Data, simplicity, infrastructure: how Sharelock gets rid of bike insurance

According to the Ministry of Ecological Transition, about 300,000 bicycle thefts are recorded every year. Some estimates put the figure even as high as 400,000. Quite simply, studies show that theft has become the number one barrier to cycling, while soft mobility infrastructures are slowly being rolled out and there are 26 million regular cyclists in France.

“Each year, 2 to 4% of equipped households are robbed. If we want to massively unlock usage, we have to solve this problem,” sums up Alexander Molla, co-founder of Sharelock, an insurance broker founded in 2020. as for secure parking. Sharelock, which received the 2022 insurtech startup award from the Financial Innovation Competitiveness Cluster last November, has two options. The startup offers 100% online bike insurance and is deploying a network of secure and connected padlocks in several French cities.

Growing unmet needs

“92% of people don’t insure their bikes. Considering the price of the equipment and how we use it on a daily basis, this is absurd.” According to the Cycle Observatory, conducted by companies in the industry, the average purchase price in 2021 was 794 euros due to the growing market share of electric bikes. Over 2.7 million bikes were sold in 2021.

Currently, bicycle insurance remains a niche market. Most of them are signed as part of additional home insurance. These contracts usually offer included but limited warranties. In general, guarantees are not transparent and suffer from too many exclusions (schedule, parking space, etc.).

Photo to be better compensated

The insurance product developed by Sharelock and insured by Seyna is 15-20% cheaper than conventional insurance. “Insurers lack data, so they can’t estimate correctly,” Alexandre Molla, a former chief executive of Uber France, justifies. A bicycle worth 1750 euros, for example, is insured against theft from 6.75 euros per month. The applicable deductible is 10% of the residual value and a refund in the event of a claim is made within 48 hours. In addition to these services, there is a reimbursement for accessories and assistance 7 days a week. The startup insures bikes under 5 years old, in addition, the residual value usually does not justify insurance. On average, the cost of an existing bike park does not exceed 200 euros.

The technological contribution goes beyond enabling policyholders to subscribe online. Sharelock’s originality lies in its app, which allows its policyholders to send a photo of their bike every time they park it. For the insured party, the advantage is to reduce the deductible to 5% and eliminate the waiting period. On the broker side, photos are processed by artificial intelligence and allow for the collection of a large amount of data, which allows for better claims management and a detailed understanding of mobility.

“The goal is to return this data in the form of personalized advice to policyholders, for example in relation to parking space claims. This creates a dialogue that promotes trust. It is also a measure of risk to differentiate it and therefore at the best price with the right options.” The startup has raised prices slightly since its launch, with no impact on subscriptions. In a year, he attracted nearly 5,000 policyholders, of which 25 to 30% post at least one photo per month. Over 30,000 photos were submitted last year. Another reason for co-founder satisfaction: “36% of our insurers have cycled more since they signed up.”

800 padlocks installed in Nice

Another Sharelock offering is a network of 1,000 installed padlocks, including 800 in Nice and the rest in Sault (92), Meaux (77), Saint-Ouen (93), Vincennes (94) and soon Boulogne-Billancourt (92). ). ). “Large metropolitan areas” are planned for 2023. These self-service locks and reserved “U”s attached to the terminals allow those who use them to receive a fixed compensation of 200 euros in the event of a flight. So far, nothing has happened. They also warn the user in case of an attempted theft.

The Paris-based startup is funding the installation itself. Padlocks are paid for upon use (€0.50) or monthly subscription. Because the network is currently very limited, 4,000 usages were recorded in two years. Installation projects at stations and for professional fleets are under consideration for 2023.

Professional fleets, market source

Fleets are one of the areas of development also for the insurance part. The other axis is partnership. For example, insurance company Leocare offered its new subscribers 12 months of Sharelock coverage for a week in November. The 27-person startup is a student mutual aid partner and is looking to partner with bicycle sellers and repairers. Currently, 40% of its growth (new business) comes from the organic market.

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