The use of e-scooters has expanded across the globe and their rise in popularity in the UK will create an opportunity for insurers that are quick to act, according to GlobalData.
Findings from GlobalData’s report, ‘Thematic Research: Sharing Economy in Insurance’, highlights that insurance options are limited for micro-mobility solutions. Liability is not clearly understood, but the implementation of clearer regulation would encourage more insurers to enter this market.
Challenges stem from when accidents are reported. For example, in the US a rider with private health insurance will likely be covered (at least to some extent) if they injure themselves. But if the accident causes injury to a pedestrian or property, then questions regarding liability arise. Home or car insurance could provide cover for damage caused by a third party, including shared mobility users. But ultimately, regulators have not been able to keep up with the rapid growth of the e-scooter market.
Jazmin Chong, Insurance Analyst at GlobalData, commented: “Due to the rapid launch of e-scooter trials, and fears of overcrowding on public transport in the midst of the COVID-19 pandemic, the popularity of e-scooters could soar. However, the UK Government might not have the appropriate time to pass the much-needed regulation insurers require to cover these vehicles. This would leave a market opportunity for UK insurers that can deliver pay-as-you-go insurance services and overcome legal barriers in a time of crisis.”