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Consumer Preferences for Connected Car Insurance
The document discusses consumer preferences for connected car insurance based on a motor insurance survey, highlighting the potential of existing and emerging technologies to improve insurance services. Key insights reveal concerns about telematics, such as privacy and perceived cost increases, as well as the importance of enhancing the consumer experience. It emphasizes the need for innovative solutions that simplify consumers' lives while leveraging technology.
Consumer Preferences for Connected Car Insurance
- 1. © Consumer Intelligence2015 Slide: 1 Slide No: 1 © Consumer Intelligence 2015 Matthew Green Key Account Director Consumer Preferences for Connected Car Insurance
- 2. © Consumer Intelligence2015 Slide: 2 Slide No: 2 © Consumer Intelligence 2015 Source: Voice-of-the-Customer Motor Insurance survey, n=5,890, May ‘15 “What innovative idea would you suggest to motor insurance providers to improve their service?”
- 3. © Consumer Intelligence2015 Slide: 3 Slide No: 3 © Consumer Intelligence 2015 KEY FINDING NO 4.: Harness the potential from existing technology Source: Voice-of-the-Customer Motor Insurance survey, n=5,890, May ‘15 !KEY FINDING Harness the potential from existing and emerging technologies
- 4. © Consumer Intelligence2015 Slide: 4 Slide No: 4 © Consumer Intelligence 2015 The key question for 2016 ? What innovative things has the insurance industry done with technology to reach out to consumers
- 5. © Consumer Intelligence2015 Slide: 5 Slide No: 5 © Consumer Intelligence 2015
- 6. © Consumer Intelligence2015 Slide: 6 Slide No: 6 © Consumer Intelligence 2015 monitor score reward
- 7. © Consumer Intelligence2015 Slide: 7 Slide No: 7 © Consumer Intelligence 2015 Source: Telematics Survey, n=1,453 Mar ‘16 “I don’t like the idea of being watched” “policy is too expensive” “my prices will increase, not decrease” 33% 13% 9%
- 8. © Consumer Intelligence2015 Slide: 8 Slide No: 8 © Consumer Intelligence 2015 “I don’t like the idea of being watched” 18-24 25-34 35-44 45-54 55-64 65+ responses split by age group Source: Telematics Survey, n=1,453 Mar ‘16 51% 32% 31% 30% 22%62%
- 9. © Consumer Intelligence2015 Slide: 9 Slide No: 9 © Consumer Intelligence 2015 “I wasn’t offered one” 18-24 25-34 35-44 45-54 55-64 65+ responses split by age group Source: Telematics Survey, n=1,453 Mar ‘16 44% 59% 63% 62% 67%28%
- 10. © Consumer Intelligence2015 Slide: 10 Slide No: 10 © Consumer Intelligence 2015 Source: Consumer Intelligence Market View, n=1,370 Jan - Mar ‘16 Ages 50 - 59 average premium at position 1 on PCWs
- 11. © Consumer Intelligence2015 Slide: 11 Slide No: 11 © Consumer Intelligence 2015 Telematics is insurer driven Telematics is not needed Telematics is CREEPY!
- 12. © Consumer Intelligence2015 Slide: 12 Slide No: 12 © Consumer Intelligence 2015 This presentation is BORING!
- 13. © Consumer Intelligence2015 Slide: 13 Slide No: 13 © Consumer Intelligence 2015
- 14. © Consumer Intelligence2015 Slide: 14 Slide No: 14 © Consumer Intelligence 2015 Simple to set-up and use It’s about enhancing the experience of life It is about data…are these people being watched? Amazon Dash It’s about making life easier
- 15. © Consumer Intelligence2015 Slide: 15 Slide No: 15 © Consumer Intelligence 2015 Please…take my personal data!
- 16. © Consumer Intelligence2015 Slide: 16 Slide No: 16 © Consumer Intelligence 2015 1. Government Source: Viewsbank Feb ‘16 N=1,000 93% “yes” 2. Insurers 3. Energy Provider
- 17. © Consumer Intelligence2015 Slide: 17 Slide No: 17 © Consumer Intelligence 2015 KEY FINDING NO 4.: Harness the potential from existing technology Source: Voice-of-the-Customer Motor Insurance survey, n=5,890, May ‘15 Potential from existing and emerging technologies Develop agile, flexible products Price isn’t everything – experience is Key findings in full
- 18. © Consumer Intelligence2015 Slide: 18 Slide No: 18 © Consumer Intelligence 2015 Matthew Green Key Account Director Consumer Preferences for Connected Car Insurance The Connected Car: Making Consumers Lives Easier
- 19. © Consumer Intelligence2015 Slide: 19 Slide No: 19 © Consumer Intelligence 2015
- 20. © Consumer Intelligence2015 Slide: 20 Slide No: 20 © Consumer Intelligence 2015 Hum by Verizon There when you need it, not intrusive Simple to install, simple to use Peace of mind; this is a life enabler It is about data…what are the opportunities?
- 21. © Consumer Intelligence2015 Slide: 21 Slide No: 21 © Consumer Intelligence 2015 What solution will you offer to make consumers lives easier?
- 22. © Consumer Intelligence2015 Slide: 22 Slide No: 22 © Consumer Intelligence 2015 Matthew Green Key Account Director Thank you!
