Agents underestimate business owners' interest in telematics
A study by Nationwide shows how commercial clients feel about telematics and what agents can do to be a trusted resource for solutions.
A Clearsurance study of more than 160,000 insurance customer reviews found that the average rating for reviews mentioning telematics is 4.2 out of five possible stars. Such glowing reviews suggest insureds appreciate the benefits of telematics solutions. Yet, many commercial lines agents are missing opportunities to help their customers optimize fleet performance and boost sales by failing to discuss telematics with auto clients, says findings from Nationwide’s Agent Authority survey.
Nationwide’s study of 1,600 agents, mid-market business owners with fleet vehicles, and consumers found that fleet owners are more supportive of telematics than agents realize and are willing to pay more to track unsafe driving behaviors. In fact, 93% of business owners said they’d pay to ensure a safer driving experience, with the majority stating they’d pay between $20-$39.99 per month per vehicle.
“The [survey] results highlight a tremendous opportunity for carriers and agents to change the conversation around telematics from being a nice ‘add-on’ perk, to what it really has become — an essential tool for operating a fleet-focused business,” said Pete Frey, director of commercial lines telematics at Nationwide, said in a release.
Related: How telematics can boost fleet safety while lowering costs
Despite many clients expressing interest in telematics, many remain hesitant to adopt solutions over data privacy concerns or worries that telematics will result in higher premium payments. However, these misconceptions business owners hold about telematics could allow agents to better educate clients on how solutions work.
“Today’s telematics programs help make it very clear to customers and agents how data is being collected and used, and the benefits customers can gain,” said Frey. “With growing telematics adoption among business owners, agents have a tremendous opportunity to provide needed recommendations and resources to business owners as they look for the right solution for their operation.”
For more insights on how business owners perceive telematics solutions, review the infographic below.
