"The motor insurance industry is on the brink of a major pivot"

A whopping 77% of motor insurance companies in the UK “admit to having put profit above customers for too long” and accept that the balance must be redressed to achieve future success, new research by software-as-a-service insurance platform By Bits has revealed.

Conducted by Insight Avenue in January and February on behalf of By Bits, the survey also found that increasing levels of customer satisfaction has now become a critical priority for 75% of car insurers.

Other findings include:

• 97% say drivers have been demanding fairer, usage-based pricing during the pandemic
• 20% have made changes to their motor insurance pricing models in the last 12 months
• 47% have made no significant product portfolio changes in the last two years
• 81% typically only engage with customers at renewal time, or once a year
• 11% are planning to significantly change their business approach to meet customer demands

“The motor insurance industry is on the brink of a major pivot, putting the driver at the heart of its future strategy,” asserted By Bits founder Callum Rimmer.

“Customers are becoming increasingly dissatisfied with their experiences – especially since the start of the pandemic – and unhappy about what they perceive to be unfair pricing and poor customer service. They will inevitably vote with their feet and turn to insurers that are meeting their changing needs.”

Rimmer, who also co-founded pay-by-mile motor insurance product By Miles, added that failure to keep pace with the changes will see emerging innovation-driven brands snap up market share, consumer trust, and loyalty.