The co-founder of London firm By Miles has launched a new听InsurTech听start-up听to help听insurance firms to meet the growing demand for usage-based insurance.听
By Bits听promises to听transform customer experience and bring fair and transparent pricing to drivers.听
It听enables motor insurance providers to create innovative, personalised services for customers and bring usage-based policies to market in a fast and cost-effective way.听听
In doing so, insurers can meet heightened consumer demand for pay-by-mile insurance听products, a trend that has been accentuated during the COVID-19 pandemic, when millions of people have continued to pay the same insurance premium despite doing significantly less driving.听
鈥淢otor听insurance pricing is seen as opaque and unfair, and consumers are overwhelmingly dissatisfied with the level of service they are receiving,鈥� said Callum Rimmer, founder and CEO of By Bits.听听
鈥淏ecause it is mandatory if you own a car, motor insurance feels like听a tax rather than a purchase decision. This needs to change.听听
鈥�Insurance companies urgently need to put the customer first or they risk losing market share and becoming irrelevant.鈥�听
As听well as facilitating and accelerating the development of usage-based insurance products, By Bits听says it听also enables insurers to develop customer-centric products and services.听听
The platform can integrate data and generate insight to support compelling mobile听applications which give customers real-time data on car usage and savings, and tailored communications at each stage of the customer journey.听听
By Bits says this allows providers to establish more meaningful, long-term relationships with customers, helping to address extremely听low retention levels across the industry.听听
The听By听Bits platform is delivered through a software as a service model and can be integrated into existing technology systems or used as a standalone white label solution.听听
Rimmer听continued: 鈥淥ur tried and tested platform future-proofs insurers in an unpredictable market where mobility, customer expectations and democratised data are dictating innovation.听听
鈥�This pandemic has changed driving habits for millions and the need for the whole听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.听听
鈥�We hope that in 10 years鈥� time people see the launch of By Bits as an inflection point听in the way motor insurance is delivered, in the same way that retail banking has been transformed over the last few years.鈥�听
A听recent study found that the average insurer spends around 3.5% of its total Gross Written Premium (GWP) on the technology needed to manage its product portfolio, which听is over 拢700 million per year.听听听
Available听to insurance companies both nationally and internationally, By Bits provides two main services – an insurance rating engine and an insurance policy management system. The听By听Bits rating engine enables insurance companies to calculate insurance premiums using听modifiable underwriting and rating rules.听听
For insurers implementing a pay-per-mile product, it will split the premium into a fixed amount and a per mile amount. The policy management system enables insurers to manage every aspect of the lifecycle of a car insurance听policy ranging from quotation to policy and renewal. Both services听are able to听be deployed as modular solutions that can be integrated with existing software or used as standalone products.听
Since听launching to the public in July 2018,听By Miles听has sold tens of thousands听of听policies.听