You know what, motorcycles are getting smarter, and becoming truly connected. You can even but a helmet that has front/rear cameras and Head-Up Display. That means the opportunity to offer personalised insurance cover based on actual usage, miles and rider behaviour is becoming a reality. Will a specialist UK motorcycle broker seize the opportunity in 2022?
You can get some data insights in this report if you fancy it.
According to the new market research report “Connected Motorcycle Market by Hardware (Embedded, Tethered), Calling Service, Communication Type (V2V, V2I), Network Type (C-V2X, DSRC), End-User (Private, Commercial), Service, Motorcycle Type, Application, Propulsion & Region – Global Forecast to 2027″, published by MarketsandMarkets™, the global Connected Motorcycle Market size is projected to grow from USD 55 million in 2021 to USD 757 million by 2027, at a CAGR of 54.7%.
Check out the BMW Motorcycle Connected App here;
Commercial users of connected motorcycles include fleet managers, insurance providers, and other service providers. All these stakeholders rely on real-time vehicle data collected using a tracking device. For instance, a tracking device in a vehicle can be installed which collects vehicle data for analysis by a network provider.
Companies like Hertz Ride, Bikesbooking, Eagle Rider, Riderly, MdorNomad, RentaRide, Edelweissbike, Indian Motorcycle, and RetroVentures provide motorcycle leasing services for private individuals and corporations. They use connected vehicle features for their ride-hailing services. Many logistics companies also use connectivity services on their motorcycles to enable location tracking and vehicle dynamics for their delivery personnel. This leads to a rise in demand for connected motorcycles in the commercial vehicle sector.
See Honda’s Africa Twin Connectivity features here;
Although the report sees growth in the fleet/hire market, IE thinks the real growth is in the expensive 10K-20K leisure motorcycle owner market. If someone invests that amount in a Sunday toy, they care about location, insurance based on rider style and having automated passenger cover, activated by smartphone app would be another sensible step forwards.
The motorcycle insurance market is still bogged down in collating online tickbox answers about occupations, postcodes and typical modifications, most of which make zero difference to the actual performance of the bike. Instead, focus on the shared data and risk can be calculated far more accurately.
Another huge benefit for insurers is knowing the service history of the machine too, which should be an integral part of risk pricing because bikes that are looked after are less likely to suffer solo accidents due to worn tyres, poor brake maintenance, popped bulbs etc. In the same way that insurers can ask for permission to access shared data in the car market by offering rewards for safer driving, motorcycle brokers can offer enhanced cover/breakdown and extras in return for shared ride history and maintenance information.
Be the first to comment