The product caters to the UK’s tradespeople market, aiming to reduce administration times and speed up claims
UK-based insurtech ARMD has today (14 October 2021) launched a new RSA-backed embedded insurance product in partnership with MGA OneAdvent, to cover tools for tradespeople.
According to research from Direct Line for Business, published in February 2020, thieves steal tools from a van every 23 minutes, which equates to more than £80m worth of stolen tools since 2017.
ARMD’s new product aims to reinvent the way tradespeople in the UK protect their livelihoods by offering cover that uses a combination of Internet of Things (IoT) technology and insurance.
The ARMD e-commerce shop supplies over 30,000 tools, which can be bought together with tool insurance at the online checkout. It can also supply replacements for stolen tools.
Tools bought from the shop are automatically added to the customer’s digital inventory.
The inventory management app, smart IoT sensors and embedded insurance proposition therefore work together to minimise business interruption and deter tool theft.
ARMD’s chief executive and co-founder Devin Chawda said: “The circa three million tradespeople in the UK are under protected and underserved and feel let down with the existing insurance experience.
“By embedding insurance in this way, we provide underinsured tradespeople with critical cover when they need it most.
“In the past, not only have tradespeople needed to replace their tools at significant cost, but they have also had the consequential cost of not being able to work. For the minority that are insured, it can take weeks to get a settlement.
“We are changing that, for good.”
The embedded insurance market is estimated to reach more than $722bn (£526bn) in gross written premium (GWP) by 2030, ARMD noted.
Reducing claims and administration time
ARMD is launching its new product in partnership with intermediary OneAdvent. The policy is underwritten by insurer RSA and can be bought together with power tools or as a standalone policy.
The insurtech claims this is a new distribution channel for insurance, as opposed to going via the traditional broker market.
David Hill, OneAdvent’s chief executive, said: “ARMD’s embedded insurance proposition will enable customers to get back up and running quickly, while reducing claims costs and administration time. We are delighted to be partnering with ARMD on this exciting journey.”
The ARMD team has experience across both the technology and insurance sectors - the founders sold its last smart security business in 2019 to better position the insurtech to tackle the UK’s tradespeople market. ARMD was then founded in 2020.
Meanwhile, if a claim needs to be made, a bespoke report can be automatically submitted to the policyholder’s insurer via the ARMD platform. This strives to speed up claims and reduce hassle for both the tradesperson and insurer.