|SOUTHERN CAPE BUSINESS NEWS - It is clear to anyone that technology is changing rapidly and having a greater impact on our lives. In the insurance industry technology also had a huge impact the last 5 years and will definitely evolve the insurance of the future.|
The area where technology probably will have the most impact is on motor insurance. Using a GPS to show the way home, is now a general feature on a cellphone. Nowadays GPS devices are installed in the vehicle itself, relaying a lot of data back to the insurer.
This data is captured by the insurer and used to determine the actual risk, compared to the potential risk used in the past. Not only can this data be used to calculate premiums, but it can also be used to administer claims.
Data such as speed, whereabouts, stop/start, velocity during corners can now easily help the insurer to determine whether the driver is responsible for a claim or not.
The manner of your driving will now help to determine your premium and in future will most likely be more relevant than your age.
The safety aspect of these technologies should also be mentioned, knowing where your vehicle is, and receiving notification if it should go beyond a certain radius can be very helpful.
I have no doubt that technology will play a huge part in the future of insurance and will change insurance as we know it today.
Make sure that your insurance broker embraces change and keeps up to date with the latest technology and innovations in the insurance industry to ensure that you get the best service at the lowest rate.
(Disclaimer: All information above is the opinion of the author and should in no way be seen as a prediction of the future. Viakor Veertien Edms. Bpk. trading as Boshoff Visser Finansiële Dienste Edms. Bpk. is a registered financial services provider. FSP license no 11968.)