Marty Ellingsworth

The pandemic has made prices of used vehicles and parts more volatile, and generally much higher, but insurers have yet to adapt their models. 

"The Robinsons." who bundle home and car insurance, represent the crown jewel in customer lifetime value. But the segment is very much at risk.

Most insurers are still spreadsheet-bound and, as a result, hard-pressed to make any progress outside of their spreadsheet environment.

Used cars are suddenly worth more instead of less. So, for claims in progress, there's a significantly higher payout for fixing and replacing cars.

Customers may prefer interacting with a smart-bot--no judging, no fatigue, no bad days. There is empathy in any process that respects our time.

Firms struggle because they view AI initiatives as small projects rather than a product requiring continuing maintenance and investment.

And growth is just getting started, possibly presenting a once-in-a-career opportunity.

Drivers will increasingly demand big discounts for low mileage.

Paying by the mile no longer requires special hardware. Just take a picture of your odometer from time to time.

Intermediaries will emerge that will shop automatically for insurance for customers on an hourly, daily or weekly basis. |