Motor insurers need to exchange data for for incentives and rewards

It seems that everyone is after our data these days and consumers are becoming increasingly savvy about sharing it. It’s not just privacy concerns that are impacting their attitudes, but also the fact that they realise there is a value attached to it.

Modern technology and improved communications mean that insurers will have a great deal of granular data on each customer, which could be used to reward drivers for behaviour the insurer deems as worthy, be that to do with driving style or miles driven. Customers want and expect incentives or rewards based on their behaviour in return for that data and for meeting key milestones.

Some firms have been able to respond to these calls, but many have not, possibly due to concerns about the cost and time involved in developing new technology driven, customer-centric solutions. This is concerning since 75% of motor insurers believe that customer satisfaction is a critical priority, more important even, than driving profit.

The good news is that the technology already exists to enable motor insurers to offer usage-based insurance. Insurance companies don’t need to go down the expensive and time-consuming road of accumulating in-house expertise and developing their own systems but can get a leg up from insurtechs such as By Bits who offer plug and play technology to easily transform motor insurers offerings.

By Bits believes that it’s time for motor insurers to offer more customer centric products that meet customer demands for greater fairness and transparency and are innovating in a space which hasn’t changed in decades.?Those insurers that are able to adopt the right technology and offer customers the policies and experience they want, will be well placed to survive and even thrive in the customer centric motor insurance market that is starting to flourish right now.

Read part 4 of this series on better communications

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

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