Principal partners with Wakam UK to inject fresh competition into bike insurance market
Manchester broker Principal says new partnership with Wakam UK will boost competition and widen cover for riders struggling to find suitable insurance.
The UK motorcycle insurance market hasn’t exactly been buzzing with competition lately. Mergers, acquisitions and a few insurers quietly stepping away from the sector have left riders with fewer options and, in many cases, higher premiums.
Now, though, Manchester-based broker Principal Insurance reckons it has a way of shaking things up.
The company has announced a multi-million-pound partnership with Wakam UK, an international underwriter with more than £700 million in backing. The aim is to inject more underwriting capacity into the market and give riders access to policies that better match the bikes they actually ride.
According to Principal, the current setup leaves plenty of gaps, meaning certain bikes, certain riders and certain use cases simply don’t fit neatly into the policies offered by the biggest providers. That can be particularly true for owners of custom builds, classics, or riders with less typical risk profiles.
The new deal is designed to tackle exactly that.
Initially, the partnership will allow Principal to roll out tens of thousands of specialist policies aimed at a broad mix of riders. That includes owners of classic, modern and vintage machines, along with sports bike riders and scooter owners. In the coming weeks, the broker says it will also introduce dedicated policies for custom bikes and trikes — two areas where suitable cover can sometimes be tricky to find.
Another change will be what the insurer calls a simplified multi-bike quote process, both online and via Principal’s call centre.
Matt Byrne, Principal Insurance’s head of distribution, says that the market has effectively stalled in recent years.
“The bike insurance market has become stagnant, with competition throttled by mergers and insurers either leaving or reducing their underwriting exposure"
“This agreement with Wakam UK brings significant capacity and the specialist expertise needed to serve a wide range of bikers and their bikes.”
Wakam UK CEO Mark Christer agrees that the sector has narrowed.
“The UK motorcycle insurance market has seen significant consolidation ... That’s left a small number of providers dominating pricing and distribution, which in turn has meant limited choice and rising premiums for riders.”
Founded in 2011 by former Carole Nash director Dave Bowcock, Principal currently administers around £30 million in policies each year and serves roughly 50,000 customers, with motorcycles making up the biggest share of its business.
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Simon (AKA Toad) has been working within the motorcycle industry for more than twelve years, and a member of the motorcyclist family since birth. Growing up around British-built single and twins, it was inevitable that a life on two wheels was on the cards, from a very early age!
