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Yahoo
a day ago
- Automotive
- Yahoo
Usage-Based and Telematics Motor Insurance Report 2025: Telematics Becomes a Consumer Favorite as 14.4% of Policies Now Include It
Dive into the innovations shaping the global motor insurance market with our comprehensive report on telematics and usage-based insurance. Harnessing proprietary survey data, we explore consumer attitudes, market leaders, and growth trends. Discover how these modern policies empower drivers and offer potential savings, attracting younger customers with flexible, usage-driven premiums. Learn about the benefits and market penetration of telematics, with 14.4% of policies integrating it, and the rise of pay-as-you-go models, used by 20.9% of global consumers. Uncover insights and future growth opportunities today. Dublin, June 13, 2025 (GLOBE NEWSWIRE) -- The "Usage-Based and Telematics Motor Insurance 2025" report has been added to report provides in-depth analysis of two of the key innovations within the global motor insurance market. It uses proprietary global survey data to analyze consumer attitudes toward telematics and usage-based insurance products. It also identifies leaders within both products and assesses which markets are furthest along in the growth of these insurance is the largest product within the insurance industry. It is a mandatory line for car owners, which can make it feel like a grudge purchase. However, modernization within the product has started to give some power back to consumers. Products such as telematics and usage-based insurance give consumers more ability to control their level of spending on a monthly or annual basis. These products are particularly appealing to younger customers who face high premiums. Both are starting to become well-established globally, with the analyst findings noting that customers with these products are satisfied and likely to recommend Scope Telematics offers a range of benefits, including cheaper premiums, the ability to monitor policies online/via an app, and the ability to track cars if they are stolen. Meanwhile, usage-based insurance is well-established but has significant scope for growth. It is simpler than telematics, as it is purely built around miles driven-not driving ability. Therefore, consumers are promised cheaper premiums if they drive less. Telematics is well-established within the motor insurance market. The analyst's 2024 Emerging Trends Insurance Consumer Survey found that 14.4% of personal lines motor policies are telematics. The same survey found that 20.9% of global motor customers have a pay-as-you-go policy. Meanwhile, 84.2% of global consumers who had used this type of insurance were likely to recommend it to a friend or colleague. Reasons to Buy Understand the consumer background behind the global motor insurance market and how it can help support growth in telematics and usage-based insurance. Discover the footprint that both telematics and usage-based insurance have in the global motor insurance market. Understand consumer views toward both types of policies. Identify the standout players within both segments. Key Topics Covered: Executive Summary The Global Motor Insurance Market Telematics Insurance Usage-Based Motor Insurance Case Studies and Key Players Future Market Company Coverage: Root Lemonade Metromile By Miles Aon For more information about this report visit About is the world's leading source for international market research reports and market data. We provide you with the latest data on international and regional markets, key industries, the top companies, new products and the latest trends. CONTACT: CONTACT: Laura Wood,Senior Press Manager press@ For E.S.T Office Hours Call 1-917-300-0470 For U.S./ CAN Toll Free Call 1-800-526-8630 For GMT Office Hours Call +353-1-416-8900
Yahoo
20-05-2025
- Business
- Yahoo
Consumer appetite to drive leak detector growth coupled with home insurance policies
Water leak detectors are becoming well established in households around the world and are increasingly a key part of the risk mitigation element of home insurance. GlobalData survey data shows that US consumers across all household income bands can see value in them and many are looking to install one within two years. This can be positive news for home insurers who can use leak detection devices to reduce the risk profile of clients and to offer more preventative policies, which should help improve customer satisfaction and loyalty. GlobalData's 2024 Emerging Trends Insurance Consumer Survey found that 22.1% of global consumers have a water leak detection device in their household, while a further 21.2% were planning to install one within two years. Looking closer at the leading house market, the US, leak detectors have a slightly-higher penetration rate than the global average, with 26.4% of US consumers having a water leak detection device and a further 22.3% planning to install one within two years. This suggests that while they are already quite well established, they also have significant potential for growth over the next couple of years. The US market also indicates that wealthier households are slightly-more likely to already have a leak detector. Around 30% of all respondents in households earning in excess of $100,000 already have one, compared to around 25% for those in lower wage brackets. However, the proportion of consumers who intend to get one in the