Google and Apple may become market disrupters by supporting mobile applications
Both Google and Apple may soon become disrupters in the auto insurance market. A growing number of insurers are beginning to use telematics to offer new, usage-based policies that are popular among consumers. These companies are using relatively expensive devices to monitor the driving habits of policyholders and this information is being used to determine the cost of an actual insurance policy. Mobile application may soon become a powerful tool in helping insurers cut the upfront costs associated with usage-based coverage.
Apps could be used to gather information regarding consumer diving habits
Mobile applications can be used to further track consumer driving habits, providing insurers with more information that can be used to lower an insurance premium. These applications can effectively gather mileage and braking information, which could lead to significant savings for consumers. The apps could also become a disruptive force to the current market, wherein insurance companies gather information and keep it to themselves. Mobile apps could make driving information more accessible, allowing consumers to adjust their habits in order to benefit from lower premiums.
Consumers are willing to use tracking apps if they can save money on car insurance
While neither Google nor Apple have yet announced plans to enter into the auto insurance sector, these companies may begin seeing more promise in such an endeavor. According to a recent survey from Towers Watson, some 80% of smartphone owners noted that they would be willing to download applications that track their driving habits, especially if such apps could affect their insurance premiums.
Mobile apps could help make usage-based auto insurance coverage more popular among consumers
While large tech companies could be market disrupters, they may also serve to the benefit of insurance companies. Effective mobile applications may help make usage-based auto insurance policies more attractive among consumers, making it easier for insurers to sell these policies. As mobile gadget technology continues to grow more advanced, their place in the insurance sector is likely to continue expanding, especially as insurers begin engaging mobile consumers more aggressively.