Autonomous and electric vehicles make it mandatory to renew the scope of vehicle insurance with a volume of 200 billion dollars. After the integration of IOT, artificial intelligence and navigation technologies with the automotive sector, the production of autonomous vehicles is expected to dominate the market. All sectors connected to the automotive industry are affected by this transformation. It remains unclear how the insurance industry will react to this development.
More than 10 Million Electric Vehicles on the Road
The automotive industry focused on the concept of sustainable mobility. In addition to electric and hybrid vehicles, self-driving vehicles, which were the subject of films and novels of yesterday, have already begun to enter product catalogs.
It is known that more than 10 million electric vehicles are in circulation around the world and the sales figure in 2020 has reached 120 billion dollars. With the acceleration of autonomous vehicle production by automotive companies, the annual market share of the electric vehicle market is expected to reach 45%. The driverless vehicle market, on the other hand, is growing at an annual average rate of 16%. If production goes as planned, it is predicted that the hybrid car market will reach $2030 billion and the autonomous car market $800 billion by 60.
While driverless vehicles dominate the automotive industry, the insurance industry includes its stakeholders; It obliges them to focus on modernizing their legal, financial and software services. It is estimated that it will transform the vehicle insurance business, which currently has a volume of 700 billion dollars.
Industry 4.0 Will Change Vehicle Insurance
Autonomous and electric vehicles will increase the smart driving experience. This means a change in risk criteria in terms of insurance. Monopoli Insurance Founding Partner and CEO Erol Esentürk said in his statement, “Electric vehicles, whose numbers are increasing, have started to be preferred more and more with their environmentally friendly features, comfort and developing ranges. Along with electric vehicles, driverless models have also started to become widespread. As with all insurances, motor own damage insurance is priced according to the calculation of risks and damage frequency and offered to vehicle owners. In the new period, it will be inevitable for insurance companies to determine new methods for premium calculation. I expect the new era to reduce premiums and extend vehicle life. The most important point here is whether the insurance companies will hold the vehicle owner or the company that produces the vehicle responsible for possible accidents caused by autonomous vehicles. Perhaps different perspectives will emerge compared to today.” he said.
Insurance Industry Should Make IT Investments
Emphasizing that the insurance industry should determine their digitalization strategies as soon as possible in order to adapt to this process, Erol Esentürk said, “Now the era of insurance 4.0 has entered. Companies that have a close relationship with car services today will need to invest in the IT sector as software becomes more prominent. It is still not clear who will be responsible for possible damage, whether individual or commercial. With the clarification of these issues in the world, new definitions and approaches will need to be introduced in policies. At the moment, instead of mostly driver-related accidents, problems such as software problems or instant internet interruptions may cause accidents in the future. The accident frequency will decrease considerably, but it will be more difficult to identify the responsible person in possible accidents. We may see processes similar to the investigation processes we currently see in plane crashes. This can lengthen post-damage periods or make it more complicated.” he stated.
“The Platform for Adding Value with Monopoli” Will Have a Mission to Integrate Risk Management Consulting into the New World Order
Monopoli Insurance, which has recently implemented the 'Customer Satisfaction Center' in order to establish proactive communication with the customer in order to improve the after-sales process management, has determined that it can implement this approach with all its stakeholders, following the efficient feedback received. "We said why not?" CEO Erol Esentürk, one of the founding partners, said, “We know our industry well, we constantly analyze it. Turkey's 26 largest insurance companies are our companions.
We know the agencies well, we know the problems of our industry and the solutions to some of their problems. Just as we know our customer's needs. Then, we said to our stakeholders, just like our customers, with a proactive approach, let's extend our hand. With a new power that will arise from the unity, we have rolled up our sleeves so that we can find ways to adapt to the new world order together and establish an experience sharing and communication platform where we can welcome everyone together, where we can all learn from each other, and which will make it our mission to integrate our industry into this order easily.
Those Who Add 'Value' to the Insurance Industry Will Build the Future!
CEO Erol Esentürk also made a statement regarding the 2021 vision of the Monopoli brand; that they will act with the mission of being a brand that "adds value" to everyone and everywhere they touch within their ecosystem, and that opens their experience and knowledge to the use and circulation of the sector by participating in the activities of the communication platform established to reflect the said mission; insurance
He added that everyone who “Adds Value” to the industry will be remembered as the pioneers who built the future of the industry. “Information, Big Data, Technology, Digital Multiplex Systems, Artificial Intelligence Integrated Platforms… These are the golden facts of this age. We believe that everyone should produce projects that create common value for the future of their sector, with a higher view. Because we believe that the sustainability of the world and our lives is hidden in the value we add to each other.” Esentürk said that the activities of the “Platform for Adding Value with Monopoli” were carried out with a hybrid method; stated that it will start in the last quarter of this year, half online, half face-to-face, and that their target for 2022 is to come together with its stakeholders by organizing meetings that can be met face-to-face throughout the year.