Auto Tech Driving Insurance Explained

Our interactions with cars change every year as new technology comes out to improve the experience. As such, auto insurance must find ways to adapt right alongside the industry. This is no mean feat and takes a lot of careful planning. 

Most recently, auto insurance companies have begun to develop automated ways of measuring and creating new plans. There are many benefits to this feature, including highly customizable plans.

The Complication

There is one complication with the plan to go full automation when it comes to insurance: people’s willingness. According to CCC Information Services, Inc.’s Crash Course report, until recently, most drivers were unwilling to share such detailed and personal information.

What sort of information do these metrics require? The predominant concern revolves around mileage. New features allow for easy personal data collection, including driving details, travel speed, and location.

Up until recently, only 41% of those surveyed were willing to share their data. That number has gone up to 54% and is likely due to the changes that the pandemic brought with it. Primarily the reduced time spent in cars.

One of the main concerns from users, unsurprisingly, is the breach of privacy. Specifically, these features would require drivers to give up information such as where they at which times, which can be a deal-breaker for many. According to a study run by Pew Research Center, only 37% of Americans found the offer appealing, even when taking benefits into account.

Benefits

Despite these concerns, there are plenty of benefits that come with auto tech driving insurance. Primarily, the data used to create an individual’s plan would be based on their driving – and theirs alone.

Instead of filling out several complicated forms, drivers can instead give access to their data metrics, allowing insurance companies to create an accurate and detailed plan that fits the users’ needs. It sounds complicated, but in truth, it makes things simpler. 

This practice is called usage-based insurance. In practice, it works through an app on your phone, which then transmits data to your insurance company. Most companies experimenting with the tech provide rewards for using the app – rewards that get better the more you use it.

Insurtech Explained and What It Means for Car Insurance

The advent of Artificial Intelligence (AI) is changing the way many industries operate; there’s no escaping it. Even the insurance industry is facing change, thanks to the creation of Insurtech, aka Insurance Technology.

What is Insurtech? 

Insurtech is a term for a broad range of technology, all of which is applied towards the insurance industry. More specifically, it’s the use of artificial intelligence and blockchains in the insurance industry. This applies to car, medical, life, and home. 

Insurtech was created to save insurance companies money, streamline the process, and make better and customized customer service. In the last few years, the Insurtech industry has boomed. New startups and older businesses alike are competing to create the best models, and it’s altering the way we look at insurance.

What Are the Different Types of Insurtech?

There are now several different types of Insurtech, a variety formed from the many different needs of the insurance industry. Each style has a different specialty, and there’s no need for mutual exclusivity between companies and types.

  • Artificial Intelligence/Machine Learning – Used for personalized services, competitive pricing models, predictive analytics, and chatbots.
  • The Internet of Things (IoT) – IoT is used for omnichannel communication and telemetry-based insurance policies and claim processing. 
  • Blockchain – Used to prevent fraud, create smart contracts, and help to track sensitive data.
  • Robots/Drones/Etc. – Can assist in designing programs, plans, find risk factors, operate where it is unsafe for humans, and create automation.

How Does Insurtech Work?

The end goal of Insurtech is convenience and efficiency. This technology has been designed to help both internally and externally. Meaning that the insurance companies and their clients both gain an advantage through its use.

Theoretically, Insurtech will make insurance more accessible, lower costs, decrease wait times, and allow for customized claims. All while reducing payroll costs, as there isn’t a person behind all of this.

What Are the Benefits of Insurtech?

Many of the benefits for Insurtech have already been mentioned above. They include: customized insurance policies, reduced run costs for insurance companies, better claims management, and better customer-facing tech, including apps and chatbots.

What Are the Concerns of Insurtech?

As with any rising technology, there will naturally be some concerns to go along with it. The dominant concern regarding Insurtech is privacy. Consider all of the private and sensitive information that insurance companies must collect and store. The introduction of any new technology always increases concern regarding the safety of this sort of information.

