28 Jul 2020
Posted in Coronavirus
COVID-19 will drive demand for bike insurance in cities and offer opportunity for insurers, says GlobalData
Bicycle insurance is not a popular product in the UK. Less than 1% of UK consumers have a bike insurance policy, according to GlobalData’s 2019 UK Insurance Consumer Survey. However, bicycle sales surged during the pandemic, which has now presented an opportunity for insurers who are yet to capitalize on this expanding market.
GlobalData insurance analyst, Yasha Kuruvilla, comments: “It is expected that individuals will not rush back to public transport and government investment will see cycling remain popular beyond lockdown. According to GlobalData’s survey data, 9.0% of Londoners have bought a bike since the coronavirus pandemic started, compared to 4.8% of overall UK consumers.
“This has prompted bicycle insurance providers to offer attractive deals during the pandemic. Laka is offering third-party liability bike insurance for £1 per month until the end of the year, while Cycleplan is offering a 50% discount to NHS workers. Insurance providers should form partnerships with cycle-to-work schemes that provide a tax-efficient way of purchasing bikes; they will become a more attractive benefit as businesses reopen offices and look for ways to keep their employees safe.”
Kuruvilla adds: “As offices reopen, more people will cycle to work in order to avoid congested public transport over fears of contracting the virus. This will be most popular in cities where the distance between home and work is more manageable.”