LexisNexis research reveals only 10% of drivers thought manipulating information for a cheaper quote was unacceptable

New research has revealed 70% of drivers think it is acceptable to manipulate information on price comparison sites for cheaper car insurance quotes.

The finding was part of a white paper released by LexisNexis Risk Solutions titled Finding and Building Loyalty in the Motor Insurance Market.

The survey of 1,500 motorists revealed only 10% thought quote manipulation was unacceptable, with 50% finding it “completely acceptable”.

LexisNexis motor insurance director Andrew Lowe said the rising cost of motor insurance was encouraging people to use these tactics to get a cheaper quote.

He said: “This has also created a real problem for the sector in quote manipulation on price comparison sites, particularly in relation to fronting, with the risk of policies being invalidated.”

And Lowe added: “This situation needs to be addressed and predictive data and analytics have a key role to play in identifying possible cases of misrepresentation at point of quote.”

Brokers have recently called for more restrictions on aggregators in the SME construction space over fears they facilitate customers purchasing inadequate insurance at a cheaper price.

Customers seeking cheapest deals

Other findings included:

  • 68% shop around every time their motor insurance is due for renewal.
  • 59% think insurers consistently charge too much
  • Nearly 40% of consumers switched their motor insurance to another provider at their last renewal.
  • 84% of consumers used a price comparison website as part of their policy selection process

The age group most likely to switch are those aged 35 to 44.

And Lowe added: “These findings reveal both the scale of the challenge for any provider seeking to retain its customers and the size of the opportunity for insurance providers able to poach customers from competitors.

“Intelligent use of data is essential in helping insurance providers deliver quotes that offer the best chance of conversion, based on individual risk and enhance the customer journey to create and retain strong customer relationships.

“Failure to do this will mean loss of market share to competitors that are beginning to harness technology and data to improve their products.”

Subscribers read more

The biggest headaches in personal lines

I stock 679057360