in or near a major city has pondered this
question: If I’m commuting to work on
foot or via mass transit every day, and
only using my car on the weekends,
should I pay the same for insurance as
those who drive a lot more miles?
Integrating a “pay per mile” option
into your UBI program could address
these concerns, enabling you to attract
this coveted audience segment. As we’ve
seen recently with several insurers offering this as an alternative product, “pay
as you drive” insurance is growing exponentially and will only continue to do so.
Remember, you’re playing a long-term
strategic game here; one that benefits
those willing to be boldly different when
it comes to taking market share. Don’t
be afraid to meet your prospects where
they are, and get them passionate about
a more custom policy.
3. Offer incentives for
referrals and encourage
your customers to become
“ambassadors” for UBI
If we’ve learned anything from the high-
flying success of social media, it’s that
customer referrals are the lifeblood of
success for many companies, and the
viral network effect can, and does, con-
tribute to the growth and positive per-
ception of products and services deemed
to be “share-worthy.”
Millennials make up the vast major-
ity of social network users, and they are
willing to share their knowledge and ex-
perience with their networks. Up until
recently, talking about insurance was at
the bottom of that list, if on the list at all.
UBI is changing that.
To get in on this dynamic, consider
creating a program that incentivizes re-
ferrals, offering impactful rewards. You
already know how much it costs for you
to acquire a new customer, and in all
likelihood, most insurers are willing to
pay a lot more for one who is statistically
likely to have a much higher retention
rate. Don’t be afraid to get aggressive
here and offer something meaningful.
Ultimately, as you think through your
UBI strategy, you’ll need to consider
all of the audiences for your programs
and the technology that will be scalable
enough to support near- and long-term
These ideas can help companies engage with a segment that is open to what
telematics may offer, but delivering on
consumer expectations for this group or
others will be largely reliant upon an insurer’s ability to employ a flexible, con-figurable approach.