Insurance: Fleet products launched and usage-based policy savings

Flock launches insurance policies for 'connected' fleets

Flock, known for complex commercial drone operations, has launched two new policies aimed at ‘connected’ commercial fleet operators.

The insurtech company says it has already signed up its first motor fleet customers and signed agreements with telematics providers such as Samsara and Geotab, while also partnering with key insurance carriers including NIG, part of Direct Line Group. 

Ed Leon Klinger, CEO of Flock, says he’s excited to bring their data-driven approach to insurance into the “rapidly evolving” world of commercial motor fleets.

“Now, more than ever, fleet managers want flexibility from their insurers as their operations expand, contract, and change on a daily basis,” he said.

“With Flock Motor, we’re doing away with the ‘one-size-fits-all’ approach to fleet insurance.” 

He explained: “Every year, over one million people die in road traffic accidents. With Flock Motor, we hope to reduce that number, by providing real-time safety insights and incentivising safer driving.”

Customers will get access to an online dashboard where they can manage their policies and uncover insights into driver safety.

The insurtech says it is also signing up a “limited number of forward-thinking fleet owners” as launch customers for an entirely usage-based insurance product which is set for launch in 2021. 

Zego usage-based insurance policies for fleets ‘save cash’

Fleet operators have managed to save thousands of pounds a month by opting for usage-based insurance policies over traditional insurance products, claims Zego.

In research undertaken by the company, 95% of private hire fleets in the company’s network had driven fewer miles in September than originally estimated in their initial quote.

With all of these fleets operating under a usage-based insurance policy, which allows them to pay by the mile, the average firm has been able to save £108 a month per active vehicle on the road, compared to what they would have paid on a more traditional product, it says.

For a business with a fleet of 50 active vehicles, Zego says this equates to a saving of £5,400 per month, in addition to the premium saved on vehicles that have remained off the road, usually around 80% saving on monthly premium per vehicle as the customer is only paying the base part of the premium and not the flex part.

One fleet business that has employed this approach is replacement vehicle firm Limitless Accident Management.

The company, which specialises in helping non-fault motorists stay mobile following an accident, has cut its insurance bill by 63% since opting for Zego’s flexible policy.

Limitless business development manager Adam Abraham said: “It’s granted us the ability to flex between low and high levels of trade, which has been crucial to our financial stability through the Covid crisis. It’s also freed up capital to invest in our compliance management.

“I can’t see us ever going back to a traditional insurance policy. The idea of paying insurance for vehicles which aren’t being used just feels a bit outdated.”

Ines Feracci, director for B2B at Zego, explained: “Flexible insurance offers a potentially crucial lifeline for fleet operators, many of which have seen a steep decline in activity this year.”

Zego specialises in flexible usage-based insurance policies.

Clifford James launches vehicle diminution insurance

Clifford James, a firm of solicitors and insurance underwriting agency, has launched a new vehicle diminution insurance product to protect a vehicle from losing value if it is seriously damaged, and despite subsequent good repair, incurs a drop in value.

The diminution loss occurs because a vehicle sustains an accident history, explains Clifford James.

For example, two identical vehicles are offered for sale. One has been previously damaged in a motor accident and then repaired. Purchasers do not pay the same price for the accident damaged vehicle and expect a price reduction. It is this reduction in price that is insured.

Diminution insurance is aimed specifically at new vehicles up to three years old and worth up to a value of £150,000.

It is expected that the product will appeal particularly to car dealerships, vehicle manufacturers, lease and finance companies, as well as brokers and motor insurers.

The product can be sold standalone or as part of a suite of other insurance products such as GAP and breakdown cover.