RAC wise to target younger and older motor insurance customers with telematics policies
GlobalData's survey found that both telematics and pay-per-mile insurance policies were effective ways of increasing customer satisfaction. It found that of global consumers who had a telematics policy, 77.4% of them were either satisfied or very satisfied with the premium savings it led to in their policy. Furthermore, 89.2% would be quite or very likely to recommend this type of policy to a friend.
Pay-as-you-go (PAYG) policies had slightly-lower satisfaction rates. They were still strong though, with 6.4% satisfied or very satisfied with its impact on premiums and 84.2% quite or very likely to recommend it to a friend.
This highlights the widespread satisfaction levels with telematics and PAYG policies around the world. There can be some skepticism among those who do not have such policies, with many hesitant to share personal data or have their driving judged, but GlobalData's survey strongly suggests that those who do have it are satisfied. Therefore, the data suggests a higher likelihood of renewal.
The RAC is not a leading player in the UK motor market at present—GlobalData's 2024 UK Insurance Consumer Survey placed them as the 14th-biggest motor insurer in the UK with a 2.1% share. However, its specific targeting of the two, crucial demographics of younger and older generations appears wise. They are two age groups that require more-tailored treatment due to being higher risk and facing higher premiums. Therefore, if the RAC can market its new products and attract customers, it should see strong retention and even growth via word of mouth.
"RAC wise to target younger and older motor insurance customers with telematics policies" was originally created and published by Life Insurance International, a GlobalData owned brand.
The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
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