In the last 100 years there haven’t been a lot of changes to the auto insurance industry, mostly because there really wasn’t any reason to. But because of recent advances in technology and other factors, there have been some big changes. Here are some recent developments in the auto insurance industry.
Customer experience has become one of the key features of doing business these days. Companies like Amazon have raised the bar, 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 the coming years insurance companies will be focused on the customer experience.
The use 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. Providing customers with levels of personalization not possible before, these devices 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.
Changes are coming for the auto insurance industry and for consumers the news will mostly be good. The downside for consumers is that rates will most likely increase.