Search
 

Connected 'things' offer opportunities for auto insurers, and their customers

Auto insurers who take advantage of the opportunities posed by the 'Internet of Things' will differentiate themselves in a commoditized market.

By John Cusano | Updated on July 21, 2015
Auto insurers who take advantage of the opportunities posed by the 'Internet of Things' will differentiate themselves in a commoditized market. (Shutterstock/My Life Graphic)

Driverless cars may well represent the future of the automobile industry, leaving the insurance industry to grapple with the implications. However, that future may be relatively far off–10, 15, or 20 years from now. The big question for insurers today is how to use the latest technologies available to enhance the customer experience. Auto insurers have a tremendous opportunity to add value for their customers, and to differentiate themselves from their competitors in the process.

One leading example is through telematics–typically devices supplied by insurance companies that snap into the car’s dashboard and provide the insurer with information about driver behavior, including miles driven, acceleration and braking patterns, and vehicle GPS data. This information helps the insurer more accurately price risk for individual customers, and can ultimately lower premiums for drivers who exhibit safe behavior. With the average U.S. Auto insurance premium hovering around $1,500 per year, lower premiums can be a significant incentive for consumers to participate in telematics programs. 

Want to continue reading?
Become a Free
PropertyCasualty360 Digital Reader.

INCLUDED IN A DIGITAL MEMBERSHIP:

  • All PropertyCasualty360.com news coverage, best practices, and in-depth analysis.
  • Educational webcasts, resources from industry leaders, and informative newsletters.
  • Other award-winning websites including BenefitsPRO.com and ThinkAdvisor.com.

Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

Dig Deeper

Recommended Stories

PropertyCasualty360

Join PropertyCasualty360

Don’t miss crucial news and insights you need to make informed decisions for your P&C insurance business. Join PropertyCasualty360.com now!

  • Unlimited access to PropertyCasualty360.com - your roadmap to thriving in a disrupted environment
  • Access to other award-winning ALM websites including BenefitsPRO.com, ThinkAdvisor.com and Law.com
  • Exclusive discounts on PropertyCasualty360, National Underwriter, Claims and ALM events

Already have an account? Sign In Now
Join PropertyCasualty360

Copyright © 2024 ALM Global, LLC. All Rights Reserved.