As fuel prices rise and the world becomes more aware of the effects of climate change, the demand for electric vehicles is on the rise. Insurance companies can play a major role in helping their customers navigate the obstacles and opportunities that electric vehicles face.
She also shared my post 5 forecasts for the insurance industry in 2022We expect the global market for electric vehicles to reach $725 billion in 2026. This is an emerging growth sector for innovative insurers and not just a pick-me-up for declines in existing auto premiums.
The shift in the insurance industry is to reinvent traditional indemnity-based products as innovative offerings that help protect client interests – not just client assets.
Bypassing the barriers of electric vehicles
For many customers, reliable access to a home charging station is a deal breaker. Homeowners and renters In multi-unit dwellings, many hurdles are faced in obtaining a space equipped with a charging unit, and regulators have begun to step in. Those who rely on street parking near their homes in urban areas are getting creative with charging solutions and potentially Introducing new risks the surrounding community in the process.
The opportunity to empower electric vehicle drivers with charging solutions will be captured by someone. There are many potential business models and many industries that can create relevant offers at an affordable price. Insurance companies, with their wealth of customer data, have a distinct advantage.
We are already seeing innovations in this area such as Bâloise’s Drive Electric program. They are identified with Efma-Accenture Award for Innovation in Insurance. Through their strategic partnerships, they help customers set up home charging stations and access recharge stations across Europe.
Even for customers with easy access to charging, supply chain disruptions and inflation may still be delaying the availability and affordability of electric vehicles. For these customers, insurance companies can be the strategic partner providing access to a full range of value-added mobility solutions. This may include vehicle maintenance plans to extend the life of a customer’s existing vehicle, options for errand services and deliveries, or quick access to mass transit recommendations.
Make driver data
Many of the newer vehicles, particularly electric models, are equipped with sensors and IoT capabilities that take them beyond what we think of as equipment and into the realm of technological devices. They are capable of advanced data analytics and can help the insurer and customer manage risk in real time.
As insurers consider new vehicle underwriting, they want to take in-car platforms into consideration. Whether it’s an automaker or a large tech company with an in-vehicle platform, insurance companies are the natural first choice for partners to include. A seamless car buying and underwriting experience can be the beginning of a long and profitable customer journey.
Insurers with cloud-enabled technology infrastructure that can accommodate upstream and downstream data flows with ecosystem partners will have the advantage. They will pave the way for greater underwriting opportunities and more efficient claims resolutions in the future.
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