Towers Watson client survey exhibits Canadian industry is prepared for widespread UBI adoption
TORONTO, April 2, 2014 /CNW/ – Canadian drivers say they are unmistakably open-minded about buying usage-based car insurance coverage (UBI) policies, or “pay as you drive” insurance, according to a new survey by global professional services firm Towers Watson (NYSE, NASDAQ: TW). Towers Watson’;s UBI Customer Survey outcomes are pretty consistent with other worldwide markets and a clear indication that UBI is gaining momentum in the Canadian marketplace.
Significantly, nicely more than half (56%) of Canadian drivers explained they have a robust interest in acquiring a UBI policy. Drivers’; acceptance of UBI packages deepens when they are asked to take into account the chance of enrolling in UBI plans. An mind-boggling bulk (85%) explained they would be open to this kind of packages, and that percentage increases to 94% need to insurers ensure that drivers’; premiums will not rise.
“The Canadian UBI market place has quickly created into a quickly changing landscape,” explained Robin Harbage, worldwide lead for Towers Watson’;s UBI practice and DriveAbility(R) support providing. “Until lately, UBI in Canada was restricted to just a couple of applications, but above the previous 12 months new entrants have entered the marketplace and improved the range of merchandise accessible.”
The survey also assessed consumers’; take on worth-added solutions, which can be bundled with a UBI policy and enabled by the underlying technologies. Virtually 2-thirds (65%) indicated they are willing to pay out for these companies, and when asked which companies appealed to them most, drivers chose vehicle theft monitoring (86%), automated emergency contact (85%) and car wellness reports (79%). Drivers stated they would be willing to pay out for these providers, as nicely, with 56% ready to spend among $ 3.75 and $ 7.50 a month.
“Canadian drivers’; indication that they acknowledge the usefulness in buying UBI-relevant, worth-additional solutions is an important signal to insurers,” said Harbage. “These solutions can aid insurers differentiate and de-commoditize their items. They can also aid them concentrate on a brand-new customer base to grow new enterprise and boost retention.”
Notably, virtually half (48%) of the respondents stated they would be willing to alter their driving habits if UBI technology was set up in their auto. When asked how, sticking to the speed limit (65%), keeping a safe distance from other automobiles (45%) and driving much more considerately (45%) had been the leading alterations.
Shoppers mentioned their primary concern with UBI revolved close to the possibility that their premiums may possibly enhance (47%). Privacy concerns have been yet another leading be concerned, with specific misgivings about the sharing of customer information (46%) and apprehensions about employing information to invalidate claims (46%). “These issues, even though understandable, are not actually considerable enough to hinder the many benefits that UBI gives drivers,” explained Harbage.
The benefits of the UBI Customer Survey will be mentioned in depth at the Insurance coverage Telematics Conference in Toronto on Could 28 and 29.
About Towers Watson
Towers Watson (NYSE, NASDAQ: TW) is a foremost worldwide expert providers business that helps organizations improve overall performance via successful folks, chance and financial management. The firm delivers consulting, technology and remedies in the places of positive aspects, talent management, rewards, and chance and capital management. Towers Watson has more than 14,000 associates close to the globe and is found on the internet at towerswatson.com.
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