Auto insurance processes have long been inefficient and tedious for both the policyholders as well as the insurers. What conventionally puts the driver under a great deal of stress in the event of an accident, insurance plans should ideally relieve drivers of any and all worries in times of need, and deal with the procedures swiftly.
However, with the onset of advanced technologies in modern vehicles and the emergence of data-based services, validating claims has never been faster. Connected vehicle data combined with the power of AI, telematics, and automotive IoT yield insurance models that go over and beyond the traditional insurance experience to deliver unmatched customer experience and quick resolution, while ensuring the utmost safety and total protection.
Here are 4 ways Artificial Intelligence and telematics remodel the auto insurance industry
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Affordable/ Cost-Effective Solution for Insurance companies
Contrary to popular belief, one of the most prominent features of an AI and telematics-based insurance product is low associated costs that make way for lower premiums and overall cost-effectiveness. It is one of the primary reasons behind the widespread acceptance of the UBI model as well, encouraging up to 25% drivers to shift to UBI. AI analysis and risk assessment allow auto insurers to carefully measure a driver’s risk profile and correspondingly offer lower premiums to low-risk drivers and vice-versa. Lowered premiums equal more savings, which leads to happy and satisfied customers.
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Increased Customer Retention & Acquisition for Insurance Companies
The usage-based insurance industry saw a spike in demand, especially in the post-COVID era with limited movement but unruffled high insurance premiums. Markets and Markets predicted a CAGR growth of 27.7% in the UBI market size to reach $66.8 billion by 2026, while research showed as much as 80% inclination among consumers to share their driving data in return for lower premiums and faster claims. Connected vehicle data-sourced insights when paired with artificial intelligence yield the perfect solution for businesses to not just retain their existing customers by offering them discounted premiums, but also attract new drivers to their customer base.
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Faster Claims Settlement
Telematics-driven insurance models have been known to enable seamless and accurate settlement of claims that not just prevent potential frauds but also ensure a superior customer experience. Technologies such as AI and ML detect irregularities at the minuscule level and provide crash insights directly to the claims management system that supports in quick processing of the claims. Reduced time frames for claim dispersal and policy renewals further empower quick resolution of cases and improvement in settlement ratio.
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Drive Feedback & Coaching Opportunities
AI and IoT-based insurance models provide constant and accurate feedback on the driver’s driving style, and behavior as well as the interpretation of safe driving practices. This feedback, based on extensive analysis, helps drivers work on areas that need improvement, develop effective skills and operate in ideal conduct. The data so attained further prevents the overuse of vehicles and boosts fuel efficiency through optimal driving techniques.
Revolutionize Auto Insurance with CEREBRUMX
At CEREBRUMX, we are committed to assisting you in developing future-ready insurance products that’ll help pave the path for sustainable solutions and safe driving experiences. Stay on top of the latest mobility trends and offer your customers the best possible protection through our AI-powered Usage-Based Insurance (UBI) products. With insights from the industry’s first AI-powered Augmented Deep Learning Platform (ADLP), lead your business to success with reliable products and customer satisfaction, achieved from our connected car data solutions. ADLP crunches both real-time and historical data from millions of connected vehicles, enriching it using advanced AI signals and data standardization processes, to generate predictive insights with minimal supervision.
Our rich data sets and industry-leading analysis promise cost-friendly operations, limitless innovation, and optimum business productivity. We adhere to global privacy regulations to maintain driver confidentiality and offer a white-label consent management platform, CerebrumX Secure Consent, that can be easily integrated within your brand’s existing web/app architecture.
For more information regarding connected vehicle data and the evolving ecosystem around it, Contact us or reach out to our experts.