2021 is set to be a big year in insurance

After the traumatic year of 2020, many are wondering where to look in terms of feeling safe. Insurance could well be the answer.

Motor insurance for one seems to be truly embracing the customer with pay-per-mile. By Miles was the first insurtech on the scene for that in the UK, but By Bits has launched with a promise to transform the customer experience and bring fair pricing and motor insurance to drivers.

The platform allowed motor insurance providers to create personalised services for customers and bring usage-based policies to market in a fast and cost-effective way. As a result, insurers can meet consumer demand for pay-by-mile products.

in December 2020, Marmalade launched a pay-as-you-go top-up motor insurance service. Customers take out an initial package comprising 500 miles for £195 ($259) and can top up 100–500 miles as they continue with their policy. However, top-up costs will depend on how safe the policyholder drives, as the policy uses telematics technology to track both miles driven and driving behaviour. Marmalade’s policy is most cost-effective for drivers covering less than 3,500 miles per year and was initially created to target younger drivers.

Carrot Insurance, which brands itself as a telematics-based insurer targeting young and new drivers, is also interested in developing a low-mileage product.

Business interruption takes the spotlight.

COVID-19 was destined to be a hardship for many
businesses. Now, one of the biggest test cases ever
brought by the FCA has head to the Supreme Court.

The hearing is expected to last four days and decided on whether insurers should pay out on business interruption claims related to the coronavirus pandemic.

A heap of insurers claim that policies were never meant to cover such an emergency. Eight insurance firms were involved in the original test case announced by the FCA in June 2020.

According to GlobalData’s 2020 UK SME Insurance Survey, 13.3% of UK SMEs have cancelled their business interruption insurance, with the leading reason (26.3%) being that their policy did not provide the level of cover they thought they needed.

Business interruption
takes the spotlight.

COVID-19 was destined to
be a hardship for many businesses.
Now, one of the biggest test cases ever brought by the FCA has head to the Supreme Court.

The hearing is expected to last four days and decided on whether insurers should pay out on business interruption claims related to the coronavirus pandemic.

A heap of insurers claim that policies were never meant to cover such an emergency. Eight insurance firms were involved in the original test case announced by the FCA in June 2020.

According to GlobalData’s 2020 UK SME Insurance Survey, 13.3% of UK SMEs have cancelled their business interruption insurance, with the leading reason (26.3%) being that their policy did not provide the level of cover they thought they needed.

However, due to lockdowns and restrictive measures introduced to curb the spread of coronavirus, 73.4% of policyholders expect their annual mileage to fall by up to 3,999 miles. With a large proportion of consumers decreasing their annual mileage, a wider range of motor policyholders would financially benefit from a usage-based insurance-style product.

Clover is set to make things more accessible in health insurance, Lemonade is still taking the world by storm. Fintech N26 extended its Allianz Assistance travel insurance included with N26 You, N26 Business You, N26 Metal and N26 Business Metal to cover epidemic and pandemic related claims.

The move will offer customers cover against trip interruptions if traveling when necessary during the Covid-19 pandemic, with no extra charges.

This is set to be another exciting year in insurance.

Patrick Brusnahan, Editor