The insurance industry is one of the sectors that've been way affected by the world financial crisis. Amazingly, penetration levels are still really low, and thanks to the large untapped market, insurance firms are busy coming up with new products. Nevertheless with the mentioned predicaments, the insurance industry has naturally generated new business trends. Advances in information collection methods are presenting benefits to customers and new sets of challenges to insurance corporations. Typically automobile insurance info was being gleaned from sources ranging from state to county level info repositories. Today, this same information is now being picked up right from car courtesy of technical advancements such as telematics. This information can therefore be applied by insurance players to derive valuable business revelations. These massive information have transpired as valuable tools because insurance corporations 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 client specific needs. Here are some of the trends shaping the insurance industry.
The Big Boys. The car insurance industry has been fully flat over the past decade because it's just the top 10% players who continue to control the market. This control can be assigned to aggressive product pricing joined with increased spending on advertisements. The above described situation has left other little players completely out of the business whereby these smaller market participators have been able to post business growth only through company particular retention programs and premium buyer services. Players who actively utilize the previously mentioned gigantic info definitely find new expansion possibilities.
Telematics. Vehicle 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 a matter of fact, insurance players have been forced to stop procrastinating on developing UBI solutions, because research from credible sources is indicating that buyer demand is placed to increase following wide adoption of UBI idea. Additionally, there shall also be wide adoption of policies courtesy of UBI which suggests that corresponding announcement budgets will be easily converted into leads.
Google self driven vehicles. With this idea vehicle even a blind person is able to sit on the driver's seat and travel to whichever destination they wish. It is being outlook that these self driven cars are going to be publicly published in under 5 years time, and one key selling point with these cars is they are set to retail bellow $100K which is within reach of a lot of homes resident in developed economies. The Google vehicles are also set to feature extraordinary safety ratings. This clearly signifies that there shall be multi-faceted implications for the insurance industry apropos underwriting.
With the above info it is beyond reasonable knowledge that with a comprehensive digistrategy form insurance players, big information coupled with business intelligence will finally influence the general insurance industry thus dictate motor vehicle policy provisiongt; New information sources will also usher in rare information applying to a drivers behavior therefore tagging his/her profile when seeking a vehicle policy.
The Big Boys. The car insurance industry has been fully flat over the past decade because it's just the top 10% players who continue to control the market. This control can be assigned to aggressive product pricing joined with increased spending on advertisements. The above described situation has left other little players completely out of the business whereby these smaller market participators have been able to post business growth only through company particular retention programs and premium buyer services. Players who actively utilize the previously mentioned gigantic info definitely find new expansion possibilities.
Telematics. Vehicle 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 a matter of fact, insurance players have been forced to stop procrastinating on developing UBI solutions, because research from credible sources is indicating that buyer demand is placed to increase following wide adoption of UBI idea. Additionally, there shall also be wide adoption of policies courtesy of UBI which suggests that corresponding announcement budgets will be easily converted into leads.
Google self driven vehicles. With this idea vehicle even a blind person is able to sit on the driver's seat and travel to whichever destination they wish. It is being outlook that these self driven cars are going to be publicly published in under 5 years time, and one key selling point with these cars is they are set to retail bellow $100K which is within reach of a lot of homes resident in developed economies. The Google vehicles are also set to feature extraordinary safety ratings. This clearly signifies that there shall be multi-faceted implications for the insurance industry apropos underwriting.
With the above info it is beyond reasonable knowledge that with a comprehensive digistrategy form insurance players, big information coupled with business intelligence will finally influence the general insurance industry thus dictate motor vehicle policy provisiongt; New information sources will also usher in rare information applying to a drivers behavior therefore 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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