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The increasing availability in auto insurance provided by vehicle manufacturers is an interesting trend. Ford, Tesla, and GM are examples of these sponsored entrants. They provide some key competitive advantages: Point of sale customer access at dealerships or through on-line distributors. This could significantly reduce policyholder acquisitions costs. In addition, linkage to manufacturer financing services, credit card accounts, and loyalty programs could further enhance their insurance offerings. Reduced repair costs due to access to OEM replacements parts and preferred auto repair facilities. Replacement parts and service centers represent important revenue sources that manufacturers will prioritize. As EV market share grows, new players such as Rivian and Lucid will continue to partner with traditional insurers as part of their overall business strategies. While this trend is still early and has yet to operate at scale, it represents a potential challenge to traditional insurance carriers and distribution channels. #insurance

The Rise of SUVs and Trucks: Impact on Automobile Insurance Rates The automotive landscape has undergone a dramatic transformation in recent years, with SUVs and trucks taking center stage. This shift in consumer preferences has not only reshaped the roads but also influenced automobile insurance rates. #autoinsurance

The Rise of SUVs and Trucks: Impact on Automobile Insurance Rates The automotive landscape has undergone a dramatic transformation in recent years, with SUVs and trucks taking center stage. This shift in consumer preferences has not only reshaped the roads but also influenced automobile insurance rates. #autoinsurance

The Rise of SUVs and Trucks: Impact on Automobile Insurance Rates The automotive landscape has undergone a dramatic transformation in recent years, with SUVs and trucks taking center stage. This shift in consumer preferences has not only reshaped the roads but also influenced automobile insurance rates. #autoinsurance

JLR (Jaguar Land Rover) has introduced a new insurance coverage for clients in the UK. Insurance is administered by insurance startup Wrisk and underwritten by Highway Insurance Company, which is part of the LV= group. Coverage is available to owners of Range Rover, Defender, Discovery and Jaguar vehicles, and the carmaker said that the insurance offering has been live since October, providing quotes to more than 4k clients. “Customers of luxury cars and other luxury items are experiencing an increase in thefts due to organised criminal activity in the UK. The desirability of our luxury vehicles, coupled with concerns around thefts, has recently led to challenges in obtaining insurance cover for some clients. We are fully committed to doing everything we can to address this by adopting a multifaceted approach: from our significant investment in vehicle security, to now providing our own insurance.” – JLR spokesperson. https://lnkd.in/eYuHWFDJ #Insurance #Insurtech #openinsurance #productlaunch #embeddedinsurance

BMW owners have seen the biggest rise in the cost of insuring their cars with an eyewatering 46% annual hike in premiums, according to new research from Compare the Market. VWs weren’t far behind with insurance up to £920 a year from £680 12 months ago though all of the major brands saw similar rises with Ford up 45%, Vauxhall 45% and Audi 44%. Car insurers have been hit by a surge in the cost of repairs and have been quick to pass this through to customers, said the comparison website. Last week, insurance trade body the Association of British Insurers said premiums for comprehensive motor insurance in the second quarter of 2022 were the highest they have ever been at £511 on average. Ernst & Young earlier this year warned last year was the worst in a decade for insurers due to rising costs; with every £1 received by motor insurers in premiums they paid out £1.10 in claims and operating costs. More at #Proactive #ProactiveInvestors #ETR #BMW #motor #car http://ow.ly/eQ0t104RclM

