Better and more frequent communication

Usually, motor insurance is an annual purchase that’s forgotten about once it’s organised and the trend has been to make the interaction as minimal and as painless as possible. While this greater convenience has been a positive, it also means that customers aren’t fully aware of the factors that are impacting on their policies and there’s less chance to influence the cost.

Coupled with the increasing perception of an unfair one-way street in motor insurance pricing, which sees insurers pricing in every possibility but not pricing out huge changes in circumstances such as lock down, it’s unsurprising that customer dissatisfaction with insurers is increasing.

The key to fairer, more flexible policies will be a more consistent two-way communication between customers and motor insurers so that changes in driving habits and circumstances can be easily monitored and appropriately charged.? Customers will be better able to manage their motor insurance costs and adjust them to suit their budget and circumstances.?

This communication needs to be timely, appropriate and convenient. No one wants to be overwhelmed with marketing promotions that get in the way of finding the information they need.? Even better if the interactions can be all in one place so that customers have the information they need at their fingertips.

In addition, drivers want jargon free policy documents that are easy to understand. They don’t want to spend time wading through complex documents that mean little to them. Better understanding in itself will be attractive to customers but will also mean that policy differences will be easier to spot, giving some insurers an advantage.

Motor insurance is changing. The new era will be defined by flexible policies that meet the changing needs of the consumer. To enable that, better and more consistent exchange of information will be required. The days of communicating with drivers only at renewal time are coming to an end.

Read part 3 of this series on flexible, personalised policies

You can download and read our report – ‘A customer first future for motor insurance’?

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