DigiSure worked with a major P2P rental company in the United States to overhaul their insurance program. They went from a traditional policy structure to launching the complete DigiSure solution including trust & safety, renter protection and claims, with a significant self-insured retention and excess insurance with a new carrier. The resulting savings translated to a 30% reduction in their Trust & Safety and Insurance Program costs, along with increased insight and control.
Challenge
- A large P2P rental company was looking for opportunities to provide more value to their users through embedded insurance options, improved claims handling, and reducing the presence of bad actors
- While profitable, they were also interested in exploring ways to reduce the cost of their overall Trust & Safety and Insurance program
- They didn’t have solutions for how to deal with issues in individual departments, much less visibility and control over how decisions and solutions impacted the business as a whole
To enhance the experience for customers, the company was looking to provide additional insurance options to their renters and owners while also reducing the cost of the overall program. Their existing provider had a limited set of coverage options due to their platform capabilities and the admitted nature of the product they were offering.
In addition, the customer was unhappy with the claims handling, with inflexible payment policies that upset owners or very slow response times during busy periods. Without visibility into claim status, the customer service team spent hours on the phone chasing claim payments or resolving customer complaints.
Finally, the company had previously only screened transactions for payment fraud, and were concerned that credit or insurance risk was leading to increased losses that were not currently being detected.
Solution
- The customer launched a Self-Insured Retention Program using all of the DigiSure products and services: TrustScreen™, PolicyHub™, ClaimsHub™, and Insurance Services™
- DigiSure worked closely with the customer’s teams to design and implement solutions based on the customer’s own needs and goals
- DigiSure now handles insurance policy placement, claims from $1, onboarding and underwriting, and risk profile updates with full transparency and oversight by the customer
DigiSure undertook an analysis of the prior years and designed a new insurance solution consisting of a significant self-insurance component covering the majority of the program and a new excess insurance carrier with up to $1M of liability for renters and owners. DigiSure made an actuarial recommendation for pricing the self-insured retention as well as the end-user packages.
DigiSure provided a managed screening program to verify the identity of the renters and owners, with scoring for fraud, credit and insurance risk, to keep losses at a minimum. The marketplace previously captured driver’s license images for a subset of their customers. This was extended to the whole marketplace with DigiSure’s automated API-based data enrichment and risk modeling, backed up by their manual underwriting team to resolve any issues and keep the approval rate high.
Insurance packages were redesigned to include additional coverage options and a more sophisticated pricing model that aligns the costs with the risk analysis. Packages are quoted via the DigiSure API, and micro policies created for each transaction. Payment for insurance is collected by the customer as part of the transaction cost for renters. The customer can launch additional insurance options to drive revenue or align with wider business goals.
Pre/post transaction photos had historically been collected by owners offline on a best-effort basis. As part of the integration, the customer required photos to be collected and automatically attached to the micropolicy for every transaction. This enables DigiSure to build a photo history of each vehicle over time to reduce insurance fraud and pay legitimate claims quickly.
Owners and renters can directly report claims to DigiSure’s First Notice of Loss (FNOL) system, via web, phone, or email. DigiSure’s adjusters use our in-house claims platform to process and pay claims quickly, with instant visibility of claim status for the customer through our web-based customer portal.
DigiSure provides Insurance Services™ to allocate premiums, track the state of the account, and pay retained claims from the balance. DigiSure pays the full claim electronically to enable repairs to be completed quickly, and renter deductibles are communicated to the customer for collection. Excess claims are made to the insurance carrier when losses exceed the retained limit, and monthly statements supplied to track the overall performance of the program.
Results
- Launching an SIR program with DigiSure will save the customer over 30% in year one, with additional savings opportunities in the following years
- The customer now has insight into claims, including how their users are being supported during the stressful period after accidents inevitably happen
- The product team can now test different options for protection packages to optimize conversion and revenue
Using DigiSure, the customer was able to reduce their overall insurance program by a third, which translated to a substantial increase in margin. With the enhanced level of screening, the insurance carrier also agreed to discount the excess insurance cost for low-risk renters. The micropolicy-based approach links any claim to the specific transaction and screening data. This level of reporting and analysis will lead to additional savings in subsequent years both in terms of program losses and carrier costs.
DigiSure’s claims handling allows claims to be reported, adjusted and settled quickly, with a comprehensive photo history for each vehicle leading to a reduction in claim fraud. Renters can report a claim by following a link from their booking, and the customer’s own support team has real-time access to claim status to respond to consumer requests, with increased flexibility in settling to keep customer satisfaction high.
The flexible platform can now support an unlimited number of insurance package configurations, ready for the customer to test new types of coverage or A/B test pricing levels to optimize conversion.
