Cuvva, the pioneer of short-term car insurance, has reported an adjusted profit of £4.2 million for the period from March to December 2023. The announcement marks a significant turnaround from the £4.4 million loss recorded during the previous year, as the company focused on laying the groundwork for future growth.
Cuvva has transformed the car insurance market in Great Britain by allowing customers to purchase insurance via an app for as little as one hour. The innovation is particularly timely as the cost of car ownership and insurance continues to rise, and people are driving less frequently.
The company’s approach has resonated strongly with younger drivers, who often seek occasional access to cars without the financial burden of ownership. Cuvva’s short-term insurance solution provides a cost-effective way for this demographic to hit the road.
Freddy Macnamara, CEO at Cuvva said: “We knew we wanted to create an app that would allow people to hop in and drive any car instantly and affordably. And we wanted to appeal to a segment of drivers who were largely underserved with a product which responded to their lifestyle needs. In order to build a strong and predictable business which would be attractive to investors and capital providers, we have developed innovative insurance products with market-leading loss ratios using our own proprietary technology. From KYC verifications to AI automation which help us reduce manual tasks significantly, we have made a significant investment in developing a leading technology platform.”
He continued: “Now that the heart of the business is built and the cost base has been largely accounted for, as our customer numbers continue to grow as more people turn to Cuvva to get on the road, we expect to see our performance improve further.
“Our car sharing platform is turning a car into a ‘multiplayer’ service and that is not just good for our pockets, but good for our planet too.”
Successfully capturing the hearts of younger drivers, and in turn growing with them. Around 25% of all 25 year old drivers in Great Britain have the Cuvva app on their phone.
According to the Motor Insurance Bureau (MIB), more than 6% of all motor insurance policies sold monthly in the UK are sold through the Cuvva app, making Cuvva one of the UK’s largest motor insurance providers by volume.
Bruce Carnegie-Brown, Chairman at Cuvva, also commented: “Over the last five years, the Cuvva team has built and delivered a transformational product which aligns directly with the growing desire of younger drivers to use but not to own a motor
vehicle. It is great to see the business reporting impressive results today. I’m really excited about the next five years, especially with everything we are doing to build the future of multiplayer cars.”
The surge in short-term car insurance indicates a shift towards car sharing over ownership, especially among younger drivers. This trend makes cars more accessible to those who previously couldn’t afford one.
