Celent Says

The Whipcar Use Case for Policy Admin Systems

Catherine Stagg-Macey
Insurance Experts' Forum, July 23, 2010

As we all know, legacy IT systems are the major stumbling block to new initiatives from our business folk. And I was reminded once more this week how the business can ask some pretty crazy stuff from IT. Here in the UK, there is a new business called Whipcar, which is a crowd-sourced rental car model.

Reduced to it’s basics, you rent a car from a street near you through an intermediary website. The model is about leveraging spare capacity in the existing car market by renting the car out when it’s not needed. This works well in large metropolitan cities such as London when a car is seldom used on a daily basis. With Whipcar, you can “sweat your asset” for the periods when you don’t need the car. One of the principles is that you are likely to be more careful with your neighbor's car than with some faceless global car rental company, and so the rentee has little to worry about. But insurance is still a requirement.

So how does insurance work? As the car owner, you will already have a car insurance policy in place. Whipcar has negotiated an agreement with a London Market insurer to provide an overlay to that insurance policy whilst the car is being rented out. This is a unique product (variable time for the policy, insurered value variable, billing requirements variable) that would test any current policy admin application.

So my challenge to you is this: You may be well down the path of legacy simplification or modernization, or you may be still considering how best to approach it. I would propose that in ascertaining if your target (or new) application stack is fit for purpose, the small case study of Whip-car is an interesting little use case scenario. Let us know how it goes.

This blog has been reprinted with permission from Celent.

Catherine Stagg-Macey is a senior analyst in Celent's insurance practice, and can be reached at cstagg-macey@celent.com.

Readers are encouraged to respond to Catherine using the “Add Your Comments” box below.

The opinions of bloggers on www.insurancenetworking.com do not necessarily reflect those of Insurance Networking News.

Comments (0)

Be the first to comment on this post using the section below.

Add Your Comments...

Already Registered?

If you have already registered to Insurance Networking News, please use the form below to login. When completed you will immeditely be directed to post a comment.

Forgot your password?

Not Registered?

You must be registered to post a comment. Click here to register.

Blog Archive

Driving Growth Through Distribution Management

In the current hyper-competitive marketplace, many carriers are focusing on improving their distribution practices as a key technique for driving growth.

The Start of a New Era: Digital Retailers and Insurance

Insurers from all around the world are making great efforts to become digital.

Google and Insurance: One Year Later

Google is getting the approval for selling insurance on their compare site in a large number of states via a number of different insurance partners.

How IT Managers Can Get Close to Policyholders

Four steps CIOs need to take to lead insurance organizations to greater “customer obsession.”

Strategic Initiatives for 2015: Making Sense of the Shifts

Insurers must choose between embracing innovation or just continuing with business as usual and run the risk of becoming a casualty in the new competitive battle.

To Stay in the Game, Insurers Must Aggressively Embrace New Consumer Technologies

Emerging technologies displayed at the CES could be some of the greatest change agents since the introduction of the Internet, offering breakthroughs that could challenge many businesses.