Right said Heraclitus: The only thing that is constant is change. The words by the ancient Greek philosopher stand demonstrated even today when one looks at the customer-base of the insurance companies.
Insurance companies are always worried about the churn in their customer-portfolio with many customers either stopping to buy insurance or moving to the competition. How do insurers retain customers, and more so, how do they attract the customers that are likely to stay with them longer?
The youngsters, those between the age group of 17 and 25—individuals who would have just received their driving permits—present a great opportunity to insurers as they are likely to invest in insurance for a longer duration than the middle-aged individuals.
How does an insurer influence this age group? Ingenie, a UK-based car insurer shows us the way. Ingenie found that the drivers in the age group of 17 to 25 are more prone to crashes than those from any other age group. Moreover, about 20% of these young drivers meet with an unfortunate accident within first six months of starting to drive. Ingenie simply installed their ‘Black Box’ technology to record the drivers’ driving habits—capturing each and every detail about their vehicle usage.