Auto Insurance Companies Eyeing up Google and Apple

The car insurance industry could soon be revolutionized because of Apple and Google's smartphone apps. Both companies are developing Android and iPhone apps that cut the upfront costs. These applications will track driver habits including braking and mileage in exchange for savings on insurance. Because of this, smartphones could become the central nervous system in usage-based auto insurance.

Developing these apps could disrupt the casualty and property industry, which has a history for gathering their own loss data and keeping the information in-house. In addition, Apple and Google will have other advantages, such as already being ubiquitous in the lives of most consumers and accepted as a big data collector.

Sandeep Puri, the co-founder of D-rive, said that Apple and Google are in a great position to gather large quantities of data, which could be more insightful than traditional methods. Puri continued in saying that car insurance companies could be disenfranchised from activities that they used to control. Nevertheless, Apple and Google did not respond to requests for comment. According to a Towers Watson survey of more than 1,000 US consumers, only eight percent of consumers have or have had usage-based auto insurance policies. However, during a 17-month period, the percentage of drivers who were uneasy about insurers monitoring their driving locations fell from 42 percent to 35 percent. 

Google has the opportunity to revolutionize the insurance industry's ability to offer faster and less expensive usage-based car insurance. 

The Los Angeles Times reported that several lead auto manufacturers, including Subaru, Jeep, Dodge, Chrysler, Nissan, Honda and Audi, have said that they will support the CarPlay and Android Auto apps. In addition to these apps, Google and Apple have been competing against each other with a driverless-car program. Even more than the developing apps, this could change the way the auto insurance industry works.


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Sources:
Chicago Tribune
Express News