The amazing amalgamation of technology advancements, Big Data Analytics and IOT is all set to transform the motor insurance industry, especially for the customers.
The Indian General Insurance (GI) industry is expanding at a significant pace, showing annual growth of over 17% each year. Amongst all the GI sectors, motor insurance has emerged as the biggest player, accounting for almost 50% of the gross direct premiums earned annually. An overriding factor for such an impressive growth is the Motor Vehicles Act, from 1988, that mandates every vehicle to be compulsorily insured for third-party risks. Another contributing factor for the growth of motor insurance industry in India is the steady rise in sales of automobiles which is increasing at 6% CAGR over the last few years. Moreover, even the consumers have now become more aware and educated as they have started considering the financial benefits associated with motor insurance along with the lucrative offers that compel vehicle-owners to look at motor insurance in a holistic manner.
Moving Towards Enhancing the Customer Experience
With advancements in technology, increase in connectivity, and ways to collect and process more data, the operations of Indian motor insurance industry are getting transformed drastically. The focus is gradually shifting to customers with insurers striving to deliver the best possible customer experience through their products and services. Insurance companies are leveraging technology and new platforms to grab opportunities with the aim of getting closer to the customers, and deliver a personalised and improved service.
Pricing of the Insurance Policy
It is often observed that while taking a motor insurance cover, the customers hardly give attention to the pricing of the policy. All that a customer mostly notices is the premium rather than the features and price of various components of motor insurance that includes Third-party cover and Own-damage cover. In the future, however, insurers aim the educating the customers about the pricing of the insurance policy. This will include making the customers understand how the insurance premium is calculated based on various factors such as safety features on-board, the car’s electronic interface, etc. Many insurance providers even plan to develop dedicated apps that can be conveniently accessed through the car’s infotainment system.
Yet another important concern that motor insurance providers look forward to embrace in the coming few months is the renewal of existing motor policies. With tech advancements, as the renewal date of a motor insurance policy nears, a technology based assistant will prompt the consumer and will help him in zeroing down the options on the basis of saved profile. This will save the customers from answering untimely calls often made by the insurers regarding policy renewable. Customers will have the prerogative of entering into chat sessions with ChatBots of insurers or web aggregators at their own convenience. Many web insurance aggregators are already serving the customers by giving them affordable quotes on the basis of registration number and few other details.
Advanced anti-theft devices are quickly gaining popularity amongst the consumers in the Indian motor insurance industry. The products are well known for significantly enhancing the protection of a vehicle against theft. While a customer installs any of the various anti-theft products available in the market including Electronic Immobilizer, Alarms, Steering Wheel Lock, Keyless Lock Device, etc., it assures the insurer that the customer has taken required preventive measures against theft of their vehicle. Most importantly, installing an anti-theft device in a vehicle helps the consumers in reducing their motor insurance premium. The installation of such safety devices in the vehicles can significantly bring down the cost of premium and provide comprehensive cover to the vehicle.
The amazing amalgamation of technology advancements, Big Data Analytics and IOT is all set to transform the motor insurance industry, especially for the customers. With the implementation of above mentioned advancements, the future customer experience will include numerous features such as paperless transactions, personalized offers, unmatched digital experience and most importantly, utter peace of mind. In short, the customers can expect faster, better, cheaper and more convenient motor insurance.
(By Tarun Mathur, Chief Business Officer-General Insurance, Policybazaar.com)