The old insurance model works on the premise that you insure your home or car on predetermined risk factors and receive compensation should anything go wrong for any losses incurred. So, if you are an eighteen-year-old man looking to insure a sports car there is a different set of risk factors to that of a fifty-year-old spinster insuring a family car. Simple enough.
However is the all seeing eye of big brother about to shake things up a little? Already we have seen the addition of dash cams (cameras attached to your dashboard.) These dash cams are designed to protect you from fraudulent claims from uninsured drivers or from criminal gangs targeting tourists with ‘cash for crash’ scams. However the dash cams are also able to provide insurance companies with a detailed set of information about the drivers driving skills and therefore how risky they are. This information can lead to a more tailored risk assessment.
I read a fascinating article the other day on self-driving cars and how they may impact on traditional insurance policies. Innovations like IoT, machine learning, cognitive computing and blockchain are having a huge impact on the insurance industry. Data can now be obtained from cars, homes, buildings and even people making standardized risk assessment somewhat obsolete.
Robert Cummings from Global Head of Core Insurance a SAP said,
“In this new insurance industry model, there are monitoring, connected technologies that can help you to drive safer, or make you healthier and better protected from crime or disaster when you’re at home or work.”
Mr. Cummings goes on to say,
“Insurance companies are in a bit of a panic because as cars get safer through air bags, self-driving functionality and other innovations, risk goes down on the one hand but also the responsibility gets shifted to the manufacturer. Some car manufacturers have even said that they see no choice but to build coverage directly into their product,” said Cummings. “Insurers need a connected platform to support a new business model.”
There has been a large increase in a more detailed and personalized insurance policy taking over from the standard policies of old. Here at McLeod Insurance we specialize in High Value Home Insurance and to be honest our policies have always had the specialist approach. Our market has always demanded a more bespoke approach so for us the mass-market insurance industry has a long way to go before it reaches our levels of customer care and satisfaction.
Here at McLeod Insurance we have long said that the standard, one size fits all insurance policy is a dinosaur in terms of providing suitable cover for the customer. Our customers are very individual and although there are some similarities there are also any number of unique factors distinguishing one from another. Every one of our customers has a different passion whether it be classic cars, jewelry or art and every one gets a bespoke insurance policy which suits these individual needs perfectly.
We keep a keen eye on technological developments and anything new to the market that can be used to reduce premiums is always highlighted to our clients. We take great pride and professional care to make sure that we have exhausted all avenues when it comes to ensuring the right policy for you.
If you have any questions or are looking for a quote do give us a call, as we are always happy to help.