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How Technology Is Making the Insurance Market Simpler for Consumers

Insurance is commonly seen as a complicated field that requires an expert to navigate. And while that may have been true in the past, it’s far from the case nowadays with all the advancements we’ve seen over the years. Sure, it still takes a special knack for things to find the best deals and ensure that you’re seeing the big picture. But the average consumer now has a lot more tools available at their disposal, and some of those can be incredibly useful in conquering the market and exploring it in extreme detail.

Tracking Usage for Better Quotes

Insurance companies are behind some of those tools as well – such as the idea to track customers in their daily usage, and adjust their quotes accordingly. This was initially met with some controversial reactions, but the market seems to have warmed up to the idea over time. Plus, it does end up benefiting those who behave well on the road, so there aren’t many reasons to avoid this implementation, at least on the insurance front. It’s a different story when one considers the implications on privacy and similar factors, but that’s something that’s still being discussed actively.

Virtual Assistants

Virtual assistants have become a prevailing force on the market, and they come in all forms – including physical devices like Alexa, which now have their own apps that can assist users in streamlining the process and getting what they want with as few steps as possible. Of course, the technology still has some way to go until it’s evolved to a good enough state to replace regular assistants across the board, but it does seem like we’re moving in that direction quite fast already.

Completely Virtual Agencies

And on that note, some insurance companies have also adopted the virtual trend and have shifted their businesses to operate entirely online. This was not possible just a couple of decades ago, but it’s far from unthinkable today. Many companies on the insurance market have realized that they are investing into a significant overhead when running their businesses out of a physical location, and it looks like this trend is now slowly, but steadily, going away. It will be interesting to see if virtual agencies are able to take over the market eventually, but it’s going to take some time until we get there.

Mobile Apps

There are also many apps that help out in this, such as the new AAA app that tracks drivers’ habits on the road. We already touched on that above, but the important thing here is that the app does much more than that, and it’s a useful asset in the inventory if the average consumer or driver. With that in mind, its use is likely going to keep going up over the next months, especially as drivers continue to realize the benefits that it brings to the table.

New Safety Technology

Technology has been assisting the market in other ways too – such as by making cars safer for everyone on the road on a steady basis. Various new safety technologies have arrived to the market in recent years, and the focus has continued to shift largely towards making cars as safe as possible, even when it means compromising other factors. Luckily though, not so much has had to be compromised until now, and it looks like the market is moving at a relatively steady pace when it comes to making cars safer and more accessible.

A More Accessible Market

And speaking of accessibility, the market has also become significantly easier for the average person to get into, especially those with a bit of technological aptitude and the willingness to adapt to new trends. Sure, it will take a while to get fully integrated into this new style of doing things, especially as more technologies are adopted and the situation keeps getting slightly more complicated in this regard. But in the end, it’s the kind of transition that many markets have gone through over the years, and it’s something that will make a lot of sense down the road.

Where Is the Line?

Some have been raising concerns about the way data is being collected in this whole system though, and it does seem like they have a point. The extent to which some companies have gone to determine what their users are doing can be frightening to an observer, but it’s important to remember that this is all usually done under heavy regulations and data protection laws. What’s more, those laws keep getting amended on a regular basis nowadays, as they are the pillar of the technological developments in the sector. And usually, the changes are meant to protect users even more.

What We Can Expect from the Future

Predicting where the insurance industry will be even just a few years from now is going to be a huge challenge, even for those who are already familiar with how it works and the implications of technological integration into it. But there are at least some trends that have been established recently, many of which seem to point in the direction of providing users with more control over their situations, while at the same time streamlining the process for both them and the insurance companies that provide their services. But until we are at a point where this is all truly unified, we’re going to have to wait for a while.



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Amita Choudhary

Amita Choudhary

Marketing Manager

Princeton Growth Accelerator

Member since

07 Jun 2020



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This post is from a series of posts in the group:

Digital Insurance Trends

Customer acquisition, onboarding and engagement, underwriting and risk management, billing and claims – all these areas are being changed by the digital innovations. Digital Insurance Trends is a group for professionals who are interested in Insurance Technology, Fintechs, and Solutions Providers - as well as Global Industry Intelligence.

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