Usage-based insurance (UBI) products appeal to consumers who prefer customized services, and their success is attracting droves of new entrants to the UBI arena.
Auto insurers’ $18 billion in premium refunds couldn’t offset poor communication ratings—insurers will likely invest in digital communication tools to fuel more effective interactions.
Leading US insurtechs Metromile and Hippo are collaborating on a discounted auto and homeowners insurance bundle. This will help the insurtechs better compete in the US’s crowded P&C market.
But intense competition in the space will also turn key players' attention on rebundling insurance and in turn lead to broader adoption among their many users. For example, Lemonade recently acquired Metromile and added autoinsurance to its growing offerings, while earlier this year Metromile and Hippo partnered to offer consumers a bundled auto and homeowners insurance product. Predictions.
The auto insurtech is a trailblazer in the space—and Lemonade can tap into its technology and reach to power its new insurance launch. The new auto offering that Lemonade rolled out in Illinois a few weeks ago will launch nationwide in the coming months—and its carinsurance will be telematics-based.
Autoinsurance customers shopped around more than ever amid the pandemic, causing a 3% increase in their migration to the five biggest US insurers—here are two ways insurtechs can fight back.