1 in 3 consumers interested in mobile usage based insurance
A quick review of the 2014 usage based insurance study by LexisNexis calls to mind three key words: YOUTH, DISCOUNTS and SMARTPHONES. Want to know more? See notable study conclusions and the full infographic below.
Notable finding #1: The under-25 crowd is interested.
In fact, interest in usage based insurance from 21 to 25 year olds jumped from 31 percent to 45 percent between 2013 and 2014, whereas overall awareness only increased by 1 percent, to 38 percent in 2014.
The survey reported that respondents were just as comfortable sharing UBI data as social media, smartphone, and online search data. Autoblog.com reported similar results, and drew connections between receptiveness to UBI and comfort with mobile technology and social media. Young drivers voluntarily post their information using social media already, making privacy less of a concern – especially in the face of the potential savings.
Notable finding #2: Degree of discount drives the degree of interest.
LexisNexis reported that more people are interested in usage based insurance at lower discount rates. The difference between a 5 percent and 15 percent discount doubled interest in usage based insurance among respondents. While 30 percent expressed interest at a 5 percent discount level, a whopping 63 percent showed interest when the potential discount was increased to 15 percent! The addition of value services such as roadside assistance further increased demand.
Notable finding #3: Mobile interest is accelerating.
The study revealed that a great number of people who are responsive to usage based insurance would also be comfortable using apps on their smartphones to monitor driving. The number has increased by 10 percent since 2013, which means that more than one in three consumers now shows interest in mobile UBI.
Smartphone UBI + millennial market + discounts = winning opportunity
Looking for a winning opportunity? Offer millennial clients the chance to receive discounts by enrolling in smartphone UBI. Young drivers are increasingly interested in usage based insurance, and sharing information is less daunting on mobile devices, which they already use for sharing via social media. Engage the smartphone users where they are: on their smartphones.
Well-informed consumers will soon be choosing auto insurers that allow them to save money via smartphone telematics. Are you ready to meet their needs? If not, here’s how you can catch up quickly without having to eat an elephant!