In the current climate the survival and success of US insurance companies will depend largely on their willingness to innovate, especially using mobile technology.

Can Mobile Technologies Help Create New Revenue for Insurance Companies?

Mobile technologies could help automotive insurance specialists control their costs better and create new revenue. This conclusion emerges from a recent study by Frost & Sullivan,which suggests that these innovations could enable insurers to deal with many of today’s challenges - tighter regulatory requirements, a shaky economy, and ever more demanding customers. “The insurance sector has historically been quite conservative in adopting new technology,” explained Jeanine Sterling, Senior Industry Analyst at Frost & Sullivan.

Monitor what the driver does and adjust his policy accordingly

"However, it’s well past time for insurers to include mobile and wireless solutions in their growth strategies," she underlined. This basically means installing in-vehicle telematics. The objective is to capture and transmit data on the location of the vehicle and vehicle diagnostics such as the condition of the engine, petrol consumption, etc, which then feed into an overall analysis of driver performance. The insurer could then offer the driver a tailored policy premium based on the exact number of kilometres s/he drives and the types of geography s/he takes the vehicle through. It would also be much easier to detect any fraud attempts.

Improving employee efficiency  

This technology would also make it feasible to get real time messages to a customer directly inside his vehicle, and it could also help to make company staff – who increasingly now own smartphones and tablets – more efficient. They will be able to stay in constant touch with the company while out on the road and have access to all internal company information no matter where they are, taking advantage of better processors, screens and cameras.