New Whitepaper: How to Survive & Thrive in a Stagnant Auto Insurance Market

Our latest whitepaper digs into a recent study by the National Association of Insurance Commissioners (NAIC). Its purpose? To find out how smartphone telematics is reshaping the auto insurance market. The topic is all the more important when you consider how stagnant the auto insurance market has become. It’s not growing. In fact, it’s not even keeping up with inflation.

How to stay alive when competition is fierce, and growth is a riddle? Based on NAIC research, we believe smartphone telematics offers an answer. Get ready for five previously-untapped strategies to help you not only survive a tough market, but win market share.

Strategy #1: Expand your market share.

Capturing new customers is a real challenge in a market that’s thoroughly divvied up among competitors. Here, smartphone telematics offers a new advantage. The difference doesn’t just boil down to better rates. Usage-based insurance programs certainly can offer that, but competing on price isn’t enough. For customers, value matters as much, if not more. Smartphone telematics gives insurers a new way to engage their customers, to differentiate themselves from their competition and to offer value-added services. Our white paper reveals what Progressive, Zapier and other innovation leaders can teach about capturing market share with tech innovations like smartphone telematics.

Strategy #2: Hone in on growing markets.

It’s all about risk assessment. Until recently, premiums were priced in the absence of actual data. Instead, insurers used proxy factors to evaluate how likely a customer might be to incur a claim. That method works on the whole, but it also allows many low-risk drivers to fall through the gaps. Insurers who use smartphone telematics can tap into those under-served markets and build up their premium base with highly-desirable drivers. Our new white paper outlines which demographics are under-served by the traditional insurance model, and shows how smartphone telematics can be harnessed to deliver them an offering that fits their unique needs.

Strategy #3: Differentiate your offerings.

Once again, value is the word of the day. Smartphone telematics equips insurers to segment and price their customers as individuals in a way that is fair and transparent. To offer significantly better rates to low-mileage drivers, provide coverage to those who haven’t been able to get it, and deliver additional features that customers want. How? Download the whitepaper to learn more.

Strategy #4: Keep more of your profit.

NAIC said that an insurer who uses usage-based insurance ratings instead of proxies could offer an 80 percent discount and still be profitable. Astounding, but true. Granular risk assessment will win over proxy-based estimates any day. Until smartphone telematics entered the scene, however, it was simply not an option. There are other ways that insurance telematics can empower an insurer to maximize their profit, from helping customers become better drivers to preventing fraud across the board.

Strategy #5: Take action sooner than later.

Given where we are on the technology adoption curve, initiative is everything. Innovators and early adopters have come and gone. Insurers who act now can position themselves firmly among the early majority, and reap rewards that those who follow after will simply not have access to. What rewards are we referring to, and why are the benefits so time-sensitive? Don’t wait to find out. Download the full white paper here.

We’re going to Chicago! Meet us there.

Join us at Telematics USA 2015 in Chicago on September 2-3. (We’ll be in Booth 11.) We’ll be talking about how to attract new prospects, capture market share and hold onto more of your profit with smartphone telematics. And don’t miss our Track 4 breakout session, “From Stagnant to Standout: How to Grow without Discounting.” See you there!