LexisNexis Risk Solutions released a new whitepaper, Usage-Based Insurance Adoption: Understanding consumers’ wants and needs is the driving force.
LexisNexis Telematics whitepaper offers five key recommendations to auto insurers:
- Understand the customer
Drivers indicate that they’d like more control, ownership and customization of their advanced driver assistance systems (ADAS) and connectivity features. Half of consumers say they’d be more interested in vehicle connectivity if they knew it acted as a mechanism for collecting their UBI driving data. Insurers who understand their customers have more opportunities to design UBI programs that appeal to their specific audience.
- Know the customer’s vehicle
While drivers generally recognize the benefits of ADAS and connectivity, one third of ADAS owners and half of connected car owners have already, or would like to disable some aspects of these features, revealing that drivers want the ability to choose which features they want to use. OEMs that allow consumer-friendly configurability of features while minimizing distraction will succeed.
- Increase awareness of UBI to accelerate adoption
Regardless of whether a car buyer specifically shopped for ADAS or connectivity features, the majority of drivers who own cars with these features say that they see many benefits. Similarly, the research found that while half of drivers who are offered UBI chose to enroll in it, only one in five said they were offered UBI by their insurer. LexisNexis experts believe OEMs and insurers alike can benefit from consumer receptivity to telematics.
- Promote what customers value most – safety and savings
Drivers consider safety to be a top benefit of both ADAS and connected car features, followed closely by the opportunity to save money, and the two go hand-in-hand; safer driving can result in lower insurance rates through UBI. As a result of ADAS and connectivity becoming standard features on new cars, half of new car buyers recognize that these can improve safety, and they expect to have lower car insurance premiums as a result. Promoting these features can drive both UBI adoption and vehicle sales.
- Make it easy to manage privacy and security
Seven out of ten consumers cite privacy as their primary concern with ADAS and connectivity features delivering data for UBI. Insurers and OEMs, therefore, must make managing privacy and security a top priority. According to LexisNexis experts, as connected car features become more intertwined with UBI, insurers and OEMs that offer transparency and convenience in their programs will be less likely to encounter these privacy concerns.
For more information, download the LexisNexis Risk Solutions Understanding consumers’ wants and needs is the driving force whitepaper.