E-scooters offer growth opportunity for insurers

The classification of e-scooters as motor vehicles in the UK is a significant opportunity for insurers.

Research from data and analytics firm GlobalData highlighted that under the current business model, riders using e-scooter rental platforms are liable for any damage or harm caused by their use of the vehicle.

Ben Carey-Evans, an analyst at GlobalData, commented: “It is likely that start up insurers that have succeeded in the gig economy will look to transfer their ability to provide quick, digital and flexible cover to this space. These players are generally quick to spot new markets and launch products, so established insurers will need to be proactive, and offer modern policies if they are to benefit from this opportunity.”

The British Insurance Brokers’ Association is also pushing for some form of compulsory insurance for the use of on-road vehicles such as e-scooters for which drivers do not currently have to buy cover.

The trade body wants to stop compensation costs from these currently uninsured drivers and vehicles falling on motorists via the levy raised by the Motor Insurers' Bureau.

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