The insurance industry is among the sectors that've been way affected by the global financial crisis. Amazingly, penetration levels are still very low, and thanks to the great untapped market, insurance firms are busy creating new products. However , with the discussed predicaments, the insurance industry has naturally generated new business trends. Advances in info collection techniques are presenting benefits to customers and new sets of challenges to insurance firms. Conventionally automobile insurance information was being gleaned from sources ranging from state to county level info repositories. Today, this same info is now being picked up directly from car courtesy of technical advancements like telematics. This information can therefore be applied by insurance players to derive valuable business insights. These big info have transpired as valuable tools because insurance corporations can employ the information received to form part of their competitive advantage because this very information 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 Boys. The car insurance industry has been fully flat over the last decade because it is only the top 10% players who continue to rule the market. This domination can be attributed to assertive product pricing coupled with increased spending on adverts. The above described situation has left other tiny players wholly out of the business whereby these smaller market participators have managed to post business growth only through company express retention programs and premium customer services. Players who actively employ the above mentioned large data definitely find new growth 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 in order to package for him/her future policies. As a matter of fact, insurance players have been forced to stop procrastinating on developing UBI solutions, because research from credible sources is showing that buyer demand is positioned to increase following wide adoption of UBI concept. In addition, there shall also be wide adoption of policies courtesy of UBI which suggests that corresponding advertisement budgets will be simply changed into leads.
Google self driven cars. With this concept vehicle even a blind person is able to sit on the front seat and travel to whichever destination they need. It is being outlook that these self driven vehicles will be publicly available in under 5 years time, and one key selling point with these vehicles is they are set to retail bellow $100K which is within reach of lots of households residing in developed economies. The Google autos are also set to feature extraordinary safety ratings. This clearly signifies that there shall be multi-faceted implications for the insurance industry re underwriting.
With the above information it is beyond reasonable knowledge that with a comprehensive digital strategy form insurance players, massive info joined with business intelligence will finally influence the general insurance industry therefore dictate auto policy provisiongt; New data sources will also usher in extraordinary info pertaining to a drivers behavior hence tagging his/her profile when seeking a vehicle policy.
The Big Boys. The car insurance industry has been fully flat over the last decade because it is only the top 10% players who continue to rule the market. This domination can be attributed to assertive product pricing coupled with increased spending on adverts. The above described situation has left other tiny players wholly out of the business whereby these smaller market participators have managed to post business growth only through company express retention programs and premium customer services. Players who actively employ the above mentioned large data definitely find new growth 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 in order to package for him/her future policies. As a matter of fact, insurance players have been forced to stop procrastinating on developing UBI solutions, because research from credible sources is showing that buyer demand is positioned to increase following wide adoption of UBI concept. In addition, there shall also be wide adoption of policies courtesy of UBI which suggests that corresponding advertisement budgets will be simply changed into leads.
Google self driven cars. With this concept vehicle even a blind person is able to sit on the front seat and travel to whichever destination they need. It is being outlook that these self driven vehicles will be publicly available in under 5 years time, and one key selling point with these vehicles is they are set to retail bellow $100K which is within reach of lots of households residing in developed economies. The Google autos are also set to feature extraordinary safety ratings. This clearly signifies that there shall be multi-faceted implications for the insurance industry re underwriting.
With the above information it is beyond reasonable knowledge that with a comprehensive digital strategy form insurance players, massive info joined with business intelligence will finally influence the general insurance industry therefore dictate auto policy provisiongt; New data sources will also usher in extraordinary info pertaining to a drivers behavior hence 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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