UK household insurtech Urban Jungle has entered the motor insurance space. GlobalData findings show that as one of the better-known insurance start-ups, it is well positioned to further grow its business. In addition, offering tailor-made policies to consumers at a time when inflation and living costs are skyrocketing will help Urban Jungle gain a competitive edge. Brand recognition for the insurtech is crucial.
One of the main challenges insurtechs face is competing against well-established insurers that have been around for decades. Early brand recognition can certainly help insurtechs grow their customer base. Findings from GlobalData’s 2021 UK Insurance Consumer Survey highlight that Urban Jungle is one of the insurtechs most known by consumers, with 10.4% citing they had heard of the brand. Marmalade was the most recognized brand, 2.5 percentage points ahead of Urban Jungle. Nonetheless, the strong position of Urban Jungle compared to other insurtechs indicates that the company is creating a name for itself.
Urban Jungle started its journey in 2016, but only launched its flagship renters insurance product in 2019. It promised customers flexible policies that enable them to pay just for the cover they need. In 2021, Urban Jungle expanded its offering, launching buildings insurance. With its recent crossover to motor insurance, Urban Jungle claims to be the UK’s first insurtech to go multiline.
Now the insurtech is set to shake up motor insurance, offering customers the possibility to design their own policy and, again, only pay for the cover they need. This includes the option to make changes to their policy as and when they want to online and free of charge. Urban Jungle’s car insurance policies can be monthly or annual and can be canceled at any time.
Fuel, energy, and food prices are soaring in the UK as the cost-of-living crisis deepens. This will prompt consumers to reassess their monthly outgoings. As a result, more flexible policies that individuals can tailor to match their needs – without having to pay for unwanted extras – will prove appealing. In particular, as Urban Jungle started as a renters insurance provider it is bound to have a relatively young customer base. Younger adults, who generally have lower incomes that people who have worked for longer, are one demographic particularly likely to be open to flexible car insurance policies promising fairer prices. Given Urban Jungle’s strong brand recognition as an insurtech, it has a good chance to succeed as it moves into this new line of business.