Telematics insurance and driverless cars are realities in near future. Both of these technological innovations will change the way consumers buy auto insurance covers, pay their premiums and claim in case of damages. The auto insurance players will also be burdened with stringent regulations. All these things combined is forcing auto insurers to look at new ways of monetizing their services in an effective way, a HCL whitepaper.

1. Getting Ready for Disruptive Innovations
How Auto Insurance Providers Need to Prepare Themselves
for Future Technologies

2. Three Critically Important Questions Auto
Insurers Need to Answer
• Are insurers ready to take on back-to-back disruptive innovations?
Two Disruptive Innovations in Auto Insurance –
• Telematics Insurance
• Driverless Cars
• Do they have the ability to build scalable strategies to manage resilient business models?
• Are they ready to compete with digitally aware players and grow their business profitably?

3. How Driverless Cars Will
Impact Auto Insurance
Players?
• Premium – Auto insurance premium will be part of
the OEM that will come with an embedded chip with
the vehicle. Many more components will be covered
in the insurance coverage
• Regulatory Demands – As minimal human
intervention will be involved, regulators will want
instruction providers (read drivers) to be held
responsible for damages rather than various external
factors
• Claims Processing – Majority portion of insurance
claim will go to OEM. Emergency services will be
contacted automatically and claims process will be
initiated requiring no human intervention

4. Why Telematics
Insurance is Win-Win
for Auto Insurance
Companies?
Provided auto insurance players adopt to
technological innovation, they will benefit by
telematics insurance technology through –
• Real Time Interaction – As drivers or instructors
or customers will be free to explore different digital
communication channels, auto insurance
providers will have greater connectivity with their
end customers
• Incidental Business Growth – Content,
eCommerce, home and travel industries can
market directly to consumers enabling auto
insurance providers to cash-in the technology
• Big Data – Data collection from consumers will
enable insurance companies to provide/charge
personalized pricing and initiate claims without
any chances of fraud

5. Strategies for Insurance Companies to Tap
into these Disruptive Innovations
Collaboration –
Collaborate with employees,
vendors, partners and most
importantly customers to
create ecosystems that
facilitate education,
seamless communication
and fulfillment
Integrate Digital Data
and Channels –
Create robust
communication channels,
enable real-time
communication between
different stakeholders,
improvise processes and
infuse social media
channels
Change Management –
Be prepared for the change
as these technological
innovations will need support
from apt management,
vendors and third parties to
succeed

6. Questions –
• What is telematics insurance and how it is going to affect
business of auto insurance firms?
• How driverless cars will change the way insurance is sold
and processed?
• What are the major challenges posed by driverless cars
and telematics insurance?
• How auto insurance companies can prepare for inevitable
changes?
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