GIT insurance option: it’s all about the numbers
Simple answer: because it wasn’t popular. Here are the numbers. In the last circa 2000 collections, which amount to roughly 3000 bicycles being delivered, only 15 or so people ever opted in for and bought our optional GIT goods in transit cover. That’s half a percent of customers. Or 0.005 in decimals. Correct, two zeroes. So not a lot of people.
It turns out our GIT insurance wasn’t really needed
Why would that be? Certainly not because it is too expensive. Because usually courier companies ask 2-3% of the value insured. And we asked just 1%. So it was a half to a third better priced than elsewhere. Could it be that no one perceived damage or lost in transit as a risk? Possible. Could it be that customers inadvertently or expressly self-insure? Also likely. Or because they might already have comprehensive cover or their own short term insurance that includes GIT insurance to cover their bicycle(s) while in transit.
Nothing ventured, nothing gained.
I spent a lot of time putting together this kind of insurance. It was tricky, because all the call centre type insurers don’t understand the risk. When I eventually found someone who certainly does, and that it is even lower risk, because we don’t have all our eggs in one basket, or on a single vehicle, they immediately jumped at the opportunity. But after a year and a half it seems our customers don’t need this option. And we archived the GIT insurance option due to a lack of interest. Not enough policies sold to justify it going forward. Such a pity. But now we know. So, if you need to insure your bike while in transit, kindly consult your short-term insurance specialist. Maybe we should have just gone with my other initial thought, which was to refer potential customers to short-term insurance providers. Maybe next.
Thanks, Savanna Marine insurers. Maybe our paths will cross again in future. For GIT insurance or something else.
