Future trends shaping the car insurance industry
The landscape of mobility is poised for a dramatic shift by 2040. The world as we know it, cluttered with diesel and petrol-engine cars, will be replaced by autonomous, electric vehicles (EVs) that promise cleaner air, reduced traffic, and fewer accidents. But before we reach that utopian dream, there are significant changes underway in the car insurance industry. King Price Insurance’s commercial division CEO, Rochelle De Lucia, gives us some insight.
The rising impact of tech and telematics
It’s no secret that technology is infiltrating every facet of our lives, and the car industry is no exception. With technology and connectivity becoming increasingly embedded in vehicles, there’s a parallel rise in behaviour and usage-driven insurance. This type of insurance adjusts premiums based on data collected about how, where, and when you drive.
De Lucia states: ‘We’re increasingly using artificial intelligence (AI) to calculate personalised premiums based on your individual risk profile and to simplify the claims journey.’ With AI, minor claims can now be adjudicated and approved nearly instantly, reducing the complexity typically associated with claims processes.
Evolving ownership and mobility patterns
The way we view and utilise cars is changing. Older generations often see owning a car as a rite of passage, while younger ones view it merely as a means to get from point A to point B. This shift in perspective could lead to decreased personal car ownership and, by extension, reduced personal car insurance. However, De Lucia reminds us that ‘there will always be cars. They’ll just be insured differently.’
The electric vehicle (EV) revolution
Though the uptake of EVs in South Africa is currently limited, with EVs making up only 2.5% of new vehicle purchases last year, it’s a trend that’s expected to catch on rapidly. ‘There’s no doubt that EVs are going to become a way of life in South Africa sooner than we think,’ asserts De Lucia.
While insuring an EV might be slightly more costly due to higher repair costs and vehicle prices, the usual factors such as your age, claims history, and residence location still play a major role in determining your personal risk. Interestingly, theft risk for EVs might decrease in the early stages of adoption since they could be difficult to steal and dispose of.
De Lucia also highlights an important consideration for EV owners: The installation of home charging equipment. ‘This type of equipment will have to be installed professionally and connected to the building’s power grid, and will have to be noted on your policy schedule to ensure that issues like power surges are covered,’ she advises.
Indeed, the car insurance industry is evolving rapidly, driven by advancements in technology, changing ownership patterns, and the rise of EVs. The future of mobility might seem uncertain, but it’s undoubtedly exciting.
While mainstream EVs might still be in the pipeline, in the meantime click here to explore car insurance options for your existing car. You can click here or WhatsApp us on 0860 50 50 50 to get a commitment-free quote.
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Future trends shaping the car insurance industry
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Explore future trends in the car insurance industry, as explained by Rochelle De Lucia, CEO of King Price Insurance’s commercial division.
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The king
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King Price Insurance
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