Revolutionizing Auto Insurance in the Era of New Vehicle Valuation Trends: The world of auto insurance is experiencing a significant shift in how vehicle values are assessed, a change driven by evolving consumer preferences and market trends. The traditional two-step pricing classification, based on MSRP Base Price New and Year-Model Factor tables, is becoming outdated due to a dramatic shift in vehicle types, particularly the rise of SUVs. These vehicles, unlike traditional cars, retain their value longer and have become the predominant choice for new vehicle sales. This shift is further complicated by the pandemic’s effects, which have inflated used vehicle values and led to sales above MSRP. The result is a disparity between the historical valuation methods and the actual market value of vehicles, especially newer SUV models. Traditional methods fail to account for this change, leading to inadequate risk assessment and pricing models in auto insurance. The increasing consumer interest in SUVs, coupled with factors like ADAS technology, supply chain issues, and the rise of electric vehicles, are not just cyclical market fluctuations but indicate a fundamental change in the auto industry. This necessitates a revision in risk-based pricing practices, with a need for deeper segmentation of risk and value. Traditional processes are too rigid to adapt to changing consumer choices, such as brand preferences, body styles, and optional features. Practical solutions include aligning with the "as built" values of new vehicles and using actual cash values for used vehicles with similar configurations. The industry needs to move beyond the simplistic use of MSRP base price and adopt more nuanced valuation methods that consider optional features and brand-specific value retention. This change is crucial for achieving accurate insurance-to-value levels in current policies. As the auto industry continues to evolve, insurance companies must adapt their valuation and risk management strategies to stay relevant and effective. A mindful governance structure for analytics and transparent understanding of existing models are essential for navigating this new landscape. #Auto #Technology #RiskManagement #InsuranceIndustry #Claims

This month will see my car insurance policy come up for renewal, so this article naturally caught my eye. A familiar story (as it has been for many car owners this year) to see my renewal quote jump up by 50%, but this article touches on what appear to be far more challenging and unpredictable circumstances for EV drivers. This class of vehicle seems to be presenting insurers with a number of challenges to identify the right pricing strategies. While many EV's bring driver assistance features they argue will lower risk, many of their owners are paying significantly higher premiums as insurers begin to see the true cost of repair these vehicles present. #insurance #EV #actuarial #pricing #insuranceindustry https://lnkd.in/eWYKSsjV

Kenyan car owners, take note! The depreciation of the Kenyan shilling is having a significant impact on car insurance. Here's a quick look at the facts and figures: 🚙 Models Under Scrutiny: Insurance companies are opting to write off certain car models, including Mazda, Honda, BMW, Mercedes Benz, and Volkswagen, due to rising repair costs and the scarcity of spare parts. Interestingly, Toyota and Nissan models are less affected. 💸 The Costly Repairs: The weakening shilling and a shortage of spare parts have driven up repair costs. Assessors now consider current spare parts prices, which means even minor damage can lead to a write-off when repair costs exceed 50% of the vehicle's value. 🚫 Customer Resistance: Car owners are not always happy with write-offs because rising car prices mean that the sum assured is often insufficient to purchase a similar replacement vehicle. 📉 Shilling's Decline: Over the past year, the Kenyan shilling has lost approximately 21% of its value against the dollar, making imported spare parts more expensive. 🔧 Complex Repairs and Wait Times: Longer repair times, especially for modern cars requiring complex repairs, coupled with delays in obtaining spare parts, have driven up the cost of providing courtesy cars. 💡 Implications for Insurers: All of these factors are likely to contribute to another year of underwriting losses for motor insurance companies. Underwriting losses from motor vehicle coverage have already increased significantly. 💰 Rising Spare Parts Prices: Spare parts prices, especially for certain models like Mazda, have been on the rise. A lack of compatibility and availability has contributed to this trend. 🔄 Second-Hand Parts Market: The unregulated second-hand spare parts market allows dealers to speculate and price parts based on demand, further driving up costs. In this challenging landscape, car owners must carefully consider their insurance options. As an informed choice can make a significant difference, platforms like Bismart Insurance are invaluable. Bismart empowers you to compare policies, prices, benefits, and exclusions, ensuring you make the right choice for your needs. Stay informed and insured! #insuranceindustry #carinsurance #kenya

Zala Insurtech News: In a recent deep dive report, Reuters sheds light on the shortcomings of Tesla's car insurance, stating that it is not meeting its intended purpose.  The post Tesla Car Insurance Falls Short, Reveals Reuters Deep Dive Investigation appeared first on Insurtech Insights. Read on below >> #insurance #innovation #insurtech