The RAC is launching two, new types of telematics insurance coverage; concentrating on each youthful and older clients within the UK. GlobalData’s 2024 Rising Developments Insurance coverage Client Survey suggests this can be a optimistic transfer to draw new clients. It has partnered with the insurtech Ticker and launched a coverage concentrating on younger drivers with conventional telematic insurance policies. It would 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 had been efficient methods of accelerating buyer satisfaction. It discovered that of worldwide shoppers who had a telematics coverage, 77.4% of them had been both happy or very happy with the premium financial savings it led to of their coverage. Moreover, 89.2% can be fairly or very more likely to suggest one of these coverage to a good friend.
Pay-as-you-go (PAYG) insurance policies had slightly-lower satisfaction charges. They had been nonetheless sturdy although, with 6.4% happy or very happy with its affect on premiums and 84.2% fairly or very more likely to suggest it to a good friend.
This highlights the widespread satisfaction ranges with telematics and PAYG insurance policies around the globe. There may 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 happy. Subsequently, the info suggests a better chance of renewal.
The RAC shouldn’t be a number one participant within the UK motor market at current—GlobalData’s 2024 UK Insurance coverage Client Survey positioned them because the 14th-biggest motor insurer within the UK with a 2.1% share. Nonetheless, its particular concentrating on of the 2, essential demographics of youthful and older generations seems sensible. They’re two age teams that require more-tailored therapy because of being increased danger and dealing with increased premiums. Subsequently, if the RAC can market its new merchandise and entice clients, it ought to see sturdy retention and even progress through phrase of mouth.
