Bancorp 2,469 Bank
22-Apr-21 Independent Bank Meridian Bancorp 1,200 Bank

Corp
12-Apr-21 TWU Super Energy Industries Not disclosed Super fund
Superannuation
Scheme
16-Mar-21 United Bancorporation Town Country 29 Bank
of Alabama National Bank
05-Feb-21 Allianz China Insurance Allianz China Life Not disclosed Insurer
Insurance
04-Feb-21 OneDigital Health and Owen & Associates Not disclosed Health insurer
Benefits (US)
14-Jan-21 First MainStreet Nissen-Caven Agency Not disclosed Insurer
Insurance
01-Jan-21 Whittemore Insurance Kincaid Insurance Not disclosed Insurer
Group
16-Dec-20 Partners Life BNZ Life Insurance 205 Insurer
08-Dec-20 Oswald Riggs, Counselman, Not disclosed Brokerage company

Michaels & Downes
01-Dec-20 BRP Group AHT Insurance Not disclosed Insurance brokerage and
consulting firm
01-Dec-20 World Insurance R.S. Gilmore Not disclosed Insurer
Associates Insurance Agency
30-Nov-20 Gulf Insurance Group AXA Insurance (Gulf) 475 Insurer
KSCP
12-Oct-20 NFP Ernest R Shaw Not disclosed Broker
01-Oct-20 The Finch Group Kennett Insurance Not disclosed Broker

Brokers
21-Sep-20 AssuredPartners Everest Risk Not disclosed Insurer
Management
31-Aug-20 Pentagon Credit Union Sperry Associates Not disclosed Credit union
Federal Credit Union
16-Jul-20 Resources Investment Montgomery Not disclosed Investment company
Advisors Retirement Plan
Advisors
16-Jul-20 Direct Line Brolly Not disclosed Insurer
06-Jan-20 The Evans Agency Business of benefit Not disclosed Brokers

brokers
Source: GlobalData

Timeline
The major milestones in the journey of the personalization in insurance theme are set out in the timeline below.
The personalization in insurance story

How did this theme get here and where is it going?
1981 PC era began

1982 Microcomputers began to fill out mainframe rooms as servers; the rooms become known as “data centers”
1997 Discovery Vitality launched, which would go on to be a key player in personalization of the health insurance
market
2002 Amazon started the development of infrastructure as a service with Amazon Web Services
2008 Progressive launched the first wireless telematics device in the US
2007 Apple launched its first iPhone, kicking off the smartphone industry and creating the mobile internet as we know it
today
2009 Insure the Box – Britain’s first “black box” insurance company for non-professional drivers – was launched
2011 Facebook launched the Open Compute Project to share specifications and best practices for energy-efficient data
centers
2012 US-based health insurtech Oscar launched; it has gone on to raise $1.6bn
2014 Amazon launched the Echo virtual assistant
2015 US-based household insurance startup Lemonade was launched; it has gone on to raise $480m
2015 US-based telematics motor insurer Root launched; it has gone on to raise $527.5m
2016 PitPat launched, aiming to bring activity tracking from health to pet insurance
2016 Chinese ecommerce giant Alibaba became the world’s fastest-growing cloud services company, with revenues
rising by nearly 200% to $685m
2016 Personalized insurance broker Brolly launched; it would later be purchased by Direct Line in 2020
2018 Silicon photonics technology started to positively impact data center networking architectures
2018 Chinese insurance giant Ping An received $1.1bn in series A funding for its healthcare and management company
2018 US data-driven health insurer Bright Health received $365m in series D funding
2018 Aviva purchased smart home technology provider Neos (it later sold the company to Sky in 2021)
2018 Investment in the global analytics in insurtech theme grew by 99.4% as the industry took off
2019 US telematics motor insurer Root received $350m in series E funding
2019 Huawei unveiled what it claimed to be the industry’s first fully containerized 5G network core
2020 Beijing Internet Technology received $230m in series D funding
2020 Zego began forming a range of partnerships to position itself to bring telematics into the commercial motor sector
2021 Data speeds are expected to exceed 1,000G according to Verdict
Source: GlobalData

Value chain
The value chain within insurance starts with product development, when a new insurance product is conceptualized.
Brokers, insurers, and regulators all play a considerable role in this process.
The insurance industry value chain
Source: GlobalData
Brokers’ interactions with customers give them unique insights into the needs of consumers. In some cases, these needs
may not be met by the available insurance products, so brokers will likely respond should enough consumers demand
this type of cover.
Regulators can shape the development of products by simply making them mandatory (such as with motor insurance)
or by imposing certain restrictions on the specifics of cover. Insurers are ultimately tasked with the development of these
products.
The marketing and distribution area of the insurance value chain is essential to success. Those operating within this
space are responsible for ensuring that consumers are aware of the products on offer and for selling to them via a variety
of distribution channels.
Underwriting and risk profiling is core to any insurance product on the market, making this central to the insurance value
chain. Claims management and customer service are both customer-facing areas and are ultimately responsible for the
“moment of truth” element of an insurance policy, where claims are processed and policies adapted.
Both organizational structure and IT systems are fundamental to all areas of the insurance value chain. Organizational
structure enables businesses to operate efficiently. Depending upon the theme being analyzed, the organizational
structure of certain elements of the value chain may alter. Personalization is a top-level theme, which is relevant at some
level to each stage of this process.

