The insurance industry is one of the sectors which have been far impacted by the world financial crisis. Amazingly, penetration levels are still very low, and because of the large unexploited market, insurance firms are busy inventing new products. But with the mentioned predicaments, the insurance industry has naturally generated new business trends. Advances in info collection systems are presenting benefits to customers and new sets of challenges to insurance firms. Typically car insurance information was being gleaned from sources ranging from state to county level info repositories. Today, this same information is now being collected right from automobile thanks to technical advancements such as telematics. This information can hence be applied by insurance players to derive valuable business revelations. These massive data have transpired as good tools because insurance companies can use the information received to form an element of their competitive advantage because this very info is also providing the industry with a deep understanding on customer precise needs. These are some of the trends shaping the insurance industry.
The Heavy Hitters. The vehicle insurance industry has been utterly flat during the past decade because it's just the top 10% players who continue to dominate the market. This dominance can be imputed to aggressive product pricing joined with increased spending on adverts. The above described situation has left other tiny players completely out of the business whereby these smaller market participants have managed to post business expansion only through company specific retention programs and premium client services. Players who actively employ the above mentioned large information definitely find new growth 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 so as 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 showing 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 advertisement budgets will be easily converted into leads.
Google self driven autos. With this idea automobile even a blind person is able to sit on the front seat and travel to whichever destination they desire. It is being outlook that these self driven cars will be publicly available in around 5 years time, and one key selling point with these vehicles is that they are prepared to retail cry $100K which is within the reach of the majority of homes residing in developed economies. The Google autos are also set to feature extraordinary safety ratings. This obviously indicates that there shall be many-faceted implications for the insurance industry in terms of underwriting.
With the above information it is beyond reasonable knowledge that with an all-embracing digital strategy form insurance players, big info coupled with business intelligence will ultimately influence the general insurance industry thus dictate auto policy provisiongt; New data sources will also bring in rare information applying to a drivers behavior hence tagging his/her profile when looking for a vehicle policy.
The Heavy Hitters. The vehicle insurance industry has been utterly flat during the past decade because it's just the top 10% players who continue to dominate the market. This dominance can be imputed to aggressive product pricing joined with increased spending on adverts. The above described situation has left other tiny players completely out of the business whereby these smaller market participants have managed to post business expansion only through company specific retention programs and premium client services. Players who actively employ the above mentioned large information definitely find new growth 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 so as 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 showing 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 advertisement budgets will be easily converted into leads.
Google self driven autos. With this idea automobile even a blind person is able to sit on the front seat and travel to whichever destination they desire. It is being outlook that these self driven cars will be publicly available in around 5 years time, and one key selling point with these vehicles is that they are prepared to retail cry $100K which is within the reach of the majority of homes residing in developed economies. The Google autos are also set to feature extraordinary safety ratings. This obviously indicates that there shall be many-faceted implications for the insurance industry in terms of underwriting.
With the above information it is beyond reasonable knowledge that with an all-embracing digital strategy form insurance players, big info coupled with business intelligence will ultimately influence the general insurance industry thus dictate auto policy provisiongt; New data sources will also bring in rare information applying 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 revelations on auto insurance trends.
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