2020 changed everything. Our homes became offices. Our favorite restaurant meals and groceries were
As early signs of returning to normalcy at long last come into view thanks to vaccines, there’s another unseen, but just as worrisome epidemic on the rise this year: distracted driving.
This new epidemic of distraction has made every mile driven more dangerous for drivers – and more costly and unpredictable for auto insurers. Tragically, it also led to a sharp increase in fatalities: an
Every minute spent on the road is now riskier
From Covid anxiety, to civil unrest, to
Even as vaccines offer hope of re-opening the country this summer, that addiction is now playing out in more insidious ways behind the wheel. In fact, despite fewer vehicles on the road,
In 2020, as cities and regions bounced betweens lockdowns and re-opening, driving patterns behind the wheel shifted. As cars cleared from the streets during lockdowns, drivers developed a slew of new bad habits, from increased speeding, to increased hard braking and far more phone use – most likely as a reaction to less traffic. However, as traffic flows return amidst re-openings, those new driving behaviors did not subside, contributing to a dramatic increase in risk for drivers each minute and mile they’re now behind the wheel.
Auto insurers hold the cure to distracting driving
In medicine, doctors say prevention is the best cure. In many ways, auto insurers now hold the prescription to making drivers and roads safer and ending the distracted driving pandemic – if they’re willing to adapt.
By embracing insurtech, insurance providers today can play a more proactive role in accident prevention. Instead of reacting to incidents, auto insurers can promote and reward good driving habits, which can be incentivized by discounts and rewards. Though some are
Broad data capabilities and AI-powered smartphone telematics are being used to provide drivers with behavior feedback, in real-time, via mobile notifications. These can be tied to discounts and rewards, or even
While keeping drivers safe, and even saving lives, is the most urgent need for insurtech – doing the right thing is also good for insurers’ business. By embracing new capabilities, auto insurers can build a more fair, sustainable insurance model that benefits both themselves and customers alike.
Insurance has been
However, today, poor execution of these programs is doing more harm than good. The future demands data accuracy and proven go-to-market insurance strategies and models – both to ensure the success of these programs, and to usher in a new wave of safer driving services at a time when distracted driving is more prevalent than ever.
The answers to ending the growing distracted driving epidemic and building more accurate, fair insurance models that attract and retain customers are one and the same. Insurers have a unique opportunity to reimagine their offerings to play a more preventative role in driver safety, while also improving their underwriting and risk assessment capabilities. It’s imperative that they take that opportunity to transform what insurance can be for a post-pandemic future.