The INNOPAY Open Insurance Monitor
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The INNOPAY Open Insurance Monitor Measuring Open Insurance performance – January 2021 – version 1.0 INNOPAY – January 2021
Do not hesitate to get in contact with us!
Maarten Bakker Mounaim Cortet Marnix de Kroon
Director Senior Manager Strategy Consultant
Lead Open Insurance & Data Lead PSD2 & Open Banking Open Insurance Expert
Sharing
maarten.bakker@innopay.com mounaim.cortet@innopay.com marnix.dekroon@innopay.com
+316 10 98 14 31 +316 41 76 86 51 +316 34 82 20 57
Do not hesitate to get in contact with us!
• If you would like to explore opportunities to get your own Open Insurance transformation
started, do not hesitate to contact Maarten Bakker or Mounaim Cortet
• INNOPAY’s Open Insurance Monitor assesses publicly available developer portals with
insurance APIs. If your organisation is not included in the Open Insurance Monitor yet,
send an email to Marnix de Kroon
This document 1 About INNOPAY 2 Open Insurance Monitor 3 Open Insurance bancassurance use case – Embedded Insurance 3 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.
1 About INNOPAY
INNOPAY, expert in digital transactions…
• Founded in 2002
• 60+ consultants Berlin
Amsterdam
• Strategy, product development and execution in
business, technology and regulation Frankfurt
• Strong track record in Digital Ecosystems and Open
Finance transformation projects
• Offices in Amsterdam, Frankfurt and Berlin
• Focus on EU but global footprint (e.g. Australia, US)
• Founding member of HollandFintech
55 Title –INNOPAY
subtitle. Author(s) - date in full.
Open Insurance © Innopay
Monitor. BV. All2021.
January rights©reserved.
INNOPAY BV. All rights reserved.
… and ‘thought leader’ in this domain of digital transactions:
Payments, Digital Identity, Open Banking / PSD2 & Open Insurance
INNOPAY Innsider INNOPAY Innsider INNOPAY Innsider INNOPAY Innsider INNOPAY Innsider INNOPAY Innsider
December 2020 October 2020 September 2020 August 2020 August 2020 November 2019
Why banks must evolve Six criteria for selecting an How much Open Banking Why banks must become Open Banking Monitor: PSD2 and Open Banking
their operating model to API connectivity provider budget is future relevance the data custodian in the What is happening in Use Cases for Insurers in
capitalise on Open to power your PSD2 worth to you? data economy Open Banking? an Open Data Economy
Banking opportunities opportunities
INNOPAY Innsider INNOPAY Innsider INNOPAY INNOPAY Innsider INNOPAY Innsider
November 2019 Summer edition Book of Insights 2019 June 2018 March 2018
Data? It’s all about access Is Embedded Insurance Is “Open Insurance” the Digital consent Insurance and the Open And more
the killer app for mobile next Uber of the industry? management is key for Banking wave: seven use
banking? data opportunities cases
6 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.
INNOPAY supports its Financial Services clients in capturing the
value of Digital Ecosystems and Open Finance transformation…
Strategy & Business Case development
Licensing
• Source:
HolisticINNOPAY analysis
approach to acquire and retain (e.g. 11 1 Definition of platform, digital ecosystem and Open
Finance strategy, business model and business
PSD2 AIS/PIS licence)
case
INNOPAY Use Case Experience Lab Partnership & Ecosystem data mapping
Design, create and realize use cases to 10 Tooling and service to identify all relationships (e.g.
2
showcase and capture the value of OPEN FINANCE legal, technical, business etc.) needed to deliver on
a partnership, digital ecosystem or open finance & DIGITAL a digital partnership or ecosystem.
