Chief executive says insurtech is on a ‘mission’ to ensure customers are asked the right questions
Insurtech Pikl is working with price comparison websites (PCW) to help ensure customers get the appropriate insurance products ahead of the Consumer Duty regulation, according to chief executive Louise Birritteri.
The regulation, which comes into force on 31 July 2023, sets out a slew of updated regulations for insurance firms and other financial services firms that must be implemented.
“What we are trying to do is in the wake of Consumer Duty coming in, [customers] are getting the appropriate products for their needs,” Birritteri told Insurance Times during the Biba conference last week (10-11 May).
Pikl provides cover for short term rentals such as Airbnb properties.
However, Birritteri said many people in the Airbnb market ”aren’t getting the right products”.
“That’s because they shop on PCWs and they did not get asked a question about whether they are doing a short term rental – so we’ve been on a mission to change that,” she said.
“We’re already working with PCWs GoCompare and Confused and we are hoping that we can work with the rest of the market to resolve that problem ahead of Consumer Duty, so that the customer is going to be asked the right questions and given the right products.”
Matthew Harwood, product manager at Confused, added: ”Renting out homes or rooms during key events or peak times of the year is becoming increasingly popular.
“But, there’s also the concern that many see this as just handing over their keys to and moving on.
”In working with Pikl, we are able to educate and help customers who may look at renting out their home short term in the future by signposting the need for specialist cover when they are quoting on our site.
”It’s important that homeowners have the right cover in place for these types of arrangements, so we’re pleased to now have a solution in place that makes sure our customers are better protected.“
Birritteri added that economic uncertainty meant there was a risk of underinsurance in the industry.
According to figures released by Allianz in March 2023, one in five small and medium sized enterprises (SMEs) across the UK have begun to reduce the level of their insurance coverage.
Birritteri said: “At the moment, with the economic climate the way it is, there is a concern that people will be taking less insurance and underinsuring themselves.
”So, it is something as an industry we need to keep a really strong eye on to make sure people are getting products that are fit for purpose.”