By Bits, a new technology platform for the motor insurance industry, launched today with a pledge to drive greater market transparency.
The creators of the new platform say it 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”.
It aims to meet heightened consumer demand for pay-by-mile insurance products, which has risen in response to the COVID pandemic with many drivers criticising the need pay the same insurance premium despite doing significantly less driving.
“Motor insurance pricing is seen as opaque and unfair, and consumers are overwhelmingly dissatisfied with the level of service they are receiving,” said Callum Rimmer, founder and CEO of By Bits. “Because it is mandatory if you own a car, motor insurance feels like a tax rather than a purchase decision. This needs to change. Insurance companies urgently need to put the customer first or they risk losing market share and becoming irrelevant.”
He added as well as facilitating and accelerating the development of usage-based insurance products, By Bits also enables insurers to develop genuinely customer-centric products and services.
“The platform can integrate data and generate insight to support compelling mobile applications which give customers real-time data on car usage and savings, and tailored communications at each stage of the customer journey,” Mr Rimmer added. “This allows providers to establish more meaningful, long-term relationships with customers, helping to address extremely low retention levels across the industry.”
The By Bits platform is delivered through a software as a service (SaaS) model and can be integrated into existing technology systems or used as a stand-alone, white label solution.
A 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 is over £700 million per year.
Available to insurance companies both nationally and internationally, By Bits said it provides two main services – an insurance rating engine and an insurance policy management system. For insurers implementing a pay-per-mile product, it will split the premium into a fixed amount and a per mile amount, the firm explained.