The insurance industry is probably one of the sectors which have been way influenced by the worldwide monetary disaster. Surprisingly, penetration levels are still very low, and because of the large unused market, insurers are busy coming up with new products. But with the discussed predicaments, the insurance industry has naturally generated new business trends. Advances in information collection systems are presenting benefits to customers and new sets of challenges to insurance firms. Conventionally auto insurance data was being gleaned from sources starting from state to county level information repositories. Today, this same information is now being picked up right from motor vehicle courtesy of technological advancements such as telematics. This data can therefore be applied by insurance players to derive valuable business insights. These big data have transpired as handy tools because insurance firms can utilize the info received to form part of their competitive advantage because this very information is also providing the industry with a deep understanding on client specific needs. Here are some of the trends shaping the insurance industry.
The Heavy Hitters. The car insurance industry has been fully flat during the past decade because it is just the top 10% players who continue to rule the market. This control can be assigned to aggressive product pricing joined with increased spending on advertisements. The above described situation has left other tiny players completely out of the business whereby these smaller market players have been able to post business growth only through company express retention programs and premium client services. Players who actively employ the above mentioned large info definitely find new expansion prospects.
Telematics. Auto insurance players have today managed to introduce something known as "usage based insurance (UBI)" where the insurance industry monitors a driver's habits to package for him/her future policies. As an undeniable fact, insurance players have been compelled to stop procrastinating on developing UBI solutions, because research from credible sources is already indicating that client demand is poised to increase following wide adoption of UBI idea. In addition, there shall also be wide adoption of policies thanks to UBI which indicates that corresponding announcement budgets will be simply transformed into leads.
Google self driven cars. With this concept vehicle even a blind person can sit on the driving seat and travel to whichever destination they wish. It is being prediction that these self driven autos will be freely published in under 5 years time, and one key selling point with these vehicles is that they are prepared to retail cry $100K which is in reach of lots of homes resident in developed economies. The Google autos are also set to feature extraordinary safety ratings. This clearly indicates that there shall be many-faceted implications for the insurance industry re underwriting.
With the above info it is beyond reasonable data that with a comprehensive digital strategy form insurance players, large info joined with business intelligence will at last influence the general insurance industry hence dictate motor vehicle policy provisiongt; New information sources will also usher in unprecedented info pertaining to a drivers behavior hence tagging his/her profile when looking for a vehicle policy.
The Heavy Hitters. The car insurance industry has been fully flat during the past decade because it is just the top 10% players who continue to rule the market. This control can be assigned to aggressive product pricing joined with increased spending on advertisements. The above described situation has left other tiny players completely out of the business whereby these smaller market players have been able to post business growth only through company express retention programs and premium client services. Players who actively employ the above mentioned large info definitely find new expansion prospects.
Telematics. Auto insurance players have today managed to introduce something known as "usage based insurance (UBI)" where the insurance industry monitors a driver's habits to package for him/her future policies. As an undeniable fact, insurance players have been compelled to stop procrastinating on developing UBI solutions, because research from credible sources is already indicating that client demand is poised to increase following wide adoption of UBI idea. In addition, there shall also be wide adoption of policies thanks to UBI which indicates that corresponding announcement budgets will be simply transformed into leads.
Google self driven cars. With this concept vehicle even a blind person can sit on the driving seat and travel to whichever destination they wish. It is being prediction that these self driven autos will be freely published in under 5 years time, and one key selling point with these vehicles is that they are prepared to retail cry $100K which is in reach of lots of homes resident in developed economies. The Google autos are also set to feature extraordinary safety ratings. This clearly indicates that there shall be many-faceted implications for the insurance industry re underwriting.
With the above info it is beyond reasonable data that with a comprehensive digital strategy form insurance players, large info joined with business intelligence will at last influence the general insurance industry hence dictate motor vehicle policy provisiongt; New information sources will also usher in unprecedented info pertaining to a drivers behavior hence tagging his/her profile when looking for a vehicle policy.
About the Author:
Spalding Scattergood, the writer, thanks Allstate agent Chris Pike, Richfield and Garfield Heights, for his insights on auto insurance trends.
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