| 1.1 Portfolio
36 Insurance Portfolio | |
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| 1.1.36 Insurance Portfolio | | The insurance market is about to be transformed in a massive disruptive way as people evolve from owning assets to renting assets. Existing applications imagine that vehicle, vessel and aircraft fixed assets have similar private insurance needs. This is based on a typical vehicle that is privatly owned and only driven by a small number of people. | | The vehicle insurance market is not yet ready to cope with electric automatic vehicles that are rented and driven by many people in a community. The evolution from annual insurance to day insurance will be dramatic. The evolution from drive anywhere at any time insurance to insurance for a specific journey at a specific time of day and day of week will be very different. |
| Electric Revolution. | | Electric town cars that are used to comute to and from work each day can be expected to have a low accident rate and low claims history. We need to make sure we are ready to provide special low cost insurance for such vehicles that have such a low usage and low claims. It is expected that a parallel evolution will see vehicles being rented rather than purchased. | | Electric cars will evolve to automated self-drive taxis where the vehicles are rented by the distance traveled. The insured party may be the taxi owner, rather than the people sitting in the self-drive vehicle. Self drive vehicles cannot have traffic cops to detect speeding, using a mobile phone, drunk driving, driving without a license, etc., etc.. Millions of jobs that depended on people driing their own vehicle will be changed as people enjoy the benefits of self-drive vehicles. | | Electric cars insurance must become a daily fee like the conjestion charge or motorway toll charge. Vehicle trackers can automate this daily fee to ensure that owners are charged only when their vehicle is used. Even hire cars and courtesy cars can have an automatic daily fee when the vehicles tracker shows that it is being used. |
| Product to Service. | | The decline of the retail market is mirrored by the rise of the service market - people are renting rather than buying. Products are becoming services, capital expendature is being replaced with regular subscriptions. The decline of the retail high street is mirrored by the rise of services like resturants, fast food outlets, gambling shops and shops that provide a service. | | As a fast way to build a new business, take any retail product and change it into a service with a regular fee. People will rapidly evolve from buying products to renting services - its cheaper in the short term. Insurance that was an annual capital expendature must become a monthly fee. |
| Marine Insurance. | | Marine insurance has been stable for too many years and in in need of a revolution. A large number of yachts are securely moored in a marina and never go to sea where they are at risk. Marine insurance for those people who never take their yacht out of the marina must be offered on monthly terms. | | Owners will flock to a monthly insurance fee for yachts that have a very low risk. Where an owner wishes to go to sea for a few hours, they can buy day insurance as and when required. Where a yacht is used for a weeks cruise, then insurance to correctly identify the risk can be purchased for that one weeks cruise. | | Annual insurance will decline and decline - less people are willing or have the ability to pay high capital costs. |
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