Half of auto policyholders interested in data-driven discounts
Half of all auto insurance customers would be interested in a data-powered rewards program from their insurers based on data collected from the car, according to a new survey from Aite Group.
The global research and advisory firm talked to 388 auto-insurance owners as part of a larger, 700-plus respondent survey. The “U.S. Auto Insurance Rewards and Incentives Program: Driving Forward” broke down the appetite for these programs by gender, age and income. Younger customers and those with higher incomes were more likely to be interested in these kinds of initiatives.
Aite Group surveyed customers based on what level of reward they would like, as well as the delivery mechanism. Five percent, 10% and 15% rewards per $1,000 in premium were tested with the audience, with rewards offered as premium discounts, cash gift cards or a choice of either.
Customers who already used an app to collect their own driving data were also more likely to be interested in signing on for a discount program. About a quarter of the auto insurance customers surveyed reported that they already have such a data-collection mechanism; 10% of those customers said they never use it compared to 55% that use it “every day.”
Greg Donaldson, senior analyst at Aite Group shared, “Consumers are already using connected devices and are willing to share data for a good reason, and carriers must be willing to offer a variety of options to fully realize the potential of this trend.”