ECOSYTEM
SERVICES Security & Compliance support
INNOPAY Academy
9 3 Regulation tracking & interpretation, compliance
Tailored training & coaching on key topics design, “health check” and expert support
Digital Ecosystem & Open Finance value API portfolio definition & roadmap
office 8 4 Prioritisation of API portfolio (Retail/Corporate) to
6 support ecosystems, use cases & business case
Assess and quantify value pools and define KPIs Global Open Finance
to measure open finance ecosystem outcomes development
developer portal
Target operating model design benchmark Project management & Implementation
Design activity based view and holistic operating 7 Benchmark assessment of 60+ 5 Project management and developer services for
model required for Open Banking and Insurance developer portal capabilities, your platform, digital ecosystem and open finance
business incl. peer analysis transformation projects
Source: INNOPAY analysis
7 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.
…supported by in-depth research and benchmarks
Embedded Insurance
Open Banking Monitor Ecosystem Frameworks TPP Radar Open Insurance Monitor Lighthouse
Market as
Rich API scope
September 2020 29
Innovators in Functionality Masters in Openness Regulator
scheme builder
as leader AIS/PIS: 2 AIS AIS: 5
High standardisation PIS 187
PIS: 1
AIS/PIS: 3
AIS: 13 164 AIS/PIS
PIS: 3 AIS: 1
Mexico AIS/PIS: 10 PIS: 2
AIS/PIS: 2
New Zealand AIS: 106
Australia PIS: 12
AIS: 1
AIS/PIS: 55
United Kingdom AIS: 3
AIS: 1
PIS: 3
Functional scope
PIS: 1
AIS/PIS: 3 AIS/PIS: 6
India AIS: 6
AIS: 11 PIS: 1
AIS/PIS: 6 AIS/PIS: 2
Hong Kong
UK AIS: 3 AIS: 2
PIS: 1
BAL
Market initiates Regulator enforces AIS/PIS: 10
AIS/PIS: 5
ES
PIS: 1 AIS: 3
SE United States AIS/PIS: 3
Europe AIS: 11
Open banking activity in the market AIS/PIS: 1
AIS/PIS: 25
Singapore
Limited API scope
PIS: 2
Market-wide AIS/PIS: 1
AIS: 5
Japan AIS: 7
AIS/PIS: 1
Early-adopters AIS/PIS: 12
AIS: 1
AIS: 1 AIS/PIS: 1
Some signals PIS: 1
Starters in Opening-up Leaders in Experience AIS/PIS: 5
AIS: 3
Basic experience Comprehensive experience Low standardisation Regulator as
PIS: 1
AIS/PIS: 4 AIS: 3
Developer experience Market as
*Grey logo indicates limited portal accessibility, thereby complicating full assessment strategic formulator AIS: 1
formulator AIS/PIS: 6
AIS/PIS: 2
22 Title – subtitle. Date in full. © INNOPAY GmbH. All rights reserved.
INNOPAY tracks Open INNOPAY tracks Open Radar with European INNOPAY tracks Global lighthouse of
Banking API efforts across Banking and Open overview of licensed developments of parties innovative Embedded
the globe via the INNOPAY Insurance (Trust) TPPs which are building (insurers, fintechs and Insurance propositions
Open Banking Monitor frameworks across the Open Banking banks) offering insurance including technology and
globe, driven by market propositions including APIs business model used
players or regulators technology and business
model used
Focus of this presentation
Source: INNOPAY analysis
8 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.
2 Open Insurance Monitor
Data access is the key for insurers to capitalise on new ecosystem
opportunities which are emerging on the back of digital transactions
Mobility as Fraud
a Service detection
Financial
assistant
Insurer
Airline
Theaters Google Security Mortgage
maps Bank account
Train
Musea
Nest
NH hotels
Uber Fire Binck Healthy living
Telematica detector coach
Hotels
Car
Travel Home
Booking.com insurance Wealth
Insurance insurance Management
Share
AirBnB
Travel and Consume
external data
vacation services
Expose
external data
Ecosysteem
Personalised Consent
manager
pricing Smart home
services
Source: INNOPAY analysis
10 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.In order capture these opportunities, INNOPAY envisions a
transition to Open Insurance
CONSUME EXPOSE
OPTIMIZER PRODUCT
PROVIDER
Internal APIs
connecing internal Whitelabel products in a
systems B2B2C model in open
ecosystems
1 7
DATA DIGGER SERVICE
PROVIDER
Mine data it IoT, PSD2
and other environments OPEN Services (e.g..
