Path-breaking new trends pose challenges for car insurance companies

Each day brings along with it new and dynamic changes across varied industries of the world. A special mention goes to the auto industry, specifically the car insurance realm worldwide. This industry has been on a constant growth pedestal and has seen some of the most significant changes so far. Thus, experts believe people need to stay in sync with the latest car insurance industry trends.
The team at carinsurance.ae, a trusted car insurance company in Dubai, Abu Dhabi, and other parts of the UAE, has come forward to discuss a few challenges that car insurance companies face due to the new trends that are considered path-breaking not just in the UAE but even across other parts of the world.

• Ride-sharing services:
Several people have started using ride-sharing services, which has significantly affected the rates. This is a new disruption since increased usage of ride-sharing services leads to an overall price drop because of natural competition. However, this is a challenge for car insurance companies as consumers tend to save by ride-sharing.

• Electric vehicles on the rise:
Another trend, which has become a daunting task for many car insurance companies, is how electric vehicles are on the rise, which has changed the car insurance landscape in more than one way. Explaining more about the same, they say that insurers take varied aspects into account while deciding how to price car coverage, but with car insurance of EV vehicles, they have to get into a more complex calculation to determine what type of discounts EV owners are eligible for. In fact, many insurance companies are now also developing new car insurance packages designed especially for them.

• Third-party car insurance:
Apart from comprehensive car insurance, third-party car insurance is also gaining more attention from people, the team points out, which, instead of complete coverage, includes a minimum coverage, where people and their vehicle are not covered, but they pay for any damage done by them or their vehicle to someone else or their vehicle. Though selling third-party coverage was a challenge for many, since most preferred comprehensive coverage, people are now also choosing the former for minimum yet significant coverage.

• Data for customization:
Another disruption, they say, is how several car insurance companies are using data for customizing rates and coverage, giving consumers a more personalized experience. This task was also challenging; however, a few of these companies have overcome the challenge by making customization seamless.

The team at Carinsurance.ae concludes that trends and challenges will keep coming, but as companies, the priority should be adopting a customer-centric approach and serving customer satisfaction, keeping in mind their protection and safety.