Insurers get a taste for Apple Watch apps

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Insurers get a taste for Apple Watch apps

Global Insurer AXA now offers its Drive Coach app on the Apple Watch that will help raise awareness of potential risky drivers’ driving habits.

It didn’t take long for the global insurer AXA to develop its Drive Coach mobile application onto the new Apple Watch. Just a couple of weeks after the release of the long-awaited Apple’s smart watch, AXA teamed up with technology partners to release an innovative tool to promote road safety.

Surely this will go against all the efforts the government is trying to address the dangers of distracted driving. Indeed, because now you will be encouraged to be connected to a device while behind the wheel. AXA assured that the Drive Coach app will be working in tandem on the Apple Watch and the iPhone to deliver a simple and efficient experience without disturbing the driver.

With this new app, people now don’t view AXA as a traditional insurer any more but as a provider of cutting-edge technology. For the Insurer the benefits will come from the huge and valuable amount of data on users coming from the application. Though, to reassure worried users AXA will not be using the collected data for any commercial purpose since the data will be anonymised.

How does it work

Drivers need to download the app onto their iPhone and connect it to the watch. Then just before starting, the driver activates the application. During the trip, the application analyses the driver’s acceleration, braking and cornering. And at the end of the journey, the application evaluates the quality of driving by providing driving scores.

The application also provides tips on improving the way of driving. Since the app is connected to the Internet the driver will have options to share his or her scores with friends or on social media.

The application has been downloaded more than 700,000 times according to AXA and it is getting mixed reviews. There are a number of people for whom the application keeps on crashing and eating a big chunk of their Internet data. On the other hand, satisfied users highlighted the application ease-of-use as well as making them more conscious of their driving behaviours.

New opportunities from Big Data

After succeeding with its mobile banking application called Soon during which AXA had to rely on reinforcements from the start-up community with companies like Fiduceo, Tapptic, and MongoDB to complete the project. AXA teamed up again with the Big Data solution provider MongoDB to help handle the sheer volume of data the Drive Coach will be producing.

Big Data means new opportunities for insurers to create business value and extract it. In an interview with Computing, Kevin Murray the COO at AXA UK said “the increasing amount of data that AXA has at its disposal needs to be better organised if the company is to squeeze as much value as possible from it”.

Other Insurers apps

It’s not the first time an insurer is at the forefront of the technology innovation. Other insurance companies like Allstate and Humana Group had a go at developing their own apps on the Apple iWatch.

Allstate provides an app called GoodRide that helps motorcycle owners to keep track of their rides information.  The app, which works in a similar way to the AXA’s Drive Coach, allows users to track miles, routes, and maintenance items, and also share it on social networks.

Humana, the leading US-based health insurance developed its new app Cue which promotes long-lasting healthy habits. Cue prompts users to take small health-related actions like drinking water, focusing on breathing or posture, or simply stretching.  The app functions on the concept that repetition will form a subconscious routine and eventually turning those healthy actions into habits thus improving the user’s overall health.

Pay as how you drive

Although AXA said that the data will not be used to discriminate between drivers but simply to help them improve their driving habits (or validating them). The Drive Coach on iWatch is one of the many applications that are currently proliferating and which will lead the Insurance companies to measure how well vehicles are driven. Then the premiums will most likely be based on how safe and conscientious a driver is instead of paying for insurance based on the average driver.

There are already a number of applications that offer life coaching, kitchen coaching, career coaching … this new AXA app is the driving coach (instructor) which acts as a supporting tool that will help drivers enhance their driving skills by recognising good performance and rewarding it accordingly. However, a common believe is that in order to improve their driving skills, drivers should concentrate on the road instead of playing with their new in-car gadgets.

If AXA can persuade drivers that the app is an investment that helps save lives, reduce costs and increase efficiency then it will be in the right direction … whilst we wait for the driverless revolution that is coming soon

Can Pet Insurance Stop Dog Meat Festival in China

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Can Pet Insurance Stop Dog Meat Festival in China

A couple of weeks ago, there was an online outcry against the notorious Dog Meat Festival in China. The Yulin Dog Meat Festival is an annual festival where about 10,000 dogs are slaughtered for their meat.

