Insurer and insurtech collaborate on commercial fleet insurance

Aioi Nissay Dowa Insurance UK (AND-E UK) and UK-based insurtech Flock have joined forces to launch two insurance products that they claim will improve the pricing and distribution of commercial fleet insurance.

The collaboration is designed to merge AND-E UK’s capacity and experience in motor insurance with Flock’s risk data and claims management platform, in order to produce more personalised policies.

The insurance products are available to self-drive hire, own-goods, courier and tradesperson fleets across the UK.

Flock is one of a number of insurtechs using telematics to analyse millions of data points to produce policies based on the size and safety of a fleet. The idea is that a safer driving record is reflected in lower per-mile prices, thereby incentivising better behaviour among insureds.

There is also an increasing number of partnerships being struck between insurtechs and larger insurers or car-leasing companies.

UK-based commercial motor insurer Zego has partnered with flexible leasing company Sogo to insure its fleet of vans and cars, which is expected to reach 20,000 vehicles by 2025.

Zego also became the UK’s first insurtech unicorn, after a Series-C fundraising round of £150m increased the company’s valuation to £1.1bn.

Using McCarron Coates as the broker, Zego will provide usage-based insurance on a per-mile basis, while Sogo’s use of telematics will enable the two firms to track individual driver behaviour.

“We are seeing a major shift from ownership to usership in the world of transport, for both personal and commercial use, and Sogo’s unique business model, coupled with our usage-based insurance, has huge potential to change the way that both people and businesses lease vehicles,” said Sten Saar, chief executive and founder of Zego.

In addition to the use of telematics, Flock also offers a digital dashboard that is linked to the UK’s Motor Insurance Database, to reduce administration costs for risk managers

“We believe the insurers of the future won’t simply pay claims; they will also actively incentivise and enable motorists to drive more safely and reduce risk,” said Flock’s CEO Ed Leon Klinger.

AND-E UK CEO Warren Hetz added: “The motor insurance industry is at a crossroads as insurance, technology and mobility converge, and this is creating a world of opportunities to improve road safety as well as deliver more tailored customer experiences.”

Flock is now signing up a select number of brokers to distribute its products to fleets within the UK. It is also working with AND-E to develop new features and bring its fleet products to other markets.