Cloud insurance software solution for the insurance business, Majesco, in its report “Bridging the Customer Expectation Gap for Auto Insurance,” has given an intricate view of the rapidly changing forces impacting the property and casualty industry’s largest line of business, commercial and personal.

The shifting ownership, usage, risk and claims costs for vehicles along with increased vehicle technologies and innovation, are driving increased costs of vehicle ownership and insurance premiums, says the report.

Majesco states that the combination of heavy losses, shifting customer behaviours and expectations, and new automotive technology is driving significant change that insurers must embrace quickly to compete.

Denise Garth, Chief Strategy Officer at Majesco, commented: “The industry status quo for auto insurance is rapidly eroding.  Auto insurers must reimagine the scope of what they will offer to customers – an experience with a personalized risk product, value-added services that are part of a broader mobility ecosystem, access through broader channels, and a compelling customer experience. This is where exciting new business opportunities await.”

According to the report, insurers must learn to redefine and innovate auto insurance products. The changes to vehicles and their use must push insurers to rethink traditional auto insurance products and leverage new data, value-added services, partners, and technologies to meet shifting customer needs and behaviours.

Another key driver in auto insurance change is data, which has also caused some disruption. Driven by IoT and telematics data coming from autonomous vehicles, rideshare apps and more, the shift to “real-time” data and continuous underwriting has caused new leaders to emerge.