Survey Shows Insurers Cautiously Moving Toward PAYD

Insurers cite systems technology as biggest barrier and protection of book of business as major driver

We polled 163 insurance company representatives from 91 companies that attended our Pay-Only-As-You-Drive Webinar to produce these PAYD Survey Results. Some interesting facts emerged:

• 59% declared their companies have investigated/considered offering a PAYD product.
  
• Two insurers will be offering a product by mid-2009, and twelve had plans to do so before the end of 2009.
  
• The top market driver for PAYD introduction was readiness to respond to protect their book of business from competitors.
  
• 46% considered the cost of implementing core systems for PAYD products as the major barrier
  
  

See more results in the full PAYD Survey Report »

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OTHER PAYD NEWS

Not Using Mileage as Rating Factor Costly, Says ISO's Quality Planning Report on $16.1 Billion Annual Premium Leakage
"Seldom is there debate over whether or not people who drive more miles should pay higher premiums, yet over the past several years some companies have elected to forgo the use of annual mileage as a critical rating factor "simply because it was difficult to validate," said Mr. Bhat, president of Quality Planning. "Their decision may prove costly." Read More »

Insurer PAYD Paralysis a Classic "Multiple Prisoners" Scenario
An underlying reason for slow insurer pick-up of mileage-based insurance products is fear of upsetting finely tuned books of auto business operating on thin margins, says Roger Grobler, CEO Real Insurance. However, when a few big insurers jump, everybody else will have to follow. Read More »

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PAYD RESOURCES

Pay-As-You-Drive Auto Insurance, a Brookings Institute, Hamilton Project research report, July 2008

PAYD Media Room, Exigen Insurance Solutions resources and links.

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