Telematics insurance, for the most part, has been tapping the tech-savvy young demographic. Now new research shows what makes blackbox cover appealing to men and women, in hopes of driving the creation of personalised offerings to expand the reach of the technology.
LexisNexis Risk Solutions found that more women than men, out of more than 3,000 UK motorists surveyed, find the safety benefits of telematics insurance attractive. The poll showed that 26.5% more female than male drivers consider it the cover’s best aspect.
Men, on the other hand, are more inclined toward premium savings achieved through their driving behaviours. Out of the male respondents, 44% ranked this as the most important consideration.
“Telematics insurance in the young driver market has helped reduce premiums for this high-risk group and lower claims costs for insurers while, perhaps most importantly, helping to save lives,” noted David Lukens, telematics director at LexisNexis Risk Solutions. “As a result, adoption is at around 80%, leaving little room for growth. Insurance providers need to find ways to move beyond this niche market, particularly as the cost of offering telematics insurance has fallen by around 50% since 2013.
“This is precisely why we conducted this research to establish the barriers and receptiveness to telematics among the wider driving population.”
Lukens said the insurance industry must understand how the proposition appeals on different levels to men and women in order to get telematics insurance moving to the mass market. Also to be considered is how the appeal shifts at policyholders’ various life stages.
“The inherent flexibility of telematics insurance today means that insurance providers can serve the mass market with products configured at a very personal level,” added Lukens. “In this way, the industry can address the variable needs of motorists as identified in our research.”
