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  1. Analysis
March 21, 2022

By Miles eyes expansion as conditions are perfect for pay-per-mile insurance

By Patrick Brusnahan

UK-based pay-per-mile insurer By Miles is set to expand into Europe as it looks to make the most of how behavioural changes from the pandemic perfectly suit its proposition. While the start-up had become established prior to the pandemic, it may now see sharp growth, as pay-per-mile insurance looks set to be a key trend. Consumers are working from home far more regularly; therefore, having less need to commute, combined with soaring energy prices, will make them look into cutting costs, and motor insurance that is tailored for driving less will be a more attractive option.

GlobalData’s 2021 UK Insurance Consumer Survey found that 28.1% of consumers expect to drive fewer miles as a result of the pandemic. Pay-per-mile insurance means customers pay a small flat annual fee and then top it up based on the amount of miles they drive. If they do not drive a significant amount (under 7,000 miles a year), it will work out cheaper than a traditional policy. It also gives consumers the chance to reduce premiums by driving less if budgets are squeezed, and this is a lot more likely if they are not having to drive to work.

Source: GlobalData’s 2021 UK Insurance Consumer Survey

Therefore, the timing for By Miles to expand into Europe could not be better. It has already established itself as a solid insurtech in the UK: our 2021 UK Insurance Consumer Survey found that 6.5% of consumers had heard of By Miles. While that is not a huge number, it is impressive given that it is hard to break through the insurance industry’s high barriers to entry and become known alongside the traditional brands, especially in lines where competition is strong, such as motor insurance.

By Miles will expand into Italy in 2022 and then further into Europe in 2023, and if it can attain brand recognition, it is likely to disrupt these motor insurance markets.

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