What do today's auto insurance customers want from their carriers?
Auto insurers trying to compete on price alone will find it takes more than a reasonable coverage rate to satisfy policyholders.
The auto insurance space has continued to change and evolve, especially with the increased use of artificial intelligence, the emergence of disruptors like Lemonade, and the automation of the claims process.
Auto insurers trying to compete on price alone will find it much harder to keep customers in the long-term due to the wide range of choices available when it comes to purchasing coverage. The latest Insurance Speak podcast features a discussion with Chetan Ghai concerning what policyholders want and how insurance carriers can better meet those needs. Ghai is the business leader for insurance roadside assistance at Agero, which provides software-enabled driving solutions on behalf of two-thirds of the leading auto insurers in North America.
Insurers are seeing increased competition and commoditization in the auto insurance market, and these changes are pulling market share away from more traditional insurers. While carriers can control their cost structures and are spending more money on advertising, there seems to be less differentiation around the various insurance brands.
One of the areas where Ghai says insurers can truly stand out from their competitors involves the claims experience. It’s a time when policyholders are in definite need of insurance services and a great opportunity for carriers to leverage technology and provide valuable services like roadside assistance. After all, peace of mind is one of the major reasons for purchasing insurance.
Interestingly, Ghai finds that while three out of five customers have roadside assistance as part of their policies, only one out of five actually uses it. This is where policyholder education plays an important role in establishing the full range of services provided and the unexpected auto events like flat tires, dead batteries and lockouts that are covered under a policy.
To hear more from Chetan Ghai, listen to the full podcast above or subscribe to Insurance Speak on Spotify, Apple Music, Google Play or Libsyn.
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