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According to the forecasts of futurologists and economists of the consulting company Deloitte, the world is on the verge of another technical revolution. There are two main trends that will radically change the concept of road mobility over the next 25 years. First, they predict the active growth of "car sharing" (shared ownership and use of cars). Second, they predict the successful start of operation of robotic cars without drivers.
As a result, the number of road accidents will decrease, since at the moment almost 90% of road accidents are caused by the fault of drivers. The frequency of insurance events will decrease, since cars will be robotic and the probability of incorrect driver decisions will be significantly reduced.
At the same time, "car sharing" models will be implemented, which will reduce the number of cars per capita. A significant number of fleet operators will appear on the market, which will manage fleets of cars intended for «shared use». Anyone will be able to use a car to make a trip, so the need for personal car ownership will begin to disappear.
All this will lead to a change in the traffic situation, when both the cars we are used to with drivers behind the wheel and robotic cars without drivers will move on the roads at the same time.
There will also be changes in client segments, products and sales channels in auto insurance. And insurers will have to abandon their usual business models and introduce significant innovations into the insurance business following these changes. For example, in the case of car sharing, the car sharing company and the driver will want to buy insurance policies with different coverage, based on their needs, and for different terms, depending on the time of operation. And in the case of a robotic car, the liability insurance will be the responsibility of the company that designs and supports the algorithms and mapping software for driving the car.
As for changes in insurance products: in one form or another, they will cover the same risks as now - illegal actions, damage not related to the accident (from natural forces, for example); damage from the accident, the owner's civil liability, but new components will also appear. Each stakeholder and potential client of an insurance company (car owner, car-sharing operator, manufacturer of robotic cars and operating systems for them) will need a unique combination of insurance coverages.
Insurance companies will have the opportunity to "unpack" insurance products and offer customers to insure individual risks depending on their needs.
Insurance coverages may also be implemented into other products and services, which in turn will be distributed to newcomers - (for example, including insurance payment in card payment for car rental). And, of course, the share of electronic sales channels will grow.
And although the emergence of new technologies in Ukraine is somewhat delayed, I would like to remind you that the first purchases of goods and services via the Internet appeared in Ukraine no more than 10 years ago. And today, the Verkhovna Rada is preparing for consideration a bill on the complete abandonment of paper forms of the Civil Liability Insurance Act in favor of electronic policies.
In the coming years, all communication between the client and the insurer will be limited to a smartphone, tablet and other electronic devices. The client will be able to conclude an electronic contract, then notify the insurer of an insured event online, fill out an electronic Europrotocol, settle the contract through a personal account on the insurance company's website or mobile settlement applications and receive compensation to their bank account.
New technologies will lead to a change in the insurance paradigm. Today, insurers are focused on attracting clients by all possible means - they lure the best agents, provide discounts and bonuses to clients. But after electronic contracts replace paper MTPL contracts and any driver will be able to conclude a contract without communicating with an insurance agent, the emphasis will have to be placed on after-sales service. Customer convenience, speed and quality of settlement will become the main arguments in the competitive struggle.
Liability limits for MTPL in the coming years will gradually increase to the European level. The approach to pricing will also change, and the abandonment of regulated prices is inevitable. Today, free prices scare many with possible dumping by companies with an aggressive strategy of capturing the market at any cost. But on the contrary, we believe that free pricing will allow companies to set different tariffs based on the driver's age, driving experience, and insurance history of previous years. It is also worth mentioning the beginning of the use of insurance telematics in Ukraine. A device is installed on the car that allows you to collect data about each car owner, including driving style, frequency of trips, and car handling. Thus, a fan of fast and aggressive trips will pay more than a careful driver. Insurance Company "AXA Insurance" officially announced the launch of insurance telematics in CASCO insurance, but with the transition to free pricing, these approaches will also be applicable to OSAGO insurance.
According to the analytical company ABI Research, the global insurance telematics market will increase by 81% per year - from 5.5 million insured drivers at the end of 2013 to 107 million by the end of 2018. And in Brazil, since 2016, telematics devices have been installed on all cars, which allows to reduce the number of car thefts and increase road safety.
The new era of OSAGO will be the era of digital technologies - from the conclusion of the contract to the settlement of the insured event. At the same time, the market will move away from typical "box" products, the new standard will be a unique solution for selecting insurance risks and insurance rates. But not everyone will finish this marathon, many are already dropping out today.
Source: blogs.korrespondent.net
Author: Volodymyr Shevchenko (General Director of MTIBU)
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