With the growing digitalisation of insurance speeding up during the pandemic, this will undoubtedly have an effect on how the market evolves in more emerging economies as well, and potentially shape how they develop overall.
Earnix Head of Insurance International, Peter Reynolds, believes that the pandemic has accelerated the need for advanced technological solutions in insurance, specifically ones with personalisation capabilities, that are shaping the future of the industry post-pandemic.
Reynolds mentioned the rise of a usage-based insurance (UBI) as a trend that has grown considerably over the pandemic. UBI is a type of auto insurance that, depending on the specific insurer’s program, can measure how far a vehicle is driven, where it’s driven, and how it’s driven.
UBI, Reynolds believes, is a testament to the growing trend of consumer-driven need for the right product, at the right time, and at the right price.
He said, “We’ve seen both large and small insurers introduce UBI and this has been one of the growth drivers for InsurTechs. The stress test for UBI over the next months will be whether a solution empowers insurers to bring personalized UBI offers to the market, operationalize and fully utilize telematics data and engage with consumers through a mobile app in real time.”