Insuranceciooutlook

Key Trends in the Insurance Industry

Insurance CIO Outlook | Monday, January 04, 2021

The telematics system starts monitoring driving habits after installing the monitor and passes them on to the insurer. In order to help them develop their driving skills with a savings opportunity, businesses should also provide customers with a copy of the study.

FREMONT, CA: The global insurance market is experiencing a technological transformation. Digital-first business models are the product of traditional insurance companies as well as insurtech companies collaborating more than ever, testing new revenue streams and business models fuelled by new technology. Most importantly, emerging technology trends can decrease operational costs by preventing automating services and fraud, thus freeing up insurance agents to acquire and maintain business.

The Rise of Insurtech

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Insurtech has a bad reputation across the insurance industry because it has shaken things up in an otherwise stable industry. Furthermore, insurtech can also help traditional insurers to modernize.

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A broad umbrella term, insurtech is the utilization of innovative technology to bring insurance shoppers savings as well as efficiency while disrupting the current model utilized by most carriers. Often, insurtech companies deal with complex data so that people are not rated on the basis of the basic level of data carriers use to group people based on risk.

Telematics Devices

Installing telematics software is one way that customers use technology to break out of their risk groups and save cash. Telematics devices are mounted in the on-board diagnostic port (OBD II Port) of a car, which is located under the vehicle's steering wheel. Many newer cars have built-in telematics systems already. The telematics system starts monitoring driving habits after installing the monitor and passes them on to the insurer. In order to help them develop their driving skills with a savings opportunity, businesses should also provide customers with a copy of the study.

While some individuals may be unpleasantly shocked by how poorly they score and that after installing a system in their vehicle, their rates have gone up, other individuals may see a reduction in premiums. Progressive offers Snapshot, State Farm provides SmartRide with Drive Safe & Save and Nationwide offers.

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