08/25/2015
ATLANTA – More than half of small fleet managers are likely to stay with their current insurance carriers rather than switching if their insurer offers usage-based insurance (UBI) programs, according to the 2015 LexisNexis® Commercial Usage-Based Insurance Study released today. An annual study conducted by LexisNexis® Risk Solutions, a leading provider of data, analytics and technology, also found that 25 percent of commercial fleet managers of all sizes would enroll in UBI, but current usage rates are only at six percent.
“There is a significant gap between the estimated demand for commercial UBI and current enrollment rates,” said Deke Phillips, Director, Commercial Insurance, LexisNexis Risk Solutions. “This indicates a substantial market opportunity for insurance carriers to raise awareness and eventually adoption, especially with small fleets of two-to-five vehicles. More insight into the driving behavior of commercial drivers will benefit insurers by knowing the risks on the road, and driver feedback methods have the potential to improve driving and positively impact everyone on the road.”
Specific findings showcasing strong opportunity for insurers to target small businesses and their small fleets include:
That being said, if an alternate carrier offered a fully loaded UBI package, which includes insurance at a 10 percent discount and fleet management services, provided through a fleet manager’s preferred technology, more than half of the respondents would be likely to switch carriers.
Similar to the 2014 LexisNexis Insurance Telematics Study results, small fleet managers find benefits in value-added services, but these services are not a significant driver in adoption of commercial UBI programs. The study also found that smartphones, which present a low cost entry to adopting an UBI program, are appealing since most costs are paid for by employers. Employee barriers related to the cost and data usage of using their personal smartphones for UBI is relatively small.
For more information, download the 2015 LexisNexis® Commercial Usage-Based Insurance Study whitepaper. LexisNexis Risk Solutions also conducts an annual consumer telematics study that reviews consumers’ knowledge of and interest in UBI programs. This study will be released soon.
Methodology
LexisNexis Risk Solutions conducted a blind, web-based survey to collect feedback from managers of commercial vehicle fleets. Respondents were managers of fleets comprising 2 to 20 vehicles that are owned or leased by the business and were policy decision makers covered by a commercial auto insurance policy.
About LexisNexis Risk Solutions
LexisNexis® Risk Solutions includes seven brands that span multiple industries and sectors. We harness the power of data, sophisticated analytics platforms and technology solutions to provide insights that help businesses and governmental entities reduce risk and improve decisions to benefit people around the globe. Headquartered in metro Atlanta, Georgia, we have offices throughout the world and are part of RELX (LSE: REL/NYSE: RELX), a global provider of information-based analytics and decision tools for professional and business customers. For more information, please visit LexisNexis Risk Solutions and RELX.
Media Contacts