Admiral insurance, UK, recently announced that it would refund 110 million pounds of premium to its customers. That comes to around 25 pounds per customer. During the #covid19 lock-down, drivers stayed at home along with their cars. Motor claims frequency should be lower as a result. Hence this was hardly an altruistic gesture!
One would expect this type of a customer-friendly gesture from a digital insurer, and, surprisingly, it comes from an incumbent "old" insurance co. Other industry players are thinking about following suit.
Insurance is viewed as a grudge purchase, where customers often make a selection based on price alone. This action is what I dubbed "Caretech" in one of my earlier posts, could change that perception for Admiral. Show customers that you care at this time, and you will stand out as a brand.
On the other hand, I noted that digital insurance companies such as By Miles talked up their pay by the mile features. You pay for only the miles you drive. You get a small onboard device that you can fit under the dash. If you have a Tesla, you need to download an app on to the vehicle.
The added advantage is that these devices/app will read the sensors from the cars' onboard computer and let you know if there are any engine issues. Value-added and 21st-century insurance product!
