InsurTech on the rise
29 Jun 2017
In New York it was "Lemonade", in London it is "By Miles". Both insurTech organisations signalling a different future for the insurance industry.
Last year Lemonade hit the streets of New York with the marketing line - "90 seconds to get insured .... 3 minutes to be paid". It has proved popular in it's target market and is spreading across the US.
Meanwhile in London pay-per-mile broker "By Miles" has attracted substantial funding and is currently awaiting a licence to begin operating.
The London based insurtech startup stated that it is set to launch what it described as a new kind of pay-per-mile insurance policy later this year.
The cover will be available along with a smartphone app that By Miles claimed will make owning a car simpler and more cost-effective for lower mileage drivers.
The business was founded by James Blackham and Callum Rimmer as a way to provide cover for motorists who drive less than 7,000 miles a year.
Co-founder and CEO, Blackham, said: “We didn’t think it was fair for drivers to pay full price for insurance when they weren’t using their car, so we’ve designed real-time insurance that treats customers as individuals and fits the way they drive.
“We’re already trialling the product with a panel of private beta testers from our waiting list, and this support from Hambro Perks and InMotion will allow us to get closer to our full launch.”
Private testers have driven 50,000 miles using the technology according to the broker.
The policies are aimed at people living in cities, driving mostly at the weekend or only driving short distances each day. By Miles said in a statement it offered motorists “a more flexible option that aligns better with their personal driving habits”.
Aside from a monthly subscription fee, By Miles uses telematics to track the distance a car travels and only charges customers for the miles they drive. Alongside a range of in-app tools, drivers can get an estimate of how much a journey will cost them in advance and access itemised receipts on their smartphone in real-time.
Blackham added: “We’re not just trying to make car insurance fairer and more transparent, we’re also trying to give drivers the power to make better decisions. If a customer sees the cost of a small journey is going to push them over their monthly budget, then they can make the choice to car share, get public transport or even cycle.”
Callum Rimmer, co-founder and chief technology officer of By Miles commented: “Our insurance is perfect for connected and automated vehicles because the driving data we need is already there – it’s just a case of our platform converting that data into smarter pricing for drivers.
“While we’re focusing on solving insurance for lower mileage drivers now, there’s no reason why our technology couldn’t be repackaged for higher mileage policies too. In the future, we may also look into offering fleet insurance or private hire insurance by the mile.”