The California Assembly Judiciary Committee gave thumbs up to a bill that would enable insureds to renew their policies electronically.
The bill, which has the backing of the Association of California Insurance Companies, is Senate Bill 251. Authored by Senator Ron Calderon, D-Montebello, SB 251 would give insurance policyholders the option to access their policy renewal documents electronically.
The wide spread adoption of smartphones, tablets and personal computers has changed how consumers conduct their personal business. A recent J.D. Power and Associates Auto Insurance Study concluded that Gen Y consumers, people born from 1974 to 1994, prefer interacting online. That same study further concluded that over 50 percent of auto insurance quotes are obtained online and online quotes initiate a majority of new policy sales. A similar 2011 study by Fiserv Consumer Trends Survey showed online bill payments now account for 50 percent of all bill payments made.
California is home to 24 million insured cars, 5.8 million homeowners insurance policies, 650,000 condominium policies, and 1.2 million renters insurance policies, ACIC noted in its arguments in favor of the bill.
The bill moved off the Senate Floor unopposed. SB 251 will now be considered by the Assembly Appropriations Committee.
ACIC represents 363 property/casualty insurance companies doing business in California.