Cycleguard: Only 18% of UK cyclists have insurance
The UK bicycle insurance provider, Cycleguard, which is underwritten by Thistle Insurance, has released the details of its most recent study.
The report reveals while an estimated 12.4 million cyclists will be taking to the UK roads this summer, only 18% of them will be insured.
The rise in cyclists on the roads is mainly due to the travel restrictions as a result of COVID-19. Two-fifths of Britons, (39%) will be taking a staycation holiday within the UK this summer, with 44% planning on taking or hiring bicycles.
The research, which was conducted by Opinium last week, found that of the 12.4 million bikes expected to be on the roads, those cycling will take on average two bikes per trip.
“This is going to be the summer holiday of cycling,” said Alex Bennett, Director of Thistle Insurance, “With the weather finally turning, schools about to break-up and families desperate to get a break there is no doubt we’re about to see far more bikes around and for all the fun and fitness this will, unfortunately, bring with it an increase in damage, accidents, and theft as a result.”
First-time cyclists uninsured
For many, it will be their first time using a bike whilst on staycation. According to the research, 23% of those planning to cycle themselves have not done so on staycation before. This figure increases to 31% of children cycling for the first time and further still for first-time partners (35%).
Despite this marked increase in bikes on the road, holidaymakers are not going to take out any additional or specialist insurance. The research found that almost half (49%) of those on staycation will not take out insurance. This figure rises to almost two-thirds of those aged 55 and over (64%). According to the data, 25% of those planning on cycling will rely on health insurance with less than a fifth (18%) having bike insurance in place.
Bennett concluded, “Given we’re going to see many more cyclists on the road - many of them children and first-time riders, the lack of appropriate insurance is worrying. Many policies might not cover injury, accident, or bike theft so this is something we would urge holidaymakers to reconsider to avoid a potentially expensive and unwanted surprise at the end of their trip.”
The Lake District is expected to see the most amount of cycling staycationers with 15% holidaymakers heading there. This was followed by Wales and Cornwall (both 14%).
- Two-fifths of Brits (39%) are planning a summer staycation this year with 44% taking or hiring a bike
- Expected to be 12.4 million bikes being used on staycations across the UK
- Nearly a quarter (25%) have not done so on a staycation before - 31% of children and 35% of partners
- Almost half (49%) have not taken out any insurance with only 18% having bike insurance in place
- Lake District will be the most popular destination for cycling staycationers - 15% heading there
CB Insights: US Insurtechs Are Competing In A Global Market
In the first half of the year, insurtech companies around the world have raised US$7.4bn, nearly doubling their funding in Q2. According to Digital Insurance, insurtechs have raised US$4.8bn in Q2—an 89% increase in funding from Q1. But US firms are no longer the sole beneficiaries.
What Are the Stats?
Out of the 15 Q2 mega-rounds—those that top US$100mn—only eight included American firms. Pretty good, you might say. That’s over half! But US companies only made up 38% of the deals, which marks a 10% drop from Q1 and a 12% drop from 2020. Technically, therefore, US insurtechs are less influential than they’ve been in the past. But who says this is a bad development?
Despite my American citizenship, I’d argue that a more globally diverse insurance market is only for the best. Many of the world’s citizens who could most benefit from improved insurance services live outside of the States—and deserve local, tech-savvy services.
Why Does This Matter?
You’re always going to see the typical insurtech contenders from Western countries. For instance:
- German-based wefox: US$650mn Series C
- UK-based Bought By Many: US$350mn Series D
- US-based Collective Health: US$280mn Series F
But it’s critical that we address risk across the world. American insurtechs might be some of the most technologically skilled firms in the industry, but it’s not their first goal to address floods in Southeast Asia, crop destruction in China, and COVID complications in South Africa. That’s why we should celebrate that the recent Q2 round included insurtechs from 35 different countries.
According to CB Insights’ Q2 2021 Quarterly InsurTech Briefing, this was the first time that they’d observed insurtech activity in Botswana, Mali, Romania, Saudi Arabia, and Turkey. And ‘from a product, service, distribution, and underlying risk perspective, we—as a society and as an industry—are moving at an unprecedented speed’, says Dr. Andrew Johnston, Global Head of Willis Re InsurTech.
Just ask CB Insights. InsurTech value propositions have resonated with the world.