Everything is Changing (Because It Always Does)

[MVI]

Here's how I see this one:

It will (of course) be pushed as a way to "reward" people who do "good" things like brake slowly, accelerate slowly, drive less, etc.

What it really is/will be is a way to push people to behave in ways that make the carriers more profitable.

Essentially, it's a social credit system personalized for the carriers to increase profits. You could argue insurance rating has always been that, but AI/data will make it clearly distinct from the "before" time.

I wonder how this relationship works with the requirement of insurance carriers to submit their rating structures w/ each individual state's admin.

I'd assume they have to be transparent about all of this type of stuff?

 

[whatyouwantfinally]

I wonder how this relationship works with the requirement of insurance carriers to submit their rating structures w/ each individual state's admin.

I'd assume they have to be transparent about all of this type of stuff?

Sure. I don't think that matters at all, though.

 

[AZDave]

Who hasn't experienced a push from their regional sales guys to sell intelligence-based driving monitoring stuff?

At first they were PIA 'doggles' that plugged in. Now it is all on the phone app. The push for all insured's to use their app is huge. The incentive has always been, 'rate will not increase' due to bad habits, however, I beleive that is no longer going to hold true. I beleive Carreris will soon surcharge insured's who do not use their apps, and surcharge insured's 'unhealthy' driving habits. Making telemetrics forced and mandatory is their long term goal.

 

[MVI]

At first they were PIA 'doggles' that plugged in. Now it is all on the phone app. The push for all insured's to use their app is huge. The incentive has always been, 'rate will not increase' due to bad habits, however, I beleive that is no longer going to hold true. I beleive Carreris will soon surcharge insured's who do not use their apps, and surcharge insured's 'unhealthy' driving habits. Making telemetrics forced and mandatory is their long term goal.

It's already happened. Some carriers said it wouldn't increase with fine print that it would in the future. And now the future is here and surcharges are a thing.

 

[marindependent]

More technology will be used. This means things like AI and telematics. These tools help insurers understand risk better and improve customer service. Who hasn't experienced a push from their regional sales guys to sell intelligence-based driving monitoring stuff?

Regarding Point 1.... sure AI will get more involved, but how will the regulatory framework allow for this? My understanding is that your Credit Rating may effectively demonstrate you as either a better or worse insurance risk, but its not allowed in numerous states.
How will AI software coders explain their underwriting decisions to regulators.

 

[Al3x Lee]

Property and casualty insurance is changing. Here are some trends I believe will happen in the future:

1. More technology will be used. This means things like AI and telematics. These tools help insurers understand risk better and improve customer service.
   
   
2. They will do this by offering personalized products, making the claims process easier, and using technology to make it easier for customers to connect with the company. They will also drop the ball in many ways because of cutting costs and outsourcing internal CSRs to inexperienced people.
   
   
3. Data and analytics will be used more. Insurers will collect and analyze more data to understand risk, find patterns, and create better products. Big data is the name of the game. How this plays out, I'm not sure.

What do you think?

Firstly, thank you for the thought provoking post.

As for what I think? Like many other industries, insurance companies are becoming far too reliant on technology.

Do you ever get someone who calls into your office, or you go on a cold call, and the guy asks sketchy insurance questions and acts like this?

Insurance companies seem to forget that there are certain things their technology can't pick up on. We humans can easily pick up on social cues and tell when something is 'off.' If someone is sketchy as hell, we're not writing the policy. A computer, on the other hand? If the information checks out on paper, it will write that policy all day long.

Meanwhile, you have these young dudes creating these insurtech companies, thinking they can outmath or outthink the problems that people in the insurance industry have spent centuries trying to figure out. They believe that telematics, MVRs, credit scores, loss runs, etc, will check all the boxes of what makes a 'quality risk.'

In my mind, at the end of the day, as much technology as you throw at insurance, it will always be a people business. By people, I don't mean inexperienced CSRs or call center agents; I mean people like yourself who actually give a shit and want what's right for your customers and your stakeholders. Without the personal element, I think insurance companies are destined to fail.

 

[MVI]

[QUOTE="In my mind, at the end of the day, as much technology as you throw at insurance, it will always be a people business. By people, I don't mean inexperienced CSRs or call center agents; I mean people like yourself who actually give a shit and want what's right for your customers and your stakeholders. Without the personal element, I think insurance companies are destined to fail.[/QUOTE]

100% agree with this. Great reply!

Humans are super good at sensing when something is "off". I agree.