BGL Group, a leading digital distributor of insurance and household financial services, has reported significant growth for its short-term insurance brand, Jaunt. Launched in May 2019, Jaunt has gone from strength to strength, experiencing a 60 per cent growth surge in customer numbers since January.
This spike in demand for flexible, cost-effective insurance coincides with the outbreak of coronavirus in the UK which resulted in substantial changes in consumer needs.
Before the pandemic, many drivers used Jaunt to provide cover for leisure activities and social events, such as sharing a long drive with friends or quick journey cover for borrowed vehicles. However, the pandemic highlighted an increasing need for a more flexible alternative to annual car insurance cover, with motorists using short-term insurance in recent months for essential journeys to work, as well as trips to help others collect food and medicine.
Jessica Cordery, Associate Director for Marketing at Jaunt, said: “The dynamics between customers and their financial services providers has been shifting for some time, with people demanding more of a personalised experience. After recognising a gap in the market, smart and targeted marketing, coupled with competitive pricing, has delivered a strong performance in the first year.
However, the COVID-19 outbreak catapulted demand from motorists for a more flexible product structure to their insurance. We are now experiencing a cultural shift, with many drivers choosing to borrow vehicles, rather than own them. This flexibility encourages a whole host of benefits – from cost savings to environmental accountability and in the current climate, we don’t expect this move to change any time soon.
“As working from home becomes the new normal for those that can; and reluctance to use public transport – but not invest in a vehicle, increases – we expect to see a continuing shift in commitment away from annual policies, to flexible alternatives. While there will always be an important place for annual cover, the way people utilise insurance is changing and may well change forever after this period. Therefore, Jaunt is well-placed to capitalise on this and we have exciting plans in place to accelerate our growth even further.”