Starting with the discovery of customer insights
In Japan, filing claims on auto insurance even for minor damages such as scratches and dents results in a downgrade of the insurance rating, leading to higher premiums in the following years. As a result, approximately one in three policyholders involved in an auto insurance claim opt not to file a claim, choosing instead to pay for repairs out of pocket or to abandon repairs altogether.
As a small-amount and short-term insurance provider within the Sompo Group, Mysurance recognized the customer insight that revealed policyholders’ reluctance to file claims on auto insurance for minor damages. To address this, we developed an innovative insurance product that covers up to 100,000 yen in the event of an accident, without affecting the policyholder’s insurance rating or future premiums.
Using digital to implement a market-in approach
Our team faced significant challenges during product development, including differentiating it from traditional, ratings-based auto insurance and developing the unprecedented, complex hybrid P2P system*. These challenges led to multiple instances where product release had to be postponed. However, the team continued to move forward with determination and a passion to meet customer needs. We managed to create an innovative product, earning widespread support and even winning the prestigious Good Design Award—the first time for a small-amount, short-term insurance product.
*P2P (peer-to-peer) refers to the application of sharing economy principles to insurance. It involves evenly distributing total claims payouts among policyholders and collecting premiums post-payment in a uniform manner.
Starting with the discovery of customer insights, we at Mysurance implement a market-in approach by leveraging the power of digital technologies. This commitment and unwavering passion are the driving forces behind every member at the company.
The approach of providing flexible insurance that mitigates the risk of rating downgrade after filing claims on auto insurance for small accidents is very interesting. How this product addresses customer concerns about auto insurance and successfully implements a new system that aligns with their needs are highly commended.
Selection Committee
Good Design Award 2024
Achieving sanpo-yoshi
With “Aisha PROTECT: Toyota Mini Automobile Insurance,” car owners can maintain their auto insurance rating while keeping their cars in excellent condition, and dealerships can strengthen their connections with customers. Additionally, by allowing dealerships to subsidize part of the insurance premium, there can be mutual assistance between car buyers and sellers.
Under the P2P system, fewer insurance claims among policyholders means fewer payouts, leading to lower monthly premiums required. Moreover, through a system where policyholders can track their monthly premium trends, customers naturally gain heightened awareness for accident prevention, which helps create a society without car accidents. This is how the business model embodies the concept of sanpo-yoshi, the Japanese philosophy of a product providing value not just to the buyer and seller but also to the rest of society.
We want to transform the “impossible” in insurance into the “possible.”
Since starting operations in March 2019, Mysurance has pursued the challenge of creating new value in insurance with an unwavering commitment, and we will continue to do so in the future.
