Is the bicycle retailer missing a trick on insurance sales?

Is the bicycle retailer missing an opportunity by not taking part in the insurance process when selling new bikes? CI.N speaks to Velolife Co-Founder and industry veteran Justin Rodley to find out…

When it comes to add on sales most commonly attached to new bikes leaving the show- room it’s generally lights, locks and mudguards that are most commonly listed on receipts. Much further down the list, according to CI.N’s house research on the subject, comes cycle insurance. In fact, our 2021 assessment of the subject found that just 1% of indie stores regularly pushed insurance products on the back of selling a bike. As the average sales value creeps up, more so factoring in electric bike sales, why is that opportunity generally skirted past?

Justin Rodley, formerly of Pon Holdings and Specialized, wondered that very same thing when setting up Velolife with his business partner Jonathan Woods, whose background is in sports insurance. He told us that electric bike sales have indeed made a difference in a customer’s propensity to back up their ride with cover. With that in mind, why wouldn’t a shop wish to bolster the margin gained on each sale for just a little more effort?

“E-bike customers appear to be the most likely to take out bike insurance, probably as these bikes are often more expensive. Also, the demographic of people purchasing these bikes see the importance of having the right insurance in place,” says Rodley, whose 15 years working with bike retailers has given him a rounded view on what’s realistic in sales terms.

With that in mind Velolife is offering bicycle retailer partners an hour’s training session for staff members tasked with making the add-on sale. For those successful in doing so a commission is given on any conversion.

“We offer an extra value-added service to customers by giving them the comfort that their bike is insured from the moment they leave the store, but we don’t stop there. VeloLife’s exclusive association with Vitality mean that customers can also get access to a wide range of benefits and award-winning Life and Health Insurance. It’s not just about insuring the bikes for VeloLife, their philosophy is that the people riding the bikes need to be adequately insured as well,” adds Rodley on a popular USP of the coverage.

In policy terms, VeloLife sells Bike insurance, Personal accident, Health, Income Protection and Life insurance.

“We are also seeing an increase in the interest around group private medical cover,” says Rodley, indicating further modules in the planning.

Better still, this is an element that is not only available to the consumer, but also to businesses taking B2B policies. What that means is that retailers can offer staff private medical insurance, which can be both a boon to retaining and hiring new staff.

“Private medical insurance is surprisingly affordable for businesses to buy for their staff. In the current climate with the NHS coming under increasing pressure, knowing that your staff will be looked after and have fast access to the best medical care helps with getting them back to work quicker should they need treatment. Vitality Health’s proposition is a fantastic proposition as it comes with a range of added benefits for all staff. It’s basically a big business employee benefits program suitable for businesses of all sizes,” says Rodley.

Trade coverage is in place to complement the consumer product, handing shops a new avenue for commercial coverage. Cover spans physical damage to the retail premises, Public and Employers’ Liability, Cyber insurance that offers cover against being hacked/ransomware and Shareholder protection, Key man and death in service.

For more information please visit the website www.velolife.co, or call 01908 92 92 30.