Nowadays, technology is rapidly progressing at an unstoppable rate, affecting many industries that were previously depended 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 as well as 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, offer services seamlessly, and efficiently. This is proving beneficial for both the insurers and the insured. Here’s how:
Internet of Things: Telematics Driving
Insurance plans based on telematics work via apps that track the driving behavior of insured such as speeding, mileage, hard braking and acceleration.
This app can be a vital tool for the insurance carriers to track risk so that underwriting team can get the best premiums based on their driving practice.
Telematics technology enables roadside assistance request 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.
You may see usage-based insurance plans
Are you surprised with usage-based insurance plan? Well, no need to worry it is just an extension of the Internet of Things we’ve mentioned in the above point. As we all know IoT provides digital profiles, it help insurers to observe driving behavior of customers and then create an insurance plan accordingly. Therefore the better you drive, the better you’re priced for auto insurance policy! So be mindful about your driving to achieve the best price.
Presently, many new cars have advanced autonomous features, such as radar to sense the speed of 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 of the new policies cut prices on the basis of accident-reducing potential of driverless features like parking assist and ABS.
Dashboard cameras, also known as dash cams, are fixed on the car’s dashboard or windscreen in order to record the car’s journey. Use of dash cameras is increasing due to availability and reasonable pricing.
Use of 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 making it clear that the accident was not the driver’s fault.
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 are addressed faster due to the rapid innovation of new technology — some new technologies like drones, the blockchain, and telematics help to reduce the claims fraud.
Automation in claim processing will help to easily collect the claims information and other supporting documents, mapping relevant information against the policy coverage database, etc., that makes the validation process more efficient & easy.
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 as well. All you could do is rent your car to a stranger at a fixed amount! If drivers choose this path, then insurance carriers either consider insuring the driver or the sharing company in case of leased vehicles. In this continuous changing market, anything can happen.
Additional Tip: Subaru Driver-Assist and In-Vehicle Technology
Technology is becoming so advanced that it is actually protecting the lives of people from road mishaps. Recently, the Subaru Drive-Assist and In-Vehicle technology has been rated as one of the safest vehicle makers across the globe by National Highway Traffic Safety Administration and the Insurance Institute for Highway Safety.
In 2019, they introduced a new feature called as Eyesight Driver Assist Technology helping people to avoid road accidents by using the 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 for up to 41%.
Technology has entered in every business field, so it’s necessary that insurers don’t stand still to take a suitable business approach to deal with current business trends. The insurance industry that is looking forward to compete 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.
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