Like any other industry, the car insurance field is also constantly evolving. With the latest fast-moving innovation and technology and ever-increasing data sharing, the car insurance industry is on the verge of adapting to the latest trends and changes in the year 2022. The car insurance industry has shifted and gone through a few changes in the last two years. Several providers are offering more online tools since policyholders couldn’t do business in person over the past two years. Many large insurance companies were already offering online platforms pre-pandemic, but more providers are beginning to add features such as virtual claims processing to make the claim process easier.
The following aspects will be deciding factors in the car insurance industry for the year 2022:
- Impacts of Emerging Technologies on Car Insurance:
Technological advancement in car manufacturing not only changes the driving experience but also influences car insurance. Accessories like airbags, seat belts, rear cameras, and distance sensors are making the drive safer than it was ever before. Emerging technologies, such as stability control systems and sensing systems that extend beyond the car, will be helpful to drivers in avoiding collisions and accidents and thus reducing the chances of life-threatening casualties. Other technologies such as Global Positioning Systems (GPS), anti-theft devices and tracking devices will be promoted to reduce theft. In addition, an on-vehicle Event Data Recorder (EDR) is an emerging technology with the potential to enhance road safety. These technologies will help keep cars safe, which in turn will be good for drivers since they won’t have to pay high insurance premiums.
- Digitalisation helping new buyers:
Digitalisation and AI (Artificial intelligence) are rapidly taking over manual systems and processes. Digitalisation will help create a less time consuming and fully automated experience to meet the high-speed demands of modern consumers. From fast claim processing, identifying risk of fraud, identifying outlier claims, interactive chatbots, giving customers a personalised experience, digitalisation and automation will help the car insurance industry reach new heights.
- Personalised customer care:
Taking care of the customer is the most crucial part of any industry. A modern-day consumer will get more personalised service from their insurance provider. With new emerging technologies and tools made available by insurers, the new-age car insurance buyer will be able to compare various policies easily, get personal quotes, expert advice, tailor-made plans, and insurance products priced according to their own needs and behaviours. With the aid of AI chatbots and automated texting, consumers will get answers to their problems right away, which will make all the difference in the insurance game.
- Enhancing customer experience with analytics:
To build long-lasting relations with customers, it is crucial that customers feel comfortable using digital means of business. That is where the data collection and Integrated analysis of that data come in handy. In future the digitisation of data will allow the insurers to perform the transaction and automate claim processes with little to no time to help the customers – for example, by assisting a customer get ahead on the claim process shortly after an unfortunate incident such as an accident or stolen vehicle, with available data from the smartphone, health tracking devices, GPS, security systems etc., insurers will get a head start on their response to the customer.
The future of car insurance industry is bright, and it will be more consumer-driven. The new technologies will emerge and make it easier for consumers to get car insurance of their choice and help the insurers to provide their consumers with world-class insurance products and services. But in all that, buying a car insurance policy and securing yourself and your vehicle against any unforeseen event will always be the crucial element.
This article is authored by Suresh Sankaranarayanan, Sr. Executive Vice President & Chief Technology Officer at Kotak General Insurance, and views expressed in this article are the author’s personal views.
