The Green Insurer launch
New sustainable insurance brand
11th December 2023New insurtech, The Green Insurer, is disrupting personal lines insurance as it launches on CDL's Strata to offer the market's first truly green proposition, providing insurers access to a book of customers whose environmentally conscious driving can earn them more favourable renewal premiums whilst offsetting their carbon footprint.
Now on price comparison sites and available direct to customers, the new entrant is realising its green ambitions with CDL Strata, a fully automated digital experience using CDL APIs to integrate data and optimise online journeys for new business and self-service into The Green Insurer's website and customer app. The cloud-based scalable platform simplifies the sale and management of insurance products with data-driven digital journeys that give insurance retailers the ability to engage proactively with their customers.
A unique proposition, The Green Insurer uses telematics technology to empower policyholders to directly influence renewal price and offset their carbon emissions. It combines its 'magic green algorithm' with vehicle specification, mileage, and driving performance variables, such as braking, acceleration and speed, to calculate every customer's carbon emissions for every journey. The personalised output determines renewal quotes and offset requirements for green initiatives investment, using Verified Carbon Standard carbon offset projects around the world.
With the ethical, environmentally sustainable insurtech providing a unique choice for eco-conscious motorists, including those yet to switch to green models, such as electric vehicles (EVs), insurers can align with their own environmental objectives. Further, self-selected 'safer' drivers who are loyal to a brand sharing their values are expected to translate into high retention rates, with low claim frequency and loss ratios. Claims will be facilitated using the burgeoning green repair sector.
Policyholders will have access to a comprehensive self-service app, offering capabilities including uploading documents and changing details, with carbon offset information also included for each journey. Notably, users will be able to view journey histories pinpointing where, when and how best to correct or improve their driving, whilst league tables of the best (and worst) drivers will also encourage efficient, green driving.
Customers are rewarded based on their driving score, with cash-in vouchers, as well as discounts on eco-friendly lifestyle products.
Retailers can continue to capitalise on the growing consumer demand to put green issues at the forefront of business practice – a trend gaining momentum in the insurance sector. Recent statistics show growing favourable attitudes amongst consumers as almost half intend to switch to an EV by 20301. There is also opportunity to target the more than one million EV vehicle owners2 on Britain's roads.
Commenting on the launch, Paul Baxter, chief executive officer of The Green Insurer, said: "Our research has told us that green insurance products are what consumers want but they either don't know what to do, how to do it, or they believe it will cost them too much.
"Our proposition does this for them, targeting consumers rightly concerned with the future their children will be faced with – initially with car insurance but we look forward to widening our reach to more sectors. We are thrilled to be working with CDL to bring this product to market."
Nigel Phillips, chief executive officer at CDL, added: "The Green Insurer has spotted a gap in the market and has created a truly innovative product that aligns both with consumers' and insurers' growing concerns around sustainability. We look forward to continuing to work with them as they expand their panel of insurers."
- Office for National Statistics. (2022). Over half of younger drivers likely to switch to electric in next decade. October 2021. Article last accessed 07 December 2023.
- Society of Motor Manufacturers and Traders (SMMT). (2023). Britain gets back in the driving seat with more than a million EVs on the road. 25 April 2023. Article last accessed 07 December 2023