Motorists want fairer insurance with usage clearly linked to cost

Our research has identified five key areas that motor insurance customers think need to change – number one on the list is fairer and more transparent pricing. 

Almost two thirds of drivers think that they will drive less over the next five years compared with the last five years. Many are hoping to take advantage of continued working from home, either reducing or eliminating their need to commute and as in many other sectors, those who consume less, expect to pay less.

A car, after the home, is one of the biggest costs in most people’s lives. So, economics is a big driver as people look for ways to control their outgoings and it’s easy to see why customers are therefore seeking changes to their motor insurance costs. People are also more conscious about environmental concerns and choosing to drive less as a result. 

The net effect is reduced mileage… reduced risk… reduced claims. This should be reflected in lower customer premiums but regrettably it hasn’t resulted in any significant cost saving on motor insurance. Which we think is unfair.  Our research shows that 87% of motor insurers have seen drivers trying to cancel policies due to the lockdown and almost all motor insurers reported that customers have been demanding fairer, more transparent pricing, based on usage or mileage.

Why won’t or can’t motor insurers make the switch? Possibly, it might be their perception that the tech is too expensive. It isn’t!

Affordable, easily integrated, rapidly implemented insurtech is here.

Read part 2 of this series “Technology, Innovation and Mobile Apps” for more.

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

For more information contact us or click on the blue button for a demo of the By Bits Rating and or Policy engines.