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Technology Advancement to Transform Vehicle Insurance Industry


Technological advancements have benefitted all verticals of the industry, creating opportunities to revamp the operational mechanism. The insurance industry has been reaping the advantages of technology over the years. Particularly, the vehicle insurance companies have tremendously benefitted from the developments in mobile apps, IoT and other fields. It has also made it easier for the owners to buy policies online. The customers can remain integrated with the insurers, thanks to these technologies.

The adoption of internet is one of the foremost aspects that has led to this advancement. The vehicle insurance industry has been expanding rapidly, as the insurers can now get across to the customers over the online platforms seamlessly. Social media also remains one of the key tools for marketing these policies. The digitized environment facilitates business and marketing. The insurance companies can now provide cheaper, faster and better services, with customized options to the owners. Now, it is possible for the policyholders to make more informed decisions, when they buy the policies.

Here are certain ways in which advancements in technology are transforming the motor insurance industry.

Mobile apps

The insurance companies benefit significantly from the use of mobile apps. With these robust tools available at the fingertips of the customers, they can carry out the transactions instantaneously. Besides, they remain informed about the latest offerings and schemes of the company through the apps. Customers have always welcomed technology, and it helps them to get the policy renewed at the right time. Besides, they can benefit as the claims can be made much faster through the self-claim video processes. This technology leverages the connectivity and inbuilt safety in the vehicles. Naturally, customers are likely to use them to get their claims processed faster.

Blockchain in vehicle insurance

A large number of vehicle insurance providers have already started using the blockchain technology in their operational mechanism. This technology plays an important role in getting the KYC and smart contracts transferred through various channels. As a result, it becomes easy for the vehicle insurance companies to ease up issues related to the time that is necessary for verifying the policies. The overall business process picks up pace and it benefits the insurer as well as the insurance holder. Presently, several companies are looking forward to integrate the blockchain technology to enhance car security. This can help address problems that are associated with a single point of failure. Besides, the technology will lead to the development of a mechanism, where the vehicles and vendors can securely exchange data, maintaining its integrity.

Documentation process

In the past, a lot of time was necessary for the claim adjusters and insurance underwriters to evaluate how much the policy can cost, and the amount of claim that could be made. Besides, the process involved a lot of documentation, before the company finally issued the policy. However, advancements in analytics have taken place, and as a result, the underwritings have become more accurate. The insurers can also get access to online databases and get the information on car ownership records verified. The process mitigates the risks of fraudulent claims and ensures a transparency in the process.

Use of telemetrics

The insurance companies have been talking about telemetrics for quite some time now. This is a kind of sensor, related to IoT, that enable the insurance companies to get an insight into the lives of the policyholders. The companies can use this data for risk-assessment. The drivers may hesitate to get every emergency stop or sharp turn registered digitally. The companies are increasingly using these sensors in a preventive manner, so that they can focus on the issues, before they actually cause large damages. The reputed insurance companies are partnering sensor firms. Policyholders, too, are interested in signing the contract with vehicle insurance companies that come with superior technologies.

Anti-theft devices

Today, most of the vehicles come integrated with anti-theft devices. This ensures that the insurance holders need to pay a lower premium to the insurance company. These devices can leverage the protection against theft of vehicles to a significant extent. The car owners install devices like alarms, electronic immobilizer, keyless lock device and steering wheel lock in their vehicles. In the process, the premium that they need to pay gets reduced, and the insurance company too, benefits as the risk of car theft is lower.

Safety devices

The cars may also come integrated with features like ESC (Electronic Stability Control), that are effective in reducing accidents. Particularly, these prevent vehicles in rolling or tipping over. The insurer can evaluate the risk associated to a vehicle seamlessly, when they come with these devices. The ESC system is connected to the car brakes, and can detect pressure exerted on the brake pads, when they occur abruptly. It can also detect oversteering and understeering, and traction loss. When the car owners install these devices, the cost of premium is reduced.

Artificial intelligence

Artificial intelligence has benefited a large number of industries in recent years, and the vehicle insurance providers have also drawn a number of advantages from AI. Although the process is at the initial stage, AI can help the insurance providers get rid of the tedious work related to claim verification process and paperwork. Experts have observed that manual input of data often includes a lot of errors. The insurance companies can eliminate these errors on customer data. In the process, it can speed up the overall verification process and increase the productivity. Through AI, it is also possible to speed up the claim process, using auto-validation. Presently, the leading motor insurance companies are collaborating with the AI startups to integrate this intelligent technology on their platforms.

Vehicle owners can now get access to the necessary data through apps and websites before they renew the policies. This process also enables them to manage their funds seamlessly. Buying vehicle insurance online is an easy process, that can save you a lot of time. You can get across to the top motor insurance companies and buy a policy that suits your needs and budget.