As the world recovers from 2020, a lot has changed, and the motor insurance industry needs to acknowledge this and adapt – or risk being left behind.
Customer habits evolved in 2020 and many of these changes could end up being permanent. Here’s how insurance companies can keep up with new trends.
The Rise of The Remote Worker
This is something every motor insurance company needs to be aware of, as failure to do so could have catastrophic consequences for our industry. People will always need cars and therefore car insurance. But more people are now working from home as a result of the COVID-19 pandemic.
Many of them have no plans to return to the office either. Some due to their employers keeping the working from home idea going – it having worked well, while others may now be embarking on a new remote working career. The pandemic having shifted their career aspirations and set them down a new path.
Whatever the case may be, these people will no longer be driving to work every day. This raises the question; will they still need a car or the products we offer? Lots of people will keep their vehicles, needing them for either personal use or occasional work-related trips. But others will decide they no longer need a car.
One way or another, this will impact our industry. Fewer people will be using cars to drive to work every day, and insurers need to be prepared for this. While we stand to lose some business, we can mitigate this by tailoring our products for this new wave of workers.
Or we can create entirely new insurance products that cater to the modern professional. By doing so, we may retain some customers who were considering leaving. This may even be the difference between encouraging some people to keep their car or not.
By offering new car insurance products that appeal to those who no longer need to drive to work every day, insurers can ensure we remain relevant and lessen any blow that may come from fewer cars being on the road this year.
The Opportunities Offered by Mobile Telematic Technology
The big trend in 2021 is mobile telematics. Customers are starting to realise the benefits of this and we are seeing a steep rise in customers adopting the technology. Or should we say, taking out motor insurance premiums that offer it.
Why is this? Because mobile telematics will inevitably lead to two things: safer roads and cheaper insurance premiums. The two main things customers care about. It’s for these reasons why insurance companies need to be offering this service alongside their insurance products.
The simple act of offering mobile telematics will be perceived positively by customers – even if they decide not to use it. It suggests to consumers that any insurance company offering it is actively looking to provide them progressively lower insurance prices year after year. Therefore, it’s likely to attract more customers for that reason alone – even those who have no desire to install the technology or take advantage of it.
But it will also attract motorists who already drive safely and seek to be rewarded for it. So as long as this is something you’re prepared to do, then offering mobile telematic technology could be a real recruitment driver for your business – more importantly, it will attract the right kind of drivers. Those who are most unlikely to cause an accident by driving dangerously.
We’re of the view that mobile telematic technology is mutually beneficial for both insurers and customers. For this reason, any provider not offering it in 2021 risks falling behind their competition. We’d urge all providers to do some market research to see the facts for themselves – then offer this to your customers.
Contact us at Bluesona for a demo of our products.