Do you remember the shift from price-driven “dollar-per-minute” thinking that dominated telecommunications and tv ads in 1993 to the value-driven packages of today’s “unlimited” data-services framework?
For the insurance industry, the internet revolution brought similar benefits, such as faster shopping and quoting services, but it hasn’t changed the fundamental way many insurance customers shop for auto insurance which is mainly based on price. Consumers may not be aware or understand how their risk profile may impact their auto insurance premium. Now, we are at an exciting time where the Internet of Things and telematics specifically, are bringing more transparency and more customized offers into the auto insurance shopping criteria. This provides an opening for consumers to better assess value in addition to price.
Telematics is one reason carriers can create a more transparent and more personalized customer experience, whether it’s in connection with a marketing, underwriting or claims management use case. Telematics shifts the conversation to both price and value, allowing the insurer to remind the consumer that by sharing their driving and vehicle data, they have the opportunity for more accurate pricing and better service.
According to a July 2022 US Consumer Survey, 67% of respondents were aware of their driving and vehicle data can be used for insurance discounts, but only 22% of consumers have used their data for insurance discounts. Among those who had not used their data for insurance discounts, 71% said they were interested in doing so.
Based on these survey results, it is clear that consumers see the value and benefits of auto insurance policies that include telematics but may struggle to actually get engaged or started in such programs.
To be responsive at scale and give their customers the opportunity to leverage their driving and vehicle data to qualify