While the car insurance industry has been a bit slow to innovate in the past, it’s now rapidly adapting with the changes in technology, consumer preferences and market practices. Having said this, there’s no doubt that there’s a noticeable transformation coming along in the way this industry operates. Read on to learn about five crucial aspects of your business that need to be taken care of in 2017 to keep up with the pace of the industry and grow your company.
Improvise on tech tools
Most insurance companies would agree that agency management systems (or AMS as they are called) have become much more sophisticated and robust in the past few years. Investments in insurtech peaked at the beginning of 2016 and even though the industry is still in its infancy, you can expect to see more interference of it with the car insurance industry in the near future.
As of now, there are already more than a few forms of insurtech visible in the market – car insurance marketplaces, different modes of telematics, and upcoming startups that boast of some unique insurance models. Considering that this trend is likely to grow, insurers can benefit either by developing strategic relationships with the leading insurtech companies, partnering with them or by adopting similar technology in their own company – similar to what One Sure Insurance has attempted to implement in their business.
Offer more personalization for consumers
Consumers demand more personalization when it comes to car insurance. According to the latest market study, 76% of customers are willing to switch providers if they get more personalised services tailored to their needs, and 38% are likely to pay extra for such offerings. In 2017, car insurers will need to work on developing processes with a bit more focus on consumer’s demands and try fitting in personalization tactics in their business which will be adopted by most car insurance companies this year.
Boost customer engagement
Nothing will work better for your company than focusing on improving customer engagement through targeted digital experiences. One of the most popular ways to increase customer engagement is to offer mobile apps through which consumers can easily check their policy information, have the option submit claims and get in touch directly with their broker. Other features may also include emergency roadside assistance, traffic information, and weather reports to help improve the customer’s experience. Here are 10 useful insurtechs for boosting overall customer engagement.
Even though blockchain isn’t currently in use in the insurance industry, it has the potential to help sustain a digital insurance platform and change the way traditional insurance companies operate. Blockchain can prove beneficial making the security measures more effective by improved fraud detection and lesser administrative costs.
Not just this, the claims process will only become faster and more efficient and as an end result improve customer satisfaction. If you wish to adopt the technology for smart contracts, you may save a lot of time and reduce administrative work by utilizing it for automated underwriting. The blockchain will verify the consumer’s information and get the approval from other policyholders too.
Use telematics and offer usage-based insurance (UBI) options
According to a research study by IHS Automotive, the global size of usage-based insurance is expected to grow from 12 million customers to 142 million in the next 7 years. This is why car insurers should try to expand their offering of usage-based insurance (UBI) options in order to meet consumer preferences, leverage the untapped opportunities in the market, and adapt to the IoT (Internet of Things).
Instead of frustrating the consumers with the traditional car insurance policies that rely upon the generalisations about location and age, you can now improve customer satisfaction by letting them have more control over choosing their premium as it can be influenced by factors like how safely they drive and other driving behaviors.