Submitted by: Xemplar Telematics
Evolving consumer preferences, connectivity, instant access to data through mobile devices is changing the insurance market in the U.S. like never before. Let us analyze the key trends.
A key trend that is witnessing the U.S. insurance market is growth in the personal accident and health segment. This can be attributed to decreasing unemployment and the implementation of ‘ObamaCare’ reforms.
M&A
Another trend that is shaping the insurance industry is M&A in the insurance industry. According to Willis Watson survey, nearly 82%, insurer opts for mergers and acquisitions. Researches indicate a push for top line growth drives this trend. Although this is a global trend industry watchers can analyze U.S. insurers will lead the trend.
Disruption of Connectivity
Connectivity disruption poses existential threat to the insurers in the U.S. Internet of Things will play a major role in disruption of existing businesses with technologies like big data and analytics will determine who will capture the biggest market share in the U.S. insurance market. Like other insurance companies, has lesser brand appeal but at the same time technology enabled insurance is shaping the way ahead for the insurance market. Insurance telematics revolve round IoT or connectivity where usage based premium enhances its appeal to insurance customers. Fleet managers who influence the logistics sector will opt for UBI to track their drivers and make them improve their drive scorecard.
Role of Web Aggregators
Another key trend is people using web aggregators for comparison of insurance products, premium and duration. Earlier the scenario was insurance customers, listening to agents for advice and information on products. But today the web aggregators are changing the customer preferences. They are used to buy products and services online. The same connected community is applying the same rule while buying insurance products or services. The danger lies in customer stops paying premiums if he/she feels the product of competitors are unworthy to consider on the net.
Artificial Intelligence (AI)
There is threat on jobs also. Artificial intelligence is lessening the significance of underwriting. AI has the capacity to aid fraud investigations as well as fixing the premiums. The trend is clear insurance sales force is giving way to automated services. What does this mean? It is to everybodys knowledge that agents dedicated service in attracting customer to buy insurance products. Now this is going to be a thing of the past as aspiring buyers will check net to buy products directly from insurers. But this has its cons also. The question remains how the insured will develop an interest to make active decisions as a few are self motivated to choose plans for them at a time when time is a premium. This means unless there is state involvement or other pressure from corporate or from peers, motivating the citizens to take up policies and paying a premium is not easy. This is going to be another trend.
Role of Analytics
Insurance analytics solutions by IT vendors will play a key role in shaping the mobile consumers. Mobile applications on ubiquitous mobile devices will eliminate agents as mediators. On the other it will influence certain age groups like Millennials to buy various products of the insurers online. Analytics will help the insurers to understand the customer preferences to take right decisions at the right time. This will have its implications in the insurance industry where organizations with superior analytics solutions will reign supreme in the market relegating their competitors to the sidelines.
While summing up all the trends throws up a mix of pros and cons to the insurance sector in the U.S. The coming years will tell the impact of all the trends mentioned above.
About the Author: Primes telematics system, Xemplar, enables fast and efficient two-way communication between insurers and customers. Xemplars mobile app-based system saves you money on hardware and infrastructure costs while also accommodating any mobile device or tablet, reaching drivers anytime and anywhere, and providing your business with critical information in real-time. Contact us now, and in less than 24 hours you will have the best technology solution for auto insurers. for more information visit us:
xemplartelematics.com/
Source:
isnare.com
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