fbpx
Friday, 01 November 2019 21:43

Automotive Industry Faces Disruption Driven by Societal Changes

Written by

Index

 

  • A company is already working on a headrest that can “sense” a driver’s physical condition including fatigue, drowsiness, stress, etc., and adjust the car’s ADAS systems accordingly … cutting down on vehicle accidents.
  • A system will be developed to electronically handle all aspects of a collision repair from the moment the accident occurs. Sensors will determine the physical condition of the driver and occupants, the extent of damage, order the appropriate parts, send them to the closest OE certified body shop, and notify the insurance carrier – all in a matter of seconds -- not hours or days.
  • A person’s daily commute will change into an end-to-end mobility experience with an interconnected ecosystem of multiple players and providers including one or more modes of transportation.
  • Connected cars and their attendant systems will generate vast amounts of data. Terlep calls this data “the world’s new oil.” Those that learn how to capture, control, manipulate and leverage all this data will be the big winners in a disrupted world. Of course, this data must be stored and used responsibly.
  • OE’s will use connected-car data to reverse its business model for designing and developing cars. Rather than build a car that executives think customers want and hope it sells, they will be able to capture how consumers use existing products and enhance that experience by providing products they know the customer will appreciate.
  • Autonomous cars that sustain minor collision damage will be able to drive themselves to a pre-assigned repair facility. Meanwhile, an alternative car will be dispatched to provide service in the interim. Once the first car is repaired, it will be placed back into service, the insurance claim will be processed automatically within minutes … and life will go on. Some company, yet to be founded, will be controlling this whole operation.

 

Auto Insurance Re-Invented

 

Not unlike the collision repair industry, the auto insurance industry is loath to change. However, as is the nature of “disruption,” time, technology, and consumer preference will eventually force their hand.

 

  • New players will emerge in the auto insurance space and provide products and services never before seen. Imagine paying a flat fee per month for basic fire and theft insurance, and then pay only for the miles you actually drive by logging into an app on your smartphone.
Read 1298 times