Kanetix.ca survey highlights opportunities and obstacles for usage-based insurance programs in Canada.
Toronto, ON (May 30, 2014) – With just 18 per cent of Canadian drivers familiar with usage-based insurance (UBI) programs, a recent survey by Kanetix.ca highlights both the opportunities and obstacles for this new approach to auto insurance in Canada.
The survey, conducted by Leger for Kanetix, looked at Canadian consumers’ familiarity with the notion of usage-based insurance, their willingness to take part in a program, savings expectations, and concerns.
Andrew Lo, Chief Marketing Officer and Chief Strategy Officer, at Kanetix spoke to the survey results and presented an in-depth report at the Insurance Telematics Conference held in Toronto on May 28 and 29. A full copy of Mr. Lo’s Canadian Usage-Based Insurance (UBI) Awareness Survey report can be downloaded for free from Kanetix SaaS. The report includes results from a national standpoint, as well as provincial.
Highlights of the Canadian Usage-Based Insurance (UBI) Awareness Survey report include:
Even though the vast majority of Canadians are not familiar with usage-based insurance, six in 10 say they’re willing to join a usage-based insurance program if there’s an opportunity to pay less for their auto insurance coverage.
Sixty-one per cent of Canadians believe they would indeed pay less for auto insurance, but two-thirds say that it would take more than $100 per year in auto insurance savings to entice them to switch.
Privacy is the biggest concern by Canadians with 75 per cent of Canadians expressing concern about the security of their personal information. Other significant concerns include: the information being used to deny an accident claim or cancel a policy; ownership of the information collected; the sharing of information with other auto insurers; and, that the device itself will not capture driving habits accurately.
“UBI in Canada is a big opportunity for both consumers and insurers alike,” says Mr. Lo. “From a consumer standpoint there is clearly an appetite for usage-based insurance, despite concerns. Consumer awareness and education programs will go a long way to accelerate adoption.”
A survey of 1555 Canadians was completed online between April 28 and May 1, 2014 using Leger’s online panel, LegerWeb. A probability sample of the same size would yield a margin of error +/-2.4%, 19 times out of 20.
Launched in October 1999, Kanetix was Canada’s first online insurance marketplace and today provides over a million quotes per year to consumers looking for insurance, as well as comparisons for mortgage rates and credit cards.
The Kanetix.ca comparison service is a one-stop shopping environment for consumers. Each day, thousands visit the Kanetix website to comparison shop their various financial needs. Shoppers choose what they want to compare, obtain a quotation and complete an online application or, with the help of Kanetix connect with the provider to purchase or apply for the product over the phone.
Through its Software as a Service team, Kanetix is also the leading provider of online insurance quotation technology, developing online quotation systems, mobile solutions, actuarial tools and websites for many of Canada’s largest insurance brands.