Product development
Product development is a key part of the personalization process. This trend has seen existing products added to and
enhanced with data. Whether it is personalized to the extent of pricing premiums based on an individual’s behavior, or
simply a particular generation or age of customer, data has been used to develop and enhance almost all insurance
products at some point. The more information insurers hold on consumers the more insight they can generate and the
more accurately they can assess risk, meaning personalization goes hand in hand with big data analytics. Product
development has been particularly evident in health insurance, where companies such as Vitality have transformed the
sector in recent years by using individuals’ information to develop their offerings. Vitality utilizes tracking devices to
assess how fit and active consumers are. Its offerings go beyond simple insurance products, as they are not just about
accurately pricing premiums but aim to improve consumer behavior as part of the product. Vitality offers prizes such as
free coffees and cinema tickets to consumers who reach certain step goals. As highlighted throughout the report,
personalization has also had a transformative impact on personal motor insurance policies. Telematics policies have not
only provided more accurate premiums but also helped improve customers’ driving.
Marketing and distribution

Marketing and distribution can also be a key part of this theme if insurers can get it right. Customer acquisition is essential
for every product, and the data insurers have on individuals (and groups of people) will help them identify what types of
insurance different people will be looking for at different stages of their lives. This can be as simple as targeted online
advertising in the form of pushing travel insurance adverts to people who have been searching for flights. Another
element of this can be upselling relevant products to customers who insurers know a great deal about. Insurers who
have a motor insurance customer will know their age and address and could offer them renters’ insurance if they are
young, for example, as this is likely to be the most suitable home insurance option.
Underwriting and risk profiling

Underwriting is clearly the essential aspect of the personalization theme, as all of the tech trends involved in creating
individual and group profiles (such as big data, AI, and data analytics) are ultimately about creating the most accurate
premiums for individuals as possible. The more information an insurer has during the underwriting process, the more it
can tailor premiums to suit individuals and groups. Accurately pricing risk is essential for insurers as it allows them to
offer the most competitive prices possible without exposing themselves to too much risk. While consumers will choose
insurers based on a range of factors, value will always be a leading reason. Therefore, insurers that manage to cut prices
and insure exactly what consumers need – based on either their lifestyle or various tracking devices – will benefit greatly.
This will of course also benefit the consumer, who can receive slimmed down insurance covering exactly what they need.
They may also receive benefits in some lines, such as health advice or even a reward system.
Claims management
The majority of personalization within insurance happens before the claims management process, centering around
customer acquisition and underwriting. However, there are some examples of the claims payout being agreed at the
signup stage. The standout example of this is parametric insurance. This automates immediate insurance payouts
when a hazard has reached a pre-agreed threshold. This could be a storm or earthquake being categorized at a certain
level, or water in a property reaching a certain level due to flooding. In the latter case, sensors are fitted when the
policy starts; as soon as they detect that the water level has reached the pre-agreed level, then the payout is
automatically triggered. This allows the customer to receive the payout immediately at a time when they need it most.
Such policies are personalized, as each customer agrees to insure their house against a certain level of threat. For
example, FloodFlash is an insurtech that specializes in this field and offers immediate payouts once water levels reach
a certain height in a house. This means customers pay more for a lower water level but are more likely to receive a
payout as a result.

Customer service
One area where personalization undoubtedly improves insurance policies is customer service. The idea of
personalization is to improve the relationship between the insurer and the customer, to make sure it fits better, to
increase contact between the two, and to create savings for both parties by reducing risk. Certain examples of
personalization within insurance even take away the need for customers to have to report and potentially argue over
claims, which is almost certain to be the biggest friction point between customers and insurers. Parametric insurance
can take this out of both parties’ hands by arranging a pre-agreed payout when something (often water from flooding)
reaches a certain level. This provides immediate and unarguable payouts. Other aspects of personalization can also ease
the claims process. Increased technology in the house or car can help provide more evidence for claims, which can reduce
the time the claims process takes and eliminate potential pain points.

