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Three Trends in Auto Insurance to Watch out for in 2021
Customers will prefer versatile service providers and modular services, which means they can pick and choose features according to their needs or their current financial situation.
Fremont, CA: 2020 was a great year for the auto insurance sector despite the various issues in other markets. Here are three trends that will potentially be embraced in the auto insurance industry:
Personalization will become the New Standard for Insurance:
Platform economy companies have made the application of data to produce personalized insights and suggestions a requirement for auto insurers. There will be increase adoption in pay-as-you-go insurance models and will introduce a new contextual data-driven customer experience models aimed at personalized services. This involves gaining real-time insights into customer usage patterns and policy purchasing trends, offering insurers a chance to increase their business models into associated networks.
Insurtech Growth will Continue Unabated:
Most Insurtech uptake will possibly be in P&C insurance. Also, other trends will encompass minimizing the risk for reinsurers through innovative approaches and data analysis while redefining the roles of MGAs to reduce friction with the policyholder with the primary goal of optimizing its product usability.
See Also: Top Insurtech Startups
The Aftereffects Of COVID-19 Will Continue to Disrupt the Insurance Industry:
Customers will prefer versatile service providers and modular services, which means they can pick and choose features according to their needs or current financial situation. For auto insurers, policies can be based on the real mileage driven than the number of drivers or even discounts for drivers that are involved in ridesharing programs.