Homeowners and Auto Owners Ready for Insurance Innovation Change

15 Dec

A recent Deloitte study found that while consumers remain fairly conservative when it comes to changes in consumer insurance products, they are also open to change, especially ones that give them more flexibility in coverages. 

The survey queried 1,000 U.S residents about the types of auto, home, and renters’ insurance concepts they’d prefer as well as what kind of coverage features they desire, and their willingness to share information with insurers.

Despite the fact that many respondents were happy with current insurance options, the study found that many consumers were ready for changes. Here are a few of the changes that seemed most popular:

Auto insurance: Many respondents said they were interested in being able to adjust their basic auto insurance coverages depending on how they are using their vehicle. One of the more popular options was “being charged less when your car is parked in a garage,” this is most likely a popular option right not due to the fact that many of us are stuck at home during the pandemic with our cars sitting safely in the garage. 

Another concept that garnered interest was greater flexibility in auto insurance. It was referred to as “freedom to move” in the study and would include an all-encompassing policy that would cover the use of a wide range of vehicles, not just your own car. These policies would protect you when borrowing a friend’s car, driving a rental, or even cruising a motorized scooter. These policies would appeal to consumers who use a wide variety of transportation options, most likely urban consumers who have numerous transport options. 

Younger respondents in the survey were intrigued by the “invisible coverage” concept. This involves insurance coverage that is included as part of a car purchase or lease agreement. Younger drivers seemed to gravitate towards the ease and simplicity that this type of coverage would provide. 

Homeowners: The “invisible coverage” concept was also popular on the homeowner side of thing as well. This would involve insurance coming as part of a mortgage or rental agent. Claim support would be provided by the bank, mortgage lender or even a real estate agent. 

Another concept that was popular on the homeowners side was the idea of a “home concierge.” This would provide 24/7 support to policyholders and would also serve as a personal risk manager. This concierge service would also include priority access to repair specialists to deal with claims and other repairs. 

Consumers still value privacy

Despite the fact that consumers seemed to like solutions that combined coverages and made their lives easier, they were not excited about solutions that infringed on their privacy. Developments such sensors installed in the car or smartphone apps that monitor where, how and when a policyholder drives did not see much support among respondents. 

It wasn’t just drivers who were not excited about sensors and usage-based policies, homeowners were not thrilled with the concept either.

Young consumers like digital options

The study found that the youngest insurance consumers like the transition that insurers are making to more “virtual interactions, do-it-yourself applications, and alternative coverage models.” The youngest respondents in the survey wholeheartedly endorse the move to digital shopping, sales, and service.

The survey found that this trend is likely to continue and insurers should be looking to expand their digital options in the future. 

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