Will Cuvva have the same level of success as Lemonade in the USA with home insurance? Do insurers need to invest more in partnerships with start ups and are starts ups the only ones who have an interesting view?
Founded in Edinburgh, Cuvva allows customers to buy pay-as-you-go insurance via an app, rather than paying a flat yearly rate. Prices start at £7.80 per hour and so far, the business has sold more than one million hours of car insurance. A study by Pricewaterhousecoopers revealed the majority (74%) of insurance companies see technological innovation as a challenge for their industry, but few are actively seeking out collaboration opportunities or developing their own offerings in-house. Only 28% have explored partnerships with fintech companies and 14% have actively participated in ventures and/or incubator programmes. Less than half (43%) claim they had fintech at the heart of their own corporate strategies.