Companies
In this section, we highlight companies that are making their mark within the personalization in insurance theme.
Public companies
The table below lists some of the leading listed players associated with this theme and summarizes their competitive
position within personalization in insurance.
Company Country Competitive position in the personalization in insurance theme

Admiral UK Admiral offers a range of personal insurance products as well as price comparison
services. It has operations in the UK, Canada, Italy, Spain, Mexico, France, India, and the
US. Admiral partnered with Cardiff University in 2016 to work on a big data analytics
knowledge partnership project. The insurer also attempted to utilize consumers’
Facebook data to offer car insurance premiums in 2016. It aimed to harvest data from
social media posts and online behavior to price premiums. The initiative was
unsuccessful as this use of personal data proved controversial and Facebook pulled out.
However, the partnership highlights insurers’ intentions to utilize various forms of data
to help price premiums.
Alphabet US Alphabet is a leading end-to-end player in the IoT theme. Its Android operating system
powers most of the world’s smartphones, and its Google Play app store hosts many of
the apps that track and control IoT devices. Through Nest, it has developed a highly
advanced smart hub to control connected devices in the automated home. Its driverless
car operation Waymo is already a world leader. Its acquisition of Fitbit in 2021 has made
it a strong contender in the wearable tech segment. After Amazon and Microsoft, it is
the third-largest player in cloud infrastructure services, providing much of the IoT's
backbone. It has positioned itself as the go-to player for fully managed IoT services
through its Cloud IoT Core offering. IoT is essential to the personalization process – and
Google in particular can rival any company in the world in terms of the volume of
personal consumer data held. This means it could become a key player in the insurance
industry in the coming years.
Amazon US Amazon Web Services is the world leader in cloud infrastructure as a service. Many
companies use Amazon Web Service’s cloud platforms to process the data that drives
their IoT ecosystems. It also has a range of connected devices, from its family of Echo
smart speakers to its Ring camera-operated doorbells. Many of these Amazon devices
are powered by Alexa, Amazon’s conversational platform. With the 2020 acquisition of
Zoox, Amazon became a serious contender in the fledgling autonomous vehicle market.
Meanwhile, Amazon Go stores are pioneering technology for smart, connected retail
stores. Taken together, these attributes give Amazon one of the strongest IoT
ecosystems in the world. Its strong smart home presence means it is already an
influential player within the personalization in insurance theme.
Apple US Like Amazon, Apple is a leading end-to-end player in the IoT theme. Its core product,
the iPhone (which accounts for around half of the company’s total revenues), makes
Apple the undisputed leader in connected devices within the IoT value chain. It
processes the data collected from its smartphones on iCloud, its in-house cloud
platform. It owns iOS, the software platform that powers the iPhone and App Store, on
which many apps that control IoT systems sit. Its HomeKit automated home platform
lets users configure devices for their automated home using their iPhone or iPad. It is
the world leader in smartwatches by revenue; its presence as market leader in this
segment makes it a key player in personalization within insurance – specifically health
insurance.


Aviva UK Aviva is a key player in all personal lines of insurance in the UK. It offers a range of
personalization features across these lines. Within motor it offers a range of telematics
policies, which can be used through its app, while it also offers dashboard cameras. It
is also the market leader in the UK household insurance market and has been
particularly active within the personalization theme here. It partnered with two smart
home technology providers, LeakBot and Neos, to help modernize its home insurance
offering (acquiring a majority stake in the latter company in November 2018). It has
since sold Neos to Sky, but it has incorporated Neos’ technology in its smart home
policies since 2018.
Bought By UK Bought By Many only provides pet insurance at present, as it has changed from being a
Many multi-lines peer-to-peer insurer to a pet insurance specialist. It offers benefits such as
free veterinary appointments to its pet insurance customers. Having built its reputation
by catering for individuals with specific requirements, the company is well positioned
to become a provider of insurance policies that utilize wearable technology. Although
it came through Munich Re’s accelerator, it very much stands alone now and threatens
traditional insurers. It was one of the earliest digital disruptors to the insurance industry
as it began offering peer-to-peer policies in 2012. It later partnered with Munich Re in
2017 to offer policies of its own. Receiving the backing of reinsurers has been a
successful way for insurtechs to bypass traditional insurers and offer their products
straight to the market.
Direct Line UK Direct Line is a leading provider of car insurance in the UK, offering both telematics and
multi-car policies. It also only sells its policies directly, which is aimed at cutting out the
middle man and better understanding its customers’ needs. Perhaps the biggest
indication that it takes personalization seriously was its purchase of Brolly in Q3 2020.
Brolly is a modern digital broker that acts as a customer’s personal assistant for their
insurance needs. It connects to their emails and downloads all their insurance policy
information. It then recommends cheaper or better-suited policies when a renewal
date is approaching. It is a threat to both the traditional broker channel and price
comparison sites, as it fulfills the same needs for personal lines. It formed a partnership
with AXA in February 2018, which saw the insurer launch its own motor insurance policy
through the app. This product is no longer available following Brolly’s acquisition.
Gen Re US Gen Re, a subsidiary of Berkshire Hathaway, is a provider of multi-line reinsurance and
property and casualty products, operating through a network of offices across North
America, Latin America, Europe, Asia, Africa, and Australia. Gen Re developed its NOW
app in February 2019, which streamlines the customer onboarding process when
purchasing life, hospital cash, and accidental death insurance. By taking a selfie, the app
provides estimated information such as a user’s age, gender, and body mass index
instantly using AI technology.
Lemonade US Lemonade is one of the world’s leading insurtechs. It prioritizes ease of use and speed,
including a chatbot that is able to give quotes within 90 seconds over its app. It uses a
tweaked pricing model whereby it takes a flat fee; any unused premiums are gifted to
causes chosen by customers. It was formed in New York in 2015 and has since raised
$480m, making it one of the most successful startups in insurance. It announced plans
to expand to Europe in June 2018 by launching a product with AXA in Germany. In 2021
the company announced it is set to launch Lemonade Car to challenge the motor
insurance market in the US, initially with a digital offering.
Ping An China Ping An Insurance is an integrated financial conglomerate, providing insurance,
Insurance banking, and investment products and services to individuals and corporate clients. The
group offers life and non-life insurance to customers in China and Hong Kong. Ping An
utilizes AI, big data, and computer vision across its motor insurance claims process.
Customers can submit pictures through a specialized app, after which Ping An’s AI
assesses the damage and can immediately dispense compensation.


