As cycling kicks into a higher gear following an eventful Tour de France, a leading cycle insurance company is pioneering efforts for greater transparency in the sector. At the same time they are reporting that cycle insurance claims rocket.
In an innovative move, Bikmo, a UK cycle insurance company, has published details of what customers are claiming for. The average value of claims and perhaps most crucially for cyclists, the proportion of claims approved – a staggering 93%*.
This report kick-started ‘The Open Project’ which is designed to help cyclists understand what they are buying and what they are actually getting for their money. This was just in time for the biggest month in the sport – August.
As mass events reach a peak this month with hundreds of events across road cycling, mountain biking and triathlon, Bikmo’s founder and CEO, David George has encouraged cyclists to get onboard with the move for greater transparency in the industry.
He said: “Insurance is a simple concept, and humans have been doing it for over 3,000 years. It’s amazing how the industry is still full of ambiguity, misunderstanding, and confusion – especially in a rapidly expanding niche such as cycling.
“We see some terms which are bad for cyclists, like depreciation that reduces the amount paid out for older bikes, and fees for making changes when adding new kit. This is bad for the industry and bad for the riders, who want clarity so they can enjoy what they love best – cycling!”
David continued: “The Open Project is our way of providing that transparency in all aspects – from claims to pricing. We can use our growing influence to secure a better deal for all insurance customers.”
Average Claim is £1675
Statistics gathered from a survey of Bikmo customers showed that the average claim amounted to £1,675. This has been attributed to the growing n+1 syndrome. Nearly a quarter of all claims resulted in the customer receiving a new bike. 77% of all claims included components, clothing, and accessories. These often add up to a large proportion of the claims total. It also explains why cycle insurance claims are rocketing.
He added: “I’d rather Bikmo is leading the way than looking sideways and hopefully we can accelerate the pace of change in our sector.”
Bikmo’s ‘The Open Project’ will be a long-running initiative that tackles different topics one-by-one. Customers can also suggest new topics to be covered on Bikmo’s website.
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