CEO Crispin Moger wants to see widespread adoption of technology to create fairer insurance policies across the industry, as Marmalade gears up for further growth.
Marmalade, a leading provider of cars and insurance for young drivers, is this year celebrating its tenth anniversary and a decade of driving innovation in the sector through embracing new technologies.
The business was an early adopter of telematics-based insurance and one of the first businesses to turn young driver insurance into a profitable business. Ten years ago the business comprised of three people based in a barn, today it employs over 50 people in new offices covering almost 10,000 sq. ft, large enough to accommodate its ambitious growth plans.
Marmalade’s success to date has been built on the creation of products for young drivers that specifically meet the customer’s needs.
2006 – Young Marmalade was launched, selling cars for young drivers
2008 - Learner Driver Insurance was launched, underwritten by Chaucer
2013 - Marmalade launched telematics-based New Driver Insurance exclusively with Allianz
2014 - An industry first with the launch of Fuel & Go, offering young drivers new cars with 12 months’ free insurance
2015 - Student Driver Insurance was launched, again underwritten by Chaucer, offering temporary cover for students when at home
Between 2014 and 2015 sales of the three core products saw significant growth:
- New Driver Insurance sales have increased almost 4 fold
- Sales of cars for young drivers have tripled
- Learner Driver Insurance has increased by 40%
Marmalade has created such successful products for young drivers that it now has exclusive arrangements in place with many businesses, from Ford Motor Company and Motorpoint to driving instructors and brokers. These businesses offer Marmalade’s products as an extension to their existing portfolio, enabling them to meet the needs of young drivers.
Other companies including Halfords, BSM and RED driving schools have white-labelled Marmalade’s Learner Driver Insurance to enhance their product offering.
Another significant achievement from the past decade is Marmalade’s safety record. On a national basis, one in five young drivers is involved in an accident within six months of passing their test. With Marmalade, this falls to one in 20.
Crispin Moger, CEO at Marmalade, said: “We’re already using telematics to create insurance for young drivers that not only improves safety but that also offers discounts of up to 50% compared to non-telematics cover. However, the technology available today can enable us to do so much more. We want to utilise these systems to create ever more fair and transparent insurance policies that are based on individual’s behaviour rather than generic information that doesn’t accurately portray the risk – and not just for our existing customer base.
“During 2016 and beyond, we're looking at how we can use our skills, experience and partnerships to enhance our range of products that cater for the needs of young people. We've had enormous success in creating a profitable business based on honesty and fairness and now want to take this further."