Consumer worries about insurance telematics privacy on a par with social media
Insurance telematics concerns could simply be sensationalised hyperbole if new research by LexisNexis rings true for the wider population.
The company’s 2014 Usage-Based Insurance (UBI) white paper revealed how consumers’ comfort levels surrounding the sharing of UBI driving data were on a similar level to other internet-related tasks such as online banking and social media.
In fact, both online search data and social media personal rated higher on the study’s concern scale than UBI driving data, whereas respondents said they were most comfortable with UBI accident information overall.
Powers of persuasion
Even if a consumer is uncomfortable with the concept of insurance telematics, there are many ways to persuade them of the technology’s benefits. Consumers said that opting out without a penalty and receiving a discount were the two factors that piqued their interest most.
LexisNexis paid particular attention to how in 2014 56% of respondents with children on their insurance policy admitted to being interested in UBI-enabled teen tracking features compared to 44% in 2013.
For more insights on usage-based insurance check out the infographic below: