Technology is changing the way the car insurance industry works and making it easier to reward good drivers while singling out bad drivers. "Insurance is getting fairer," says Sean Graham, a Principal Broker at KTX Insurance Brokers. "Prices are coming down for good drivers because the data is better."
There's no doubt that good drivers are tired of being lumped in with bad drivers, known by American company Progressive as "rate suckers." It's a term Graham has adopted as well, using it to describe drivers that rev up rates for undeserving motorists. But three technological advances are making it easier to prevent this from happening. It's a win/win for drivers and insurance companies alike. Canada is beginning to utilize - and in some cases lead - technologies that are revolutionizing the world of insurance. Good drivers, listen up.
Online Digital User Experience
Perhaps the most obvious example: the Internet has made it much easier for users to shop for and compare car insurance rates. In addition to the KANETIX.ca website where drivers can get quotes from competing car insurers, KANETIX has also launched two mobile apps, one that allows users to quickly compare car insurance quotes and another that allows users to compare and purchase travel insurance on the go.
"You used to have to drive down the street or actually physically go somewhere to talk to a person and sometimes that's not just convenient and it could even cost you money," says Graham, noting that these changes have made KANETIX more consumer-centric. "Since consumers and companies are able to interact online, clients are able to compare rates more conveniently."
The brokerage arm of KANETIX, KTX Insurance Brokers, is working on an end-to-end system that would allow customers to go from start to finish: from getting a quote, to finding a policy, to self servicing any policy changes, transactions, or renewals online. Customers don't ever have to speak with a broker if they don't want to, though of course brokers will always remain available to customers via email, phone, mail, or in person. Customers can also request service calls online. The expected launch of this is the end of 2014 and is largely based on feedback received from customers.
"That's the way of the future," Graham says. "Seventy per cent of people are using their desktops for online ecommerce. Mobile is cutting into that and growing at a very quick rate, but mobile is only a part of the online experience."