According to the LexisNexis?’?® Risk Solutions Telematics Survey, more than 75 percent of auto insurance policyholders in the United States would welcome a telematics-based insurance program if sharing their driving data had the potential to reduce their premium. The survey also measured consumer comfort levels around sharing personal driving information compared to other types of personal information from sources including Internet banking, mobile phones and social networking sites. The results showed that 57 percent of policyholders are comfortable sharing information about events that led to traffic accidents with insurance companies; a much higher response than the 29 percent who indicated they were comfortable with social networking sites storing personal information such as messages and photos posted on websites. The Telematics Survey, conducted by Lynx Research Consulting, measured policyholder receptivity to allowing insurance companies to use data collected from telematics devices in their vehicles to help determine rates.
Telematics systems in automobiles provide a variety of navigational and emergency services to motorists, e.g. GPS systems. Some insurance companies are beginning to use data collected from telematics systems to correlate driving behavior with insurance rates; however, storage of telematics data remains limited. Worldwide, 84 percent of all cars shipped by 2016 will incorporate telematics systems, up 19 percent from 2008 according to iSuppli Corporation.
The Telematics Survey was designed to help the insurance industry understand policyholder awareness of and attitudes toward, telematics systems and insurance programs based on telematics data. The study found that:
57 percent of policyholders believe auto insurance rates should be determined by actual driving data
Policyholders’ main concern is privacy; however they are more receptive to sharing driving data with insurance carriers than they are to sharing personal information with banks, or allowing mobile phone carriers to store text messages
80 percent of policyholders believe that tailgating should affect rates
59 percent of policyholders believe that miles driven per year should be used to determine rates
More than half of policyholders feel that minor speeding infractions (5 mph over the speed limit) should not impact rates.
“The survey findings show tremendous receptivity to allowing insurance companies to base rates on driving behavior,” said Stephanie Stevens, director of marketing and product development for Telematics at LexisNexis Risk Solutions. “We encourage insurance companies to use the findings to re-evaluate how they shape and market their telematics programs to best meet the needs of their policyholders.”
The survey also identified telematics-based insurance programs that are of most interest to consumers. Topping the list were empowerment programs that give drivers control over their insurance rates and the opportunity to understand and modify their own driving behavior. Programs that focused solely on discounts were not as popular.
The web-based survey polled 3,472 U.S. residents. Of this number, 3,148 were a representative sample of insured drivers and 324 were drivers with a 16 to 25 year-old dependent on their policy. More information on the telematics survey is available by contacting [email protected]
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About LexisNexis Risk Solutions
LexisNexis?’?® Risk Solutions is the leader in providing essential information that helps advance industry and society. Building on the legacy of proven LexisNexis?’?® services from the past 35 years, our cutting-edge technology, unique data and advanced scoring analytics provide total solutions that address evolving client needs in the risk sector while upholding high standards of security and privacy. LexisNexis Risk Solutions serves commercial organizations and government agencies and is comprised of several affiliated corporations, each offering premier customer-focused solutions. For more information, visit risk.lexisnexis.com.