Smart Technology in Insurance
Smart technology is used to build relationships between insurers and insurance customers, aiming to eliminate as many potential issues as possible while removing pain for the consumer and cutting costs for the insurer. For motor insurance efforts have been made to improve poor driving with devices to monitor speed, corners, and braking, while also monitoring car diagnostics to pre-empt breakdowns. For home cover the aim is to make the house as secure as possible - preventing water leakages or fires before any damage is done and securing against burglaries.
Health insurance customers are attracted to fitness improvements and financial savings, but remain concerned about sharing personal information. The leading three age categories covered 30-44 year olds, with the youngest generations not yet thinking about life and health policies.A smart smoke and carbon monoxide detector is by far the most popular device, but the use of live cameras and motion sensors is increasing. Buying such devices is expensive, so insurers need to convince homeowners they are a worthwhile investment.
Majority of consumers still do not have a telematics policy, but over 50% become interested when savings reach 30% per year. Innovations now include buying policies by the hour or mile, with a device tracking driving activity.Travel is the hardest line to offer a preventative service to consumers, with disruptive events like plane cancellations almost impossible to foresee. However, smart tech can help consumers receive refunds and even find new flights.
Penetration of such devices is low across these lines, yet interest is quite strong, particularly among younger generations. This increases as consumers are told they can save certain amounts, meaning the key for insurers is likely to be educating individuals about potential benefits.
The report Smart Technology in Insurance,, explores consumer purchasing behavior and how their preferences are likely to change in the future. It discovers what devices consumers currently use and may be interested in using, as well as why they have reservations and what incentives insurers need to offer to help persuade them. Key new players in the different markets are highlighted, and we look into how they might disrupt that particular line.
Companies mentioned in this report: Babylon, Oscar, RTL, insure the box, PitPat, Petrics, FitBark, WonderWoof, AXA, Roost, neos, Blink, Thomas Cook, Roam, Service, Fizzy, O2
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