The insurance industry is one of the sectors which have been way influenced by the world financial crisis. Surprisingly, penetration levels are still awfully low, and because of the large unexploited market, insurers are busy inventing new products. However , with the discussed predicaments, the insurance industry has naturally generated new business trends. Advances in information collection techniques are presenting benefits to customers and new sets of challenges to insurance companies. Conventionally auto insurance information was being obtained from sources starting from state to county level information repositories. Today, this same information is now being collected directly from motor vehicle courtesy of technical advancements like telematics. This data can hence be applied by insurance players to derive valuable business insights. These big info have transpired as valuable tools because insurance companies can employ the information acquired to form part of their competitive advantage because this very info is also providing the industry with a deep understanding on customer precise needs. Here are some of the trends shaping the insurance industry.
The Big Dogs. The car insurance industry has been utterly flat over the last decade because it is only the top 10% players who continue to dominate the market. This domination can be assigned to assertive product pricing coupled with increased spending on adverts. The above described situation has left other small players completely out of the business whereby these smaller market participators have managed to post business expansion only through company particular retention programs and premium client services. Players who actively utilize the above mentioned gigantic info definitely find new expansion possibilities.
Telematics. Car 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 a fact, insurance players have been made to stop procrastinating on developing UBI solutions, because research from convincing sources is implying that client demand is poised to increase following wide adoption of UBI idea. Additionally, there shall also be wide adoption of policies courtesy of UBI which suggests that corresponding announcement budgets will be simply transformed into leads.
Google self driven autos. With this idea automobile even a blind person is able to sit on the driver's seat and travel to whichever destination they desire. It is being outlook that these self driven vehicles are going to be publicly available in under 5 years time, and one key selling point with these cars is that they are ready to retail bellow $100K which is within the reach of lots of homes residing in developed economies. The Google cars are also set to feature intense safety ratings. This obviously signifies that there shall be multi-faceted implications for the insurance industry in terms of underwriting.
With the above info it is beyond reasonable knowledge that with an all-embracing digital strategy form insurance players, big info joined with business intelligence will at last influence the general insurance industry hence dictate motor vehicle policy provisiongt; New data sources will also bring in unprecedented info relating to a drivers behaviour thus tagging his/her profile when seeking a vehicle policy.
The Big Dogs. The car insurance industry has been utterly flat over the last decade because it is only the top 10% players who continue to dominate the market. This domination can be assigned to assertive product pricing coupled with increased spending on adverts. The above described situation has left other small players completely out of the business whereby these smaller market participators have managed to post business expansion only through company particular retention programs and premium client services. Players who actively utilize the above mentioned gigantic info definitely find new expansion possibilities.
Telematics. Car 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 a fact, insurance players have been made to stop procrastinating on developing UBI solutions, because research from convincing sources is implying that client demand is poised to increase following wide adoption of UBI idea. Additionally, there shall also be wide adoption of policies courtesy of UBI which suggests that corresponding announcement budgets will be simply transformed into leads.
Google self driven autos. With this idea automobile even a blind person is able to sit on the driver's seat and travel to whichever destination they desire. It is being outlook that these self driven vehicles are going to be publicly available in under 5 years time, and one key selling point with these cars is that they are ready to retail bellow $100K which is within the reach of lots of homes residing in developed economies. The Google cars are also set to feature intense safety ratings. This obviously signifies that there shall be multi-faceted implications for the insurance industry in terms of underwriting.
With the above info it is beyond reasonable knowledge that with an all-embracing digital strategy form insurance players, big info joined with business intelligence will at last influence the general insurance industry hence dictate motor vehicle policy provisiongt; New data sources will also bring in unprecedented info relating to a drivers behaviour thus tagging his/her profile when seeking 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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