Fremtind, the third largest insurance company in Norway, is redefining theway people manage risk – creating a positive impact towards a safer society andhealthier lives.

What does the mobile phone and insurance industry have in common? That both industries now play a major integrated role in our lives. Whether it’s our mobile phone in our pocket, or our complex insurance policies, both industries are now embedded in our daily lives and routines.

 In 2007,Apple launched the first iPhone, challenging and raising the standard for so-called smartphones at the time. The iPhone influenced various industries for years to come including telecommunications itself, GPS navigation, social media and e-commerce. In later iterations of the iPhone, we saw the introduction of third-party apps, which is a platform that consequently gave rise to the sharing economy.

 Fast forward 12 years, Accenture reports that 96% of insurers think digital ecosystems are having an impact on the insurance industry. The disruption taking place, commonly referred to as Insur Tech, is propelled by emerging technologies coupled with laser-focus on customer experience. Various industry players describe this concept as the creation, distribution and administration of new insurance business. In short, we are connected, participate in virtual communities and wouldn’t dream of leaving home without the new insurance products.

But what does connectivity have to do with insurance? How is technology creating smarter insurance for policy holders? How is it that Fremtind, a company newly established in January 2019, has becomeNorway’s third largest insurance company? The answer is in Fremtind’s drive to create a more sustainable, safer and healthier lifestyle for dynamic insurance customers.

Factory of smart solutions

According to a 2019 report by Accenture, insurers are facing disruption and need to evolve quickly, citing that 86% believe innovation must happen at an increasingly rapid pace to retain a competitive edge. With this framework in mind, Fremtind is the result of innovative partnership – leveraging expertise longevity, digital competence, market reach and complimentary goals. In January2019, SpareBank 1 and DNB merged their insurance departments to create a new insurance company, with almost 1000 people, dedicated to digital innovation.

In addition to Fremtind’s main mission – help people take care of themselves and their valuables- the goal is for all customers to have access to even better and more relevant insurance products and services. Fremtind is working to make the settlement ofclaims even easier and better, and it will be easier to buy and change insurance. In addition, to strengthen customer centricity, Fremtind is focused on creating new ways to engage with its customer base. But what exactly is smart insurance?

Øyvind is Head of Machine Learning and AI. He is responsible for deep analysis of multiple data sets. Øyvind leads research-heavy processes to create predictive models of behavior and has extensive experience in mathematics. Øyvind earned his master’s degree in mathematics from the University of Oslo.

Øyvind Indrebø

Stine is the Leader for Commercialization ofdata, working with a team of 14 responsible for developing new smart insuranceproducts, including Smart Car Insurance (formerly known as Spinn). Stine hasextensive experience in IT and Analytics.

Stine Bakke-Haugseth

Smart car insurance

Traditionally, factors like age, details of the object and marital status can affect the premium in car insurance. However, confining the analysis to traditional demographic data can have some limitations. There is a move towards smarter solutions, including behavior insurance models to assess and capture risks.

 “Smart insurance is a whole new category in the insurance industry, making a significant impact in people’s lives,” says Stine Bakke-Haugseth, Manager for Smart Insurance at Fremtind. “It uses technology to motivate and encourage safer behavior,” she says. For example, today Fremtind offers Smart Car Insurance to over thirty thousand customers via its mobile app called Spinn. This first generation of smart insurance solution uses an On-Board Diagnostics (OBD) plug to connect to the car and links to the app. Various aspects of the driver’s behaviors and routines are measured, including focus, anticipation, smooth and legal driving. An overall score is calculated, and users can even compete at a national or local level.

 Fremtind is currently developing the next generation smart car insurance, using only the costumers’ smartphone as the sensor.  

 “Our role as an insurance provider is to provide security,” says Stine. “The new smart insurance app transmits automatic notifications when an accident is detected via data streams from sensors,” she says.

Because the predictive analytics through the machine learning algorithms are more robust, well-behaved drivers for example, could get a 15% discount on their premium. That said, when trying to modify behavior, even bad drivers will not get a worse premium, it will remain.

In addition to the insights uncovered by machine learning, it’s crucial to continue developing strategic partnerships. The automotive industry is also involved in financial risk management through their loan processes. Collaboration between the two industries can yield valuable loan discounts to car buyers as well.

Smart health insurance

Fremtind believes deeply in providing a measure of safety to its customers, beyond financial risk management. Today, there are some who still do not have health and life insurance.

 Øyvind Indrebø, Head of Machine Learning and Artificial Intelligence at Fremtind, states that the situation can be turned around. “If we can predict with high certainty that an accident will happen, we can put in preventive measures. To do that we need to establish a new ecosystem, including health device producers, sensor technology, distributors, caretakers and alarm companies,” he says.

The coupling of home and health care devices can help protect an aging population that may create pressures in society. With devices that can monitor and prevent accidents, insurance companies like Fremtind are well-positioned to develop or take part in healthcare ecosystems to provide timely notifications of accidents at home.

In addition to elderly care, Fremtind are now looking into and gaining insight related to the possible development of other smart insurance products. This might result in an ecosystem with smart watch and a healthcare provider working in partnership with Fremtind to develop a rewards system for people actively engaging in physical activity. An above average score for example could indicate a discount on a new pair of running shoes or other types of rewards.

The road ahead

The mass-consumption and transmission of data through smartphones creates a flood of information. Perhaps one of the major challenges of our time is the handling of sheer volume of data. Øyvind’s machine learning and AI team is driven by this challenge – to gather and contextualize data silos and uncover valuable insights to develop new products for customers.

When asked about customers’ stance on data sharing through the various platforms, Øyvind maintains that “It comes down to the value proposition. Trust is everything wedo – transparency is important.”

Smartphones fundamentally changed the way we live today. The disruptions taking place in InsurTech are bound to have an effect in our lives. Fremtind is leveraging expertise, digital competence, data sets, technology and partners to in a winning combination.  Customer experience is a focal point to build deeper relationships and maintain them over time. It’s a story about community. Finding solutions for new services that are integrated in our daily lives.

More and more people want to live a sustainable life – therefore damage prevention, insurance services and knowledge sharing are essential to ensure a vibrant community.

About Fremtind

FremtindInsurance - a new insurance company with long experience.

On January 1, 2019, the insurance departments of SpareBank 1 and DNB merged to form Fremtind.

Fremtind’s main mission is to help and motivate people to take care of their health, theirvaluables ​​and their surroundings. They fulfill their mission through thesmart use of technology, data capture and the development of new services.

Currently Norway`s third largest insurance company, and the largest with bank distribution. Offers all non-life and personal insurance for individuals and companies.