If anything has shaped modern civilization it is technology. Name any sector and technological advancement has left a prominent mark. Technology has changed the way we live our lives. A push of few buttons is all it takes to live life comfortably. All around the world technology is bringing in new innovations. You can find man reaching Mars, driverless cars roaming the roads, your mobile controlling your entire life and what not. These technological advancements have impacted the insurance sector as well. Did you know about it?
Dynamism is the buzz word in the insurance sector which changes to accommodate changes in the world. Since technology has brought about great changes, it has impacted insurance too. Let’s find out how:
Advent of smart homes vis-à-vis home insurance
Did you know that you can make your home smart? Yes, while smartphones have become common, smart homes are also becoming popular. Are you wondering what exactly a smart home is? A smart home is a home which has various electronic, lighting, heating and safety devices. All these devices are connected by internet and can be controlled remotely with a smartphone or a computer. Smart homes are, thus, more secured and safe.
How they affect home insurance
Home insurance is the insurance of a house and its contents. In case of a smart home, any possible risk becomes easily detectable. Since the home is controlled by a smartphone or a computer you can see your home in real time even if you are away. There are safety alarms which alert the police in any possible scenario of theft and breaking in. Thus, smart homes bring down the risk for home insurance companies. They can, thus, offer better products at cheaper rates to insure smart homes. These cheaper rates would help you to appeal to more customers.
Driverless cars and auto insurance
While it is true that the success of driverless cars was not tested in India, it is assured that when the concept gains popularity India would not be far behind. Driverless cars are automated cars which are controlled by a computer. These cars do not need human drivers to run them. There is another concept of Telematics which are devices connected with a car. Telematics monitor an individual’s driving habit in real time. This data is stored and can be easily accessed.
How they affect auto insurance
Driverless cars eliminate the need of human drivers. As human drivers are eliminated, the probability of them making mistakes is also eliminated. As a result, the number of road accidents is expected to fall as driverless cars become possible. As the probability of accident falls it reduces the insurance company’s risk of insuring the vehicle. As such, insurers can offer lower premiums. Telematics, on the other hand, can provide actual data to insurers to examine an individual’s driving abilities. This would make underwriting easy and accurate. Thus, you would be able to sell a car insurance policy which is not only cheap but where the claims would also be settled due to proper underwriting.
Fitness wears and health & life insurance
Technology has made even watches smart. The watch can be linked to the smartphone. It can be used to take calls, send messages and chat. Moreover, there is also a health monitor in the watch which monitors the number of steps taken, heartbeat, pulse rate, etc. There are fitness wearables too which monitor health and motivate individuals to stay healthy.
How they affect life and health insurance
Smartwatches and fitness wearables help your customers monitor their health. They can see if their heart rate and blood pressure are normal or not. These gadgets also motivate them to stay healthy and increase health awareness. As awareness increases, the probability of ailments and diseases reduces. This reduced probability is good for health insurers as it reduces their underwritten risk. As a result, premiums get reduced and better products can be offered. In case of life insurance as well, the risk of mortality decreases as individuals become more aware about their health. Lower mortality once again means lower premiums.
The bottom line
Technology and its advent are surely expected to make a positive impact on the insurance sector. The risk faced by different insurance sectors is expected to reduce which would be transferred to customers in the form of lower premiums. So, you have reason to celebrate as your customer’s pockets are expected to benefit from technology and you can benefit from the increase in sales volume.