As the situation regarding COVID-19 continues to impact how we live, work and use our vehicles, it is presenting interesting challenges for traditional, rigid insurance models. It is not that usage-based insurance gives customers a product that can adapt to our current situation specifically, but that flexible cover helps us react to any unexpected event. Whether we are talking about a global pandemic or any other rapid and unforeseen change in the world, usage-based policies provide access to fairer insurance that is priced more accurately according to risk.
But why was nobody demanding more from insurance 50 years ago? Nowadays, events of varying significance take place in shorter cycles. If I want to know how frequently to water a plant, I can find an answer in 10 seconds online, whereas I may have spent hours in the past speaking to people. For anyone born after 1980, the average time spent in one job is now just 3 years, whereas those over 65 spend an average of 10 years in the same role. There are now more rented homes than owner occupied homes in London, a trend which is only expected to increase further.
Technology and the access we have to information drives a world where everything is available more immediately. Traditional insurance, however, remains the same. As a result, it does not reflect the frequency of change that we see today, which is becoming increasingly clear as people demand more from insurers. Life is more unpredictable than ever before and flexibility becomes essential as a result.
Although flexible insurance was not designed with our current situation in mind, COVID-19 has highlighted many of the benefits of usage-based insurance policies. Whether we use our vehicles for work or just our own personal driving, many of us have found that we are driving less frequently during this time, creating a large discrepancy between the amount we pay for insurance and our risk as a driver. In the aftermath of our current situation, customer demand for fairer insurance is only likely to increase further. There will be a stronger need for insurance products that can display the agility and adaptability required to respond to new developments.
At Zego, we will do everything we can to support our customers through this time. Whether it is by continuing to provide drivers with flexible cover or launching new insurance products designed specifically to help people in these challenging times, we are here to help. As the world evolves at an ever-increasing pace, we exist to support change, creating new possibilities for everyone from delivery drivers to fleet owners.