HDInsights Edition 7 2022

S Naturally, insurance plays a key role in the success of micromobility concepts worldwide. Since most operators are growing fast and expanding into new regions rapidly, they are dependent on a partner who understands the various challenges they face and is able to support them adequately. Insurance products should therefore be easily scalable to function across different countries and jurisdictions. Insurance solutions that are seamlessly integrated into a micromobility service also enable operators to set themselves apart from their competitors. From the operators’ perspective, it is essential that the solution instils trust in their services and protects their customers, but at the same time it has to be scalable and simple.

Accordingly, the number of scooters used in sharing services is expected to increase from 774,000 in 2019 to 4.6 million in 2024, according to market research company Berg Insight. Between 2020 and 2023, Deloitte expects that there will be 130 million e-bikes sold around the world, noting "the number of e-bikes on the roads will easily outpace other e-vehicles by the end of next year”. Asia, the United States and Europe have all been at the forefront of the micromobility trend. China, however, is the largest scooter and bike manufacturer in the world today. In Taiwan, the micromobility company Gogoro is implementing an integrated system of self-developed e-vehicles, sharing platforms, and a battery sharing network – all in one cohesive technology ecosystem. Smartphones, proximity cards, and a cloud-based system make Gogoro's scooters a prime example of a smart city concept. The scooters give users live information about their trip and let riders unlock the scooter with an app, as well as with biometric technology that smartphones can use. Removable batteries and self-service vending machines have been at the heart of the Gogoro concept since the very beginning. These vending machines allow a battery to be replaced with a fully charged one in a split second. However, micromobility is not a novel idea in Europe either. On top of already high ownership rates, European municipalities were among the first to provide shared bicycles as a public service. In Denmark, for instance, 90 per cent of all citizens own a bicycle, but only 56 per cent possess a car. Safety is still a major concern Most major micromobility operators work with cities and insurers to address these issues. For example, they introduce electronic geo-zones to prevent riders from either riding in an unsafe area or parking in an area where the city doesn't want them to park – this can also help in preventing people from riding on sidewalks. Most companies also require users to be 18 or older. In some cases, a valid driver's licence is required to open an account. till, the regulations for micromobility service providers differ from country to country and even sometimes within a country from city to city. Operators not only have to align their business activity operations with complex regulations, but they also need to manage their risks accordingly

Insurance vital to building trust “Ultimately, the solutions we build aid in instilling an element of trust, which is the foundation for these new business models. Our partners need to earn the trust of their customers. We assist them in this process. And by doing so, we enable them to bring their products to market."

Meryem Seyyar Head Digital Solutions HDI Global SE

Resolving urban congestion, reducing environmental damage and reaching climate goals are ultimately global issues. As the global trend of switching to micromobility options for short-distance travel is propelled even further, it will be imperative that all stakeholders work together to find solutions for the emerging conflicts. Insurers can play a key role, not just as risk-carriers, but as enablers of new business models.

Please contact our HDI Team with questions

HDInsight Edition 7 - page 20