“Car insurance in the age of smart cities” - Just like almost every other industry, the car insurance industry is changing at a rapid pace, along with technology. It changes the way in which policies are priced, how customers and car insurance companies interact and how claims are processed.
Let’s jump in and have a look at the changes the car insurance industry is facing:
Telematics
One of the most significant changes is the emerging technology, telematics. Telematics makes use of GPs, sensors and other advanced technologies to track and analyse the performance and behaviour of a vehicle. Insurance companies can then use this data to better understand their customers driving habits. This makes it easier for the companies to give car insurance quotes so if you are a good driver, you may have a more affordable insurance premium.
Autonomous Cars
Another huge change in the industry is the use of self-drive cars. Autonomous cars have drastically reduced the number of accidents on the roads, making life blissful for insurance companies who don’t have to payout as many claims anymore. Additionally, customers benefit from lower insurance premiums because of the fact that autonomous cars are safer.
Artificial Intelligence
Artificial intelligence and machine learning are expected to be used to analyse large amounts of data and to identify patterns and trends. Companies will also be able to use it to identify when fraudulent claims are being made and to identify the most risky customers. AI can also be used to automate the claims process. This makes it easier for people to register claims, it also saves the company time and money as more people can be attended to in less time. Read more on AI and the impact it will have in the future on Insurance.
Blockchain Technology
Blockchain technology is a decentralised database that allows transparent information sharing throughout a business network. This helps to reduce fraud in the industry because transactions, such as claims payments, can be tracked and secured in a tamper proof way.
Digital Platforms
As it is, car insurance companies are already moving towards digital platforms, such as apps, as ways of communication. Customers can easily log into their profile on their mobile device to manage their policies and file claims. Customer satisfaction is reaching all time highs because of the convenience of logging into the app and changing what you need to, quickly and efficiently. Additionally, virtual assistants are also making it quicker and easier for customers to get the answers they need in order to make the changes they demand.
Technology is changing the car insurance industry in many ways for South Africans. With all the increases we have been facing in petrol and interest rates, it gives us peace of mind that we might benefit from cheap car insurance. As technology evolves and improves, the insurance industry will continue to adapt and improve, making it more cost effective, convenient and efficient for consumers.