Following a short period collaborating on the development of a new mileage-based car insurance product, the RAC has become a strategic investor in London-based insurtech Wrisk.
The insurtech company aims to bring transparency and flexibility to the sector through app-based insurance designed to adapt to people’s lives. Wrisk has recently partnered with several reputable brands including serving as the sole car insurance provider for BMW's financial services arm in the UK and collaborating with Allianz Automotive.
The RAC and Wrisk are trialling a mileage-based car insurance product which enables customers to only pay for the miles driven each month, plus a flat fee for when their cars are parked.
The transparent monthly subscription insurance plan is designed to give customers the flexibility to choose the cover they need for their lifestyle. The plan offers an extensive choice of add-ons, from personal injury cover to accessory cover, as well as real-time pricing that reflects changes immediately, without incurring any fees. In addition, the subscription-based model gives customers the control to cancel at any time. The product is underwritten by the Munich Re group of companies.
Quotes for the pay-as-you-drive insurance product are delivered in around three minutes from only a handful of questions, hugely simplifying the 45-plus questions typically asked by comparison sites.
RAC Insurance and Financial Services managing director Mark Godfrey said:
“Our initial innovative work with Wrisk was so encouraging we decided to take a stake in the company. We are convinced there is a significant section of the motor insurance market that only drives lower than average miles every year who are not well served by the way standard car insurance is priced and who could benefit from a product that is set up specifically to cater for their needs that can be taken out quickly and is simple to cancel should it no longer be required.
“Our two companies are a good match in terms of our capabilities. RAC Insurance has a wealth of pricing expertise from using data to help insurers better price risk and experience from its hundreds of thousands of telematics devices which provide a powerful insight into the lower-mileage driving market.
“The Wrisk team is remarkably resourceful and agile. They have developed a flexible platform which is ready to deliver on a market need via a straightforward, easily scalable, app-based user experience.”
Wrisk CEO Nimeshh Patel said:
“From the very outset of our partnership the RAC had a clear vision to create a more holistic, engaging insurance experience for its customers, which fit perfectly with our mission to deliver customer-first insurance solutions which are simple, personal and transparent.
“Together, with our mutual belief in challenging the standard car insurance model, we have created a solution that meets the needs of today’s motorists and moves us closer to making usage-based insurance the norm.
“Through the WriskScore™ we are helping to recast trust and transparency in insurance, allowing customers to understand the factors that affect their quote, to make buying an insurance policy a positive life choice rather than a chore.”
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About RAC Insurance
The RAC has provided insurance services for its members since the early days of motoring. Today, RAC Insurance offers a suite of products to its customers including insurance for car, home, motorbike, van and travel, along with other niche products aimed at personal and business customers.
In 2018, RAC Insurance generated more than 41.2m quotes while six out of 10 customers chose to renew their insurance with the RAC.
The RAC is a top-five UK car insurance broker having exceeded the 600,000 policies-in-force milestone in 2019. It provides customers with great value insurance by searching a panel of carefully selected insurers to get the best possible prices.
RAC Insurance won Car Insurance Provider of the Year at the 2019 Moneyfacts Consumer Awards. It also won a Consumer Intelligence award for Customer Trust, as voted for by drivers, in both 2018 and 2017, as well as collecting the Customer Satisfaction award in 2018. RAC Car Insurance Plus is five-star rated by independent researcher Defaqto. The RAC’s own data shows that nine out of 10 customers would recommend RAC Car Insurance*.
The RAC launched Black Box Car Insurance in 2015 to help keep motoring affordable and to reinforce the value of establishing safe driving behaviours with new and young drivers. The RAC also offers a multi-car insurance discount to help drivers cut their motoring costs, Temporary Car Insurance and Learner Driver Insurance.
For more information visit RAC Insurance
* Based on a survey of new RAC Car Insurance customers between 1st July and 31st December 2018. 16,247 of 17,747 customers scored us 6 or more out of 10, therefore 92% (9 out of 10) are likely to recommend us to a friend or family member.
UK insurtech leader Wrisk has created a customisable platform that empowers automotive, retail, telecommunications and other leading brands, to build frictionless, mobile-first insurance experiences their customers will love. Setting a new standard for insurance that makes simplicity, transparency and customer ownership the norm, Wrisk believes that insurance today should centre around the consumer because great experiences build customer loyalty. Its unique WriskScore allows homeowners, renters and motorists to understand exactly how their insurance premiums are calculated. Authorisedby the FCA, Wrisk acts as a trusted partner to insurers and brands alike, helping them to launch and operate tailor-made, regulated insurance solutions. These are built for multiproduct and designed to cross-sell, and evolve in line with the ever-changing needs of consumers. Wrisk’s partners include the RAC, BMW, Munich Re and Allianz. For more information, please visit: https://www.wrisk.co/