The insurance industry is probably one of the sectors which have been grossly influenced by the worldwide monetary emergency. Amazingly, penetration levels are still awfully low, and because of the huge unused market, insurance companies are busy creating new products. But with the mentioned predicaments, the insurance industry has naturally generated new business trends. Advances in information collection systems are presenting benefits to consumers and new sets of challenges to insurance firms. Typically auto insurance information was being obtained from sources ranging from state to county level information repositories. Today, this same data is now being picked up directly from car courtesy of technological advancements like telematics. This data can hence be applied by insurance players to derive valuable business insights. These big data have transpired as handy tools because insurance corporations can use the information obtained to form part of their competitive advantage because this very info is also providing the industry with a deep understanding on customer precise requirements. 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 only the top 10% players who continue to control the market. This domination can be attributed to assertive 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 buyer services. Players who actively use the above mentioned big information definitely find new growth opportunities.
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 a matter of fact, insurance players have been made to stop procrastinating on developing UBI solutions, because research from convincing sources is already implying that client demand is poised to increase following wide adoption of UBI concept. Additionally, there shall also be wide adoption of policies thanks to UBI which implies that corresponding ad budgets will be easily transformed into leads.
Google self driven autos. With this concept vehicle even a blind person can sit on the front seat and travel to whichever destination they wish. It is being forecast that these self driven vehicles are going to be freely published in around 5 years time, and one key selling point with these automobiles is they are ready to retail cry $100K which is within reach of lots of households residing in developed economies. The Google cars are also set to feature extraordinary safety ratings. This clearly indicates that there shall be many-faceted implications for the insurance industry apropos underwriting.
With the above info it is beyond reasonable data that with a comprehensive digistrategy form insurance players, large information joined with business intelligence will finally influence the general insurance industry hence dictate motor vehicle policy provisiongt; New info sources will also usher in extraordinary info relating to a drivers behaviour thus tagging his/her profile when seeking a vehicle policy.
The Heavy Hitters. The car insurance industry has been fully flat during the past decade because it is only the top 10% players who continue to control the market. This domination can be attributed to assertive 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 buyer services. Players who actively use the above mentioned big information definitely find new growth opportunities.
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 a matter of fact, insurance players have been made to stop procrastinating on developing UBI solutions, because research from convincing sources is already implying that client demand is poised to increase following wide adoption of UBI concept. Additionally, there shall also be wide adoption of policies thanks to UBI which implies that corresponding ad budgets will be easily transformed into leads.
Google self driven autos. With this concept vehicle even a blind person can sit on the front seat and travel to whichever destination they wish. It is being forecast that these self driven vehicles are going to be freely published in around 5 years time, and one key selling point with these automobiles is they are ready to retail cry $100K which is within reach of lots of households residing in developed economies. The Google cars are also set to feature extraordinary safety ratings. This clearly indicates that there shall be many-faceted implications for the insurance industry apropos underwriting.
With the above info it is beyond reasonable data that with a comprehensive digistrategy form insurance players, large information joined with business intelligence will finally influence the general insurance industry hence dictate motor vehicle policy provisiongt; New info sources will also usher in extraordinary 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 revelations on auto insurance trends.
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