Despite the pandemic making it tricky for insurtechs to tap into funding, some insurtechs have been the exception, By Miles tells Insurance Times about its plans for growth after closing a £15m funding round and why business is off the scale 

Pay-by-mile insurtech, By Miles will be expanding its workforce and scaling up systems following its recent £15m Series B funding round.

This is to meet the ever-increasing demand of mileage that it is insuring after policy sales have surged – during lockdown especially, the company said.

It will also be hiring in two areas of the business – customer support and development.

Its staff force has already grown by 30% since lockdown began.

This follows the insurtech’s connected car partnership with Tesla as well as being granted an open banking licence to enable it to better price insurance.

Miles down, sales up

Since lockdown on 23 March, the insurtech has seen many car drivers turning to the pay-by-mile type policy as shorter less frequent trips are being made.

It has observed a 58% reduction on average of daily mileage driven since this time.

But while the miles may be down and claims have plummeted due to fewer road users, business is still booming.

Its pay-by-mile policies means that policyholders only pay for the miles they drive. The insurtech has even taken the initiative to reward drivers with tokens of appreciation for not driving by supporting campaigns like car-free day.

Oliver Baxter, head of brand and product at By Miles told Insurance Times: “We have seen our biggest ever sales weeks in April and in May.

“Pay-by-mile policies are obviously resonating with the UK driving public, during lockdown I think people can see more than ever the value in a flexible way of paying for their car insurance.”

But Baxter said that By Miles is constantly reviewing its pricing to make sure its fair.

Expansion 

Speaking about the areas the insurtech will be hiring in, Baxter, added: “Customer support because the more customers we have the more people we need to support them. We want to continue to deliver the massively high level of customer support that we have.

“And in the development team, we need to continue to building technology that we can scale but will also evolve with the changing pace of insurance.”

Read more…The Briefing - Insurtech: Surviving Covid19, government schemes for insurtechs “not all its cracked up to be”

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