Line of business: Motor Fleet
With the pandemic locking Brits down for prolonged periods over the past year, the already thriving courier and express delivery market is now well into double digit annual growth. Research from Mintel estimates the sector's market value is forecast to increase 92% between 2019 and 2024 to reach £21 billion.
So, when a commercial insurtech came to us with an idea to provide short term insurance solutions for courier drivers, we knew our partnership could bring about a niche solution to meet the evolving needs of a booming sector.
The challenge was to design a product that would allow us to maintain the control and agility we had with single vehicle customers when applied to fleets of 20-200 vehicles. However, where we had the technical knowledge, our partner had the infrastructure and experience of the gig economy space to ease this concern.
Our team presented various options and provided technical feedback, helping our partner to build the proposition in terms of product and pricing. The result was a demand driven product which delivered added value by helping fleet owners with a more flexible approach. By insuring only those vehicles that are in use, fleet owners could manage surges in demand and maximise cash flow, a feature that is particularly important in these unprecedented times.
By working together and bringing our strengths to the table, the partners launched a 6-month pilot by May, which was forecasted to write £1.5m GWP over the period. Now with the 6-month period at an end, we have exceeded all initial expectations and shown a genuine appetite for the proposition.
The product will be fully rolled out this year and is set to generate an estimated £4.5m in GWP, and with the strength of our partnership should continue to evolve and move with this exciting emerging market.