Moneyhub, the award-winning open banking and open finance data, intelligence and payments platform, and EXL [NASDAQ: EXLS], a leading global analytics and digital solutions company, are collaborating to support insurers ability to take advantage of the opportunities presented by open finance, which can provide richer, more detailed customer information to drive more personalised products and more accurate underwriting.
As part of this partnership, Moneyhub and EXL have today launched ‘The Road to Open Finance’ white paper. The paper outlines potential advantages to insurers as a result of open finance, including;
Aggregation services to enable a consolidated insurance portfolio view where customers can see all their policies in one place as well as the rest of the financial universe including pensions, investments, savings and loans, making it easy to assess whether they are over- or under-insured.
Renewals and switching services where intermediaries can automatically monitor live policies that are due to expire and determine the optimum renewal quote/ policy. Simple customer consent processes would then allow easy switching or renewal. This is particularly important in the context of the new FCA rules on auto-renewals.
Personalised product pricing based on customers’ specific lifestyle and habits could be offered where customers consent to current insurers sharing their data with alternative providers.
Insurance fraud detection, for example identifying signals of claims fraud by analysing claims and income data systematically. This can in turn increase the profitability of products, making it possible to offer them at a lower price.
Identifying gaps in insurance coverage and sending timely nudges to customers. For example, a customer may be prompted when they take out a mortgage but do not appear to have life insurance cover; pay rent but not content insurance premiums, or book an overseas holiday but have not purchased travel insurance.
Moneyhub has already established a market-leading open finance proposition among enterprises in the UK, including Mercer, Aon, Nationwide and Standard Life. Following the close of its most recent fundraise, which included investment from SPW1, Sir Peter Wood, the founder of Direct Line’s new outfit, Moneyhub is focused on helping insurers drive customer loyalty, enhance business innovation and establish efficiencies.
Samantha Seaton, CEO of Moneyhub comments: “For too long financial services firms have assumed that open banking only concerns the banks, but every single business can benefit from the technology. By accessing consent-driven data, businesses can create personalised and intuitive products and services that benefit the end-customer and drive loyalty and engagement. It’s a win-win for all involved.
“At Moneyhub we are constantly looking to break down barriers and drive innovation in the sectors in which we work. The opportunities for open finance are truly endless and we are looking forward to working with EXL in supporting insurers with their digital transformation plans.”
Raghav Jaggi, Global Insurance F&A Leader and Co-Head General Insurance, EXL comments: “For more than 20 years we have been at the forefront of helping our clients to drive their businesses forward with data analytics and digital strategies, and we deeply understand the insurance domain. By combining our technological and sector expertise with the capabilities of Moneyhub, we unlock the potential of open finance for our insurance clients.”.
Author
Vaughan Jenkins
Vaughan is an experienced Sales Director with senior industry experience in financial services, especially the life and pensions, asset management and wealth sectors. He co-authored ‘The Insurtech Book’ and has worked as an associate and consultant to a number of businesses.