There’s no doubt that technology has rapidly changed society over the last decade, and things are going to keep changing as we move forward as well. If you don’t pay attention to how industries are changing, you might be very surprised and somewhat lost down the line.
One industry that is particularly interesting in how it is changing with the growth of technology is the car insurance industry. There’s no doubt that many economies are being rapidly transformed by technology development; the car insurance industry is just one of many.
These changes have both positives and negatives, but the positives are very exciting for both consumers and insurance companies. Today, learn more about how car insurance is changing due to technology.
Why Is Technology Affecting Car Insurance?
Whether you realize it or not, technology is involved at nearly every level of car insurance. From the day you sign up online to how your bill processes from your agent to you, there is technology working behind the scenes.
As the procedures at the backend change, it changes the product as well. Those changes are not always visible, but they are happening nonetheless. As they happen, the entire industry changes. Every rate change you experience as a policyholder is likely the end result of many other technology-based changes within the company.
There are many types of technology that play a part in the product insurance customers like you are purchasing from insurance companies:
- Predictive analytics
- GPS systems
- Mobile phones
- Smart contracts
- AI chat devices
- Cloud computing
- … and much more!
All of these types of technology are likely at work as part of your car insurance policy. While you aren’t often seeing them in action, this technology affects how risk is measured, your policy costs, your requests are managed, and so much more.
Even something as simple as an accurate car insurance calculator is being improved by the technology that supports it.
The backend data is being updated as companies learn more about how to price their policies and what to offer customers. The consumer is being given clear, accurate information by inputting just a few pieces of information. This experience was not possible just twenty years ago.
Apps for Agents
One way that car insurance has changed over the last few years was through the development of management apps for agents. These applications make it possible for agents to process claims faster, review policy information, and connect with their customers in more efficient, practical ways.
Additionally, AI chats support has been added to many car insurance websites to answer questions that you might have quickly. Many questions can be answered through this type of technology without the additional overhead cost of customer service representatives, which leads to savings for everyone who has an insurance policy.
Analytics, math, and risk profiles have long been the significant computing factor behind pricing packages for customers. Today, however, technology has been developed and is constantly improving as a way to identify risk factors and appropriately adjust rates.
While things have not gone as far as they likely will on this telematics front yet, car insurance companies will probably start using technology to monitor driving more closely. The data collected will then be used to adjust rates and could work to save safe drivers a lot of money.
Technology that collects large amounts of data in this way makes it possible to make very accurate risk profiles. Accuracy is critical for success in the insurance industry, and it leads to better outcomes for both companies and policyholders. Who wouldn’t want their comprehensive coverage policy to be as fair and accurate as possible?
Companies like AllState already incorporate this type of technology into programs like Drivewise, where drivers can review their driving records and behaviors. Over time, this type of technology is sure to keep growing in use within the industry.
Another type of technology that has a prominent role in car insurance coverage is machine learning. As companies collect data, computers can process that data in new ways. The algorithm learns from the data to find new patterns, and those patterns are then used to develop more accurate insurance models and policies.
The customer experience improves as machine learning continues within a company. From offering the right type of services and plans through email support to developing better support features, everything that the customer experiences can be improved through this type of technology.
Beyond the customer experience, the computer algorithms can also help to identify business opportunities for car insurance companies. This enables them to continue changing their products to best support the market and insurance business longevity.
Car Insurance Will Keep Changing
While it isn’t possible to predict exactly how things will change, there is no doubt that car insurance will continue to change as technology develops to support the needs of the industry. For example, autonomous vehicles are already changing the way that insurance needs to be handled both due to legalities but also due to the additional information these smart cars provide.
Keep your eye on the unique developments that affect your policies; you might be shocked at what you find!