Digital transformation as an enabler for long-term relationships

Volvo Cars’ long-running business relationship with Zurich Insurance Group is getting even closer through technology that is making the automaker’s risk management simpler and more efficient.

In a move that will transform Volvo Cars’ insurance and risk management data handling, the company is phasing in application programming interface (API) technology to greatly speed up tasks through a direct connection with Zurich.

“In the past we have spent numerous hours gathering, sending and sorting data,” said Tomas Andersson, Managing Director Volvo Cars Insurance. “With API we will no longer need to clean the data. Instead, it automatically feeds into our risk management system in real time. We can then, without a time-consuming exercise, share accurate data with various stakeholders.”

While API isn’t a new technology, Zurich is something of a pioneer as an insurer using it to connect with customers. “To my knowledge, no other large multinational insurance company provides this service in the same way,” said Jonas Persson, Head of Customer Relationship Management at Zurich Nordic.

The use of API technology to bring Zurich and its customer closer is one that strengthens an insurance business relationship that has been in place for a number of years. The Volvo Cars and Zurich relationship began in 2010 when Ford Motor Co. sold Volvo Cars to Zhejiang Geely Holding Group. Volvo Cars, its broker and Ford all had a long history of working with Zurich, according to Mr. Andersson. “The common view was that Zurich is a trustworthy and reliable partner and there was mutual interest to build and establish a long-term partnership,” he said.

Zurich leads Volvo Cars’ global liability, property and D&O programs and provides insurance capacity in a number of other lines. The two have worked together to develop captive insurance programs and digital strategies and are evaluating ways to assist each other in sustainability efforts. “The relationship has developed from one that focused mainly on insurance into a strategic business partnership that allows collaboration across the entire insurance and risk landscape,” said Mr. Persson.

API seemed a natural fit for the two companies to strengthen their connection and streamline Volvo Cars’ risk management work.

“Volvo Cars was an early adopter of My Zurich, our global insurance portal,” said Mr. Persson. “After integrating My Zurich into their working routine, they saw significant advantages in having information related to their global insurance programs at hand 24/7. Given the amount of data they exchange with us and the time it takes to keep documents updated, ensure latest versions are used and verify that data is clean and correct, it was easy to see the benefits of adding our API solution for Volvo Cars.”

Volvo Cars was in the market for a risk management information system, which is required for the exchange of information through the API, and chose Ventiv Technology’s Integrated Risk Management Platform (IRM). Ventiv and Zurich already had a strong business relationship servicing joint customers and this helped make it a smooth project for Volvo Cars.

The API’s ability to make information exchange easier and significantly cut manual tasks leads to big efficiency gains in work with Zurich and Volvo Cars’ broker. API helps lower the risk of errors, improve accuracy and make data transparency easier.

“Captive data is especially important to us,” Mr. Andersson said. “Well-organized captive data in real time will not only be important to the captive, but also to the risk management department, actuaries and accounting. Renewal data is another area where we see a great benefit from API connectivity, especially within property insurance. An automated renewal data process will create efficiencies currently unheard of in the insurance industry.”

Time-saving efficiencies from API technology are important to Volvo Cars. “It will free up time to engage earlier in various company development projects, to further develop Volvo Cars’ loss prevention processes, continue development of our captive and further improve our global insurance programs, among other things,” Mr. Andersson noted.

Providing API connectivity is a “clear competitive advantage for Zurich,” Mr. Andersson said. “We are proud to be a pilot customer and part of creating the landscape for insurance data-sharing.”

“API technology is a key part of our strategic aim to deliver insightful and accurate data to our customers continuously and in a format that suits their requirements,” said Mr. Persson. “Working together to manage risk and protect our customers is at the heart of what we do, and we recognize the value of long-term relationships like the one we have with Volvo Cars. Shared data and aligned access that reveals useful risk management insights are fundamental parts of building meaningful customer relationships.”