INDUSTRY OPINIONS
BEAT THE THIEVES
Bikes are rising in value and desirability, so what can cyclists do to protect their rides other than buy locks? And how can retailers benefit? Jonathon Harker asks the cycle insurers…
PHIL COFFEY MBA FCII
CHARTERED INSURANCE BROKER, DIRECTOR, BUTTERWORTH SPENGLER Is it a common assumption that household insurance covers bike theft? Yes, whilst many household policies will provide a degree of cover, they vary considerably in terms of the maximum value they allow – a limit of £500 is common. As far as higher valued cycles are concerned, some policies cannot be extended to provide cover, whilst others will require additional premiums in the same way as for valuables such as jewellery, which can be considerable. It is also possible that whilst a cycle’s value may not be in dispute, the policy may not pay a claim for damage caused during competitions. Consumers would benefit from more education at point of sale regarding bicycle security and insurance options, but the rules of the Financial Conduct Authority preclude the provision of insurance advice unless the retailer is a recognised Introducer, plus many retailers avoid bringing up the negative risks at point of sale. We are working on improving this area with the ACT through developing greater prior knowledge through the supply chain and improved POS in-store.
How are you working with companies in the trade at the moment? We are a long-term partner of ACT, which initiated the creation of the new Fetch insurance product specifically for IBDs. Via ACT we are also now working with bicycle brands to promote Fetch for their own brand insurance and we are actively engaged with the cycle finance providers to help educate customers. Around 1,000 IBDs are promoting Fetch online today. As an established industry partner we
have extensive plans [in driving awareness of insurance], the key to which is giving the retailers and suppliers what they really want, making it easy and working with key partners. A number of cycle insurance providers
have historically worked with retailers to display their product leaflets in store in return for a commission payment based upon referrals; however ACT’s research suggests that IBDs have too often felt that they haven’t received commissions due and that anyway, income generation isn’t their key motivation.
12 BIKEBIZ JUNE
Butterworth Spengler and ACT have combined to offer Fetch to IBDs
So with Fetch we’ve focused on ensuring
Butterworth Spengler’s Phil Coffey
that for theft or damage the consumer can use their preferred bricks and mortar retailer for repairs or replacement and we’ve negated the discount – usually a minimum ten per cent – that other insurers demand, delivering IBDs a full margin sale or repair. Any UK IBD can participate in Fetch and all ACT members will earn a commission credit for referrals. An in- store referral programme will follow, but ACT members have requested a more general sales aid for their wider business and these materials will be available for ordering later in 2013.
www.fetchinsurance.co.uk
TIM GILBERT, BUSINESS DEVELOPMENT MANAGER, CYCLOSURE
“People need to wake up to the fact that
bicycles are much more
valuable these
days and need to be specifically insured.”
Richard Williams, Assist Protect
Is it a common assumption that household insurance covers bike theft? A number of household insurers cover theft, but it is important to understand that often a household policy is very limited and you’ve got the hard-earned no claims bonus to consider. If you’ve just spent a considerable amount of money on a bike, it’s imperative you either add it to a household policy as a specified item or buy a specialist cycle insurance policy.
Is there a growing awareness among cyclists about insuring their bikes? I would say yes. We’re working hard to create greater awareness within the cycling community and will be attending a number of events throughout the year to spread this message. Not only from a theft perspective, but also if the worst happens and they hit someone or something then a policyholder needs protection for this. It’s about education and we need to continue to drive the message forward.
Are you working with any companies in the trade at the moment? We have a specialist sports marketing company on board ensuing we’re meeting the right markets and have recently partnered with the ITU (International Triathlon Union) to sponsor the World Triathlon Series Final in Hyde Park this year. Being one of only three Olympic Legacy events it’s an exciting opportunity for us. We will shortly be announcing a partnership with cycle retailers to get the message out, not only about the risk of theft, but also to ensure adequate cover for any accessories, such as a Garmin GPS, etc.
www.cyclosure.co.uk
RICHARD WILLIAMS AND ROB DEAKIN,
ASSIST PROTECT’S THEFT PLUS Is it a common assumption that household insurance covers bicycle theft?
Tim Gilbert explaining the Cyclosure offering
Richard Williams: Absolutely and that’s a shame as it’s not true. Most household contents insurers flatly refuse to cover bicycles, others only pay out if the cycle is stolen from a locked garage or your house. Others will only cover up to a very low value. People need to take a look at their policy. Typically we find that once the first bicycle has been stolen and there was no pay-out, then owners come to us at Theft Plus to cover their second one and Total Cycle Assist for bicycle accident cover, another glaring omission in cover policies. We regularly send out material to the press to support reports like this one, as we feel that it’s reinforcement for the message that needs to get across that owning a bicycle is great, but it’s a highly sought after item by thieves.
Is there a growing awareness among cyclists that insuring their bikes is worthwhile? Richard Williams: Certainly amongst those that we speak to, however, from figures of cycle sales, which have soared in the past few years, it’s still the case that only the smallest fraction of them takes up theft and accident insurance. Magazines like BikeBiz help us spread the word and to reinforce the importance of not relying on household insurance, but people really do need to wake up to the fact that bicycles are so much more valuable these days and they need to be specifically insured.
Are you working with any trade companies? Rob Deakin, TCA:We work closely with several distributers, for example FreeGo who sell pedal bikes and electric ones. They are a dealership, so all of their retailers are offered insurance reseller deals. It’s a way to make sure that the end customer gets insurance, and that the dealership and retailer are reimbursed for helping that happen. It adds to the customer service level for dealers and retailers, which makes good all-round sense. Richard Williams: In addition to reseller deals we also have an associate scheme for retailers, which means they can receive commission on the sale of insurance. Many are not part of dealership schemes and so it makes sense to deal direct with those to help them get value from helping their customers. We keep all of our trade partners up to date
with what’s happening in our business, delivering special deals when we have them on Theft Plus and Total Cycle Assist and generally helping them to understand that bicycle theft is a huge problem, and that they can help to protect their customers by at least having cycles that they sell insured.
www.theftplus.co.uk
BIKEBIZ.COM
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