A study carried out by Léocare, a French insurtech, revealed that nearly 27% of French policyholders would consider canceling their car insurance to save money in 2023. Specifically, among individuals under the age of 35, a significant 40% of those surveyed expressed their inclination to refrain from renewing their car insurance policies, despite being one of the most vulnerable groups. The anticipated rise in insurance premiums poses an additional financial strain.
This alarming situation should not be ignored as the number of drivers without car insurance continues to rise. To prevent their customers from canceling their car insurance, car insurers can leverage digital tools to launch innovative car insurance products.
Among these products, connected insurance programs should be prioritized. Indeed, connected programs such as Pay-As-You-Drive (PAYD) and Pay-How-You-Drive (PHYD) insurance have gained popularity in several European countries including Italy, Germany and the UK. In France, insurers have introduced PAYD and PHYD programs but it remains limited in scope. Yet, they offer many advantages that can retain car policyholders:
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Price transparency
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Positive selection
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Road safety programs that can generate up to 30% reduction in distracted driving
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More accurate segmentation of the insured portfolio
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Innovative services including eco-driving and coaching
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Digital claim experience with crash detection
With the DriveQuant app, our white label mobile application, you can quickly set up a connected insurance program such as pay-per-kilometre or pay-per-minute. Watch Fabien Thierry, Marketing Project Manager at Altima Assurances, sharing his experience about launching a usage-based insurance program with our app:
