Insuret, Loopit partner to offer car subscription cover
Queensland-based underwriting agency Insuret has partnered with car subscription software provider Loopit to offer integrated car insurance and claims management for subscription fleet operators.
Loopit allows dealerships to provide car subscription services to their customers, with ongoing subscription management and billing managed through the online platform.
Under the Insuret partnership, new businesses seeking to enter the car subscription space can access vehicle insurance.
The Insuret digital claims portal is integrated directly into Loopit’s platform, so car subscribers can easily process a claim online in a seamless experience for the end customer and the asset-owning car dealership.
The Insuret subscription model for insurance caters to all newer forms of car usership, such as peer-to-peer fleets, rental car fleets, rideshare fleets and car subscription fleets.
“We have seen increasing demand from businesses around the country for insurance products that suit new car usership models,” Insuret MD Jason McDonnell said. “We have geared our systems to manage this emerging market.”
When drivers access cars via an alternative ownership model, insurance is often covered by the organisation that actually owns the car. In the case of subscription, this means the car subscription company, manufacturer or dealership that is offering the service.
Insuret says insurers need to provide tailored services that suit these businesses, and make it easy for drivers to access claims if necessary.
“Currently, 30% of our new customer opportunities come from emerging markets such as car subscription, peer-to-peer and rideshare. We expect to see this continue, with rapid growth predicted in these segments across the next five years,” Mr McDonnell said.
Insuret says a barrier to industry transformation in Australia is legislation where laws prohibit much car innovation, and many insurers are resistant to developing technologies that will allow them to manage these alternative ownership models, given they are still emerging.
New mobility models are growing fast across the country though, and global trends indicate this will continue, with Volvo Cars’ subscription service making up almost 15% of new car retail business in its first year of business.
“Australian insurance retailers will soon have to adapt their services to cater for this increased demand,” Insuret says.
New Loopit research shows almost a quarter of Australians now don’t own a car, and covid has accelerated the shift toward car sharing and subscriptions.
Car subscription differs from leasing, renting and car sharing and the owner of the asset is not the primary driver, requiring a new type of insurance based on the fact that there are multiple contacts which need to be considered to protect the asset owner.
Loopit and Insuret say most major insurers are not progressing their retail insurance models to appropriately manage a change to car subscription and other new forms of mobility.
