Bicycle insurance is not a popular product in the UK – but that could be about to change, said GlobalData, the London-based platform that provides data analytics and expert analysis about global industries.
Less than 1% of UK consumers have a bike insurance policy, according to GlobalData’s 2019 UK Insurance Consumer Survey. However, bicycle sales surged during the pandemic, which has now presented an opportunity for insurers who are yet to capitalize on this expanding market.
“It is expected that individuals will not rush back to public transport and government investment will see cycling remain popular beyond lockdown,” commented GlobalData insurance analyst, Yasha Kuruvilla.
“According to GlobalData’s survey data, 9.0% of Londoners have bought a bike since the coronavirus pandemic started, compared to 4.8% of overall UK consumers,” he said.
“This has prompted bicycle insurance providers to offer attractive deals during the pandemic. Laka is offering third-party liability bike insurance for £1 per month until the end of the year, while Cycleplan is offering a 50% discount to NHS workers,” Kuruvilla continued. [Editor’s note: Laka and Cycleplan are specialist UK-based bicycle insurers].
“Insurance providers should form partnerships with cycle-to-work schemes that provide a tax-efficient way of purchasing bikes; they will become a more attractive benefit as businesses reopen offices and look for ways to keep their employees safe,” he said.
“As offices reopen, more people will cycle to work in order to avoid congested public transport over fears of contracting the virus. This will be most popular in cities where the distance between home and work is more manageable.”
Photograph: Bicycles are displayed inside Bike Shack, an independent bicycle shop in Leyton, east London on, Monday, May 18, 2020. Bicycle sales and repair, have seen an increase, since the coronavirus outbreak hit the United Kingdom. Now that some lockdown measures have been lifted, cycles shops are experiencing an overwhelming workflow, from sales to repairs as commuters are told to pedal to work when possible, in order to reduce the use of cars and public transport. Photo credit: AP Photo/Alberto Pezzali.
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