Future trends in motor insurance

As discussed in the previous part of this article, the motor insurance industry has been changing rapidly in present times. Some of the future trends discussed previously include insurance premiums dependent on the driving etiquette of the buyer, insurance premium based on the previous credit history of the buyer and insurance policies for electric and self-driven cars. In this article, we discuss some of the other future trends in motor insurance:

     ·        100% virtual claim process: One of the biggest improvements that have been made in the recent years in car insurance is in the claim filling process. The car insurance companies are now attempting to develop a virtual process that will take away all the tedious paperwork and will allow the policyholder to make a claim from his or her smartphone by making a video showing the damage done to his or her vehicle. This is probably the biggest change as far as the policyholder is concerned as making a claim is the most complex procedure a buyer has to go through after purchasing the policy.

    

     ·        Increase in surveyor-less claims: A new change proposed by the car insurance companies is to make claim settlement of lower amounts more straightforward. One of the ways this might be done is by taking a decision of low value claims (less than Rs. 75000) without a surveyor. This will make the claim settlement process quicker and simpler as it will eliminate the delay introduced because of a surveyor filling his report and submitting his review to the motor insurance company. 

        

      ·        Telematics based insurance: The insurance companies are looking to introduce mechanisms inside the cars that monitor the breaking history, acceleration pattern, the route chosen, the time of the day the car is driven etc. This information is relayed directly to the insurance company. This can have broader effects as seen in some of the western countries that will help the insurance companies to protect their policyholders from risks and may lead to introducing better driving habits among people and thereby avoiding any accidents.   

   

      ·        Selective third party insurance:  The thirdparty insurance that protects the driver apart from the policyholder in case of an accident may become more stringent. The third party insurance policies in future may limit the financial protection provided in case of a third party driving the car to the people that the buyer nominates at the time of purchasing the policy. This will help the insurance companies to minimize the risk as they will know beforehand the people who would be driving the vehicle in case of an accident or any such untoward event happening to the car.   

      So, as we saw in this article, there are still many changes that predicted to take place in the world of motor insurance in the near insurance. We hope this article was helpful to you and gave you an idea about where the future is headed as far as the motor insurance is concerned. Have a great day!