The partnership began with a capital investment by Nationwide in Betterview, founded as a start-up in 2014. “The benefit of having a ventures organization tied closely to the business is that we find ways to partner, strategize, learn, grow, develop and explore while working with the ventures team,” says Tony Fenton, vice president of commercial lines underwriting and product at Nationwide. “From that venture investment and partnership with Betterview, we continue to explore and use Betterview data to our underwriting advantage.”
Betterview’s chief operating officer David Tobias says the partnership is an example of a corporate and collaborative venture done well: “It was mutually beneficial to our start-up and to Nationwide. It’s a unique relationship to develop our products and capabilities in a way that helps Nationwide but also gets us insight that would be difficult to get without that relationship.”
Nationwide’s data allowed Betterview to better predict risk, so the partnership was proactive for them both, rather than each company on its own being reactive to the market, Fenton adds. The partnership is not exclusive and Betterview does have other clients.
“The value proposition in insurance is traditionally to repair or replace when something bad happens,” says Tobias. “Nationwide has a willingness to dive deep and help work to predict and prevent loss. It’s a better outcome for all if we can prevent a loss.”
Betterview provides Nationwide with the capability to integrate data about its existing book of business to the point of sale for new business, where risk must be evaluated, according to Fenton. “Then we can make more informed decisions on underwriting and ultimate risk selection,” he says. “For us, it’s taking the step to leverage the book to our advantage and be proactive as possible to understand risk. It’s continuing the roadmap of leveraging data to our advantage and creating the best protection and pricing for our customers.”
Source: Digital Insurance
