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European Motor Study
Digital transformation in motor insurance
For the second consecutive year, Deloitte has published a report on motor insurance in Europe, based on around 15,000 consumers in 11 countries (Austria, Belgium, France, Germany, Ireland, Italy, Poland, the Netherlands, Spain, Switzerland and the United Kingdom).
The study findings show that policy holders, faced with increasing competition for their custom, may change their insurer more frequently. In this highly competitive context, we are seeing connected insurance products being developed, which are an opportunity for insurers to increase their points of contact with policy holders and significantly improve their understanding of consumers' needs. What is the size of the connected motor insurance market? Who are the potential clients? How can they be drawn in? How can insurers create value with this service package?
Key findings of the study
- Deloitte estimates that the potential market for connected insurance in Europe is around EUR 17 billion. This could represent a market of more than EUR 15 billion. The adoption of such new packages will depend on acceptance by consumers, which is gaining ground at different speeds depending on the country.
- Italy is by far the country with the greatest potential for connected motor insurance, with a potential market share of 27% in 2020.
- French consumers attach great importance to their driving data and are little inclined to share them despite the launch of the first telematics insurance packages.
- The willingness to change insurer has increased compared with the previous year: 15% of respondents to our survey had changed their opinion with respect to the previous year, going from “unlikely to change” to “highly likely to change”. This is a clear indication that a transition to a more fluid motor insurance market is under way.
- Those respondents indicating that they were likely to change insurer were often those who said that they were prepared to exchange data with their insurance company. This confirms that consumers looking for a new insurer may be interested in taking out connected motor insurance.
- The price is currently the principal argument for the sale of telematics insurance packages. But above and beyond an approach based on a reduction in price, it is important that insurers propose connected insurance products that encompass personalised services that are perceived by the customer as high value-added.
- More than half of those questioned across Europe stated that they were prepared to share their data in order to benefit from at least one of the following four services:
- free breakdown assistance;
- automatic emergency assistance;
- theft notification and vehicle recovery;
- free oil changes and servicing based on the number of points collected through good driving.