Insurance is becoming on-demand and is being bought just when needed
Insurance is no longer one-size-fits-all. It has become more flexible, with customers able to purchase cover for just when it's needed. This is enabled by the ability to purchase cover on mobile and by faster underwriting - which when taken together mean that cover can be extended in minutes rather than days.
What it looks like now: Cuvva offers flexible, on-demand car insurance from one hour to 28 days. The application process is fast and done via mobile. This reflects drivers’ changing needs - borrowing a friend’s car for a short trip for example. Meanwhile, Revolut offer pay-per-day travel insurance which is enabled by geolocation to ensure travellers only pay for the days in which they are abroad.
What it could look like in the future: A passenger orders a driverless car to take her to work - then decides she feels like actively driving today. Not to worry - she is offered on-demand insurance in the background, which shifts its risk profile according to the route she takes.
Claims are becoming faster and on-the-go
When customers need to claim, they want to get an answer fast to put their minds at ease. Insurers also want to sort through claims as quickly and efficiently as possible. That’s where new technology like conversational interfaces, pattern spotting and machine learning come in. Technology like this can be used to speed up the claims process and reduce fraud risk.
What it looks like now: American car insurer Allstate insurance allows customers to submit photographs of crashes through their app to get a fast repair quote. Customers are guided through three stages, taking photos of the damaged area, the entire vehicle, and the odometer. Meanwhile, mobility fleet insurer Trōv uses a chatbot UI to expedite the claims process.
What it could look like in the future: In the event of a car accident - whether driverless or human-driven - internal car diagnostics could be used to assess the damage and cause of the crash. This data could be sent straight to the insurer without the customer having to do anything else.