Which factors will influence the auto insurance market in 2020-2021?
The insurance industry has adapted to advanced technology and has now shifted to a modern business model. The fact is that the insurance industry is gradually growing and both the consumers and vendors are looking to exploit the benefits associated with the available innovations and advancements. At present, we are gradually entering a new decade that we anticipate and this is particularly more disruptive about insurance technologies. It is advisable to compare car insurance quotes from different companies before opting for the right one. We will highlight and discuss the emerging auto insurance trends.
Surveys and reports were given by different organizations
Based on the survey conducted by PWC, the majority of the customers are advocating for the use of car sensors, particularly if taking this initiative will enable them to cut costs. This type of innovative technology could facilitate the extension of the coverage of the auto insurance industry into untapped markets thereby making premiums and policies much more inexpensive for everyone.
A report released by Augusta Press showed that Artificial Intelligence can facilitate data processing capabilities. The combination of automation with AI algorithms will lead to faster auto insurance claims powered by automated and streamlined processes. For automation, Allstate and Erie insurance are at the forefront as they have started to use drones to inspect vehicles.
According to V12, consumers have now started to get customized solutions and this applies to the auto insurance industry as well. From recommendations to messages and pricing, the majority of insurance companies are shopping for customized offers to suit their requirements. The use of several distribution channels has now become a vital resource for the industry provided that it enhances the market reach. Also, direct-to-consumer channels via the internet are prevalent thereby eliminating the need for getting car insurance. The fact is that conventional direct channels are very much around and that portends some good results in the insurance brokerage industry.
Additionally, there has been a rise in the number of review websites as well. Although the majority of these websites are not connected to the insurance firms, they ensure that insurance shopping becomes very much easier.
KPMG reported that with the recent trends and the increase in the numbers of self-driving cars, it may come to a time whereby the auto insurance coverage will insure the vehicle itself rather than insuring drivers. Another viable alternative is that the vehicle insurance will disintegrate into separate coverage and two-thirds liability coverage for the cars against damage.
Emerging insurance industry technology
Autonomous and Ridesharing Vehicles Revolution
Few major insurance industry trends are influencing key changes in this sector. Ridesharing or autonomous cars are considered to transforming the insurance industry thereby eliminating premiums and at the same time reduce the size of the market.
One of the major industry trends in the recently invented ride-sharing service. There have been a lot of companies that made use of a gig economy and they have become prominent in the last few years. For instance, the Uber and Lyft auto businesses have a huge and lasting impact on this sector due to the emerging requirements for this kind of insurance. At present, only a few freelance drivers possess ride-share insurance. A recent study reveals that only a few of them are insured. Nevertheless, several drivers interviewed have revealed that they plan to get extra coverage at a later period. Uber has more than 300,000 drivers in its employees around the globe, which implies that there are multitudes of drivers that are involved in this scheme but unfortunately, they are not insured.
The emergence of autonomous vehicles
Several manufacturers have integrated self-driving systems into their vehicles. In the event of an accident that doesn’t involve a human driver; the fault is always blamed on the manufacturer. In the event whereby the car’s self-driving system was at fault, companies like Mercedes Benz, Volvo, and Google have already accepted that they are at fault. Meanwhile, companies like Tesla have extended insurance coverage to all owners of their newer cars. However, it is going to take time before the insurance is standardized for autonomous cars. Vehicles would need to derive a way of detecting whether it is the fault of the driver or it is the systems themselves that are faulty.
The auto insurance trends for 2020-2021 have been explored in this post and we advise that you make peruse the post thoroughly and take action based on the information. We have fully explored the trends and reports provided by several multinational reputable companies and they have enabled us to know the direction of the marketplace. The emerging insurance industry technology has also been fully discussed and this made us know the emergence of autonomous vehicles and the ridesharing revolution.