using APIs acceptation, claims
2 INSURER 6 management)
CAPABILITY DATA
BUILDER PROVIDER
3 5
Consume services from Insurance- and
partners and third customer data sharing
parties using APIs to third parties to
4 TRUST
exchange services
FACILITATOR (platforms, trust
frameworks, schemes etc.)
Source: INNOPAY analysis
11 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.With the help of APIs, insurers can become ‘Open Insurers’ and
gain access to third party data, transactions & ecosystems
Traditional ‘integrated’ insurer 'Open’ insurer
Consumer Consumer
Ecosystem
Intermediary Intermediary 3rd party
Data Data
Functionality Functionality API platform
Products & services Products & services
Partner Partner
Expose API Consume API
Source: INNOPAY analysis
12 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.Open Insurance Monitor V1.0 – December 2020
The Open Insurance Monitor features parties worldwide taking first
action in exposing Open Insurance APIs via developer portals
INNOPAY OPEN INSURANCE MONITOR FEATURES (DECEMBER 2020) – EXPOSE VIEW
100+ Insurers and
Insurtech observed for 168 Individual API
availability of developer functionalities
portals Innovators in Functionality Masters in Openness
Rich API scope
300 Banks (open banking
Functional scope
monitor) analysed for Categorised into
presence of insurance API 42 main groups of API
Limited API scope
functionalities
18 Developer portals Basic experience
Starters in Opening-up
Developer experience
Leaders in Experience
Comprehensive experience
assessed with an *Grey logo indicates limited portal accessibility, thereby complicating full assessment
INNOPAY Open Insurance Monitor (OIM) – Developer Portal benchmark (December 2020)
(accessible) Open
Insurance offering
60+ Assessment features
8 Different countries which contribute to a
worldwide with insurers active Comprehensive (Developer)
in Open Insurance Experience
Source: INNOPAY analysis
13 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.Open Insurance Monitor V1.0 – December 2020
The first Open Insurance Monitor shows insurers building API
portfolios and establishing first developer experience
Rich API scope
Innovators in Functionality Masters in Openness
Functional scope
Limited API scope
Starters in Opening-up Leaders in Experience
Basic experience Developer experience Comprehensive experience
*Grey logo indicates limited portal accessibility, thereby complicating full assessment
INNOPAY Open Insurance Monitor (OIM) – Developer Portal benchmark (December 2020)
Source: INNOPAY analysis
14 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.Open Insurance Monitor V1.0 – December 2020
Compared to banks, insurers have a more broad API portfolio, but
offer less developer experience
Open Insurance Monitor V1 (December) Selected Insights
1 Insurers’ first efforts are aimed at
Rich API scope
Innovators in Functionality Masters in Openness establishing a rich API portfolio with
1 insurance related services, with minimal
priority for developer experience
3
2 Due to their Open Banking efforts,
Functional scope
banks are more advanced in
developer experience compared to
insurers. Extending the API portfolio
of banks with insurance services
would further boost their
2 bancassurance model
Limited API scope
3 Nationwide is first in heading for
Master in Openness by offering a
variety of insurance API and
Starters in Opening-up Leaders in Experience establishing developer experience
Basic experience Comprehensive experience
through clear documentation and
Developer experience
good developer usability
Source: INNOPAY analysis
15 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.Open Insurance Monitor V1.0 – December 2020
Insurers have put effort in API scope and documentation, while
banks are further advanced in developer engagement and usability
API CATALOGUE API DOCUMENTATION
Functionalities available through Information needed to understand
party’s API offering APIs and its functions
1 1
2 2
3 3
1 1
2 2
3 3
COMMUNITY DEVELOPMENT DEVELOPER USABILITY
Engagement with Tools to guide developers
Developer Community and get started quickly
Source: INNOPAY analysis
16 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.Insurers can monetise APIs based on ‘sell through’ and ‘sell to’
approach
'Open’ Insurer
1. Changing distribution and usage of financial
products/services call for embedded insurance
Consumer ‘Sell Through’ means the sale of insurance products through
3rd party platforms via APIs
Sell
Through • Customers increasingly expect financial products to be
