The RAC has become a strategic investor in London-based insurtech company Wrisk following the pair’s partnership on the development of a new mileage-based car insurance product.
The monthly subscription insurance plan is designed to give customers the flexibility to choose the cover they need for their lifestyle. The plan offers a choice of add-ons, from personal injury to accessory cover, as well as real-time pricing that reflects changes immediately, without incurring any fees.
In addition, the subscription-based model gives customers the control to cancel at any time. The product is underwritten by the Munich Re group of companies.
Quotes for the pay-as-you-drive insurance product are delivered in around three minutes from only a handful of questions.
Mark Godfrey, managing director of insurance and financial services at the RAC, said of the investment and partnership: “Our initial innovative work with Wrisk was so encouraging we decided to take a stake in the company.”
“We are convinced there is a significant section of the motor insurance market that only drives lower than average miles every year who are not well served by the way standard car insurance is priced and who could benefit from a product that is set up specifically to cater for their needs that can be taken out quickly and is simple to cancel should it no longer be required.”
“Our two companies are a good match in terms of our capabilities. RAC Insurance has a wealth of pricing expertise from using data to help insurers better price risk and experience from its hundreds of thousands of telematics devices which provide a powerful insight into the lower-mileage driving market.”
Wrisk chief executive officer Nimeshh Patel, who took on his role in the summer, commented: “From the very outset of our partnership the RAC had a clear vision to create a more holistic, engaging insurance experience for its customers, which fit perfectly with our mission to deliver customer-first insurance solutions which are simple, personal and transparent.”
“Together, with our mutual belief in challenging the standard car insurance model, we have created a solution that meets the needs of today’s motorists and moves us closer to making usage-based insurance the norm.”
Wrisk has recently partnered with several reputable brands. This includes serving as the sole car insurance provider for BMW’s financial services arm in the UK and collaborating with Allianz Automotive.