RSA UK RSA is one of the leading insurers in the UK and across the world. It operates across a
wide range of general insurance lines in both personal and commercial insurance. It is
one of the leaders in the UK in home and pet insurance in particular. It was an early
investor in pet tracking technology company PitPatPet. Its More Than brand launched
pet trackers for pets as part of its policies in 2019.
Vitality UK Vitality is a well-established provider that already incorporates a high level of
personalization within its product offering. Policyholders are able to use smartwatches
from different providers in order to earn rewards through the accumulation of monthly
activity points. Vitality offers policyholders the chance to get Apple Watch products at
a considerable discount. Vitality provides a blueprint for insurers as one method that
can be used to incorporate wearable tech into insurance products and boost customer
engagement. It tracks certain exercise, such as steps, and offers a variety of rewards for
targets and improved behavior, such as free coffees or cinema tickets. The idea is that
it benefits both the insurer and consumer, as the customer becomes healthier and
receives rewards while Vitality has customers with lower risk profiles.
Source: GlobalData
Private companies
By Miles UK By Miles is a UK-based pay-per-mile motor insurer that was founded in 2016. It offers
highly personalized products that allow consumers to pay a small annual fee and then
pay by the mile on top of that. This means customers who do not expect to drive a
significant amount can have cheaper car insurance policies, which has become
particularly relevant amid the COVID-19 pandemic. In the UK a large proportion of
people worked from home throughout 2020 and will continue to do so (at least on a
part-time basis) in 2021 and beyond. This will reduce many people’s mileage, as fewer
people will be driving to work every day. This means more flexible and value-driven
policies – such as By Miles’ products – could be ideal. The startup has raised $26.6m to
date.
dacadoo Switzerland dacadoo is a provider of digital health and wellbeing solutions that help individuals
track, manage, and benchmark their fitness levels. dacadoo enables life and health
insurers to customize their white-label solutions and deploy their own-brand health
engagement platforms for customers. This helps life and health insurers improve risk
identification within their underwriting processes and reward their customers for
maintaining good health.
dacadoo has developed a Health Score Risk Engine, which is based on over 300 million
person-years of clinical data. It measures users’ health scores based on gender, age,
height, weight, waist circumference, blood pressure, and blood values, among other
factors. Users fill in a self-assessment questionnaire to help the risk engine measure
their mental wellbeing. The platform then collects details on user lifestyles, such as
smoking and alcohol consumption tendencies. It also notes users’ exercise, nutrition,
stress, and sleeping habits. The Health Score Risk Engine then simplifies all these data
points to generate a unified health score. While this helps individuals monitor their
health, it also helps insurers during underwriting.