embedded in platforms enabling frictionless client journeys
Ecosystem • New distribution channels used by incumbents and new
3rd party players to secure revenue growth
2. New value-pools arise, offering opportunities for insurers
Sell
‘Sell To’ means the provision of insurer capabilities to 3rd
To
party platforms via APIs
• Various organisations require insurance (related)
Data
capabilities to run and enrich their business
Functionality API platform • New value-pools arise for insurers that develop new API-
enabled products/services by building on their core-capabilities
Products & services and forge new partnerships
Source: INNOPAY analysis
17 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.Open Insurance Monitor V1.0 – December 2020
Insurers can explore API propositions within five key areas of the
value chain
Sell through Sell to
Policy
Customer Sales & Claims
Underwriting servicing &
advice distribution management
admin
Offer personalised product Expand distribution channels Increase risk calculation Facilitate efficient policy Provide seamless customer
advice based on customer data, through product placement capability by leveraging servicing and administrative experience by integrating
What
such as current coverages and within new third party channels consumer data, allowing support within 3rd party claims management capabilities
personal data (eg, car or home and efficient partner efficient and competitive pricing platforms within 3rd party channels
data) management
Customer advice APIs Sales & distribution APIs Underwriting APIs Policy servicing APIs Claims management APIs
• Not yet available • High level & detailed • Quote calculation, based on • Retrieval of policy details • Submit & manage claims,
product information (eg, retrieved customer data (eg, policyholder details, including attachments
Example APIs
benefits, coverage, • Insurance purchase & order benefits, coverages) • Management of service
premiums) management • Policy amendment & assignments
• Partner information & • Customer communications cancellation • Service provider invoice
partner account & support • Customer information & management
management customer account
management
Parties2 % of APIs1
0% 8% 34% 31% 23%
Divided across 9 parties Divided across 15 parties Divided across 13 parties Divided across 7 parties
Source: INNOPAY analysis 1Analysis included a total of 18 parties with API functionalities. 2Example parties with an API offering within these areas
18 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.3 Open Insurance bancassurance use case –
Embedded InsuranceThree coinciding trends create opportunity for bank-enabled
Embedded Insurance
Insurance products are being
integrated in third party platforms,
In today’s bancassurance, mobile products and services, also known as
banking apps have a central position for Embedded Insurance (E.I.)
distribution and management of
Bancassurance Embedded
insurances
Bank
xxx Insurance
enabled
E.I.
Banks are increasingly opening up their data
assets and capabilities as part of strategic
Open Banking initiatives
Open
Banking
Source: INNOPAY analysis
20 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.Banks can provide customer authentication & authorisation to
enable sales of insurance products within third party platforms
1 2 3 4 5 6 7 8
Data request Identification & Data response Insurance Activation Authorisation Activation Active
authentication suggestion request response insurance
management
Third party Customer Bank shares Customer Third party Customer gives Bank confirms Customer
initiates retrieval identifies and insurance data receives active initiates activation consent to bank activation of manages active
of active authenticates with third party insurance of new insurance to activate the insurance to third insurances within
insurances towards bank based on overview product based on insurance product party and mobile banking
towards Bank using bank customer consent interaction customer app
based on identity, and Third party offers between
interaction gives consent for customer customer and
between third sharing data insurance options third party
party and based on data
customer analysis
Source: INNOPAY analysis
21 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.Use case: Bank authenticates customer and retrieves active
insurances in KLM’s online channels
1 2 3
BANK
Travel insurance Authentication Travel insurance
Would you like to purchase additional
insurance?
