In an ever-developing and increasingly connected world, there are many trends that are transforming so many things we do in our day-to-day lives – including taking out car insurance.
Many companies are embracing new technologies to change their ways of working and increase their efficiency. In this post, we’ll take a look at some of the most innovative trends that industry experts are predicting will transform car travel and insurance.
- AI and telematics – While many of us have been using AI systems like ChatGPT to do everything from creating shopping lists to sorting out holiday itineraries, the car insurance industry could use these tools to shift the level of risk from driver to self-driving car software.Think of telematics as the fitness tracker of car insurance – one that rewards safe behaviour.
- More accurate risk assessments – Fully connected cars are going to have a lot more visibility and there’s a chance the computers on board will be able to examine the levels of risk involved on any route – or even calculate the level of damage after an accident.
- Automated claims processing – Advanced technology could potentially speed up the sometimes laborious wait for someone’s claim.
- Autonomic reporting of mileage – Anyone on a Pay As You Go car insurance premium could get their car to check the safest routes to follow and automatically report their mileage, thus reducing their premiums. Thanks to the Internet of Things (IOT), there could be a future where policies cover both human and software policies.
- The rise of electric vehicles – With environmental policies becoming increasingly important to businesses of all sizes, insurers are likely to offer incentives and rewards to drivers who play their part by choosing environmentally friendly electric vehicles.
- AI-powered risk analysis – Underwriters and claims managers could use tools to analyse a person’s prior claims, social media evidence and purchase history to predict their future behaviour. They could also use this to predict accident-prone areas.
- Quotes will be quicker than ever before – Using these advanced tools to put customers first.
All of these advancements will come with concerns, especially relating to privacy and data security. The technology, as we all know, is not yet free from errors and there could be more challenges to come. There may also be a number of regulatory and compliance resolutions to resolve before they become reality. It will be essential to ensure total transparency when it comes to developing new regulations.
With all the above, there’s a potential future where insurers move from predominantly working on claims to focusing more on prevention and risk reduction. Whatever happens, it will be interesting to be a part of – and our temporary car insurance will keep you covered, every step of the way.
