December 28, 2020 by David Gambrill
Matthew Turack, Group President, Insurance, CAA Club Group
Over the course of 2020, we have seen a fundamental shift in daily habits. Many of our existing office jobs have transitioned to at-home workspaces in the short term. Having P&C products and at-home services that cater to the new reality will drive change.
We may not see a 100% return to what life was once like. How we work, live, and travel has changed. But even before news of COVID-19 flooded our airwaves, consumers wanted products that were flexible while still providing good coverage.
Going forward, customization will be a hot topic in the P&C world. Consumers are telling us that a one-size-fits-all insurance solution isn’t working for them. They want flexible products like pay-as-you-go.
Based on a recent survey conducted by CAA South Central Ontario, six out of 10 members would consider exploring a pay-as-you-go insurance product that would allow them to buy auto insurance only for the kilometres they drive.
At CAA Insurance Company, we believe there is a good business case for pay-as-you-go auto insurance. Our model predicted that people who drive less get into fewer collisions and our data is showing that those predictions were accurate.
On average, pay-as-you-go drivers save 40% to 60% on their auto insurance costs. Customers who enroll are benefiting by paying lower premiums because they are driving less and getting into fewer collisions.
In order to accommodate this new stay-at-home reality, the P&C industry needs to adapt their products. Customers want flexibility and choice. We started years ago to anticipate people’s needs.
We also believe that in order to create these new and flexible products and programs, a continual partnership with regulators is needed to make these things happen across Canada.