DeadHappy UK DeadHappy is bringing innovation to the life insurance sector with its unique branding
and digital approach. Its most striking feature is the design of its website, with skulls
and graffiti-style writing making it look more like a skateboard company than an
insurer. It uses very direct and simple language, and everything can be done online, as
it looks to engage millennials in the life insurance market. Its defining feature is
Deathwish, whereby the customer chooses exactly where their payout goes once, they
die. Options range from the relatively generic (such as “pay for my funeral”) to more
humorous suggestions (such as “buy my brother a season ticket for his favorite team”
or “build a bronze statue of myself”).
Oscar US Oscar is a US-based health insurance giant. It offers virtual GP meetings through its
app, as well as rewards for exercising (similar to Vitality). It utilizes a range of key
themes such as big data and AI to provide a modern and digital health proposition to
customers. It was formed in 2012 and has raised $1.6bn to date.
Root US Root is a motor insurance startup that utilizes driver behavior data and trial periods to
judge individuals’ driving ability. It only offers policies to individuals it assesses to be
good drivers. Policies are managed through its app and customers pay a tailored
premium. It was formed in 2015 and has raised just under $530m to date.
Tapoly UK Tapoly offers flexible insurance for self-employed freelancers, sole traders,
contractors, and small businesses. It prioritizes value and offers policies from as little
as £0.35 ($0.47 per day. It offers policies such as professional indemnity, public liability,
employers’ liability, cyber, directors and officers, buildings, contents, business
interruption, personal accident, legal expenses, medical malpractice, and health
insurance. Its digital capabilities, flexibility, and value for money makes it well suited
to the growing gig economy.
Trov UK Trov is a digital on-demand insurer that started by offering temporary cover for
gadgets. Customers add items to the Trov app by uploading a picture, with a switch
next to each item for cover to be turned off or on. Trov further expanded its reach in
2019 when it partnered with car manufacturer Groupe PSA to insure cars as part of the
latter’s Free2Move drive-sharing scheme. It is a major boost for Trov to connect itself
to this expanding industry, and its on-demand nature should be a good fit.
Wrisk UK Wrisk is a digital platform that helps insurers interact with and better understand their
customers. Its key feature in terms of personalization is its Wrisk Score. This gives each
individual customer a score out of 1,000 based on their individual risk profile. It can
share this score with the consumer, which it claims means it can be completely
transparent with them, show them why they are paying the premiums they are, and
how they can go about reducing their risk profile. The startup launched a partnership
with BMW in 2019 to offer car insurance through BMW. Wrisk was formed in 2016 and
has raised $18m since then.
YuLife UK YuLife is a modern life and health insurance company. It offers a rewards-driven
program to consumers to help them make healthier life choices, providing lower
premiums and rewards from its partner companies. The company was founded in 2016
and has raised $18.4m to date.
Zego UK Zego is a gig economy insurer. Formed in 2016, it has raised $51.7m to date and
specializes in on-demand insurance for people working jobs by the hour, such as
delivery drivers. It has since moved into commercial fleet insurance, where it is utilizing
telematics. It became the UK’s first insurtech unicorn in March 2021 with a valuation
of over $1bn.
Source: GlobalData

Sector scorecard
At GlobalData, we use a scorecard approach to predict tomorrow’s leading companies within each sector. For a full
explanation of our thematic scoring methodology, please refer to the Appendix.
Insurance sector scorecard

