Auto insurance hasn’t changed much in the last 100 years but there really wasn’t any reason to. More recently however with the advances in technology and other factors, there have been some big changes. Here are some recent developments in the auto insurance industry.
Amazon, Google and Apple are raising the bar as far as customer experience, and because of it, the auto insurance industry finds itself in a situation of having to follow suit. Low engagement, poor customer satisfaction and complicated processes will no longer be acceptable to consumers who will be expecting more delightful experiences like they do with other companies. In 2018 insurance companies will be focused on the customer experience.
Using mobile telematics to gather customer data is gaining popularity among insurance carriers. Consumers are also liking the technology of mobile telematics because they know they can get better pricing based on the data being gathered. Levels of personalization not possible before, using mobile channels will drive customer engagement and loyalty.
Using cell phones while driving continues to be a problem and the outrage over distracted drivers is reaching a peak. There have been more than 3,400 lives lost in 2015 alone that can be attributed to cell phone use while driving. Countless accidents with increasing numbers of fatalities because of cell phone use in cars will force regulators and insurers to increase their efforts to stem the tide. There have been some short-term effects brought on by laws and general awareness campaigns but there are still areas that need improvement. States will be reviewing their collection and reporting methods regarding distracted driving which has been significantly under reported up until now.
Many changes are coming for the auto insurance industry. For consumers the news will mostly be good. The news would all be good except for the fact that rates will most likely increase.