We have received the
Travel insurance
following data from
35,-
MoneyMasterBank:
Cancellation insurance 20,-
Authentication to confirm my
Details Get insurance consent that we share the
following information with KLM First Name
Or would you like to retrieve your First Name Last Name
insurance data and coverage to
receive a personalised offer?
Last Name Active travel and
health insurance
Please select your bank Active travel and coverage
health insurance
MoneyMaster Bank coverage We will access your data from
today until 15th of October 2020
We will access your data
from today until 15th of October 2020
Cancel Proceed Cancel Confirm Cancel Proceed
KLM offers customer the Customer is redirected to mobile Customer receives confirmation
possibility to retrieve active banking environment for that personal data is shared with
products authentication and consent KLM
Source: INNOPAY analysis
22 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.Use case: Customer authorises Bank to activate selected insurance
product
4 6 7 8
5 BANK BANK
Travel insurance Authorisation Travel insurance Insurance overview
Active insurance retrieved from bank
• Liability insurance Details
WA Basic
Active insurance with insurer
• Health insurance Details Authorisation to confirm my
Basic+
consent that we activate the Liability insurance Details
WA Basic
• Travel insurance Details
following insurance products
Domestic coverage Health insurance Details
Basic+
Travel insurance
Suggested insurance with bank Global coverage
From 1-11-2020 until 15-11-20 Insurance successfully activated! Travel insurance Details
Based on your flight details we suggest Domestic coverage
the following insurance options: Cancellation insurance
From present day until 1-11-20 Temporary insurances
Travel insurance
Global coverage
25,-
From 1-11-2020 until 15-11-20 Travel insurance
Global coverage
From 1-11-20 to 15-11-20
Cancellation insurance 10,-
From present day until 1-11-20
Cancellation Insurance
More info From present day to 1-11-20
Details
Proceed to bank to activate
the insurance products
Cancel Proceed Cancel Confirm Cancel Proceed Close
KLM shows most suitable option Customer is informed of Customer can manage his
Customer authorises bank to
and possibility to directly insurance activation within KLM insurance products in his
activate insurance product
activate product channel banking app
Source: INNOPAY analysis
23 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.Through exchange of services, user experience, data and financial
compensation all ecosystem participants benefit
Overview of the different exchanges within the Embedded Insurance ecosystem
Customer – Bank exchange Customer Third party Bank – Third party exchange
v Customer pays insurance premium
v Third party generates lead
v
v Bank provides client’s personal data Bank enables tailored customer service
v Bank delivers insurance coverage
v v v Third party receives sales commission
v Bank
v Bank offers one shop for financial products
v
v
Bank – Insurer exchange Customer – Third party exchange
v
v Bank passes on insurance premium v Customer provides personal data to third party
v v
v Bank receives sales commission v Third party provides personal experience
v Bank provides distribution power
v Insurer provides insurance policies
Insurer
Source: INNOPAY analysis v Financial v Data v Non-financial
24 INNOPAY Open Insurance Monitor. January 2021. © INNOPAY BV. All rights reserved.Maarten Bakker Mounaim Cortet Vincent de Rijke Jorgos Tsovilis Marnix de Kroon Director Senior Manager Strategy Senior Consultant Consultant Consultant Lead Open Insurance & Data Lead PSD2 & Open Banking Open Insurance Expert Open Banking Expert Open Insurance Expert Sharing maarten.bakker@innopay.com mounaim.cortet@innopay.com vincent.derijke@innopay.com jorgos.tsovilis@innopay.com marnix.dekroon@innopay.com +316 10 98 14 31 +316 41 76 86 51 +316 24 92 64 98 +316 40 67 74 64 +316 34 82 20 57 INNOPAY’s Open Insurance Monitor assesses publicly available developer portals with insurance APIs. If your organisation is not included in the Open Insurance Monitor yet, send an email to marnix.dekroon@innopay.com and let us know!
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