A quarter of fleet managers say they are interested in signing up for usage-based insurance, but only six percent are currently enrolled in a program, according to a survey by Lexis-Nexis.
The 2015 LexisNexis Commercial Usage-Based Insurance Study, released today, found that commercial customers are nearly twice as interested as personal lines consumers in usage-based insurance. Only 15% of personal lines customers indicate interest in UBI, according to Lexis-Nexis.
In addition, smaller fleet managers in particular indicate interest but they aren’t being reached. Awareness of available UBI programs drops with the size of the fleet, with 31% of managers of 11- to 20-vehicle fleets indicating awareness compared to only 16% of managers of two- to five-vehicle fleets.
Companies that offer UBI should experience increased customer retention, Lexis-Nexis found.
“Sixty percent of smaller fleet managers are less likely to consider switching at their upcoming renewal if their current carrier offers commercial UBI plus a 10 percent discount,” the survey says. “However, approximately half of mid-sized and larger fleet managers would still consider switching.”
But awareness continues to be a struggle. Even as carriers try to bundle UBI with other services for fleets, those value-added services are elusive as well.
“Managers of larger fleets continue to have the highest awareness of fleet management programs,” the survey says. “Among managers of mid-sized fleets, awareness has increased. However, a notable portion of respondents who claimed awareness of fleet management programs were unable to identify any providers. This indicates limited familiarity with the offerings in the marketplace.”
