Considering Telematics? 36 Percent of Consumers Would Switch Auto Insurers to Receive Usage-based Insurance Discount According

  Considering Telematics? 36 Percent of Consumers Would Switch Auto Insurers
  to Receive Usage-based Insurance Discount According to LexisNexis Insurance
  Telematics Study

Business Wire

ATLANTA -- August 21, 2013

One in every three consumers is aware of usage-based insurance (UBI), or
telematics, tripling its awareness in the last three years, according to a new
LexisNexis Risk Solutions study. While still a novel concept for many
consumers, usage-based insurance programs offered by car insurers to track
driving habits are becoming more mainstream, less unique than they were three
years ago. The study found discounts are the number one driver for UBI
enrollment – 50 percent of consumers are likely to sign up for a 10 percent
discount while 36 percent would actually change carriers for a 10 percent
discount.

A telematics program shares information about when, how much, and how your car
is driven. This information is automatically collected and stored and is
available for an insurance company to review in order to determine if a driver
is eligible for discounts on premiums.

The study also found that:

  *61 percent are more likely to accept telematics if insurers offer a trial
    period for 3 months, while 72 percent of drivers are more likely to accept
    if an insurer offers an automatic discount of 10 percent for the first 6
    months.
  *One in every three consumers finds the idea appealing and is likely to use
    a personal smartphone to collect and transmit telematics data.

“While UBI continues to become more mainstream, many consumers also find the
use of their smartphone in UBI appealing,” said Ash Hassib, Senior Vice
President and General Manager, Auto Insurance, LexisNexis. “For insurers, this
creates an opportunity to offer programs that fit consumers’ lifestyles such
as smartphone use, value-added services based on their interests and capture
important information to gauge future driver risk.”

The 2013 LexisNexis Insurance Telematics Survey, conducted by independent
research firm Lynx Research Consulting, measured policyholder receptivity to
allowing insurance companies to use data collected from telematics devices in
their vehicles to help determine rates. The web-based survey polled 2,072 U.S.
residents representing a sample of insured drivers, ages 21 to 74. For more
information, download the study.

About LexisNexis Risk Solutions

LexisNexis Risk Solutions (www.lexisnexis.com/risk/) is a leader in providing
essential information that helps customers across industries and government
predict, assess and manage risk. Combining cutting-edge technology, unique
data and advanced analytics, LexisNexis Risk Solutions provides products and
services that address evolving client needs in the risk sector while upholding
the highest standards of security and privacy. LexisNexis Risk Solutions is
part of Reed Elsevier, a leading global provider of professional information
solutions across a number of sectors. Our insurance solutions assist insurers
with automating and improving the performance of critical workflow processes
to reduce expenses, improve service and position customers for growth.

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Contact:

LexisNexis
Regina Haas, +1-678-694-3569
regina.haas@lexisnexis.com
 
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