Insurers Hope Insurtech Will ‘Nudge’ Customers to Less Risky Behaviors

Insurers are counting on real-time technology to help them cut back payouts, from a system warning ships of nearby pirates to an app offering to buy sleepy drivers a coffee on the motorway. The lure of products promising to save on claims in a highly competitive market has led to a leap in investment in “insurtech” in Europe to more than $400 million in the first half of 2017, from just $50 million a year ago. The aim is to move insurance from a “grudge” purchase, when the only interaction with customers is after something has gone wrong, to a “nudge” product, encouraging safer behavior. ….[READ]