Many experienced professionals in the insurance industry may be feeling overwhelmed by changes that are making some traditional products seem barely recognizable.
Auto insurance is one of the most obvious examples: This staple of the industry will soon be changing dramatically and rapidly as new tools such as telematics come into play to help assess risk, creating new sales strategies like pay-as-you-go and usage-based insurance (UBI).
How can agents best keep up with trends in auto, and then convey that knowledge to their policyholders and prospects to sell coverage that fits into this new environment?
The New Normal
Telematics devices can either be part of the original manufacturing process or added to a vehicle after-market. These devices measure and track driver behavior such as miles driven, time of day the vehicle is driven and where, hard braking, acceleration and air bag usage, among other things, according to recent research by the Center for Insurance Policy and Research at the National Association of Insurance Commissioners (NAIC).
The NAIC also found that, although the technology was developed more than a decade ago, new advancements have improved “the effectiveness and cost of using telematics”-resulting in more usage-based types of insurance products reaching the market in recent years.
Read the full article, published on iamagazine.com, written by Matt Masiello CEO of SIAA.