New insurance products and services are constantly innovated to keep up with or get ahead of consumer demand. Let’s explore some of these recently developed insurance products and look at how they can benefit consumers.
New Insurance Products Benefit Policyholders
Insurers develop new products when consumers or regulators demand them or when they notice a gap in the marketplace. Sometimes new ideas follow the introduction of new technologies or consumer products. Insurers are particularly innovative now and often try to predict the next big insurance need to create a useful product.
Here are some of the new insurance products that have been recently developed or majorly updated recently:
Consumers like purchasing insurance when they buy another product, like adding coverage to a new mobile device or laptop at the store. Embedded insurance is easy for the customer since they don’t have to stop their original purchase or even leave the website to add coverage. Travel insurance is another classic example of the use of embedded insurance. When you purchase airline tickets or make other travel reservations, the website automatically offers you a travel insurance policy valid for your travel dates. Accepting the coverage is quick and easy, with payment added to the cost of the tickets. This low-effort transaction makes it more likely for the consumer to purchase the insurance compared with a customer who has to make a separate journey to another site and enter their credit card again.
If you sell personal auto policies, you probably are familiar with usage-based insurance. Some usage-based policies base their rates on how many miles a consumer drives added to a base fee that accounts for personal characteristics. Other policies use telematics to help decide if a policyholder is a safer driver — and therefore a better risk. These policies use a mobile app or device connected to the vehicle to measure things like fast acceleration, hard braking, sharp turns, and handheld mobile device usage while driving. The results return a score that helps insurers give drivers a discount for their safe habits.
IoT and smart home devices seem to be taking over. With connected devices ranging from outlets to refrigerators to water leak detection devices, a home can be wired to do many useful things. Insurance products are beginning to integrate with IoT devices to provide better protection for consumers. These risk mitigation measures can inform the homeowner when there is a problem, like when water leaks from a pipe or when a surge in power happens.
Review Your E&O Coverage With the American Agents Alliance
Now is a good time to check your E&O coverage. Make sure you have adequate coverage for your business — and since your business is always evolving, your coverage may need to update along with it.