For a four-wheeler to be considered street-legal in India, it needs to come fitted with third-party liability insurance. That is the bare minimum. Yet, a report found that nearly 54% of the vehicles plying as on 31 March 2023 are uninsured (Source: Insurance Information Bureau of India).
The traditional modes of selling car insurance don’t seem to be making much headway here. So, what is the way forward? Disruption through insurance tech could provide an answer. Insurtech businesses are offering new possibilities for driving auto insurance penetration throughout the country. Why not? Insurance tech companies have both the sectoral knowledge and the technological know-how to bring four-wheeler insurance to the masses.
Car Insurance Bottlenecks
Not having updated policy documents can be an added hassle during a routine traffic stop. So, why do drivers and car owners take that chance? Here’s why:
Four-wheeler insurance purchase is not intuitive. Car owners may purchase insurance along with the new car at the dealership. But later on, they either forget to or avoid renewing the policy because it feels like too much work.
Car owners feel they don’t need insurance. They believe driving safely will keep them away from accidents. That isn’t always the case. \
Insurer presence is limited outside major cities. This is a serious obstacle to four-wheeler insurance penetration in smaller towns and villages across India.
How Insurtech is clearing car insurance obstacles
Insurance tech enterprises are laying the groundwork so that buyers of auto insurance have a frictionless experience. How are they going about it?
By Enabling Insurance Intermediaries: Insure tech companies like Turtlefin support intermediaries like banks and ecommerce players to sell insurance online. By providing application programming interfaces (APIs) and customized technology solutions, insurance tech companies turn any online sales interface into a digital insurance platform.
By taking geography out of the equation: General insurers have always struggled to serve the vast Indian market. Insurance API technology could ease their distribution woes by turning any internet-connected device into a car insurance platform.
By Minimizing purchase hassles: With insure tech, the smartphone becomes a one-stop shop for insurance purchases and there are additional benefits:
Customers get to buy insurance while transacting via brands they already trust. For instance, they could purchase motor insurance while making mobile payments, shopping online, or booking a car repair service.
Artificial intelligence (AI), machine learning (ML), and advanced data analytics access available customer information and fill in the requisite insurance forms automatically. That’s less paperwork for the customer.
4. By Introducing tech-enabled car insurance: The Insurance Regulatory and Development Authority of India (IRDAI) recently permitted add-on covers for new-age tech-enabled options such as ‘pay as you drive’ and ‘pay how you drive’.
Pay as you drive: The premium is based on the number of kilometres that the driver is likely to cover in a year.
Pay how you drive: The premium is linked to how well and safely the policy buyer tends to drive. The better the driver, the lower their premium will be.
The insurer may install a telematic device in the car to track distance travelled, speed, acceleration, braking technique, and other such details. The data would support accurate risk assessment and allow the insurer to offer more tailored coverage options to the policyholder. Going forward, insure tech-enabled cars could do even more. In a collision, telematic devices and onboard sensors could transfer accident data to the insurer and initiate the claim process. The policyholder would simply track claim status through a smartphone app.
Full speed ahead with Turtlefin
An insurance tech company like Turtlefin provides the technological backing for insurers and corporate intermediaries like banks and eCommerce sites. Our insurance API transforms their systems into robust digital insurance platforms, enabling them to sell insurance online, build a new revenue stream, and create enjoyable customer journeys. We also offer customized solutions that are tailored to the unique needs of businesses in the insurance space.
Better policy distribution is at the heart of our insurance technology. By driving car insurance sales, we hope to increase risk protection on Indian roads. Policy seekers get to view, compare, and buy affordable motor insurance seamlessly, which powers customer satisfaction and brand loyalty.
Summing up
The four-wheeler insurance experience is undergoing a major revamp with insurtech at the helm. Soon insurers, intermediaries, and consumers will all be reaping the benefits as insurance purchase becomes faster, easier, more convenient, and tailored to the buyer’s needs. Typing premiums to driver behaviour in the coming days could also lead to upticks in traffic safety.
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