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Insurance Do's and Don'ts

It's important to understand who you are working with. Are they a broker or an authorised representative? What are their global connections? How deep are their relationships with insurers? What is their experience and expertise? Knowing who to approach for what type of risk is key to providing you with the appropriate cover for your business needs. Ensure your business partners are brokers or authorised representatives who have the right connections, as insurance is a relationship business as well as a data business.

Just like choosing the right broker or authorised representative is important, it is equally important to know who is providing you the cover. Like so many industries, insurance is undergoing challenges and change. It is important to understand who the insurer or insurance agency is.  Is the insurer able to support you over the long term? Do they have a team that understands your business? Are they prepared to review the data on an ongoing basis to support adjustments in premium?

Ensure your insurer can scale as you scale. Many insurance companies, even those with well known brand names, won't be able to underwrite the additional risk as you scale. Your broker and insurer are unlikely to tell you this at the outset so make sure you ask the right questions.

It is critical you only have one broker of record in the market at any one time. Engage one broker who is experienced in micromobility and who has deep connections into global markets. This will ensure you achieve the best premium and cover, in the fastest possible time.

Most brokers and insurance agencies have specialisations and every risk category is different. Insurance in micromobility is new and complex. In the same way you wouldn't go to a heart surgeon for a knee reconstruction, ensure you choose a partner who has a deep understanding of micromobility. Work with brokers and insurers who understand your business and ambitions. Make sure they deliver strategic support and structure the best combination of insurance arrangements for you. This will ensure you avoid costly errors.

Engage a broker who's insurer is ready to work with you in new markets. Every market is different and the requirements of cities are different. Partner with brokers who will help you navigate these issues and will help you negotiate with cities. Remember cities are learning too and without experience and good information, they are also liable to make poor choices. A good partner will be at your side in conversations with cities, educating and negotiating on your behalf.

Ensure your broker approaches insurers at least three to four months prior to launching in a new market. Some risks can be underwritten quickly and others take time. Insurance globally is undergoing change with insurers carefully assessing the risks they will and won't cover. You can't predict what might happen so ensure you allocate time to manage the process. Avoid last minute panic as you will pay for it.

Insurance is often judged by a customer's experience when making a claim. Make sure that this is a key attribute in your selection criteria. Where possible, technology should be at the forefront of any process driving a seamless and speedy claims process. Ask how your insurer will manage the claims process.

Partner with brokers and insurers who have innovative strategies and who continuously manage your premiums and benefits. Insurance in micromobility is not set and forget.

Avoid brokers who do not understand micromobility. They will ultimately do a poor job articulating the real risks as opposed to the perceived risks. Achieving the best premium is about good data and it's also about pitching on your behalf. If the broker does not understand your business and the marketplace, how can they negotiate well on your behalf? In some markets, premiums can be very expensive. Having an experienced partner can save you significant premiums.

Don't go to multiple brokers thinking you will get a better/faster deal. In insurance circles this is seen as the mark of an inexperienced player and will compromise your reputation. Whilst insurance is a global market, it's still a very small market and everyone talks. Having multiple brokers in the market will slow your process down and deliver a less than desirable outcome.

Don't sign a policy and then file it away. Micromobility is a new risk category and the landscape is shifting daily. Ensure your insurance partner is actively managing your book of business.