In the recent years, technology innovations in the automotive industry have made roads safer, with fewer accident occurrences, and this has directly affected the auto insurance industry. This, in turn, has made innovations and development in auto insurance technology inevitable, as insurance companies have to explore new ways to best price risks, invent and underwrite new products to best fit the evolving markets.
There is so much on-going development in entire insurance technology, as well as here at Hammer Insurance.
Here’s what to expect from the automotive industry, which would directly affect the auto insurance industry in the next 5 to 10 years.
Table of Contents
Driverless Cars
These offer better safety for drivers, reducing traffic crashes by 94%. But this is still in theory stage, and yet to be tested in the real world. The Word is, these cars will soon be available on the market, and the insurance industry will have to keep up.
There are a couple of questions around this theory. Will accidents occur as often? If not, will there be any need for auto insurance?
Well, some of these questions have been answered. Some of these automotive companies have the new driverless cars installed with automated driving systems with instant brakes and lane-changers, ability to analyze traffic lights and speed limit lights, just to mention a few. All these works together towards reducing the number of accidents and ultimately reduce the costs of insurance policies.
Event Data Recorders
Almost every new car now is installed with EDR’s which are sometimes referred to as a car’s “black box.” These compile all the data from each of the numerous sensors and computers in a car, that continuously take note of every detail of a car’s performance, be it it’s speed, fuel consumption, some even keep track of the state of the car’s airbags. EDR’s store all this should it be needed in the future.
For instance, in the event of an accident, experts review the data to see if the driver took safety precautions like wearing a seatbelt if he or she tried to apply brakes if there were other passengers in the car at the time of the accident. This information goes a long way to determine the course for insurance claims.
Mobile Technology
With modernization everywhere, Hammer Insurance rancho Cucamonga, among other insurance companies have also had to change the way of doing business and now deal with customers more directly.
There are now mobile applications that helps offer and compare quotes, access information, report claims, just to name a few. With this cutting-edge technology, policyholders can now file claims, access and transmit live car data and images, to help speed up the claims process.
The Web World Advantage
Data and information on policyholders are available everywhere. There’s an immense amount of data accessible through many platforms, mainly through the social media platform. This means we can have access to data on any of our clients.
This combined with EDR and mobile technologies help us articulate actuarial models by studying drivers’ behaviors, to give our customers the ultimate Hammer Insurance experience.