Strategy
Vehicle manufacturers are entering usage-based insurance with targeted propositions
Usage-based insurance is typically targeted towards the younger demographics. However, the recent announcement that Porsche drivers may soon experience the benefits of this type of policy could be an indication of future partnerships across the insurance and manufacturing industries. GlobalData Financial Services writes
The agreement between Porsche Financial Services and insurtech Mile Auto to establish Porsche Auto Insurance will see a usage-based insurance proposition designed to meet the specific needs of Porsche drivers, developed and piloted in Oregon and Illinois. As a luxury branded car often cherished by their owners, this type of policy may also be a differentiator for Porsche.
With customers often holding a less than favourable view of insurance providers, the partnership could be a sign of things to come. With manufacturers installing increasingly sophisticated technology into vehicles, they are able to gain a far deeper insight into their customers’ driving habits, making them uniquely positioned to provide a more tailored insurance product.
Although still some distance away, the arrival of fully autonomous vehicles will undoubtedly see vehicle manufacturers take a more active role in the development and provision of insurance products. In the meantime, partnerships such as the one between Porsche and Mile Auto will enable vehicle manufacturers to build solid foundations in the insurance market and begin to develop their reputation with consumers as more than just vehicle manufacturers.
Key:
Total private motor GWP
Total motor insurance market GWP
Total commercial motor GWP
Source: GlobalData
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