Artificial intelligence is an operative term across the automotive industry now. Be it the shopfloor or the dealer shops, the design of the cars, or the digital cockpit, AI is fast transforming how we perceive the automotive industry. Therefore, it’s not surprising that even auto insurance policies are increasingly seeing the impact of AI.
The Insurance Regulatory and Development Authority of India (IRDAI), off late introduced the ‘Pay As You Drive’, ‘Pay How You Drive’, and ‘Floater Policy’ that allows the two-wheelers or car owners to choose their type of motor insurance policy. Concepts like these, not only save some extra pennies but also promote an ideal driving culture, given the road accidents and fatalities India records for rash driving or for breaking the traffic rules.
Easing premium payment
Well, the telematic device is installed in the car which maps the vehicle’s movement at any point in time and gives a real-time report card. Therefore, it is all about how well a person drives, how much one drives and the premium that one pays, based on the same. However, what still needs to be explored is how vulnerable it might leave the driver in terms of sharing personal details.
The digital journey being on fastrack for the vehicle insurance market is hastening the market growth. Insurance telematics and Usage Based Insurance (UBI) are in itself a niche in the insurance domain.
So, as a customer, let’s check the go-to options one can look up to —
Behavior-based premiums are based on the driver’s driving style. With the pay-as-you-drive/pay-how-you-drive policy, the drivers can set themselves a mileage limit and claim premium discounts over the same, the lower the limit, the more the discount over the normal premium amount.
Integrated-SImplified premiums are based on the most promising trend wherein a buyer gets the vehicle purchased and insured from a single source. The easy insurance offering with partnerships as a seamless ecosystem has always been a preference.
The multimodal approach is based on the answer to why purchase insurance that suits any and every purpose, from private cars to borrowed e-scooters, diversified needs sorted.
On-demand options are based on the idea to activate any service as and when required. This is a good idea when it comes to premium brand vehicles, wherein the owner can anytime add extended services to the existing package.
So, what does the future holds? The way ahead is certainly customer oriented, where tech is playing a major role. We are likely to see hybrid business models that will be a mix of insurance and technology, coming in with pre-fitted telematics which saves the insurers from paying extra for the installation costs making it all the more hassle-free. While automakers and regulators are busy charting out a constructive roadmap to streamline the tech, insurance, and services, there still remains a lot to be done with regard to the up-to-date rules and regulations.