VOOM Launches Electric Bike Insurance

Rhea-AI Summary

VOOM Insurance, a leading InsurTech company, has launched electric bike insurance, underwritten by Markel Group. This new offering expands VOOM's innovative motorcycle insurance to cover a wide range of bicycles, including e-bikes, mountain bikes, and racing bikes. The product provides flexible and comprehensive coverage beyond traditional homeowners or renters insurance, featuring liability protection, physical damage coverage, medical payments, and theft protection.

The launch responds to growing demand, with 54.7 million Americans riding bicycles in 2022, up from 51.4 million in 2021. The e-bike segment has seen explosive growth, with 1.1 million e-bikes sold in the U.S. in 2022, nearly quadrupling sales from 2019. This expansion aligns with VOOM's mission to provide insurance for the future of mobility.

Positive

• Expansion into the rapidly growing e-bike insurance market
• Partnership with Markel Group, a leader in bicycle insurance in the U.S.
• Comprehensive coverage including liability, physical damage, medical payments, and theft protection
• Addressing a gap in traditional insurance policies for bicycle coverage

Negative

• None.

Insights

Insurance Industry Analyst

VOOM's launch of electric bike insurance, underwritten by Markel Group, marks a significant expansion in the InsurTech space. This move capitalizes on the growing e-bike market, with U.S. sales reaching 1.1 million units in 2022, nearly quadrupling since 2019. The product addresses a gap in traditional insurance offerings, providing specialized coverage for a rapidly evolving mobility segment.

The partnership with Markel, a leader in U.S. bicycle insurance, lends credibility and underwriting expertise to VOOM's innovative, usage-based model. This collaboration could potentially disrupt the traditional insurance market for personal mobility devices. The comprehensive coverage, including liability, physical damage, medical payments and theft protection, positions VOOM to capture a significant share of this emerging market.

For investors, this development signals VOOM's agility in adapting to market trends and its potential for growth in the InsurTech sector. Markel's involvement may also positively impact its position in the evolving mobility insurance landscape, potentially driving new revenue streams in a high-growth segment.

Market Research Analyst

The launch of VOOM's e-bike insurance is well-timed, aligning with significant growth in the cycling market. With 6.4% year-over-year increase in American cyclists from 2021 to 2022, reaching 54.7 million, there's a clear upward trend in bicycle usage. This growth, coupled with the explosive rise in e-bike sales, indicates a shifting transportation landscape that favors sustainable, alternative modes of transport.

VOOM's expansion from motorcycle and rideshare insurance to e-bikes demonstrates a strategic move to capture market share in an emerging segment. The company's usage-based insurance model could be particularly appealing to e-bike owners, who may have diverse usage patterns compared to traditional cyclists. This tailored approach could give VOOM a competitive edge in attracting and retaining customers in this rapidly growing market.

For Markel, this partnership represents an opportunity to strengthen its position in the bicycle insurance market and adapt to changing consumer preferences in mobility. The collaboration could lead to increased premium volume and market penetration in a high-growth segment.

With this new offering, that expands VOOM's innovative motorcycle insurance offering, e-bike and other bicycle owners will pay get a flexible and comprehensive insurance coverage

PALO ALTO, Calif., Oct. 14, 2024 /PRNewswire/ -- VOOM Insurance, the leading InsurTech company for the future of mobility, announced today that it has launched its insurance offering for Electric Bikes. The product is underwritten by Markel Group.

This new product builds on VOOM's successful track record in usage-based insurance for motorcycles and rideshare drivers, extending their innovative approach to the rapidly growing e-bike market.

The bicycle insurance product is designed to offer flexible and affordable coverage, extending protection beyond what's typically available under traditional homeowners or renters insurance policies. It covers a wide range of bicycles, including electric bikes, mountain bikes, hybrid/cruisers, racing bikes, road/track bicycles, and more. Key features of the new e-bike insurance include Liability protection, Physical damage coverage, Medical payments and Theft protection.

"Since inception, VOOM's mission is to provide the best of breed insurance products for the future of mobility, we are excited to expand our suite of products to include coverage for e-bikes," said Tomer Kashi, CEO and Co-Founder of VOOM. "Our recent expansion into e-bike insurance was driven by feedback from hundreds of our motorcycle customers who expressed interest in this product, and we are thrilled to extend our innovative insurance solutions to this segment as well."

Biking continues to grow as a popular and eco-friendly mode of transportation and recreation in the U.S., with 54.7 million Americans riding bicycles in 2022, an increase from 51.4 million the previous year¹. This growth in the cycling community is mirrored by the explosive rise of the e-bike segment. In 2022 alone, 1.1 million e-bikes were sold in the U.S²., nearly quadruple the sales from 2019. This surge underscores the expanding appeal of e-bikes, both for commuting and leisure, as they offer a versatile and sustainable alternative to traditional vehicles.

"Markel is pleased to support VOOM in distributing this innovative bicycle insurance product," said Jeff May, Executive Underwriting Officer at Markel. "As a leader in bicycle insurance in the U.S., we recognize the increasing need for specialized coverage that adapts to the evolving usage of bicycles, particularly with the rapid growth of the e-bike segment."

About VOOM
VOOM is an InsurTech pioneer, crafting cutting-edge, usage-based insurance solutions for the future of mobility. The company's expertise lies in various mobility segments across all categories, from commercial drones and light aircraft to e-bikes, motorcycle and rideshare insurance. VOOM has already issued more than 100,000 policies to date. Learn more about VOOM or to get a quote, visit voominsurance.com.

About Markel

We are Markel, a leading global specialty insurer with a truly people-first approach. As the insurance operations within the Markel Group Inc. (NYSE: MKL), we operate the Markel Specialty, Markel International, and Markel Global Reinsurance divisions, as well as State National, our portfolio protection and program services operations, and Nephila, our insurance-linked securities operations. Our broad array of capabilities and expertise allow us to create intelligent solutions for the most complex risk management needs. However, it is our people – and the deep, valued relationships they develop with colleagues, brokers and clients – that differentiates us worldwide.

Coverage is provided by Markel American Insurance Company, NAIC# 38970, Glen Allen, VA. Coverage and services availability may vary by state. Terms and conditions for rates and coverage varies. Nothing herein shall be construed as an offer to sell or a solicitation or offer to purchase any products or services. Markel ® is a registered trademark of Markel Group Inc.

¹ Source: https://concussionawarenessnow.org/news/keep-your-brain-safe-while-biking
² Source: https://www.energy.gov/eere/vehicles/articles/fotw-1321-december-18-2023-e-bike-sales-united-states-exceeded-one-million

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SOURCE VOOM Insurance

FAQ

What types of bicycles does VOOM's new insurance cover?

VOOM's new insurance covers a wide range of bicycles, including electric bikes, mountain bikes, hybrid/cruisers, racing bikes, and road/track bicycles.

How many e-bikes were sold in the U.S. in 2022?

In 2022, 1.1 million e-bikes were sold in the U.S., which is nearly quadruple the sales from 2019.

What are the key features of VOOM's new e-bike insurance?

The key features of VOOM's new e-bike insurance include liability protection, physical damage coverage, medical payments, and theft protection.

Who is underwriting VOOM's new bicycle insurance product?

VOOM's new bicycle insurance product is underwritten by Markel Group (MKL).