The boom in the financial technology industry has had rippling effects across the marketplaces including the automotive industry. The traditional business model is being upended by service-based financial offerings.
As customers ask for flexible usage models, connected cars are making new services possible. Automotive sales, leasing, financing, and retail channels have been rethinking their business models, and OEMs are realizing that they can earn more in the future from the use of the vehicle over its lifecycle than from the one-off sale of a new car.
Financial services in automotive are working towards reinventing themselves as a service-based business. This…
From flexible vehicle subscriptions & embedded insurance — the latest disruption in automotive is coming from the safe & traditional financial services. The changing face of mobility is now making a clear impact on financial services, auto insurance & asset management.
Automotive mobility driven by a series of converging technological and social forces is changing dramatically. While much of the speed and trajectory of this transition is still a work-in-progress, it’s been estimated that by 2040 shared autonomous vehicles will account for more than half of road miles traveled in the US alone.
Which means, in the near future, urban…
As cars evolve and mobility takes on new and greater meaning, how is roadside assistance going to keep ahead of the curve.
Cars are becoming safer, but repairing them is becoming more expensive, with much more integrated components & features being part of the vehicle. Now a simple accident which might require replacing the good old bumper, can also mean replacing damaged sensors and camera. The churning in the automotive industry is changing every other service aspect of the mobility ecosystem. And roadside assistance is one of the core services that is adapting to the smart reality of mobility, quickly…
Many insurers have been transforming their organizations, or at least claiming to — into digital businesses. After 2020, there is simply no excuse.
Since 2020, insurers have been forced to accept a new reality in which they must be agile and be able to respond to any event. For insurers risk has become the rule, and not the exception. This need for agility, and simple, fast, transparent processes has realigned the focus towards eliminating processing times and simplifying customer experience. And it is clear that only technology augmentation will deliver this digital transformation.
While the pandemic has taught the world to expect the unexpected, things are expected to change very quickly for auto insurance in 2021.
The trends that emerged in insurance industry under the unique circumstances of a global pandemic has evolved a completely changed scenario for auto. Commercial auto insurance, which is a $160 billion market saw fewer auto claims in 2020, with a 19% decrease in the number of collision claims. Collision severity saw a 3.7% year-over-year increase in 2020.
And more than one-third of auto insurance customers said they are willing to try usage-based insurance (UBI), which uses telematics…
From advanced navigation systems to entertainment, new cars come with an array of computer processors, sensors, and software. No longer closed systems, connected vehicles must recognize and build a robust cyber security infrastructure.
Today some cars have more than 300 million lines of code, and collect terabytes of vehicular data every year. With the advent of 5G, we are at the very beginning of a data revolution in cars. In the automotive market, connectivity is emerging as a major competitive differentiation. …
A massive shift is underway across the global automotive industry. Over the past few months, everyone from GM to Ford, Apple to Huawei has been making big moves towards a zero-emission & connected future of mobility.
As digital era takes over, the true potential of mobility has been unlocked against a global backdrop of vehicles virtually becoming computers on wheels. Globally, e-cars are changing the auto industry that has basically stayed unchanged since the German engineer Karl Benz invented the vehicle in 1885.
Today, cars can greet the drivers when they get in, take their voice commands and even alert…
The rise of UBI isn’t not just fueled by drivers saving more money on their auto insurance, but is also the result of rapidly evolving telematics, IoTs, and connected vehicles, which help insurers monitor driver behavior safely, securely, and accurately.
It has long been predicted that telematics and usage-based insurance (UBI) will enable risk pricing to be done in real-time, ushering the end of the annual renewable car insurance policy. 2021 looks like the year that will consign traditional auto insurance to the history books.
The pandemic changed everything, including auto insurance. The unchanging one-size-fit-all legacy model is no longer…
If you are wondering how much cars actually cost to run and maintain, don’t just look at the price tag.
Recent trends have been making cars more affordable in Europe. Research says that Europeans pay on average €27,500 for a new car, although prices vary significantly per country due to varying factors. The average car retail prices across Europe can range from ~€22,500 in Italy, ~€25,000 in Spain, ~€26,000 in France, and ~€32,000 in Germany.
Innovating in a new revenue landscape will build resilience into insurers’ business and product portfolios, and deliver a competitive advantage.
As the global insurance market heads towards a significant growth trajectory over the next 5 years, new and shifting revenue pools are expected. Insurers who are willing to migrate from traditional to technology-led offerings are better positioned to lead by better integrating with customer data. Resistance to the trend will mean losing revenues to digital-first competitors and new entrants.