Industry Benefits of Insurance Telematics and InsurTech
Insurers can introduce new products and services, benefiting claims costs and increasing policyholder acquisition, retention and engagement.
Positive disruptive changes taking place in the insurance industry center around using data-driven technologies to provide new and better services that deliver greater value to policyholders. The challenge for insurers is recognizing and adapting to the substantial changes that are reshaping the industry. Those companies that embrace the change will have tremendous opportunities to engage their customers more effectively and accommodate a wider range of consumer needs and expectations. Many of these opportunities are linked to current and emerging insurance telematics solutions and new technology-driven business models that can provide insights and understanding of policyholders’ behaviors, habits, and preferences. With this knowledge and understanding, insurers can introduce new products and services, increase policyholder loyalty and satisfaction, extend market reach, enhance business operations, and compete effectively with less-experienced startups that are attempting to capitalize on digital transformation resulting from the InsurTech movement.
“Morgan Stanley and BCG estimate that by 2020, Millennials and Gen-Xers will own more than 60% of U.S. small businesses, up from around 38% today, and that digitally underwritten insurance could grow from $4 billion—out of $100 billion in 2015—to as much as $33 billion by 2020. This presents significant opportunities for both new entrants and traditional carriers who are positioning to take advantage of this large, profitable, but fragmented marketplace.”
Technology can be a primary enabler behind many innovative services, but ultimately it is the insurers’ understanding of the market, the intention to focus on customer-centric services, and the willingness to explore new models of providing insurance that will drive business success.
Table of Contents:
- Revitalizing the Insurance Industry by Refocusing on the End Customers
- With Challenges Come Opportunities
- Data-Driven Insights
- Going Customer-Centric
- Capitalize on Insurance Telematics and Digital Insurance
Related White Papers
InsurTech – Sparks Digital Industry Transformation White Paper >
Usage Based Insurance Best Practices and Guidelines White Paper >
Building a Business Case for UBI White Paper >
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Commercial Lines UBI – White Paper >
Connected Car and Telematics Data Security – White Paper >
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