Mobility protection in focus: The World Property and Casualty Insurance Report shows the future of car insurance.

Mobility protection in focus: The World Property and Casualty Insurance Report shows the future of car insurance.

According to a report by www.capgemini.com, the World Property and Casualty Insurance Report believes that insurers will need to expand their offerings from traditional auto insurance to include mobility coverage as more urban customers adopt new mobility solutions. These include autonomous, connected, electric and shared vehicles (ACES). Customers and regulators are placing increasing emphasis on sustainability and are showing interest in connected and alternatively powered vehicles as well as autonomous driving functions. Although customers are not yet ready to replace their private vehicles in the short term, the desire for additional mobility options is growing. According to the study, twice as many urban residents are expected to use micromobility, shared vehicles and multimodal transport solutions by 2025. In Germany, this usage is expected to more than double. The study also predicts that insurance premiums for ACES vehicles will increase eightfold by 2030. This poses challenges for insurers, as many of them doubt whether their IT systems are suitable to cover these journeys. They also see changing customer expectations as a challenge. In order to successfully enter the new era of mobility, insurance companies must leverage their risk management skills and develop insurance models for their customers' entire mobility. New business models with a focus on individualization are also required to enable mobility protection instead of insuring individual vehicles. Despite increasing interest in integrated insurance models and advanced ecosystem partnerships, few insurance companies are able to meet these expectations. It is recommended that insurers move from product developer to solution co-designer to meet the demands of future mobility. A well-defined, mobility-focused technology roadmap is considered critical to success. However, the report shows that only a third of insurance companies worldwide have such a strategy. Collaborating with specialized partners in the mobility ecosystem can help insurers offer customer-friendly mobility solutions. It emphasizes that mobility is at the heart of the future world and that insurers must innovate their business models to cope with the profound changes. The study is based on data from a survey of 5,990 insurance customers worldwide and interviews with 297 insurance managers. It is noted that the mobility revolution brings with it disintermediation risks for insurance companies, which can impact the entire value chain in different ways. Source: www.capgemini.com