Motorists want insurance policies that fit their situation
With so many customers being used to having greater control over how they run their lives, using technology to match services to their requirements, it’s no surprise that “one size fits all” insurance policies are seen as unfair.
Driver’s circumstances vary hugely and personalised insurance policies are seen as the answer to addressing those differences. Where once this just wasn’t possible, today’s technology means that greater personalisation is within the grasp of insurers.
It’s not just different individuals who are dealing with different circumstances - it also needs to be acknowledged that we are in a time of flux. Things have always changed through individual lifetimes, but currently those changes are happening more rapidly, due largely to the impact of the pandemic. As people lose jobs and find others, they want products that help them deal, cost effectively, with the adaptations they are having to make. Flexible pricing models will enable customers to control their spending, tailoring their expenditure on car insurance to their personal situation.
Environmental concerns, the proliferation of electric cars, AI and self-driving cars are innovations that will have a profound effect on how people drive, the miles they do and the nature of how insurance will work. Insurers will need to have the software solutions to easily integrate these changes into new products and policies. As insurers’ technology stacks shift to accommodate this huge data and digital transformation, so they need to harness this new generation of data rich information. They will want the confidence to price and manage policies flexibly and in a more bespoke way.
Safer, lower mileage drivers want to be financially rewarded. Economically unstable customers want to be able to control their costs and those going through upheaval want insurance policies that cater for change. Insurers need to plan for these evolving demands now.
This blog is part of a series on what customers want from their motor insurance. You can read the previous one on Innovation and Mobile Apps
You can also 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.