Nowadays, technology is rapidly progressing at an unstoppable rate, affecting many previously dependent industries on a large number of human resources. The insurance industry is one of these sectors that are affected by advanced technology due to enhanced transparency and customer satisfaction.

This impact can be felt with online shopping, easy comparison, easy claims processing, autonomous features in vehicles, etc.

Continuous technological progress is enabling insurers to design their products smartly, and offer services seamlessly and efficiently. This is proving beneficial for both the insurers and the insured. Here’s how:

1. Internet of Things: Telematics Driving

Insurance plans based on telematics work via apps that track the driving behavior of the insured, such as speeding, mileage, hard braking, and acceleration.

This app can be a vital tool for insurance carriers to track risk so that the underwriting team can get the best premiums based on their driving practice.

Telematics technology enables roadside assistance requests for drivers and gives them the incentive for safe driving, resulting in fewer accidents and dropping the risk of expensive medical bills.

The downside is that telematics will track everything a driver does. Not everyone wants this invasion of personal privacy.

2. You may see usage-based insurance plans

Are you surprised by the usage-based insurance plan? No need to worry is just an extension of the Internet of Things we’ve mentioned in the above point. As we all know, IoT provides digital profiles, and it helps insurers to observe the driving behavior of customers and then create an insurance plan accordingly. Therefore the better you drive, the better you’re priced for an auto insurance policy! So be mindful about your driving to achieve the best price.

Autonomous features

Presently, many new cars have advanced autonomous features, such as radar to sense the speed of the vehicle next to you, automatic and manual parking assistance, navigation, alarms for a driver in sleepy condition, etc. These autonomous features reduce crash risk. Due to this, many insurance companies respond with a cheaper premium.

Some new policies cut prices based on accident-reducing potential driverless features like parking assist and ABS.

Dashboard cameras

Dashboard cameras, also known as dashcams, are fixed on the car’s dashboard or windscreen to record the car’s journey. The use of dash cameras is increasing due to availability and reasonable pricing.

The use of a dashboard camera makes the claims processing task very easy & fraud-free by determining the cause of an accident. They also help in insurance claims processing by clarifying that the accident was not the driver’s fault.

Extra security

Adding advanced security to your vehicle can help minimize your insurance premiums. By introducing additional security highlights like a security alarm, tracking system, etc., the insurers consider such people at lower risk of claims.

These advanced security systems also make it simple to recover vehicles if it is lost or stolen. These safety efforts convince insurers that the vehicle is secured and offers less expensive premiums.

Insurance claims

Insurance claims are addressed faster due to the rapid innovation of new technology — some new technologies like drones, the blockchain, and telematics helps to reduce claims fraud.

Automation in claim processing will help collect the claims information and other supporting documents, map relevant information against the policy coverage database, etc., which makes the validation process more efficient & easy.

3. Vehicle sharing will soon become a common trend

In this modern world, vehicle sharing is becoming extremely popular, and no doubt it will impact car insurance. All you could do is Rent a car in Dubai to a stranger for a fixed amount! If drivers choose this path, then insurance carriers either consider insuring the driver or the sharing company in leased vehicles. In this continuously changing market, anything can happen.

Additional Tip: Subaru Driver-Assist and In-Vehicle Technology

Technology is becoming so advanced that it is protecting the lives of people from road mishaps. Recently, the Subaru Drive-Assist and In-Vehicle technology have been rated as one of the safest vehicle makers globally by the National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety.

In 2019, they introduced a new feature called Eyesight Driver Assist Technology, helping people avoid road accidents using features like pre-collision braking, lane departure warnings, adaptive cruise control sway warnings, and pre-collision throttle management. According to the Highway Loss Data Institute, these features have already reduced pedestrian-related accidents by up to 41%.

Takeaways

Technology has entered every business field, so insurers mustn’t stand still to take a suitable business approach to deal with current business trends. The insurance industry looking forward to competing in this advanced business era should invest in such digital prowess. It will enable them to enhance customer interaction, provide fast & accurate services, and boost business opportunities & profit.

Helpful Resources:

1. Impact of Artificial Intelligence (AI) on the Software Development Industry

2. Do Human Translators Have a Reason to Be Afraid of Advancing Technologies

3. Artificial Intelligence And Its Demands To The Programmers

4. Artificial intelligence (AI): Friend or Foe to Future Designers?

5. E-commerce Chatbots: 13 Ways to Increase Sales, Conversions & Retention

6. Top 10 Artificial Intelligence (AI) App Development Trends