11 Jun 2021
Posted in Insurance
Hippo and Metromile combined auto-home insurance will prove popular for customers in the US
Two insurtech giants, Hippo and Metromile, have launched combined auto-home insurance in the US, which will provide consumers with more convenience and value. The product is set to expand across the US and beyond and GlobalData believes it would be well received in the UK. The policy will package together household and pay-per-mile motor insurance and will be offered to customers online.
Both start-ups have unicorn status (valued at in excess of $1bn) and are leaders within the insurtech trend. Metromile is a pay-per-mile motor insurer, while Hippo is a digital household insurer. GlobalData’s 2020 Insurance Consumer Survey shows that even the top UK insurtechs only have name recognition of around 10% (Marmalade was top with 13%), so it is not an easy market to penetrate.
However, GlobalData’s survey also shows that UK consumers are already extremely accustomed to purchasing insurance online. A total of 66.6% of consumers bought combined household insurance policies through a PC, laptop or smartphone app in 2020. This was lower but still above half the respondents (54.1%) for motor insurance.
Ben Carey-Evans, Insurance Analyst at GlobalData, comments: “Joined-up insurance is becoming a key trend, as it offers customers convenience and value. Two digitally-savvy start-ups, such as these two, can offer customized products to fit a customer’s needs for home and motor, which is likely to prove extremely popular. The two start-ups believe they will be able to deliver a 15% savings to customers in this package. Value is likely to be key in the coming years, as household budgets are likely to have been squeezed by the COVID-19 pandemic.
“Furthermore, the pandemic has also forced people of all generations to become more comfortable purchasing and managing products online. Previously, a policy like this may have been primarily aimed at younger generations, but the pandemic is likely to have increased the size of a potential market for a digital product such as this.”