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Smart Technology in Insurance

Smart Technology in Insurance

Summary

Smart technology is used to build relationships between insurers and insurance customers, aiming to eliminate as many potential issues as possible while removing pain for the consumer and cutting costs for the insurer. For motor insurance efforts have been made to improve poor driving with devices to monitor speed, corners, and braking, while also monitoring car diagnostics to pre-empt breakdowns. For home cover the aim is to make the house as secure as possible - preventing water leakages or fires before any damage is done and securing against burglaries.

Health insurance customers are attracted to fitness improvements and financial savings, but remain concerned about sharing personal information. The leading three age categories covered 30-44 year olds, with the youngest generations not yet thinking about life and health policies.A smart smoke and carbon monoxide detector is by far the most popular device, but the use of live cameras and motion sensors is increasing. Buying such devices is expensive, so insurers need to convince homeowners they are a worthwhile investment.

Majority of consumers still do not have a telematics policy, but over 50% become interested when savings reach 30% per year. Innovations now include buying policies by the hour or mile, with a device tracking driving activity.Travel is the hardest line to offer a preventative service to consumers, with disruptive events like plane cancellations almost impossible to foresee. However, smart tech can help consumers receive refunds and even find new flights.

Penetration of such devices is low across these lines, yet interest is quite strong, particularly among younger generations. This increases as consumers are told they can save certain amounts, meaning the key for insurers is likely to be educating individuals about potential benefits.

The report Smart Technology in Insurance,, explores consumer purchasing behavior and how their preferences are likely to change in the future. It discovers what devices consumers currently use and may be interested in using, as well as why they have reservations and what incentives insurers need to offer to help persuade them. Key new players in the different markets are highlighted, and we look into how they might disrupt that particular line.

Companies mentioned in this report: Babylon, Oscar, RTL, insure the box, PitPat, Petrics, FitBark, WonderWoof, AXA, Roost, neos, Blink, Thomas Cook, Roam, Service, Fizzy, O2

Scope

  • 58.3% of survey respondents are quite or very likely to consider wearing an activity device and sharing data with an insurer.
  • Over half of respondents would be interested in a telematics device if it saved them 30% or more on annual premiums.
  • Most respondents do not use a smart device to monitor their pet’s health at present but would consider using one.
  • Smart smoke and carbon monoxide detectors are the most popular smart devices currently used in homes in the UK.
Reasons to buy
  • Understand consumer attitudes towards a range of smart devices across five different personal lines: home, travel, motor, pet, and health.
  • Learn which age groups are most likely to be interested in certain devices.
  • Discover what specific factors both encourage and discourage consumers from using smart technology alongside their insurance products.
  • Read about the key players transforming the five personal lines discussed.


Executive Summary
Health Insurance
Motor Insurance
Pet Insurance
Home Insurance
Travel Insurance
Appendix

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