The implications of new mobility models on insurance.
New mobility models like ride sharing and ride hailing will impact personal car ownership. Ride hailing services like Uber and Taxify processed over 2 million rides between them in South Africa last year. The average SA consumer is estimated to save R14 000 annually by utilising Mobility services like Uber.
Insurance plays a critical role in enabling both consumers and corporations to engage with the Mobility ecosystem. It is vital that insurers recognise the needs within the market and transform to cater for the shift from Asset to Access based Mobility. Despite the expected decline in personal ownership, the need for personal mobility remains and will be satisfied by other service providers. It is incumbent on financial services companies to identify these segments and design appropriate products and services. Fewer insurable cars and lower margins are expected from increased competition for insurers competing for a declining insurable pool. Also the declining use of current vehicles will negatively impact newer insurance models.
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