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November 03, 2021

Tech giants investigate the insurance market

Taking out your car insurance via Google or Amazon will probably be the order of the day in the future. The World Insurance Report 2018 survey found that three in ten people worldwide would already be willing to purchase their insurance through one of these tech giants. It was mainly young people who would like to take out insurance with these companies.

Strengths of these tech companies

What these companies are so good at is offering a complete customer experience. Something that can be very important in the insurance market. For example, consider insuring a car. For example, the good customer experience provided by these companies makes it easier for insured parties to submit a claim. The possibilities for these tech giants are endless, and these companies are also very financially strong.

Younger people will follow these technological changes

The fact that young people keep up with technological changes faster than others means that this group is more likely to take out insurance with one of these tech giants. These companies will mainly be in contact with the customer online and that suits young people. The elderly are less likely to conform to this, for example, because they would like to contact the relevant insurer by telephone.

Tech Markets are already being entered

In the US, Google has even been licensed to provide car insurance in 26 states. So, it looks like it will only be a matter of time before the first insurance policies will be offered in the Netherlands. Google will probably start working from their current office in Amsterdam. One way they could get off to a good start here in the Netherlands is by taking over a comparison site. They have also done this before in the US. However, tech giants such as Google must take into account the extensive conditions that are set to enter the insurance market. For example, a license must be issued from the Dutch Central Bank. As an employer, you are liable for the damage that your employee suffers and will suffer as a result of this accident at work (Dutch: bedrijfsongeval).

In addition to the employee's damage, in many countries the injury victim is also often entitled to the legal assistance of a free personal injury lawyer. This is the case, for example, in the Netherlands. For example, if an employee is involved in an industrial accident in Utrecht, he or she can contact a personal injury lawyer in Utrecht (in Dutch: letselschade advocaat Utrecht) free of charge.

Picture of the tech future of insurance providers

It could therefore just be that Google or Amazon will also be among the insurance providers to be compared in the future. Google and Amazon are companies that are characterized by implementing technological changes. For the time being, however, the insurance market is not very keen on technological innovations. People simply want to be able to call the insurer, state the number of kilometers to be driven per year and pay a premium that is based on the collective. This will probably change in the future. Premiums will be based more on the person concerned and driving behaviour. Insurance is already being offered with a premium based on driving behaviour, for example. This will only continue in the future as the technology is there for it. However, the question is how the consumer will react to this. For example, do we want the premium to be based on our driving behaviour? The future will tell.

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