EXPERT FORECAST : BANKING AND FINANCE
IS SHORT-TERM INSURANCE AT AN INFLECTION POINT ?
In a world where short-term insurance is gaining momentum , we hear from Andrew Ponter , Insurance Product Manager at LexisNexis Risk Solutions , UK and Ireland , on whether short-term insurance is at an inflection point .
Many of us have used temporary insurance at one point or another – perhaps to test drive a car or to borrow the vehicle of a friend or family for a specific trip . In fact , based on LexisNexis Risk Solutions Insurance research with Consumer Intelligence , approximately 5.4 million motorists have used these products in the past year . This is a corner of the market that could expand rapidly given recent and longer-term changes in our motoring habits . The only barrier is a pure lack of data on Non-Annualised Policies – or NAPs . Who has used them ? Why ? What is their claims history ? It ’ s going to take industry collaboration to help solve that challenge .
We know how hungry the market is for NAPs data . We also know that data sharing in No Claims Discount , quote behaviour , policy history and claims has become essential in delivering a market wide view of the industry ’ s experience with an individual . So , where sharing NAPs data is concerned , we ’ re already halfway there . Where there ’ s a will there ’ s a way .
The insurance industry ’ s appetite for NAPs data needs little explaining . After all , the number of car trips and the average distances travelled have fallen steadily over the last two decades according to the latest National Travel Survey . More recently we have seen use car use alter due to more of us working from home , people are considering how they can save motoring costs during the cost-of-living crisis , then there ’ s the environmental impact of motoring .
‘ Pay-as-you-go ’ is becoming the ‘ norm ’ in many aspects of our lives and while car ownership is still part of our culture and essential for many people in rural locations , in places where alternatives exist and parking has become costly and problematic , it is perhaps not surprising that some people may be considering reducing a two-car household to one or giving up the car altogether . This seems even more logical considering that a typical car is parked 95 % of the time .
The number of car trips and the average distances travelled have fallen steadily over the last two decades according to the latest National Travel Survey . www . intelligentfin . tech
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