The latest update from Cuvva, as PAYG insurance starts to become a viable option for many consumers;
UK’s leading short-term car insurance provider, Cuvva delivers a record year of growth, while continuing to invest in product innovation, infrastructure, and automation at scale.
The by the hour car insurance app reached profitability in 2023, and further strengthened its financial foothold over the course of 2024, according to its financial accounts, which were filed on Companies House.
Adjusted profits tripled to £12.8m in 2024, compared to the prior year (Dec ‘23: £3.8m). This represents an average adjusted profit of £1.07m per month, a 239% increase on the £316k monthly average in the previous period.
Turnover grew to £27.4m, largely driven by strong customer retention and high demand for short-term car insurance, combined with operating efficiencies and Cuvva opening up to more people, including international drivers.
Scaling smartly, Cuvva achieved impressive growth and profitability, while maintaining industry-leading loss ratios and modest operating costs, setting the stage for sustainable, long-term success.
Now with 5m+ app downloads, Cuvva is the UKs most popular short-term car insurance app, and is the go-to insurance app for younger drivers. Nearly one in three 21-29 year old drivers in Britain have downloaded the Cuvva app.
Utilising the best of technology, Cuvva has automated the majority of the business. Developing its own in-house chat and claims bots, as well as fraud detection.
These AI-powered operation systems drove a 90% drop in support interactions per 1,000 customers since January 2022. Today, Cuvva operates with significantly greater efficiency than the industry norm with 60% of customer queries handled entirely by AI.
A team of under 20 people managed around a quarter of a million chats, while the Cuvva chat bot completed approximately 2 million verification and fraud checks in 2024, in half the average response time as the year prior – 30 seconds.
All while maintaining one of the highest customer satisfaction scores in the insurance sector above 90%.
Commenting on Cuvva’s strong 2024 performance, Freddy Macnamara, CEO at Cuvva says: “We’ve taken the time to build an exceptional platform with sophisticated tech at the heart of it. Combined with cost discipline throughout 2024, we were able to scale efficiently, while maintaining strong profitability.
“Our core proprietary technology built in-house and our strong foundations gives us the flexibility to adapt quickly. We can build and scale new products and automate things easily. Continuously expanding to wider audiences with new offerings, cost-effectively serving our customers’ needs better, without adding headcount. These efficiencies continue to improve our long-term profitability.”
Outlook: With £17m in the bank (As at 31 Dec 2024), strong foundations in place, loyal customer numbers growing and exciting products in the pipeline that will open up Cuvva to even more people, Cuvva anticipates a year of accelerating profitable growth in 2025 as it maintains strong market share as the leading provider of short-term car insurance.
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