Carandus.com has reviewed an article from TU-Automotive who conducted a study with the participation of 350 international motor insurance executives on the following issues:
- Most crucial element to the mass adoption of insurance telematics;
- Primary reason for having a live UBI (usage-based insurance or pay as you drive) product today;
- Biggest disruptor to traditional motor insurance in the next 5 years.
Concerning insurance telematics, the study revealed that 50% of the executives believe that the mass adoption of insurance telematics will bring a portfolio of value added services that customers want. 21% agree that it will bring a business model that isn’t dependent on premium discounts, against 17% that consider that it will make automakers and insurer companies partner up to share vehicle data. Only 13% believes that the mass adoption of insurance telematics will standardize UBI data from various sources.
For 29% of the executives, the main reason for having a live UBI product today is to increase user interaction and stickiness, followed by 25% of executives who agree that the main reason is to increase customer retention and renewals. 19% believe that the primary reason is to capture the early adopting market. 11% of the executives consider the main reason is to drive revenue and only 8% have a live UBI to keep up with their competitors.
The third issue concerning what will be the biggest disruptor to traditional motor insurance in the next 5 years covers 27% of executives agreeing that it will be the Internet of things (IOT – data from home, car and health) and the telematics (UBI). Followed by 25% that believe it will be the connected car mobility (e-hailing, car sharing fleets, etc.) and 21% believing it will be the autonomous car technology (ADAS).
TU-Auto also sought the opinion of 3 experts from MAPFRE, The Floow and Bain&Company. You can access the full document here.
Comments are closed.