Technology and Insurance

September 9, 2016

Today’s day and age is all about technology. Everything is becoming revolutionized to technology, from cars, to TVs, phones and even household products. While technology continues to advance daily, it has become harder for some companies to catch up. Every company in the world wants to be at the top and each company, including insurance companies, is finding different methods to advance with technology. Here are some technologies that insurance companies use to compete in this day and age.

1. Telematics

So what is telematics? It is information technology that deals with long distance transmission for computerized information. A great example would be the Fitbit because it relays collected information onto smartphones. Insurance companies like StateFarm have partnered up with Ford and use telematics by gathering information on how people drive. With that information, they can generate an insurance policy that helps determine different vehicle’s insurance price. For good and safe drivers, it can help lower the price they pay for insurance.

2. DIY 

This has been surfacing a lot lately- DIY or Do It Yourself. Customers are more independent now and often rely more on their phones and electronic devices for communication than ever. Customers no longer have the need to speak over the phone or in person to get an insurance quote since insurance companies have accommodate them with online services. Current and prospective customers can do everything online or through mobile apps including personal insurance quotes. One technique companies use is making videos with step-by-step instructions to facilitate the customers with what they are trying to do.

3. Self-Driving or Auto Pilot Cars

Everyone knows that you need car insurance to drive a car because it can help cover outrageous costs in the case of an accident. Major car companies have been slowly testing self-driving cars that move on their own without a need for a driver. The most famous self-driving car that has recently been released is the Tesla. The self-driving mode lets drivers and passengers relax, play games and even sleep during the ride! Here is a video of people testing out the self-driving mode. In the future, will there still be a need for insurance? Will insurance get more expensive because of the risk of self-driving cars? We will have to wait and see what the future holds.

Contributor: Andrew
All images from Google