Instead of being in the same market, populated by companies with deeper pockets and existing market share, competing for the same consumer mind-share, you can segment the market into innovative categories with more relevant and accessible products for the consumers.
Most insurers that did not have a healthy margin or reserve allocation system would find it exceedingly difficult to continue in the business without having to increase the price and losing market share almost every year.
Solving the underwriting losses problem will require several systemic changes from the auto insurance industry. However, taking up technological innovation is still in the hands of the auto insurance company. So, essentially, profitable underwriting is still in your control.
Each driver has to deal with the systemic risks such as traffic & congestion, accident-prone zones, and weather conditions. Kruzr actively alerts the driver about forthcoming risks.
Driver training is essential to reinforce safety standards. But using a textbook program to deliver this information in the absence of any predictive checks & balances would not yield the necessary changes.
Government-initiated measure are increasingly ineffective. Implementation is long, hard, and expensive and it doesn’t seem to have a tangible impact. We are in favor of expanding these top-down approaches with bottom up activities addressing behavioral change at the individual level.
Customer-centricity means prioritizing the consumer in all business decisions.