Insurtech 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.
By Bits has been launched by the co-founder of BY Miles, the UK-based pay-by-mile insurance product.
“Motor insurance pricing is seen as opaque and unfair, and consumers are overwhelmingly dissatisfied with the level of service they are receiving,” said Callum Rimmer, founder and CEO of By Bits.
“Because it is mandatory if you own a car, motor insurance feels like a tax rather than a purchase decision. This needs to change. Insurance companies urgently need to put the customer first or they risk losing market share and becoming irrelevant.”
In addition, the By Bits platform can integrate data and generate insight to support compelling mobile applications and provide customers with real-time data. This is then delivered with a SaaS model and can be integrated into existing technology systems or used as a standalone.
Rimmer continued: “Our tried and tested platform future-proofs insurers in an unpredictable market where mobility, customer expectations and democratised data are dictating innovation. This pandemic has changed driving habits for millions and the need for the whole UK car insurance industry to catch-up to customer expectations, grow with the changing mobility landscape and create the freedom to innovate has never been more pressing. We hope that in 10 years’ time people see the launch of By Bits as an inflection point in the way motor insurance is delivered, in the same way that retail banking has been transformed over the last few years.”
A number of motor insurers are increasingly targeting young drivers by launching pay-as-you-go insurance. However, with a greater number of consumers flagging a permanent change in driving behaviour, such insurance may benefit a wider range of customers.
GlobalData’s 2020 UK Insurance Consumer Survey finds that before the pandemic, 67.3% of consumers drove up to 7,999 miles on an annual basis.
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.