Residents gathered to eat dog meat and lychees to celebrate and to mark the summer solstice in Yulin, Guangxi province. This tradition is about 400-500 years ago in China, South Korea and in other countries and is believed to ward off the heat of the upcoming summer months, according to state news agency Xinhua.

A petition “Raise Ur Paw” was launched supported by the World Protection of Dogs and Cats in the Meat Trade to the Governor of Yulin Guang Xi Province China – Mr. Chen Wu (Chinese Minister of Agriculture) to stop the abduction of strays and pets before the Dog Meat Festival that took place last June 21, 2015.  The petition has 4.2 Million supporters to date and still rising with the hope that this can make a difference.

China changing attitude toward pets

Despite the negative publicity in the western world, the attitude of the people in China towards pet has changed in recent times.  They now have more love and care for their pets, and pet ownership has substantially grown since the loosening of restrictions on pet ownership in 1990s and early 2000s.  In 2012, Beijing had more than 1 Million registered pets, according to Beijing Small Annual Veterinary Association.

In 2014, there are 20 Million registered pet dogs served by more than 500 pet hospitals, as per record of China Animal Agriculture Association. The significant increase is due to the changing attitude of Chinese population towards pet which are contributory to the following, according to Euromonitor International:

  1. One-child policy and growing ageing population. Parents consider pets as companion for their only child.  Once the child leaves home pets becomes the source of comfort for the parents.
  2. Pets are seen as companions for the urban dwellers with higher disposable income.
  3. Complicated Interpersonal relationships. Pets relieve stress and loneliness for most owners.
  4. Fashion and Identity Statement. Many young adults believe that pet ownership stands as fashion and identity statement.

Pet Insurance

Pet ownership in China is considered a luxury compared to 10 years ago because of the high cost for veterinary fees and treatments.  A simple cold treatment costs the owner $25 and other treatments range from $70 to $700.  Having expensive medical care is considered a burden to families which could lead to people abandoning their pets.

Last year, the first pet insurance was launched by PICC Group to answer the growing demand for pet insurance and to lessen the burden of families on medical care and surgery of their pets.

The new Pet Insurance Policy covers all types of cats and dogs with an annual premium ranging from 500 Yuan to 3,500 Yuan ($80 to $550).  The coverage limit will be around 5,000 Yuan to 50,000 Yuan ($800 to $8,000), annually.   The policy can be used in more than 500 pet hospital and 5,000 pet shops.

Insurance covers vary amongst insurers however in general pet insurance has the following advantages:

  • Pays the medical care and surgical treatment of your pets
  • Insurance makes you financially prepared for the medical expenses of your pet
  • Some insurers offers vaccines, dental, annual examination and fecal parasite tests
  • Allows you to pick your veterinarian
  • Annual premium is cheap compared to the medical expenses when the pet gets sick
  • Some insurance policies extend to cover Third Party Liability as your protection for injuries/damages caused by your pets to a third party

China pet insurance market is still on the early stage of development despite the fast growing population of registered pet owners.  Few insurers offer pet insurance in China due to its limited premium volume and high administrative costs.  With the increasing demands on pets and the changing attitude of China on pets, insurers should see the potential market and offer a more attractive cover to encourage pet owners to buy the insurance cover.

Few owners buy insurance cover due to few insurers offers Pet Insurance, some find the cover limited, and others are unaware of the advantages of having an insurance coverage for their pets.  Having insurance will definitely lessen the burden of raising pets considering the costs of medical and surgical expenses compared to the cost of buying an annual Pet Insurance Cover.

Some pet owners do not realize the burden of raising pets until their pets get sick and facing the financial difficulty of having their pet treated. Unfortunately, this sometimes resulted in people abandoning their pets.

However, if all registered 20 million owners had some sort of compulsory insurance cover for their pets, this might alleviate the abandonment issue. This will also encourage Insurers to provide competitive pet insurance coverage with low premiums. And therefore having fewer errand dogs would most likely reduce the availability of dogs for slaughtering and that might result in the elimination of the Dog Festival for the coming years.

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