Who’s who
Who does what in the insurance space?
Insurance
(40 companies)
MKT CAP
Com pany Ticker Sector Country Description
(US$ M)
AIA 1299 Life and nonlife Insurance 144,430 Hong Kong Largest public listed pan-Asian life insurance group
AIG AIG Life and nonlife Insurance 38,906 USA Multinational finance and insurance corporation
Allianz ALV Life and nonlife Insurance 103,511 Germany Largest insurance provider in the w orld
Allstate ALL Life and nonlife Insurance 34,179 USA Provider of property-liability insurance as w ell as other types of insurance
Anorak Unlisted Life Insurance Unlisted UK Insurtech that uses machine learning to make life insurance more accessible to customers.
Anthem ANTM Health Care Providers 88,379 USA Provider of health insurance
Aon AON Life and nonlife Insurance 50,893 Ireland Provider of risk and insurance brokerage consulting
Arthur J Gallagher AJG Nonlife Insurance 24,246 USA Provider of risk management and insurance brokerage
Assicurazioni Generali G Life and nonlife Insurance 31,442 Italy Provider of life and non-life insurance and reinsurance
Aviva AV. Life and nonlife Insurance 21,421 UK Provider of all classes of general and life assurance, including fire, motor, marine, aviation, and transport insurance
AXA CS Life and nonlife Insurance 64,316 France Provider of life and non-life insurance, savings and pension products, and asset management services
By Miles Unlisted Nonlife Insurance Unlisted UK Insurtech providing usage-based private motor insurance.
Chubb CB Life and nonlife Insurance 70,514 Sw itzerland Provider of property and casualty insurance
Cigna CI Life and nonlife Insurance 83,559 USA Provider of managed healthcare
Direct Line DLG Life and Nonlife Insurance 5,893 UK Provider of life and general insurance
Discovery DSY Life and nonlife Insurance 6,009 South Africa Provider of life and general insurance.
Extracover Unlisted Nonlife Insurance Unlisted UK Providers of on-demand insurance products.
Hum ana HUM Health Care Providers 53,495 USA Provider of health insurance
Insurance Australia Group IAG Life and nonlife Insurance 9,093 Australia Provider of motor vehicle and home insurance
Legal & General LGEN Life and nonlife Insurance 22,258 UK Provider of general insurance
Lem onade LMND Nonlife Insurance 5,471 USA Insurtech providing a digital P2P platform that offers property and casualty insurance.
Marsh & McLennan MMC Life and nonlife Insurance 59,966 USA Operator of insurance brokerage, risk management, reinsurance services
MetLife MET Life and nonlife Insurance 51,772 USA Provider of life insurance, annuities, automobile and homeow ners insurance
Metrom ile Unlisted Nonlife Insurance Unlisted USA Insurtech providing usage-based private motor insurance.
Mulberry Health Unlisted Health Care Providers Unlisted USA Provides online health insurance coverage for individuals and businesses.
Munich Re MUV2 Life and nonlife Insurance 43,224 Germany Provider of reinsurance, insurance, and asset management services
Neos Unlisted Nonlife Insurance Unlisted UK Insurtech providing connected home insurance products.
Next Insurance Unlisted Nonlife Insurance Unlisted USA Insurtech specializing in the offering of commercial insurance cover.
PICC 1339 Life and nonlife Insurance 35,255 China Health insurance company
Ping An Insurance 601318 Life and nonlife Insurance 220,669 China Health insurance company for healthcare
Policygenius Unlisted Life and nonlife Insurance Unlisted USA Insurance services provider aiming to fill in gaps in coverage.
Progressive PGR Life and nonlife Insurance 54,175 USA Provider of personal and commercial automobile insurance and other specialty property-casualty insurance
Prudential PRU Life and nonlife Insurance 55,741 UK Provider of include life, accident and health, and property and casualty, as w ell as fixed and variable annuities
Prudential Financial PRU Life and nonlife Insurance 35,253 USA Provider of life insurance, mutual funds, annuities, pension, and retirement related services
Root Insurance Unlisted Nonlife Insurance Unlisted USA Insurtech w hich uses telematics to personalize private motor insurance premiums.
Suncorp SUN Life and nonlife Insurance 9,751 Australia Provider of life insurance, general insurance, commercial insurance
Sw iss Re SREN Life and nonlife Insurance 31,559 Sw itzerland Provider of reinsurance, insurance, and insurance linked financial market products
Tokio Marine Holdings 8766 Life and nonlife Insurance 34,860 Japan Provider of property, casualty, and life insurance
Travelers TRV Life and nonlife Insurance 37,650 USA Provider of commercial and personal property and casualty insurance
Zurich Insurance ZURN Life and nonlife Insurance 64,499 Sw itzerland Provider of general and life insurance products and services
Source: GlobalData © GlobalData

Thematic screen
Our thematic screen ranks companies based on overall leadership in the 10 themes that matter most to
their industry, generating a leading indicator of future performance
Thematic
leader
6B
7B
Thematic
laggard
Key: 1 (red) implies this theme will have a negative impact on earnings over the next 12 months; 3 (yellow) implies a neutral impact; and 5 (green) a
positive impact. Please see the Appendix for an explanation of our research methodology.

Valuation screen
Our valuation screen ranks our universe of companies within a sector based on selected valuation metrics
5B
Cheap
7B
Expensive
Key: Green denotes that the company is cheap (15% more attractively priced than the median value for the sector) relative to its global peers; yellow
denotes it is within 15% of the sector median value; and red denotes that it is expensive relative to its global peers. Private companies are shown at
the bottom of these rankings by default because they do not have a publicly listed market price. Please see the Appendix for an explanation of our
research methodology.

Further reading
GlobalData reports
Publication date Report title
June 17, 2021 Thematic Research: Climate Change
May 11, 2021 Thematic Research: Internet of Things
March 10, 2021 Thematic Research: Computer Vision in Insurance
February 23, 2021 Thematic Research: Insurance Predictions 2021
December 15, 2020 Thematic Research: Impact of China in Insurance
October 15, 2020 Thematic Research: Emerging Technology Trends Survey 2020
October 2, 2020 Thematic Research: Artificial Intelligence (2020)
September 8, 2020 Thematic Research: Connected Cars
June 9, 2020 Thematic Research: Sustainability in Insurance
January 30, 2020 Thematic Research: Computer Vision
January 21, 2020 Thematic Research: Sustainability
August 30, 2019 Thematic Research: Connected Cars in Insurance
Source: GlobalData

| Our thematic research methodology

Companies that invest in the right themes become success stories. Those that miss the important themes in their industry
end up as failures.
Viewing the world’s data by themes makes it easier to make important decisions
We define a theme as any issue that keeps a CEO awake at night. GlobalData’s thematic research ecosystem is a single,
integrated global research platform that provides an easy-to-use framework for tracking all themes across all companies
in all sectors. It has a proven track record of identifying the important themes early, enabling companies to make the
right investments ahead of the competition, and secure that all-important competitive advantage.
Traditional research does a poor job of picking winners and losers

