Consumers are clearly concerned about having to pay excessive premiums for car insurance they use less: 68% of respondents are interested in usage-based insurance for cars. Many car insurers on the market already distribute this type of mileage-linked product, using smart recording devices for exact measuring and fraud limitations at the same time. The popularity of this type of insurance is on the rise and has only been keeping increasing as of COVID-19. Given that remote working is expected to continue in the long term for many employees, insurers should develop products suited to this new normal.
Another consequence of spending more time at home is consumers’ search for products that cover home protection services. Although the number of thefts has decreased, people are becoming more interested in services that include smart sensors that measure (energy) consumption and that generate warnings to prevent damage caused, for example, by water leaks.
A very interesting finding is that, even though 58% are interested in an insurance that provides these extra services, only 49% are willing to install sensors themselves and share these sensors’ real-time data in exchange for a discount. As mentioned in the first key takeaway, even though there is a shift in consumer willingness to share data, it is still in its initial stages. It is important for insurers to prepare and be ready to act swiftly based on future changes in regulation and data capabilities.