The RAC is launching two, new types of telematics insurance coverage; focusing on each youthful and older clients within the UK. GlobalData’s 2024 Rising Traits Insurance coverage Shopper Survey suggests it is a constructive transfer to draw new clients. It has partnered with the insurtech Ticker and launched a coverage focusing on younger drivers with conventional telematic insurance policies. It’s going to launch a pay-per-mile-type coverage later this 12 months, which goals to focus on over 60s who drive fewer miles.
GlobalData’s survey discovered that each telematics and pay-per-mile insurance coverage insurance policies have been efficient methods of accelerating buyer satisfaction. It discovered that of world customers who had a telematics coverage, 77.4% of them have been both glad or very glad with the premium financial savings it led to of their coverage. Moreover, 89.2% could be fairly or very prone to advocate any such coverage to a pal.
Pay-as-you-go (PAYG) insurance policies had slightly-lower satisfaction charges. They have been nonetheless sturdy although, with 6.4% glad or very glad with its impression on premiums and 84.2% fairly or very prone to advocate it to a pal.
This highlights the widespread satisfaction ranges with telematics and PAYG insurance policies all over the world. There might be some skepticism amongst those that wouldn’t have such insurance policies, with many hesitant to share private information or have their driving judged, however GlobalData’s survey strongly means that those that do have it are glad. Due to this fact, the info suggests a better chance of renewal.
The RAC isn’t a number one participant within the UK motor market at current—GlobalData’s 2024 UK Insurance coverage Shopper Survey positioned them because the 14th-biggest motor insurer within the UK with a 2.1% share. Nevertheless, its particular focusing on of the 2, essential demographics of youthful and older generations seems sensible. They’re two age teams that require more-tailored remedy attributable to being larger danger and going through larger premiums. Due to this fact, if the RAC can market its new merchandise and appeal to clients, it ought to see sturdy retention and even progress through phrase of mouth.