3 Technologies That Have a Direct Impact on Insurance Premiums 

In today’s world, insurance companies around the world are now utilizing advanced forms of insurance technology. As a consumer, you are able to experience this technology in numerous ways.

Examples include getting insurance quotes instantly by simply clicking a button, managing your policies through an app on your smartphone, and the ability to ask questions any time of the day or night on an insurance company’s website and getting an instant answer.

While all beneficial, it is essential to understand that emerging technologies in the insurance industry do have a direct impact on your premiums. In this brief guide, we will introduce you to 3 of these technologies. 

1. Predictive Analytics

Predictive analytics is a type of technology that aids insurance companies in collecting data that helps in predicting the behavior of customers. Insurers depend on this technology to gather insight on risk selection, pricing models, determining fraud risk, identifying a risk of cancellation, triaging claims, and other important information.

While this technology helps improve the overall loss ratios of companies by up to 9%, it has also been found that those insurance companies that use this form of technology may have written premium increases of up to 53%. 

2. Machine Learning 

Machine learning is a form of artificial intelligence, but different. It is the science of building machines that are capable of learning on their own, processing data, and other tasks without being supervised by humans. It offers many benefits.

Examples include improving the processing of claims, administering policies, and improves the process of risk assessment.

Naturally, the integration of this type of technology aids in offsetting the costs of human employees; however, it does involve a slight increase in premiums to modernize the company. Over the long-term, it is actually considered to be highly beneficial to all parties, despite costs. 

3. Telematics 

Telematics is a form of technology that is placed within the vehicle of a customer. It provides regular monitoring of the activities that occur with the vehicle. Examples include speed, location, drive time, and more.

These devices are intended to improve driving habits by encouraging better driving habits, offering lower claims for those that drive safely, and encouraging customer relations. This technology is highly beneficial in saving policy owners money on their automobile insurance.

Small increases in premiums may occur to cover initial costs, but the rewards for consumers far outweigh the expense that may occur. 

Insurance on a New Level 

If you are in the market for insurance – regardless of type – we here at Modica Associates can assist you in finding insurance on an entirely new level.

Today’s technological advances may – occasionally – result in additional costs, but it maximizes your coverage levels. It provides comprehensive benefits for all policy holders – whether it is automobile insurance, renter’s insurance, business insurance, or homeowner’s insurance.

By contacting us today, we can instantly discover the perfect policy for your needs. To learn more, give us a call today at: 718-855-1836

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