Motor insurance app Cuvva is filling a gap in the UK market by providing customers with an alternative to the traditional annual policy.
While daily and temporary motor insurance has been offered by providers such as Aviva and RAC for some time, Cuvva has introduced even greater flexibility to the market with the provision of hourly cover via its mobile application. The app is designed to solve the issue of purchasing insurance for shorter periods of time than are typically offered by annual policies.
The app meets key behavioural needs among the ‘on-demand’ generation, providing a flexible product via a slick mobile-online platform and a simple, convenient process. This touches on the preferences of 67% of UK consumers, according to the Verdict Financial 2015 UK General Insurance Survey. Furthermore, the three main attitudinal traits the app relates to – customers who value convenience, lead digital lifestyles, and are frequent users of the internet and mobile devices – are ideal for one in nine consumers, according to Verdict Financial’s Megatrends framework.
Cuvva offers a new take on private motor insurance and is an example of how insurers can target time-pressed, mobile-savvy customers in other insurance markets. Insurers can take note of Cuvva’s ability to offer convenient, quick, and temporary insurance solutions via a mobile application. This would be particularly appreciated in the travel insurance market, where travel protection often slips down the list of priorities for holidaying customers, or is forgotten about altogether. We’re already seeing products of a similar vein being launched in the home insurance space in the form of Belong Safe, which offers pay-per-day household insurance.
Cuvva’s other strength is its ease of use: the app simply requires the driver to register and input the vehicle’s licence plate in order to obtain a policy. In this way, Cuvva effectively removes the perceived difficulty of ‘just borrowing’ a car in the same way that Uber has changed customer attitudes towards ordering a taxi.
– This article is reproduced with kind permission from Verdict Financial. Some minor changes have been made to reflect BankNXT style considerations. Read more here. Photo: Cuvva; jeshoots, CC0 Licence