New research of 1,500 motorists by LexisNexis Risk Solutions has found that 7 out of 10 think it is acceptable to manipulate the information they provide when obtaining a quote for motor insurance from a price comparison site. The full findings of the research have been published in a white paper entitled, Finding and Building Loyalty in the Motor Insurance Market.
The research has uncovered the scale of frustration consumers feel about the rising cost of motor insurance, which in Q1 2018 was the highest Q1 figure recorded. This is resulting in 68% of the motorists shopping around for a cheaper quote, every time their motor insurance comes up for renewal.
Key findings of the LexisNexis Risk Solutions Motor Insurance Buying Behaviour research:
- 68% shop around every time their motor insurance is due for renewal.
- 59% think insurers consistently charge too much
- Nearly 40% of consumers switched their motor insurance to another provider at their last renewal.
- 84% of consumers used a price comparison website as part of their policy selection process
- 70% of consumers think it is acceptable to manipulate quotes to find a better deal when using a price comparison site.
Andrew Lowe, Director, Motor Insurance of LexisNexis Risk Solutions, UK and Ireland said: “Widespread frustration at the cost of motor insurance, the rise of online price comparison sites and the requirement for insurance providers to publish last year’s premium with this year’s renewal quote have all encouraged consumers to shop around for the best possible deal.
“This has also created a real problem for the sector in quote manipulation on price comparison sites, particularly in relation to fronting, with the risk of policies being invalidated.
“Our research shows that seven out of ten respondents saw quote manipulation as somewhat or completely acceptable, including 50% who said it was “completely acceptable”. Only 10% thought it was unacceptable. If consumers have made a claim within the past five years, they are more likely to think this practice is acceptable: the figure rose to 76% for this group.
“This situation needs to be addressed and predictive data and analytics have a key role to play in identifying possible cases of misrepresentation at point of quote.”
59% of the motorists surveyed think insurance providers consistently charge too much for motor insurance. However, the youngest consumers are least likely to switch: 65% of 18 to 34 year-olds stayed with their previous provider. The age group most likely to switch are those aged 35 to 44.
Andrew Lowe continues: “These findings reveal both the scale of the challenge for any provider seeking to retain its customers and the size of the opportunity for insurance providers able to poach customers from competitors.
“Intelligent use of data is essential in helping insurance providers deliver quotes that offer the best chance of conversion, based on individual risk and enhance the customer journey to create and retain strong customer relationships. Failure to do this will mean loss of market share to competitors that are beginning to harness technology and data to improve their products.”
Please click here for infographic – Harnessing Consumer Data in the Motor Insurance Market