Technology in auto insurance and How it helps people save money:
With a rapid increase in the customer base, it became vital to embrace technology and provide enhanced services in the Auto Insurance Industry. Strategies which were hardly possible before the dawn of the internet and innovative technologies are now carried out at full throttle. It has opened doors to accurate data for assessments and vehicles with improved control and safety features. This combination allows potential policyholders to opt for policies which help in saving money and avail extensive coverage options simultaneously.
Technology in Auto Insurance
Following are some of the ways in which technology has helped in providing a superior experience for both – Insurer and insured.
The colossal number of applications of the internet in various industries have been contemplated and successfully put to use over and again. The insurance industry is not an exception in this matter. With the use of the internet, it is now possible for an insurance company to go fully digital and provide top-notch services which are rapid as well as efficient in nature.
As opposed to when the internet was not used to its full potential, it is now possible for a customer to go through the complete cycle from selection to purchase with just a few clicks. Thanks to digital revolution this is possible from anywhere and anytime.
Social Media is one of the strongest means of direct communication with the current and potential customer base for Auto Insurance. If numbers are to be believed, the opportunities provided by social media platforms are infinite. Services such as solution to queries and complaints are also provided to users through this medium.
Considering the magnitude of presence that customers have on platforms like Facebook (2 billion average monthly users), Twitter (330 million average monthly users) and LinkedIn (106 million average monthly users), among others, gathering feedback about the company becomes fairly easy. Similarly, implementing marketing strategies to increase awareness yields good results through Social Media.
Advancements in communication systems across the globe have allowed insurers to provide superior services. Helplines which are up and running round the clock have helped customers gain confidence in their auto insurance companies. In an emergency situation, a policyholder just needs to dial a number, which is usually easy to remember and receive the required service.
A 24×7 helpline of an auto insurance company provides information regarding getting in touch with emergency services, policy payments, renewals, information regarding a newly launched product, queries, and grievance redressal, etc.
Saving Money with Technology in Auto Insurance
Modern technology has not only facilitated better designs for insurance policies but also helped in reducing the costs. Technologies like telematics, GPS or IoT (Internet of Things) help insurers in predicting the risks posed by a specific customer. The data collected, through these futuristic devices, is highly reliable and accurate. Here are some technologies which help in saving money on auto insurance policies:
With the help of Telematic Systems, it is possible to access the driving patterns and deduce the approximate cost of an auto insurance policy by determining the risk profile of a driver. Through this method, it is safe to say that a car owner pays the right amount for buying a car insurance policy, thus saving money by not spending it on unnecessary coverage.
Telematic devices send and receive information through a network. This feature has an array of applications like navigation, availing roadside assistance, calling emergency services, using infotainment systems and much more.
Advanced anti-theft devices add a strong layer of protection on a car against theft. This works in favor of auto insurance companies. Installing this kind of device in a car could help in decreasing the amount of premium that the owner pays for purchasing a car insurance policy.
Anti-theft Devices are of various types like Electronic Immobilizer, Alarms, Steering Wheel Lock, Keyless Lock Device, etc. Installing any of these devices creates a confidence in an insurance company that the owner has taken enough preventive measure against theft of the insured car, thus they are able to provide lucrative discounts on the policy premium.
Electronic Stability Control (ESC)
Electronic Stability Control was introduced in early 1990’s primarily for Sports Utility Vehicles (SUV) to prevent the loss of control in extreme steering conditions. For insurers, ESC is a preventive measure which helps in reducing accidents mainly due to tipping or rolling over of vehicles.
ESC system is connected to the brakes of a vehicle, it detects abrupt pressure on the brake pads, over or understeering, loss of necessary traction, etc. This technology has proven to be of high importance when it comes to gaining an effective control of the vehicle. Installation of an ESC system could decrease the cost of an insurance policy to a great extent.
With the help of advanced technology and smart thinking, it is now possible to compare similar types of insurance policies offered by various insurers. This helps in understanding how fine-tuning features of a policy could increase or decrease the amount of premium.
Apart from comparisons, new-age insurers have come up with the concept of an “Online Premium Calculator.” A person who wishes to buy or renew an insurance policy can enter a set of details and know the amount he would be liable to pay to his insurer. With the help of a Premium Calculator, the person can adjust various parameters of the policy and try saving money on the amount of premium.
Emerging technologies have paved a way for products to be designed in a smarter way. The improvements in strategies allow insurers to create policies which are cost efficient in nature for the customers as well and this is exactly what we believe in at Acko.
A person can save money in the long run by investing in technologies which promote, on and off-road safety. Considering the pace at which innovative technologies are created, we can anticipate faster, user-friendly and more efficient Auto Insurance products.
by Varun Dua
Varun is the founder and CEO of Acko General Insurance and was a co-founder of Coverfox Insurance and has brought in good technology practices to the Insurance industry in India. He has been featured on TechCrunch, Inc42, and Economic Times earlier and is committed to create a hassle-free experience for everyone with the help of advancements in insurance tech.