The difficulty in picking tomorrow’s winners and losers in any industry arises from the sheer number of technology cycles
– and other themes – that are in full swing right now. Companies are impacted by multiple themes that frequently
conflict with one another. What is needed is an effective methodology that reflects, understands, and reconciles these
conflicts.
That is why we developed our “thematic engine”

At GlobalData, we have developed a unique thematic methodology for ranking all companies in all sectors based on their
relative strength in the big investment themes that are impacting their industries. Our thematic engine identifies which
companies are best placed to succeed in a future filled with multiple disruptive threats.
To do this, we rate the performance of the top 1,000 companies against the 50 most important themes impacting those
companies, generating 50,000 thematic scores. The algorithms in GlobalData’s thematic engine help to identify the long-
term winners and losers within each sector.
How do we create our sector scorecards?

First, we split each industry into its component sectors, because each sector is driven by a different set of themes. Taking
the technology, media, and telecom (TMT) industry as an example, we split this industry into the 18 subsectors shown
in the graphic below.
Our five-step approach for generating a sector scorecard

Here we use the TMT sector as an example sector, for illustration purposes
Sectors Themes Research Thematic screen Sector scorecard
1. Split the global TMT 2. Identify and rank the 3. Identify and score tech 4. Calculate overall 5. Determine leading companies
sector into 18 subsectors. top 10 themes driving leaders and challengers thematic rankings for in each sector using our three
earnings for each sector. for each theme. all companies in a sector. screens.
Hardware
Semiconductors 1. Voice
Servers, storage, networking
Telecom equipment Consumer
electronics Sector Scorecard =
Component makers
Industrial automation
Software 2. Cloud Thematic screen
Application software
Infrastructure software +
Security software Valuation screen
Video games software
IT services +
Internet & Media 3. Blockchain
E-commerce
Risk Screen
Social media
Advertising
Music, film and television
Publishing
Telecoms 10. Internet of
Telecom operators
Cable operators Things
Source: GlobalData

Second, we identify and rank the top 10 themes for each sector (these can be technology themes, macroeconomic
themes, or industry-specific themes). Third, we publish in-depth research on specific themes, identifying the winners
and losers within each theme. The problem is that companies are exposed to multiple investment themes and the
relative importance of specific themes can fluctuate. So, our fourth step is to create a thematic screen for each sector to
calculate overall thematic leadership rankings after taking account of all themes impacting that sector. Finally, to give a
crystal-clear picture, we combine this thematic screen with our valuation and risk screens to generate a sector scorecard
used to help assess overall winners and losers.
What is in our sector scorecards?

Our sector scorecards help us determine which companies are best positioned for a future filled with disruptive threats.
Each sector scorecard has three screens:
▪ The thematic screen tells us who are the overall leaders in the 10 themes that matter most, based on the
algorithms in our thematic engine.
▪ The valuation screen tells us whether publicly listed players appear cheap or expensive relative to their peers,
based on consensus forecasts from investment analysts; and
▪ The risk screen tells us who the riskiest players in each industry are, based on our assessment of four risk
categories: corporate governance risk, accounting risk, technology risk, and political risk.
How do we score companies in our thematic screen?

Our thematic screen ranks companies within a sector based on overall technology leadership in the 10 themes that
matter most to their industry, generating a leading indicator of future earnings growth.
Thematic scores predict the future, not the past.
Our thematic scores are based on our analysts’ assessment of their competitive position in relation to a theme, on a
scale of 1 to 5:
The company’s activity with regards to this theme will be highly detrimental to its future
1 Vulnerable
performance.
The company’s activity with regards to this theme will be detrimental to its future
2 Follower
performance.
The company’s activity with regards to this theme will have a negligible impact on the
3 Neutral
company’s future performance, or this theme is not currently relevant for this company.
The company is a market leader in this theme. The company’s activity with regards to this
4 Leader
theme will improve its future performance.
The company is a dominant player in this theme. The company’s activity with regards to this
5 Dominant
theme will significantly improve its future performance.
How our research reports fit into our overall thematic research ecosystem?
Our thematic research ecosystem is designed to assess the impact of all major themes on the leading companies in a
sector. To do this, we produce three tiers of thematic reports:
▪ Single Theme: These reports offer in-depth research into a specific theme (e.g., artificial intelligence). They
identify winners and losers based on technology leadership, market position, and other factors.
▪ Multi-Theme: These reports cover all themes impacting a sector and the implications for the key players in that
sector.
▪ Sector Scorecard: These reports identify those companies most likely to succeed in a world filled with disruptive
threats. They incorporate our thematic screen to show how conflicting themes interact with one another, as
well as our valuation and risk screens.

