New Trends and Innovations in the Auto Insurance Industry
If you own and operate a vehicle in the U.S., you must have an insurance policy that includes property damage and bodily injury (PIP) coverage. That’s been the case since auto insurance became mandatory in the 1970s. Of course, if you’re financing your vehicle, most lean holders will require you to also have comprehensive collision coverage as part of your auto insurance policy. These requirements still apply today, but a few things have changed.
If you haven’t been keeping up with what’s happening, numerous new trends and innovations in the auto insurance industry are shaking things up and catching people off guard. Some of the more notable ones include
Although artificial intelligence (AI) did not start in the insurance sector, it seems to be making a beeline there. Many auto insurance companies are either now or will soon use AI to automate certain aspects of underwriting and claim processing. And it does not end there; many are currently or will in the future employ the same technology to help with fraud detection, customer analytics, and even sales and distribution.
Most people would never associate blockchains with auto coverage, but it’s starting to play a critical role in the auto insurance market. For those unaware, a blockchain is a digital ledger of transactions maintained by a network of computers. Insurers who have adopted blockchain technology use it to streamline the distribution of payments and data, reduce or eliminate fraud, and help with real-time claim tracking.
Fraud can cost honest drivers more when it comes to premiums. And that includes cyber fraud, which refers to crimes committed via a computer with the explicit intent of corrupting another’s personal and financial information. Many insurers are investing heavily in cybersecurity to safeguard their data and data belonging to their valued policyholders.
In summary, new trends and innovations in the auto insurance industry are revolutionizing things by minimizing fraud, streamlining tedious processes, and making it easier to check the status of a claim. These innovations are saving insurers money, which they are, in turn, passing on to policyholders in the form of lower premiums and better all-around coverage.
To learn more about Auto Insurance, check out our most recent Auto Insurance Blog Here.