next two years remains similar throughout the household income bands and is actually highest in the lower-middle income bracket of $20,000–$34,999. This suggests that they are becoming more-mainstream products and consumers do recognise that they can help reduce and prevent water damage and limit repair costs. This can help lead to fewer claims due to water damage and a lower severity of claims when they are made (as damage is spotted earlier). GlobalData's survey also found that 60.8% of US consumers would be willing to share the data from a leak detector with insurers for a personalised product. While there will always be some consumers who are not comfortable with this, this shows there is a large proportion which would like to engage more with their insurers and use technology to reduce the likelihood of claims. Overall, water leak detectors are devices which can benefit both customers and insurers, by avoiding significant damage, costs, repairs, and inconvenience later down the line. While GlobalData's data shows that they are already quite well established both globally and in the US, the market is expected to see strong adoption in the near future with a substantial proportion of consumers intending to get one for their household. "Consumer appetite to drive leak detector growth coupled with home insurance 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. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
30-03-2025
- Business
- Yahoo
Most global consumers see the benefits of AI in insurance but still do not trust it
Global consumers unanimously acknowledge the benefits of deploying artificial intelligence (AI) tools in insurance yet are sceptical about their commercial rollout, as per a GlobalData survey. While satisfaction is high when interacting with AI-powered tools, insurers will need to build customer trust as the technology becomes more ingrained in operations. According to GlobalData's 2024 Emerging Trends Insurance Consumer Survey, there is a strong belief that AI can reduce queuing times to speak to insurance agents, as cited by 73.8% of consumers. Meanwhile, a slightly lower proportion of consumers believe the use of AI can result in operational efficiencies (71.5%), while also citing the technology is better at pattern recognition than humans (71.2%). Notwithstanding, there are challenges that insurers must tackle to ensure consumers will happily use the AI tools they are investing in and deploying, as most find that the technology is not sufficiently developed to be adopted at scale, eroding their trust. Ensuring transparency in AI-driven decisions will be key to overcoming trust issues, and this will be of utmost importance among those who perceive that such tools are programmed with a bias, such as providing negative claim outcomes. Others may have concerns over data privacy or may just prefer interacting with a human, or at least prefer having the possibility to do so if interacting with automated tools is frustrating them. As such, it is imperative for insurers to be present across all channels so that consumers do not perceive that they are pushed to use online or automated channels, with assistance over the phone or face to face offered if desired. Despite scepticism surrounding the use of AI tools at a commercial scale, and perhaps even reluctancy, satisfaction levels among customers using such tools are high. Further findings from GlobalData's survey reveal that 74.5% of customers using insurance chatbots were either satisfied or very satisfied by the experience. This has been further echoed by claims made by Lemonade, an insurtech relying exclusively on AI to process claims without any input whatsoever of human agents. At a keynote speech at the 2025 Insurtech Insights Europe conference, Lemonade's founder proclaimed to have seen its customer satisfaction levels increase every time tasks are moved from humans to AI. Most certainly, the use of AI will transform the insurance industry in several ways and will also drive operational efficiencies and cost reductions. For instance, the availability of AI tools brings a new paradigm in that assistance or customer support can be provided 24/7, while the automation of claims processing leading to reduced settlement times will naturally be viewed favourably by consumers. At the same time, the speed and precision of AI in pattern recognition means that risks can be quantified more accurately and policies priced more fairly, while fraud detection can be improved. While all in all, AI has the potential of considerably improving satisfaction rates in insurance, the need for the human touch and empathy in engagements continue to limit its full potential. Better communication surrounding AI's capabilities and nuances will ultimately lead to improved adoption rates. "Most global consumers see the benefits of AI in insurance but still do not trust it" 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. Sign in to access your portfolio
Yahoo
24-03-2025
- Automotive
- Yahoo
Cost of insuring electric vehicles could skyrocket amid Trump's trade war on China
