Insurance Services of Washington Blog
After the numerous lockdown of countries worldwide due to the coronavirus, there has been a plummet of vehicle activity. The dramatic drop in car trips put pressure on auto insurance globally, but how significant is the impact? Let's find out.
The Pandemic Urges the Need for Usage-Based Insurance (UBI)
Because of the pandemic changes, the public is bringing a problem back into the spotlight: how insurance companies can guarantee fair rates to their customers.
Because of the lockdown, people don't drive the same kilometers anymore. With lesser cars on the road, drivers can become reckless. How can that risk level reflect the premiums of customers? The usage-based insurance is where the following determines the customer's insurance package:
The Impact of Covid-19 on Insurance Companies
In the future, insurance companies should decide on choices about estimating patterns of their customers. Once the coronavirus passes, people will make decisions, including limiting their time for traveling and leisure. What will happen will be more uncertain as time continues. Therefore, insurers should begin developing hybrid insurances for the post-pandemic era.
How Can Insurance Companies Manage Post-Pandemic Risks?
These three advancements will guarantee the accuracy of measurements of the mobile-based UBI (PHYD and PAYD):
With UBI programs that are driven by data, insurance companies will have better risk management. It will also encourage customers to drive safer for a lower premium rate. Moreover, it is also crucial for insurance companies to have the necessary advanced technology in mobile telematics with high data security, battery efficiency, and accuracy for guaranteed success.
At Insurance Services of Washington Inc., we do our best in making sure that our clients are well-protected with affordable and comprehensive policies. We make sure to go the extra mile to help you with your needs. To learn more about how we can help you, please contact our agency at (425) 868-1123 or Click Here to request a free quote.