Editor's Notes
- #3 Last year we asked a question to consumers regarding motor insurers
- #4 Of the key findings coming out of that survey, we zoned in on one, which was (see above). And we spoke to you all in some detail about what consumers wanted from insurers, their fears and concerns and how they saw the future. Today I’d like to take a moment to review how the industry has moved forward.
- #5 So the question is, looking at the market today, what innovative ways are insurers using to reach out to consumers? What do consumers see when they read about telematics?
- #6 In order to answer that question, let’s have a look at the sort of messages consumers are seeing about telematics in insurance. clicks So we know that this message appeals to some; hence the slight growth in the market we have seen over the past 12 months. However, let’s break down what that message actually is in plain English
- #7 Monitor, score, reward. That’s the message almost every insurer is shoving in the faces of consumers. When I asked my wife what she thought about telematics insurance yesterday, she answered “I wouldn’t have it; I was done with being graded when I left university” We’re not saying this is all bad. Some people don’t mind being monitored and telematics encourages safer driving – especially in younger drivers. However, most of the people in this room are likely to be challenged every day with the question of how to grow motor telematics outside of its current sweet spot. The ‘monitor, score, reward’ approach is a barrier to the rest of the market. 4 key findings: Develop agile, flexible products Price isn’t everything – experience is Interrupt and re-route the consumer journey Harness the potential from existing and emerging technologies
- #8 We put out a survey to our panel titled ‘Telematics’ so the responses would generally come from people with an awareness of the technology. We had over 1,500 responses from motorists aged 17 – 65+, 91% of the respondents told us they did not have a telematics policy: so the big question is what’s stopping you? Is it about price? No.
- #9 The biggest target market is the most suspicious. What else is interesting is that the older the driver, the less concerned they are about being watched (perhaps contrary to statistics showing older generations don’t want to give up their data)…why??? Because they rate themselves as the safest drivers and statistically, they’re probably right! And you lot agree with them; how do we know? (next slide)
- #10 The biggest target market is the most suspicious. What else is interesting is that the older the driver, the less concerned they are about being watched (perhaps contrary to statistics showing older generations don’t want to give up their data)…why??? Because they rate themselves as the safest drivers and statistically, they’re probably right! And you lot agree with them; how do we know? (next slide)
- #11 Because insurers already offer them lower premiums! So to summarise; you’re offering a product that monitors the behaviour of consumers who don’t want to be monitored and a price saving to consumers who don’t need it.
- #12 So what have we learned about the consumer angle on telematics so far?
- #13 And actually I fear, I’m now in danger of boring you all. So now let me show you something that isn’t boring, or creepy and might just be useful to consumers too.
- #15 So what can we surmise from the amazon dash example? People don’t mind being watched covertly if it benefits them! Don’t believe me? Next slide
- #16 The issue of data ownership is often asked when considering telematics. The reality is, from a consumer perspective, they will knowingly or not, give up their personal data if there is a overt benefit to them. Tesco know everything about a person through their shopping behaviour. Facebook have access to most people’s life story, their friends, where they’ve been on holiday etc. Don’t even get me started on google…
- #17 So what are the implications for insurance. Well the term Trojan horse has been used within these circles before, and perhaps it’s worth the automotive industry looking at others for inspiration. Take energy for example. Hive has been out in the market for some time now. Yes, you can save by being more efficient, but it has other massive benefits that make it worthwhile for consumers. It allows you to turn the lights on or off away from home. It knows if there is a carbon monoxide leak, you can control the temperature meaning you can come back to a house that’s already warm. The point is, this is as much about experience and making consumers lives easier and more enjoyable, as it is about cost savings. But Hive is better placed to assess risk of fire, theft, damage and so on than many other insurance apps. And when we asked consumers if they would be interested in having this kind of app in their house, a whopping 93% said yes. What’s more, when we asked consumers who they trusted with their personal data, insurers were pretty far down the list. In fact, they rated banks as more trustworthy than insurers with their personal data! However, ask them who they would trust in the event of a home emergency and insurers rocketed up the list, even ahead of their energy provider. So the point here is that insurance shouldn’t just be about money. It should be about making consumers lives easier and giving the piece of mind, that’s the big opportunity for telematics.
- #18 So at this point, it’s worth revisiting the findings from our previous research about insurance innovation, and highlighting what else consumers told us. Harness the potential from existing/new tech. This we already knew. Develop products than can be adapted to suit the needs of the customer Price isn’t everything – experience is i.e. make our lives easier! Make our lives more enjoyable! This presents a massive opportunity for motor insurers. If Hive knows where it’s customers are in the world and when, this technology can be used to help analyse insurance risk more accurately. Monitor and score. But if there is an overt benefit to the consumer, they won’t mind.
- #19 What this means is that, the title of this presentation is wrong. We won’t grow motor telematics by selling insurance. We will grow it by making consumers lives easier. So in actual fact, it should be called:
- #20 So, let’s have a look at one example of motor telematics already widely available in the US.
- #21 The great news is, this shouldn’t be news to you all. The capability and know how to use telematics in this way for the connected car already exists in this room.
- #22 Stop trying to sell telematics insurance. Stop just trying to offer a price saving. Start thinking about what you can offer to benefit and enhance consumers lives. Because if you do, the benefits for insurers are as potentially as great as they are to consumers.