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February 15, 2021

Customer satisfaction substantially higher among motor insurance customers that received a rebate

By GlobalData Financial

The number of personal injury claims decreased significantly in 2020 due to country-wide lockdowns. With insurers paying less due to this drop, there are renewed calls for insurance customers to receive rebates to compensate them for the change in risk. Motor insurance has a real chance to improve customer satisfaction with rebates.

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Gain valuable insight on the Motor Insurance industry outlook for Asia Pacific

Asia-Pacific was the fastest-growing region globally during the review period (2016-2020), recording growth at a CAGR of 2.7%. China was the market leader, accounting for 52.9% of the region’s motor insurance premiums in 2020. To help you make the most of this significant growth, GlobalData’s has put together a comprehensive overview of the Asia Pacific motor insurance industry, including market sizing and forecasts. Read ‘Motor Insurance Industry Outlook in Asia Pacific’ for:
  • Analysis of leading insurers in the region
  • Details on regulatory requirements, including licensing rules, capital requirements, taxation regimes, and ownership quotas
  • Analysis of the impact of COVID-19 on the industry
  • Insight into key trends, technology developments, and potential disruptors in the motor insurance industry
  • Recent M&A activity in the motor insurance industry
Improve your business strategy with our extensive report. Download it for free, now.
by GlobalData
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According to GlobalData’s 2020 UK Insurance Consumer Survey, only 16.1% of consumers received a rebate from their car insurance provider last year. But this figure may in fact be higher, given that many consumers did not report receiving a rebate despite their insurer issuing all its customers with blanket refunds. For example, only 42.0% of Admiral’s customers reported receiving a rebate in 2020, despite the provider offering a flat refund of £25 to all its customers. Likewise, only 4.1% of LV= customers reported receiving a rebate after the insurer issued refunds ranging from £20–50.

Insurers that do provide rebates should ensure that their customers are aware of them. This has clear implications on customer satisfaction. 43.9% of those that reported receiving a rebate are classed as promoters of their insurance provider, compared to 27.7% for those that did not receive one. The average net promoter score for those receiving a rebate was 31.3, compared to 3.3 for those that did not receive one.

With the lockdown continuing and no firm date set for the easing of restrictions, there are renewed calls for further rebates. According to data from the Compensation Recovery Unit, the number of personal injury claims due to motor accidents decreased by 46% in 2020. According to data from the Association of British Insurers (ABI), the average cost of a personal injury motor claim is £10,676, with this claim type being the most expensive faced by insurers. Therefore, a fall in the number of personal injury claims by almost 50% would represent huge savings for them. However, ABI data shows motor insurance premiums fell by only 1% in 2020.

Insurers may come under fire from customers who did not see a reduction in their premiums when most of them are driving less. This should prompt more switching at renewal from disgruntled customers, as well as incumbent insurers losing market share to newer insurers that specialize in usage-based insurance for low-mileage drivers. Those insurers that do give further rebates should clearly communicate this to their policyholders to avoid this fate.

Free Report
img

Gain valuable insight on the Motor Insurance industry outlook for Asia Pacific

Asia-Pacific was the fastest-growing region globally during the review period (2016-2020), recording growth at a CAGR of 2.7%. China was the market leader, accounting for 52.9% of the region’s motor insurance premiums in 2020. To help you make the most of this significant growth, GlobalData’s has put together a comprehensive overview of the Asia Pacific motor insurance industry, including market sizing and forecasts. Read ‘Motor Insurance Industry Outlook in Asia Pacific’ for:
  • Analysis of leading insurers in the region
  • Details on regulatory requirements, including licensing rules, capital requirements, taxation regimes, and ownership quotas
  • Analysis of the impact of COVID-19 on the industry
  • Insight into key trends, technology developments, and potential disruptors in the motor insurance industry
  • Recent M&A activity in the motor insurance industry
Improve your business strategy with our extensive report. Download it for free, now.
by GlobalData
Enter your details here to receive your free Report.

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