New carbon offsetting-focused motor broker launches in UK market

New sustainability-driven motor broker The Green Insurer has today launched in the UK insurance market, according to statement released this morning (6 December 2023).

In a launch communication, The Green Insurer said it aimed to become the “most competitive [option] for drivers doing low annual mileage” and would work to encourage insureds to reduce carbon emissions and drive in an environmentally-friendly way.

Paul Baxter, the newly-launched firm’s chief executive, said: “We are giving customers the option to easily buy genuinely green car insurance, which is the first in the UK to offset all carbon emissions, while also helping drivers to cut the costs of driving and insurance.”

Customers will be able to purchase insurance policies from The Green Insurer via its website or price comparison websites and all customer enquiries will be dealt with via staff in the UK.

As part of the offering, customers’ policies will be linked to a mobile app that will monitor their driving behaviour.

Each mile driven by customers will have its equivalent ommissions offset via a range of carbon offsetting projects.

The Green Insurer claimed that those projects had been “assessed for their carbon and environmental effectiveness, as well as the social impact on the people and communities where they are based”.

Customers will be able to monitor how much carbon has been removed to offset their driving emissions in the app, in addition to how much carbon has been offset for The Green Insurer customers across the board.

“Driving habits are changing across the UK and we are reflecting that in the way we have designed our insurance policies to reward people for how they have changed,” said Baxter.

“Customers need to be confident the policies they buy are actually helping the environment so they can make an informed decision. 

“The reaction from insurers has been extremely positive as we are focused on attracting customers who are concerned about the environment and rewarding them for driving in an environmentally responsible way.”

‘Innovative approaches’

The app will include an individual green driving score, which will be used by the broker to calculate renewal rates and discounts offered.

Discounts of up to 6% on weekly supermarket and retail shopping will be on the broker’s sales shelf through a range of partnerships.

The broker will also offer rewards for environmentally-friendly driving through its Leaves scheme, which will be worth on average £20 a year.

The Green Insurer’s launch follows recent research highlighting that motorists are becoming increasingly aware of their impact on the environment and are cutting their miles driven each year as a result.

The costs of driving are also rising, largely influenced by the rise in average car insurance premiums.

A Viewsbank survey of 1,135 adults aged 18-plus – including 888 car owners – conducted between 17 and 20 November 2023, for example, showed that 53% of drivers were becoming more aware of their impact on the environment compared to the previous year.

Around 28% of respondents also said they planned to drive fewer miles in the next 12 months.

More than six out of 10 (61%) said they were cutting back on the miles they drive to help the environment, while 76% said they were doing so because of the cost of living.

Consumer Intelligence’s latest Car Insurance Price Index, published in November 2023, highlighted the average car insurance premium has increased by 66.5% in the year to 31 October – meaning premiums were 79.1% higher than five years ago.

“The car insurance market needs greater innovation and options [to] help drivers reduce costs following the record-breaking premium inflation seen over the last 12 months,” said Consumer Intelligence chief executive Ian Hughes.

“Our data shows on average that quoted car insurance premiums have increased 66.5% in the past year and innovative approaches which enable customers to benefit from reduced premiums aligned to eco-friendly driving behaviours are very welcome.”