Insurance World Becoming Creative Through Innovation

insurance, premium, auto insurance, home insurance, pay as you go insuranceInsurance world as a whole is pretty dull and what was good twenty years ago is still good today. Since insurance is primarily based on calculating probability there hasn’t been much of a need for change. People will always need insurance no matter what, so there really hasn’t been a huge urge to make massive changes. We all know that to compare auto insurance quotes is a competitive business. That competitiveness is heavily challenged by the advancing technology we live with today. Independent websites allow consumers to compare different insurance options in hopes of helping you find cheaper insurance. A few minutes on a site and you’ll get some numbers on what you could possibly paying elsewhere. This is possibly one of the reasons why people change insurance companies frequently. Why pay more than you have to.

So, in order to stay competitive, insurance companies over the last few years have started to get more creative through the use of technology by offering “NEW” innovative ways to give consumers more options. Here are some fresh innovative ideas coming soon to a insurance company near you:

1. Social Benchmarking

Insurance companies are jumping on with social media and making the best of it. Focus has been to get more interaction between consumers and insurance companies. Insurance companies are reaching out to insurance consumers (mostly external) to gather consumer data and feed it into their online insurance platforms.

This allows consumers to analyze data gathered and compare the different insurance options offered by the insurer. The systems may be slightly skewed to show the insurer as the one offering the most attractive rates on products such as home and auto insurance.

Thankfully there are independent resources.

Independents such as InsurEye, a Canadian based independent who collects, validates, and precisely analyzes insurance experiences of real people. InsurEye is a great example of social benchmarking because all the data is generated from the consumer side and across various insurance providers. Consumers are willing to share more information on their spending, driving habits and types of coverage that they use, while accessing collective experience of other consumers, therefore identifying if they pay too much and who can offer them a better price on the type of insurance coverage that they have.

Social benchmarking of insurance premiums offers independent, consumer-generated data across all insurance providers. As consumers share information about their insurance spending, they can access the collective experience of other consumers, identifying if they pay too much and who offers the best prices for peers with a similar insurance profile.

2. Direct Online Quoting

Online banking these days is the norm. It gives you the sense of privacy, independence and more importantly the control to be able to do your banking at your convenience. Direct online quoting is offered by almost all insurance companies across the board. Some even allow you to pay for your quote on the spot or workout a monthly payment schedule. Therefore eliminating the need for an agent or broker.

Castle Cover Home and Contents Insurance company offers an on the spot home insurance quote. In less than five minutes, you can get an on the spot quote, pay for your quote and have home insurance coverage.

3. Pay As You Drive

This has been brewing for a little while now, and pay as you drive insurance is anything but “FRESH” news. Pay as you drive insurance has been tossed around, tested and continues to be tested as the next big thing in the world of insurance.

This type of insurance calculates premiums according to an individual’s driving profile, which makes it so unique. Pay as you drive insurance will reward secure drivers, while tracking and increasing premiums on the more dangerous drivers who speed, break frequently, drive in poor weather conditions and the drivers who drive on the most congested roads.

All of the tracking is done by a “black box” device installed in the car. This device tracks the driving habits through the various journeys that the driver takes and transfers the data to the insurance company, who’ll regulate your monthly premium every month.

Usage based insurance (UBI) is currently only being tested by Aviva Insurance in Canada and Progressive Insurance in the United States. Two reasons for holding back a full launch of pay as you go insurance  is the cost of installation of the black box on cars and privacy concerns for transmitting consumer sensitive data via a wireless way to insurance companies.

Click on this link tor read more on Usage Based Insurance

4. Online Policy Management

Getting online insurance quotes is one thing. Managing your insurance online is a whole different concept. We’re offered FREE personal banking tools by different banking institutions. Long gone are the days of going into branches to pay our bills. Today we do it conveniently in our pajamas, in bed, and from the comfort of our home.

Insurance industry has started to play catch up. Many different insurance providers are offering their clients ways to mange their personal insurance profiles online. This eliminates the need to spend hours on the phone talking to an insurance agent, and instead it becomes a total DIY process.

Readers, what are your thoughts on the insurance providers getting innovative?



  1. Again you make me jealous that I live in BC where the government has a monopoly on auto insurance. They woudn’t think of adding any great features like this. They just charge whatever they want and just keep increasing the rates. The most annoying part is that they make record profits and still increase rates. When that happens in other provinces, they refund some money to consumers. Damn you evil BC government!
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  2. You’re too right about the trends and the need to get creative with offers to consumers. This is definitely an industry that is slow to change but one that is in the process of engaging in the online environment and all the technical challenges that this presents.

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