Insuring the future of mobility
With the rise of ridesharing, car-sharing and autonomous vehicles, Deloitte analyzes the role of car insurers and their relationship to drivers, owners and vehicles in “Insuring the future of mobility”.
As mentioned in the white paper, we believe at Assisto that 4 different types of mobility will emerge from the intersection of two key trends: the emergence of autonomous vehicles and evolution in mobility preferences. Change between these different states will occur unevenly around the world, depending on factors such as regulation, social attitudes, technological development, privacy and security concerns, and key stakeholders’ level of resistance. Predictions show that different models will coexist during the next 10–15 years.
Insurance companies will need to adapt their product and service portfolios, go-to-market approaches and business models to effectively meet the unique and distinctive needs of personal and commercial clients in each of the future states.
Insurers shall consider the arrival of safer vehicles, new vehicle designs, and new sources of risk and liability, leading to:
- A decrease in the frequency and, over time, the severity of loss events
- New customer categories and the creation of new insurance products
- Changes to vehicle repair and replacement costs
While widespread availability and adoption of fully autonomous vehicles may be a few years away, carsharing and ridesharing are already gaining traction, particularly among the young or those living in higher-density urban environments. Shared mobility reduces the number of vehicles per capita, challenges vehicle-centric underwriting, and will likely give rise to large fleet operators, meaning:
- A shift of the product and premium mix for passenger vehicles from individual buyers to commercial buyers
- An expansion of driver-centric policies and introduction of per-use policies
- An increase in the prevalence of self-insurance by larger fleet owners as an alternative to purchased coverage
With the emergence of a fundamentally different future mobility ecosystem, insurers have an opportunity to shape the auto insurance markets of tomorrow.
By streamlining the claim and repair processes and connecting all stakeholders via a digital and innovative platform, Assisto helps insurance companies to improve their bottom line and enhance client’s experience.
This article was written by Alexandre Henkens. Alexandre is Business Development Manager at Assisto. Alexandre can be reached at firstname.lastname@example.org.