Impact of digitization on the auto insurance industry
In today’s world, digitization has touched almost every area of life. Digitization has also brought massive changes in the insurance industry. It also revolutionized the auto insurance industry with automation and the digital upheaval. With the rise of artificial intelligence, next-generation data, blockchain, cloud computing, advanced analytics, and more, embracing new ways of doing business has become a prerequisite for survival. in the advanced world.
The following points will help you better understand the impact of digital technology on the auto insurance industry:
The automotive industry is relatively demanding and car manufacturers compete to provide the best services to their customers with the choice of customizing their vehicles. While various new vehicle variants are coming to the market with an option of customization. Making an insurance policy one-size-fits-all becomes difficult. With digitization, the customizable form of on-demand, usage-based insurance products and services is gaining more and more attention. From flexible coverage options to microinsurance, sustainable insurance plans are becoming the new normal.
Faster access to products and services
With the digital transformation, you can get any kind of information you want in order to purchase auto insurance policy from the insurer’s website. After that, gather all the required information and compare these policies with others to find a more suitable for your needs. With digitization, every insurance provider has implemented an advanced process, where you can search, select, compare, get a quote, talk to an expert, buy and renew insurance policies within minutes at any destination.
Reduced cost and operating time.
With one-click find, buy and renew options, cost and uptime have been reduced and as a result the overall user experience is efficient. The digital atmosphere has made it easier to process claims, execute transactions and raise awareness of the need for auto insurance.
Integrated analyzes to improve the customer experience:
To build lasting relationships with customers, it is crucial that customers feel comfortable with digital business means. This is where the data collection and integrated analysis of that data comes in handy. Digitization of data allows the insurance provider to complete the transaction and automate processes with little or no time to help customers – for example, helping a customer move through the claims process soon after an unfortunate event such as an accident. With data available from smartphones, health trackers, GPS, security systems, and more, insurers can get a head start on their response to the customer.
Use of AI
Since digitization took hold in the auto insurance industry, the use of artificial intelligence has increased on a massive scale. Using various forms of AI such as chatbots, tracking consumer behavior, analyzing trends, and more, insurers are improving time to purchase and renew policies, handling of claims, etc. AI can use analytics to spot fraudulent claims, assess risk points, and create accurate reports
The above points clearly show that digitalization has had an impact and transformed the auto insurance industry in a monumental way.
Buying auto insurance and protecting yourself and your vehicle from any unforeseen events is one of the most crucial things you can do as a car owner. Find out about the different types of auto insurance policies from Kotak General Insurance.
This article is written by Suresh Sankaranarayanan, senior executive vice president and chief technology officer, Kotak General Insurance, and the opinions expressed in this article are the personal opinions of the author.