My Policy, a provider of data analytics and telematics insurance, has announced a new investment from Zurich, which will see the insurance giant become a long-term insurance capacity provider at the group.
Zurich will join an existing panel of insurers to enable the “rapid growth” of My Policy’s recently launched usage-based insurance product, JURNY. It will also become a strategic minority investor alongside existing My Policy management and Inflexion Private Equity.
According to My Policy, the new investment from Zurich will “bring together the strength of Zurich’s existing underwriting experience and My Policy Group’s high quality data analytics and product design capability”.
The transaction will also see the continued support of Inflexion, a European private equity investor, as a shareholder in the group, as My Policy “evolves to offer solutions for a new generation of motor insurance”.
In addition, it also sees Zurich’s telematics equipment provider, Bright Box HK Limited, incorporated into the My Policy business, creating potential for future strategic partnerships with BrightBox’s customers.
The completion of the transaction is subject to regulatory approval, which is expected to be confirmed in the first quarter of 2021.
Patrick Quinn of My Policy, said: “In our ongoing effort to tailor our insurance to consumers’ needs, we are aware that increasing our usage-based offering will benefit a greater number of clients as driving patterns change in 2021 and beyond.
“Zurich’s investment in My Policy enables us to significantly boost our capabilities and this, combined with My Policy’s new pay-per-mile platform, JURNY, and the ongoing support of Inflexion, will help accelerate our growth plans further and meet changing customer needs.”
Siwan Lu, CEO of Zurich Insurance Mobile Solutions, added: “Our collaboration with My Policy further highlights our commitment to providing user-friendly products to our customers in an evolving world. My Policy Group offers a smarter way for customers to insure their vehicle, whilst also giving them more control over their insurance costs.”
It comes as the market for UBI motor products continues to be a high growth international opportunity, driven by underlying changes in driving behaviour. The global UBI market is estimated to grow at a CAGR in excess of 29% to reach a market value of $190bn (£135bn) by 2026, according to Acumen Research and Consulting.
This market growth has reportedly accelerated during the pandemic as consumer driving habits have evolved, with enforced lockdowns structurally changing the public’s driving patterns. For example, analysis of UK driving behaviour by My Policy during the first 2020 lockdown revealed, at its peak, a national decline in mileage of 63%.