Concerns around charging infrastructure and higher insurance costs are among the factors dissuading US consumers from transitioning to a fully electric vehicle (EV) as per a GlobalData survey. EV insurance premiums have gradually fallen, with data now suggesting that premiums could soon be on par with combustion engine vehicles, but President Donald Trump's leadership may halt progress and lead to sharp increases in the US. According to GlobalData's 2024 Emerging Trends Insurance Consumer Survey, limited public charging infrastructure (50.1%) is the main barrier for US consumers to transition to a fully electric vehicle. This is closely followed by the purchase price/resale value (49.9%) and long charging times (48.4%). Other factors, including insurance costs, also play an important role in deterring consumers from making the switch. Despite the barriers to entry, close to half (46.3%) of US drivers stated they would switch their car to a fully electric one within the next five years as per further findings from the survey. EVs have traditionally attracted higher insurance premiums than traditional combustion engine vehicles. EVs are generally more expensive compared to similar combustion-powered vehicles, which has a direct impact on premiums. In addition, specialised components associated with EVs—in particular, lithium batteries—can make repairs more costly. Such components are difficult to source and typically require specialised labour for replacing or repairing, further adding to the cost of insurance premiums. It was expected that EVs would become more cost-effective to manufacture and command less expensive repairs as the market matured and repair infrastructure expanded. Indeed, according to Mitchell, a provider of smart technology solutions to auto repair centres, the average cost of repairing an EV in 2024 in the US had come down and was comparable to that of newer combustion vehicles. The average claim for repairable EVs was $6,236 in 2024, 3% lower than the previous year. Meanwhile, the average insurance claim was $5,066 for all combustion vehicles, with newer combustion models topping average claims of $6,127. Government-led targets for net-zero transitions play a crucial role in both incentivising consumers to switch to EVs and pressurising motor insurers to offer adequate cover for such vehicles. The Biden administration set a goal of all new vehicle sales to be electric by 2030, but Trump's election victory creates uncertainty for the EV insurance market. Trump has expressed inconsistent views on EVs and been sceptical about them, although Tesla CEO Elon Musk's endorsement has softened his stance. However, Trump's heightened tariffs on Chinese imports, including EV components and batteries, are anticipated to raise EV manufacturing and repair costs while potentially also disrupting supply chains. In turn, this would lead to a reversal of the progress made so far, leading insurers to potentially have to revise premiums up for EVs. Furthermore, it could slow down EV adoption altogether if purchase prices underwent significant hikes. As it stands, progress made by the insurance industry in bringing prices down and understanding risks could be eroded by Trump's trade war on China. "Cost of insuring electric vehicles could skyrocket amid Trump's trade war on China" 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.
Yahoo
17-02-2025
- Business
- Yahoo
AI appeal in insurance ‘mainly about the speed of service to consumers'
The most appealing aspect of artificial intelligence (AI) to consumers in the insurance sector is the potential for which it can speed up service, according to a new report. GlobalData's Artificial Intelligence in Insurance report in part outlines the results of the company's 2024 Emerging Trends Insurance Consumer Survey, which was conducted across 11 countries and had a total of 5,520 respondents. It outlines that consumers indicated the speed at which they could contact insurers and resolve issues to be the most compelling potential use of AI for them within the sector. 'The clear most popular response to which AI feature would be most useful was 24/7 availability, with nearly half of the respondents selecting it – but all of the top responses revolved around hearing back from insurers quickly,' the report states. 'The least-selected option was that consumers would prefer insurers did not use AI at all – which suggests the vast majority of insurance customers do believe that it has a place.' Among the top responses the question 'What AI-based feature would be most useful to you from insurers?', 48.7% of respondents indicated 24/7 availability, 38.2% instant responses, 37.8% faster claims processes, 34.2% efficient and 30.3% faster application processes. The report acknowledges that the use of is AI still at a relatively early stage within the insurance industry and that consumers and companies are still getting to grips with it. It notes, however, the survey as having found that 'a large proportion of insurance customers around the world are open to trying it across various sections of the insurance value chain'. The survey also revealed that younger consumers are much more open to trying the technology and need less convincing to do so. Only 6.9% of respondents in that age bracket indicated that they would prefer if consumers didn't use AI for customer service compared to 16.9% across all age groups. 'This, combined with the expected improvement with AI technology, and importantly how insurers incorporate it, suggests that AI has a very significant role to play in the insurance industry over the next decade,' the report says. "AI appeal in insurance 'mainly about the speed of service to consumers'" 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. Sign in to access your portfolio
