According to a study conducted by Léocare, a successful French insurtech, nearly 27% of French motorists would be prone to give up their car insurance to save money in 2023. Among the under-35s, the most at-risk motorists, 40% of those surveyed claimed they were prone to not renewing their car insurance.
These alarming results are the consequences of an increasingly tense economic situation. The sharp premium increases expected for 2023 also impact the morale of French people already suffering from rising inflation. To prevent a massive quitting of their customers, insurers must act quickly and set up alternative offers to motorists based on fairer and more transparent pricing policies.
What are the solutions?
One alternative is the launch of Pay-As-You-Drive or Pay-How-You-Drive insurance. Already popular in EU countries such as Italy, these kinds of insurance are still a niche market in France. However, they offer many advantages that would be useful given the context. They include, among others :
- An economical and transparent pricing policy based on real mileage,
- An offer that benefits and attracts good drivers,
- A 30% reduction in distracted driving,
- More precise segmentation of the insured portfolio,
- A strategic competitive advantage regarding communication on eco-driving and road safety,
- Accelerated claims detection and management.
Many insurers, such as ALTIMA, have already successfully launched their pay-as-you-go insurance offer using DriveQuant's solution.