By Miles co-founder launches insurtech start-up By Bits
The co-founder of UK-based insurtech By Miles, which provides pay-per-mile car insurance, has launched a new technology platform for the motor insurance industry citing growing demand for usage-based insurance.
The start-up, called By Bits, will enable motor insurers to develop customer-centric products and personalised services, and bring usage-based policies to market in a cost-effective way.
By Bits will provide two main services - an insurance rating engine and an insurance policy management system - that can be integrated with both existing technology systems or used as standalone, white label solutions. It will be available to insurance companies both nationally and internationally.
The rating engine will allow insurance companies to calculate insurance premiums using modifiable underwriting and rating rules, while the policy management system will enable them to manage every aspect of the lifecycle of a car insurance policy ranging from quotation to policy and renewal.
“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.”
Rimmer added: “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.”
Phil Ost, head of personal lines at Zurich Insurance Group, commented: “Whilst price will always remain hygiene, we see a move away from a pure price dominated model with its 'arms race' to source incremental data to compete for the best risks and its reliance on price ranked comparison engines.
"In the new environment, in order to attract and retain customers for the long-term, the market will have to shift its thinking to the wider customer proposition including the service it delivers and the services it offers. As a key enabler, technology and digital delivery will undoubtedly play a significant part in this journey, whether it’s the smart use of telematics across the value chain or tools to speed up the settlement of claims.”
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