New technologies like advanced safety features and driverless cars could make the way insurance is now priced and sold obsolete.
Cars that jiggle you awake or alert you when you drive out of your lane represent just the beginning of technological changes that will make car accidents less common and, eventually, change how car insurance is priced, bought and sold, say industry analysts.
The recent article in Insurance & Technology magazine "The reshaping of auto insurance," penned by Marik Brockman and Anand Rao of PricewaterhouseCoopers, reviews several trends that they believe will significantly transform the way car insurance works.
These trends include:
Risk shifting
Advanced technologies such as telematics, vehicle-to-vehicle communication, lane detection systems and automatic braking will shift responsibility for accidents from driver error to mechanical malfunction.
"In turn, this would shift the key buyer from the end-consumer to the car manufacturer, and fundamentally change the entire value chain, from product definition to pricing, marketing, distribution, underwriting, service, and claims," says the report. In this scenario, carriers would sell policies either at the dealership, or perhaps try to increase market share by "co-marketing with the manufacturer and/or dealer," says the report.
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Cars that jiggle you awake or alert you when you drive out of your lane represent just the beginning of technological changes that will make car accidents less common and, eventually, change how car insurance is priced, bought and sold, say industry analysts.
The recent article in Insurance & Technology magazine "The reshaping of auto insurance," penned by Marik Brockman and Anand Rao of PricewaterhouseCoopers, reviews several trends that they believe will significantly transform the way car insurance works.
These trends include:
Risk shifting
Advanced technologies such as telematics, vehicle-to-vehicle communication, lane detection systems and automatic braking will shift responsibility for accidents from driver error to mechanical malfunction.
"In turn, this would shift the key buyer from the end-consumer to the car manufacturer, and fundamentally change the entire value chain, from product definition to pricing, marketing, distribution, underwriting, service, and claims," says the report. In this scenario, carriers would sell policies either at the dealership, or perhaps try to increase market share by "co-marketing with the manufacturer and/or dealer," says the report.
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