 

Does your Malpractice Insurance cover these key events?

Amigo MGA Malpractice InsuranceIn addition to all the other costs of becoming a doctor, from the time in school to the ensuing debt, medical professionals also need to be concerned about malpractice insurance. Work on the human body can often go awry, since best practices change with some frequency, no two bodies are created equal, and doctors are people too. As such, doctors need to be covered in the event that a procedure goes wrong and the patient sues for damages caused. Even well-intentioned doctors make mistakes, so coverage is required by most practices and hospitals as a precautionary measure.

If you’re new to the medical field and need to purchase malpractice insurance, or if you haven’t reviewed your malpractice insurance policy in some time, a few seemingly-small aspects may slip through the cracks. Make sure you’re covered for the following instances.

Cyber Insurance: As we all remember too well from the recent cyber attacks against hospitals in the EU and other countries, the cybersecurity in healthcare facilities is often subpar, despite how vital it is to the wellbeing of the patients. Doctors today need to ensure that they’re covered in the event of a cybersecurity breach, data leakage, or malicious hostage situation.

Volunteer Insurance: Many doctors spend parts of their careers volunteering overseas to provide free or reduced-cost medical care to sick people in developing nations. Some malpractice insurance policies only cover work on American soil or within the walls of the doctor’s practice. If you plan to offer your services to those in need, make sure that you choose an insurance plan that covers you in case something goes wrong during a pro bono procedure.

Non-Medical Protection: As the healthcare industry is, in fact, a business, there will be some business-like liabilities you’ll need to protect yourself against. Take, for example, tax forms or insurance claims. In the event that you accidentally misfiled your income tax or made a mistake filing a Medicare claim, you’ll need some insurance to cover the costs of correcting the problem and all the red tape that will certainly ensue.
Overdose Insurance: The opioid epidemic is hitting crisis levels in some states, and as such, the likelihood of being sued for an over-prescription that lead to an addiction or death is climbing. As was made clear in the riveting work of investigative journalism American Pain by John Temple, the federal government now has a vested interest in prosecuting doctors and facilities it dubs “pill mills,” a term used to describe offices that dole out opioids with reckless abandon for a profit. With this in mind, ensure that your malpractice insurance will help you fight claims that your medical prescriptions were malicious and solely for profit.

The Importance of Personal Insurance

Amigo MGANavigating the world of insurance can be a tough one. No one likes the idea of losing their valuables to the unplanned curveballs life throws. How do you know what’s worth protecting when investing in personal insurance? Following this handy list can help inform your choices when understanding which insurance is most important, and what a program typically covers.

Simple, important and a necessity if you’d like to go anywhere with four wheels, automotive insurance is paramount. However, it’s not enough to understand your state’s minimum requirements and purchase a plan based around that. Be sure and consult the agent you’ve chosen to purchase insurance from when building a policy. More often than not, they are genuinely attempting to provide you with the best possible coverage for your money, and auto-insurance is one of the few that get utilized the most.

Renter’s or homeowner’s insurance is fantastic for safeguarding what matters most. Renter’s insurance can differ from state to state, and where you decide to rent. Even if your complex does not require the purchasing of renter’s insurance, protecting your possessions from break-in or incidental damage is always a good idea. Homeowner’s insurance is a must-buy for what will possibly be the largest investment of your life. When carrying a mortgage, homeowner’s insurance is a necessity, but keeping a policy intact for when your mortgage is paid off is the best way to protect yourself from fire or natural disaster. Beyond disasters, homeowner’s insurance can and will protect you should your possessions be stolen, or an accident occur on your property.

Lastly, umbrella insurance is an excellent catch-all should the worst happen. All types of insurance have their limits, and should you find yourself in a situation where those limits are met and exceeded, umbrella insurance is designed to cover the overflow. Able to cover you during overseas travel, umbrella insurance is an excellent safety net should your initial fail-safes give way.