Ways Technology is Transforming Car Insurance

Technology is transforming car insurance in Africa and around the globe like every aspect of our lives, and there is no stopping it. Whether you are a consumer or an insurer, there are immense benefits for all parties.

The ongoing transformation already means tailored premiums, better motor insurance covers, improved customer service and consumer experience.?

While for insurers, it leads to lowered risks, reduced cost, customer satisfaction, retention and enhanced workforce productivity.?

Yes, you guessed right, it is a win-win situation for all.

Looking at the reasons why technology is transforming car insurance, we may categorise it into the following areas:

Changing Consumer Needs & Behaviours:?Generally, consumer behaviour, experiences and needs are often at the core of technological insurance advancements. For example, a consumer?survey in 2019?showed that around 30 to 40% of users were comfortable sharing their location and driving data with insurers.

Smart & Driverless Cars: New technology trends present new risks and challenges for insurers and consumers. Smart and driverless car trends mean that auto insurers must keep up with the automotive industry to analyse car insurance risk and improve underwriting.

Deepen Insurance Penetration:?Insurers need to deepen insurance penetration as it is below the 3% mark in Africa. In?Nigeria, for example, out of 13 million cars, only 3.4 million vehicles have any insurance required by legislation.?

Elsewhere on the continent, a?report?in South Africa says, “there are roughly 10 million passenger cars on South African roads, but only 2.5 million or so are insured.”

Technology is the solution to tailor product premiums and make easily accessible motor insurance and claims for consumers when and where they need it—for example, buying insurance bundled in their car purchase or during registration via an?embedded distribution technology... Click Here to Continue Reading