Smart, connected insurance that creates ongoing value for consumers and insurers and leverages the Internet of Things is inevitable. Consumer-centric telematics solutions — particularly those applying new technologies that drop costs while boosting consumer engagement and value, like mobile, mobile & device and mobile & car — are disruptive differentiators for the near and long term.
“The explosion of new data and tapping into unstructured data expand insurers’ focus to individualized underwriting. Telematics, the Internet of Things and wearables (will only add fuel to the fire),” according to Property Casualty 360’s article on the recent Strategy Meets Action (SMA) report. Smart, connected products are reshaping industries. A recent Harvard Business Review article explores how they “enable firms to maintain direct and deep customer relationships” and transform competition.
There are at least five smart, connected product trends that are influencing the evolution of auto insurance competition:
- Mass adoption — smartphones
- Early mass adoption — connected cars (from the factory and after market)
- Early mass adoption — connected roads (Waze, Google Maps, et al)
- Early mass adoption — car on demand (ZipCar, Uber, et al)
- Early mass adoption — price comparison sites
There is a critical window of opportunity for auto insurers to harness these and other disruptive forces as they move to mass market adoption. Who is going to lead the way with smart, connected insurance?
Connect with us if you want to talk more about consumer-driven telematics and smart, connected insurance.