Micromobility in Insurance
Summary
Micromobility describes the range of lightweight vehicles designed for one or two people. This report examines the growth of micromobility in the UK and Europe. It looks at the types of micromobility vehicle, the services that are offered within the shared and micromobility space, as well as key regulations in major economies around the theme. It then takes a UK focus on insurance implications for owners, users, and renters of micromobility vehicles and finishes with some analysis of key players within the sector.
Shared mobility services are growing in popularity across most major cities (although not without some degree of contention). Rental e-bikes and e-scooters are common sights across most capitals in Europe as younger consumers make use of these cheap and accessible vehicles. The rapid growth of micromobility across the UK and Europe has created a huge number of opportunities to insurers.
Scope
- GlobalData’s 2023 UK Insurance Consumer Survey indicates that 40.5% of UK consumers own a bicycle. For consumers under the age of 40 and living in London, this figure rises to 45.8%.
- Shared mobility is a hugely popular transport method: there were over 11 million rides on Santander Cycles in London in 2022. In January 2024, Transport for London announced it will be increasing its number of e-bikes from 600 to 2,000 to keep up with growing demand for the service.
- Embedded insurance is a major distribution opportunity in the micromobility space. 21.6% of UK e-scooter policies were sold at the point of sale of the e-scooter, with the majority of these done online.
- See how micromobility is growing and changing the way in which urban dwellers travel around cities.
- Understand regulations and how they differ across countries in the micromobility sector.
- Identify key opportunities in the distribution of insurance products in this space.
- Benchmark yourself against leading insurers and insurtechs providing micromobility cover for consumers and businesses.
- Executive Summary
- Market overview
- Key findings
- Critical success factors
- Background and Summary of Micromobility
- What is micromobility?
- What vehicles are most attributed to micromobility?
- Table Figure 1: Londoners aged under 40 are more likely to own or use a bicycle than the UK average
- Table Figure 2: Tighter regulations have limited usage of e-scooters in Japan, the Netherlands, and the UK
- How do consumers and businesses use these vehicles?
- Table Figure 3: There were over 800 London Santander Cycle docking stations in 2022
- Table Figure 4: E-cargo bikes are emerging as cheap and versatile delivery vehicles
- What are key regulations in major countries?
- Table Summary of e-scooter regulations in selected countries
- Insurance Dynamics in Micromobility
- Private micromobility is a fast-growing market for insurance
- Table Figure 5: Even in countries where e-scooter insurance is mandatory, penetration levels are low
- Table Figure 6: Recommendations contribute to a high proportion of e-scooter insurance purchases in the UK
- Table Figure 7: Almost half of bicycle insurance customers in the UK pay GBP50 or less per year for cover
- Table Figure 8: Almost 80% of consumers want theft cover to be part of their bicycle insurance policy
- Table Figure 9: Over 20% of e-scooter insurance policies were sold at the point of sale for the vehicle
- Table Figure 10: Over a third of bicycle owners have insurance for their bike through their home insurance policy
- Insurtechs and legacy insurers have a role to play in micromobility
- Table Figure 11: Aviva is comfortably the leading bicycle insurance provider in the UK
- Table Figure 12: Laka fosters a community feel among its customers to create an all-encompassing bicycle insurance offering
- Table Figure 13: Zego is a leader in micromobility fleet insurance
- Private micromobility is a fast-growing market for insurance
- Appendix
- Abbreviations, acronyms, and initialisms
- Methodology
- Secondary sources
- Further reading
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