In September 2019, All-Connects was contacted by the AP Hogeschool Antwerp. As part of the marketing course, students were asked to conduct a market research project on a current, socially relevant topic. Out of quite a few submissions, our research proposal "Is the consumer interested in a discount on the insurance premium based on driving behavior" was chosen by 4 students. We decided to find out whether or not drivers are willing to have their driving behavior analyzed in exchange for a discount on the insurance premium, and whether insurers are willing to grant this discount. In this blog you will discover the rather surprising results of the study.
For such research to be successful, a representative sample is very important. This was determined by province on the basis of the total number of passenger cars in Flanders (3,569,206 cars). A total of 437 drivers were surveyed, with the least number of respondents in Limburg (53) and the largest number in Antwerp (101).
Not everyone owns a car!
Before we move on to the results of the survey, it is important to keep in mind that not everyone in today's times owns a car - voluntarily or otherwise. In fact, of those surveyed, 11.67% do not own a car. Thus, the remaining 88.33% do have a private or company car at their disposal.
How do drivers feel about the idea of a premium calculated based on their driving habits?
Now we can move on to what you really want to know. Are people really willing to have their driving habits monitored in exchange for a discount on their insurance premium? A simple question with a clear answer. More than half of the 437 respondents, 59.73%, think it's a good idea. 15.33% think it's a very good idea and only 5.72% of respondents think it's a very bad idea. So there is clearly a market for a premium calculated based on driving behavior.
How many people are effectively willing to have their driving style analyzed?
Agreeing to a discount is not difficult, of course. But then again, how many people are actually willing to have a track & trace device installed in their car to have their driving behavior analyzed? Again, remarkable results emerge: 4 in 5 respondents (78.95%) are willing to do so.
So how much discount do they expect in exchange for the driving style analysis?
What is striking is that 1 out of 2 respondents is already satisfied with a relatively small discount: 35% finds a discount between 11 - 20% fine, and for another 25% of respondents a discount up to 30% is very acceptable. This therefore seems to us a clear and positive signal to the insurance companies to investigate this further and work out a nice proposal.
What can be concluded from this?
These results represent a very positive start for a safe Flanders. As many as 6 in 10 consumers state that they are willing to have a driving behavior analysis done, in exchange for a discount of up to 30% on car insurance premiums. This research gives a nice boost to the insurance industry. Now it's up to them to head the ball into goal.
In this blog, we delved into consumer opinion. But exactly where do the insurance companies stand on this, given that they will develop the premium formulas and grant discounts? We have written a second blog about that where we take a closer look at the survey results for the insurance companies!
Connect with us!
Do you have questions about how driving style analysis works, or are you interested in a system that can help you with this? Then don't hesitate to contact us without obligation using the form below. We will contact you as soon as possible to discuss the possibilities.
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