Cuvva Posts First Profit as Temp Policies & Car Sharing Becomes a Thing

Hey Cuvva are making a profit now, here’s the word;

UK’s leading temporary car insurance provider, Cuvva posts its first year of profit as short-term car insurance, once a niche sector goes
mainstream. The motoring app is tapping into the surging car sharing sector and the resulting need for short-term, flexible car insurance. Now with 10m policies sold and 4m downloads across iOS and Android, Cuvva is one of the most popular fintech and motoring apps in the UK.

Cuvva filed accounts showing adjusted profits of £4.2m between March to December 2023, in a shorter 10 month period compared to a £4.4m loss the year prior, while it focused on laying down the infrastructure to scale Cuvva has created the market for short-term car insurance where customers can buy insurance cover in Great Britain to drive a car for as little as one hour, via an app.

With the cost of car ownership and insurance continuing to rise and people driving less and less, Cuvva identified that people want access to cars from time to time, but don’t necessarily want to own one. This is especially true with younger drivers, who don’t want to own a car but still need a way to get on the road cost effectively.

Freddy Macnamara, CEO at Cuvva said: “We knew we wanted to create an app that would allow people to hop in and drive any car instantly and affordably. And we wanted to appeal to a segment of drivers who were largely underserved with a product which responded to their lifestyle needs. In order to build a strong and predictable business which would be attractive to investors and capital providers, we have developed innovative insurance products with market-leading loss ratios using our own proprietary technology. From KYC verifications to AI
automation which help us reduce manual tasks significantly, we have made a significant investment in developing a leading technology platform.

“Now that the heart of the business is built and the cost base has been largely accounted for, as our customer numbers continue to grow as more people turn to Cuvva to get on the road, we expect to see our performance improve further.”

According to the Motor Insurance Bureau (MIB), more than 6% of all motor insurance policies sold monthly in the UK are sold through the Cuvva app, making Cuvva one of the UK’s largest motor insurance providers by volume.

Bruce Carnegie-Brown, Chairman at Cuvva, comments: “Over the last five years, the Cuvva team has built and delivered a transformational product which aligns directly with the growing desire of younger drivers to use but not to own a motor vehicle. It is great to see the business reporting impressive results today. I’m really excited about the next five years, especially with everything we are doing to build the future of multiplayer cars.”