MDGO, a leading provider of accident detection and response (ADR) technology, announced new research revealing consumers expect an enhanced customer experience with automated services from insurers. The survey of 1,000 U.S. consumers finds that while 65% of drivers are worried technology put into a vehicle by insurers would be used to spy on their behaviors and ultimately to increase premiums, 75% would be willing to share vehicle accident information automatically if it could be used for life saving efforts. In fact, more than half of consumers (64%) would switch insurance providers if a carrier had the technology to help save lives in the event of an accident. The statistics show that personalized care, in case of a mild or severe car accident, is a major factor when it comes to customer loyalty and retention.
According to the survey, should an accident occur, 81% of consumers would find it helpful if an insurer was notified immediately and could help direct them to the nearest or best tow truck or auto repair shop to save them both time and money, especially in a moment of need. 78% also said they would prefer detailed accident information was available that could be shared directly with their insurance company to report an accident or during the claims process. The ability to know what happened in real-time, like automatic delivery of data on bodily injuries and damage to the vehicle, is critical to providing the personalized care and services that drivers are demanding. Unlike Usage Based Insurance (UBI) technology, with ADR, no user data is ever stored on an ongoing basis or shared with an insurance company. Only at the point of an accident will information be automatically transmitted to the insurer, assisting the driver with accident management and ensuring accurate, real-time reporting of data to the provider.
The research also found that 78% of respondents would be willing to share accident data in the event of a wreck to improve their overall experience. As ADR is notifying insurers at the point of a crash, the technology will automatically share critical information on the type and severity of injuries to first responders, fully preparing them for any life-saving measures that may need to be taken upon response. ADR technology offers insurers the ability to put drivers first by focusing on health and safety and delivering personalized experiences, while also decreasing claims costs with automatic first notification of loss (FNOL), optimizing the services within the insurer affiliated network, ultimately leading to a reduction in loss ratio. ADR technology also automatically exchanges third-party accident details enabling insurers to proactively engage the other party after an accident with a stronger defense if needed, all while eliminating any concerns around data privacy.
“Consumer demand for enhanced experiences is driving change across industries – and automotive insurance is no exception. With hundreds of carriers to choose from, insurers must deliver on the promise of personalized services while maintaining competitive premium costs, to attract and retain customers,” said Itay Bengad, CEO and Co-Founder of MDGO. “Though the shift toward direct to consumer is underway, drivers still value customized care when it comes to loyalty. ADR is creating alignment between policy holders and insurers to deliver on personalization without the added element of a middleman. This way, consumers receive unmatched service, while insurers also benefit from automatic FNOL, and the ability to regain control of claims costs.”
With the insurance industry moving toward direct-to-consumer service, insurers need to offer personalized care to improve the insurer-customer relationship in order to ensure increased customer retention.
About the Study
This survey was conducted via Dynata and targeted 1,000 general U.S.-based consumers over 18 years of age.