Mandatory vehicle insurance may seem like an obvious need in society, but at the beginning of car usage it wasn’t always required. The history of insuring vehicles begins in 1897 when Gilbert J. Loomis became the first recorded person to purchase insurance for covering any damage, injury or death caused by his car. From that moment the automotive insurance industry picked up speed, with fire and theft policies coming in 1902 and soon after in 1912, the beginning of the modern day “multi-line” policy was developed. With the popularisation of personal cars following WW1, insurance quickly became an industry of its own.
By 1930, the Road Traffic Act made it mandatory for all vehicles to have accident insurance to protect those injured and to reduce the considerable cost to drivers. With the rapid increase of cars in the late 1940’s and early 1950’s, the industry developed further with brokers now being able to work with various insurance companies, offering wider variety and spreading risk.
The Modern Day
We are witnessing the next massive shift in the vehicle insurance space with the last 50-60 years seeing more incremental growth. Now we see a broad and sudden shift from paper based services to the digital ecosystem. This shift however isn’t universal, and not all businesses are able or even willing to accept the new needs of the changing customer base. Research juggernaut, McKinsey, recently analyzed the insurance sector and noted that whilst resilient, “it too is beginning to feel the digital effect. It is changing how products and services are delivered, and increasingly it will change the nature of those products and services and even the business model itself.”
Technological innovations have been at the forefront of the vehicle industry and those, like automotive insurance, that have grown around it. Currently the digital age is engulfing the insurance space and much like Gilbert Loomis was looking for protection in 1897, the modern customer is also concerned about how their data is processed and collected. As a result, titanic companies that are slow to pivot and adjust can find themselves quickly sinking as customers find digitally native solutions that protect and improve their experiences.
Finding your perfect fit
Companies across the world are seeking these natively digital solutions designed for their customers but can struggle to either find a compliant solution or unable to build one quickly enough to maintain their growth targets.
Partnering with solution providers gives companies eager to pivot the ability to quickly adopt industry leading technology and not go the way of the Dodo.
Book your consulting call with DriveX to find out how we can pivot your business with automated vehicle verification and damage detection.