Technology benefits to come
Audatex believes insurance data availability together with technological advances are set to benefit customers, insurers and underwriters in 2015.
Advances in technology continue to drive the motor insurance industry in new directions. Most recently, telematics and vehicle safety technology have given insurers a new level of insight into driver behaviour. This has already enhanced the underwriting process and enabled insurers to offer much more accurate premiums, but Paul Sykes, managing director of Audatex, believes that’s only the tip of the iceberg in terms of the benefits possible in the not-so-distant future.
Paul explained, ‘With better access to vehicle data, such as factory specification, exact value, keeper changes and accident history, insurers can further increase the accuracy of their risk and premium pricing decisions. Insurance premiums which accurately reflect a combination of driving style, lifestyle of an individual and very specific insight into the actual vehicle they drive are becoming a reality.
‘A future where insurers bring together rich data with intuitive, intelligent systems to create truly bespoke premiums is already fast becoming a reality. Crucially, these tailor-made products will be designed to influence driving behaviour, which in turn, will further influence underwriting.’
Another vital benefit advanced technology can bring is an increased level of interaction between insurers and their customers. Up until very recently a motor insurance policy commanded very little communication between the customer and insurer. Indeed, there have been four typically customer-lead interaction points: creating a new policy, changing vehicle, making a claim, and finally, renewal. But this is set to change, Paul continued, ‘By drawing upon information now much more readily-available regarding the consumer’s lifestyle, driving behaviour and asset ownership, there are opportunities to increase the number of relevant interaction points. This will lead to enhanced customer relationships during the entire policy lifecycle, in turn improving retention for the insurer and providing more favourable underwriting for the policyholder.
‘Technology is moving so quickly and 2015 looks set to be a pivotal year for the motor insurance industry. Improvements to data collection mean using information in a different and more intelligent manner, ultimately improving the relationship between customers and insurers. As such, insurers should see 2015 as the year in which they carefully consider their options and make informed decisions about their technology partners, to ensure they maximise the benefits offered by the latest technology available on the market.’