Updating or creating new insurance products is generally expected to be a long and expensive endeavor for insurance carriers. Most insurance products are made with insurance experts in mind, which can be hard for technology teams to understand. Having a product analyst is essential to make these complex ideas clear and ready for implementation.

The auto insurance industry faces unique challenges in an era dominated by rapid technological advancements. Today's vehicles, equipped with sophisticated electronics and software, are redefining experiences for drivers, auto services, and insurance industry professionals. In a recent webinar, we explored various facets of auto insurance carriers' challenges.

By utilizing the insights and capabilities of ADAS, carriers can enhance risk assessment accuracy, reduce accident frequency, and improve profitability. ADAS complements traditional rating variables like vehicle build, providing a dynamic layer of risk assessment and enhancing underwriting accuracy. Additionally, understanding the calibration status of ADAS systems is crucial to ensure optimal functionality and avoid potential hazards. As product managers in charge of auto insurance, it is essential to understand and leverage the power of ADAS to stay competitive in the evolving insurance landscape.

Data calls and stat reporting continue to remain a slow, tedious, and error-prone overhead to most carriers. Recent advances in technology have demonstrated that streamlining and automating this can provide benefits beyond meeting regulatory requirements. Join us in building a community that puts data to work beyond staying in compliance.

Personal Auto Insurance is experiencing an unprecedented transformation driven by increasing improvements in telematics. One area leading the transformation is Usage-based Insurance (UBI). While this technology has existed for more than 10 years, it is finally being accepted and adopted by insurance carriers and drivers alike in significant numbers. Fueled by the evolution of telematics, risk models, and pricing; UBI is experiencing quicker-than-anticipated growth. Carriers are presented with new opportunities and challenges unlike any ever before in this new world of technology-driven innovation.

Uninsured drivers cost carriers upwards of $13 billion a year in losses. Add on $84 per car per year and consumer affordability for auto insurance is strained. The difficulty in resolving this issue has been the limitations and costs of technology, but that is no longer the case. Join us in building a community across insurance and mobility to solve this problem.

Premium leakage is a critical issue for carriers writing personal auto insurance, particularly with the rising severity of claims. However, by utilizing data and building partnerships with auto manufacturers, data providers, and new insurtech vendors, carriers can take steps to limit exposures due to incorrect mileage and garaged locations. Join us in building a community to solve this problem.

Recent discouragement of charging electric vehicles (EVs) by officials in California in the wake of a severe heatwave prompted further research into power generation, EV charging needs and efficiencies as we move towards an “all-electric” future.

While the telematics capabilities that enable auto insurers to track mileage and driving behaviors continue to advance, Usage-Based Insurance (UBI) has  potentially been slow to gain traction among consumers. In keeping with our mission of working with Members to design the best possible insurance products, AAIS recently went direct to consumers to understand the reservations that may be stalling adoption of UBI products and strategies to overcome these obstacles.

A Fast-Moving Auto Industry Presents Challenges and Opportunities

The automotive industry transformation continues to have significant repercussions in the insurance industry. With improving sophistication in car technology, telematics, and consumer behaviors, insurance carriers face new and unprecedented challenges spanning the entire lifecycle of the policy from research to claims. Still, personal and commercial auto insurance remain the industry bellwether as the largest product lines accounting for more than $300 billion in annual premiums.