The Insurer of the Future – Part 1 – Auto/Motor Insurance

Publish date:

What will the Auto/Motor Insurer of the Future look like?

In last summer’s blog series, I looked at the impact of Digital on the insurance industry’s barriers to entry. Now I’ll change the perspective and ask, in response to Digital and other pressures, “What will the Insurer of the Future look like?”

Auto/Motor Insurance

The Insurer of the Future will do very little business in the auto/motor market. Insurers that remain focused on this segment (whether personal or commercial lines) will either shrink dramatically or fail.

As I said last year, once fully driverless cars become the norm, then:

1)      Accident rates will be diminished dramatically; and

2)      There will no longer be drivers to insure.

But it’s actually even worse than that:

3)      Thefts will be minimized too, as vehicles can be disabled remotely;

4)      Fire and malicious damage cover will no longer be needed, as personal and business vehicle ownership is increasingly replaced by manufacturers supplying ‘vehicles as a service’;

5)      With the majority of vehicles still being owned by manufacturers, those manufacturers will increasingly self-insure – at best taking some reinsurance cover from the industry for catastrophic software failures.

All of the above won’t happened overnight – but the trends are already there.

Please see Part 2 – Underwriting and Pricing for further predictions.

Related Posts

insurance

Advanced analytics bolster customer experience through accurate pricing, personalization

Root, Nathan
June 14, 2018
For insurers, advanced analytics is becoming a critical customer engagement tool to determine customer-behavior insights and establish a better connection with customers. In fact, 82.8% of insurance respondents to the World Insurance Report (WIR) 2017 study said that advanced analytics was the insurance industry’s top priority.
insurance

Connected devices offer insurers and customers valuable interactive touchpoints

Satish Weber
June 8, 2018
More than one-third (34.2%) of customers said they are likely to adopt smart ecosystems, and 36.9% of insurers said they want to be among the first-movers in the use of connected devices
customer interaction

The insurance customer of the future part 3 – How will they want it?

Alan Walker
April 23, 2018
The insurance customer of the future will want their products, services and propositions delivered in a very different way from earlier generations.
cookies.

By continuing to navigate on this website, you accept the use of cookies.

For more information and to change the setting of cookies on your computer, please read our Privacy Policy.

Close

Close cookie information