| About GlobalData
GlobalData is a leading provider of data, analytics, and insights on the world's largest
industries.
In an increasingly fast-moving, complex, and uncertain world, it has never been harder for organizations and decision
makers to predict and navigate the future. This is why GlobalData’s mission is to help our clients to decode the future
and profit from faster, more informed decisions. As a leading information services company, thousands of clients rely on
GlobalData for trusted, timely, and actionable intelligence. Our solutions are designed to provide a daily edge to
professionals within corporations, financial institutions, professional services, and government agencies.
Unique Data
We continuously update and enrich 50+ terabytes of unique data to provide an unbiased, authoritative view of the
sectors, markets, and companies offering growth opportunities across the world's largest industries.
Expert Analysis
We leverage the collective expertise of over 2,000 in-house industry analysts, data scientists, and journalists, as well as
a global community of industry professionals, to provide decision-makers with timely, actionable insight.
Innovative Solutions
We help you work smarter and faster by giving you access to powerful analytics and customizable workflow tools tailored
to your role, alongside direct access to our expert community of analysts.
One Platform
We have a single taxonomy across all of our data assets and integrate our capabilities into a single platform – giving you
easy access to a complete, dynamic, and comparable view of the world’s largest industries.
Disclaimer: All Rights Reserved. No part of this publication may be reproduced, stored in a retrieval system, or
transmitted in any form by any means, electronic, mechanical, photocopying, recording or otherwise, without the prior
permission of the publisher, GlobalData. The facts of this report are believed to be correct at the time of publication but
cannot be guaranteed. Please note that the findings, conclusions, and recommendations that GlobalData delivers will be
based on information gathered in good faith from both primary and secondary sources, whose accuracy we are not
always in a position to guarantee. As such, GlobalData can accept no liability whatsoever for actions taken based on any
information that may subsequently prove to be incorrect.

| Contact Us
If you have any more questions regarding our thematic research services, please get
in touch.
Head of Thematic Research Customer Success Team

Cyrus Mewawalla Understand how to use our Themes product
[email protected] [email protected]
+44 (0) 207 936 6522 +44 (0) 207 406 6764

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Thematic Research: Insurance

Thematic briefing ......................................................................................................................................................... 5

Industry analysis ......................................................................................................................................................... 10

Value chain ................................................................................................................................................................. 27

Sector scorecard ......................................................................................................................................................... 34

| Our thematic research methodology ....................................................................................................................... 38

| About GlobalData .................................................................................................................................................... 40

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The key players in the personalization in insurance theme

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Trend What’s happening?

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Trend What’s happening?

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Trend What’s happening?

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Trend What’s happening?

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Global investment in insurance analytics, Q1 2015– Q1 2021

Source: GlobalData’s Smart Money Analytics

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The US is the hub for analytics investment

The US and the UK are hubs of analytics investment in insurance

Source: GlobalData’s Smart Money Analytics

Consumers are willing to share data in exchange for financial rewards

WWW.GLOBALDATA.COM © GlobalData Plc 2021 | 11

Source: GlobalData’s 2020 UK Insurance Consumer Survey

WWW.GLOBALDATA.COM © GlobalData Plc 2021 | 12

Source: GlobalData’s 2020 UK Insurance Consumer Survey

WWW.GLOBALDATA.COM © GlobalData Plc 2021 | 13

Significant numbers of UK consumers could be interested in a range of personalized insurance policies

Source: GlobalData’s 2020 UK Insurance Consumer Survey

WWW.GLOBALDATA.COM © GlobalData Plc 2021 | 14

Source: GlobalData’s 2020 UK Insurance Consumer Survey

Privacy concerns remain for many

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Those not interested in UBI policies have a range of concerns

Note: Respondents could select more than one answer.

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UK consumers remain concerned about what happens to their personal data

Source: GlobalData’s 2020 UK Insurance Consumer Survey

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Note: Respondents could select more than one answer.

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Lemonade positions itself as an insurer for millennials

Lemonade uses AI to interact with customers

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Aviva personalizes digital marketing and customer acquisition

Personalization in the US market is led by well-backed telematics startups

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DeadHappy offers highly personalized services in the life sector

The automated home is one of the most advanced forms of personalization

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Joined-up insurance could be the future of personalization

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