Bikmo, the specialist cycling insurer, is releasing figures from its annual Open Project. Now in its fourth year, the project aims to offer a level of transparency, with data based on thousands of cycling insurance claims in 2021.
With cycling continuing to grow, the insurer has seen claims rise by 8%. The data for 2021 shows that 57% of claim payouts were for bikes and gear worth under £500.
This represents a big change from the previous year, in which the average payout band with the highest percentage of claims was £1001-£2500 – with 32.76%.
Bikmo notes… ‘As levels of cycling increased, this shows that more new riders are taking to the roads, with entry level or lower value bikes. This is also represented by the fact that commuter bikes (including e-bikes) were up significantly from 2020’s data – as people returned to work and sought a more sustainable and convenient way to do so.’
The insurer has also identified a rise in the number of claims being made for bikes at home. These made up for just 10% in 2019, 18% in 2020 and now sit at a quarter of claims for 2021.
Whilst claims for theft have continued to increase, up from 48.5% in 2020 to just under 53% in 2021 – accidental damage remains a significant reason for claims. The data also shows that 40% of claims in 2021 were for components, clothing and accessories rather than a full bike – highlighting that they can often add up in value and be as worthwhile to insure as the bike itself.
2021 saw claims by month follow a fairly standard pattern of increasing in May through to November. This was markedly different during 2020, likely as a result of the pandemic and lower claims in the first half of the year. August saw the most claims in 2021.
Whilst the number of claims on e-bikes has risen from 70 in 2020, to 130 in 2021 – the overall figure remains low. Bikmo has found that e-bike riders represent less risk to insurers and argues that e-bike policy prices should reflect this.
David George, CEO of Bikmo, said “2021 was another huge year for cycling, as more people got out and experienced the convenience and joy of travelling by bike. Whether it’s for commuting or leisure, our aim is to protect riders and get them back on track when the worst happens.
“As cycling continues to soar in popularity we will inevitably see thefts continue to rise as the dominant reason for cycle claims.
“However, with the increase in both long-life tracking technology such as the AirTag and electric bikes that can both power and store tracking devices, we hope the UK will follow the experience of the Netherlands where up to 80% of tracked bikes that are stolen are recovered.
‘’This will not only deter thieves but also reduce premiums for insured riders, enabling Bikmo to achieve our mission of protecting the world’s riders.”
