Argo Seguros Launching New Bicycle Insurance Product

How Argo Seguros Is Preparing for a Bike Insurance Boom

With bike sales booming in Brazil, Argo Seguros is preparing a new bicycle insurance product to meet increasing demand.

Booming bike sales in Brazil increase demand for bicycle insurance

This article was originally published on argoseguros.com.br and translated to English from Portuguese.

The bicycle sector is experiencing a historic moment in Brazil. The temporary closure of stores and other locations to prevent the proliferation of the new coronavirus initially caused a drop in bike sales – but now the reality is different. The need to avoid crowding, especially in public transport, has contributed to increasing sales at levels never seen before.

Surging sales – and more to come

According to data from Aliança Bike (Brazilian Association of the Bicycle Sector), the average sales growth in the last two months was over 84% compared to the same period last year. The most sought-after models are the so-called “entry bikes,” used for transportation, leisure and low-impact physical exercise. Entry models typically cost between $140 and $350.

However, demand for more expensive models is also increasing. According to a survey by CicloTrilhas Floripa of more than 2,200 mountain bikers, about 80% of them should buy a new bike in the next two years. The preferred models in this category cost between $350 and $2,600.

Based on this scenario, Argo Seguros – the largest bicycle insurance company in Brazil – estimates growth of up to 40% in insurance sales.

“As we are specialized in this segment, we were able to format new products such as Bike Mulher, specially created for cyclists, in addition to agreements with bicycle manufacturers and stores, for example,” says Vanessa Oliveira, Head of Consumer Lines. “So we are already feeling the effects of this demand, which should increase in the second half.”

Argo Seguros to develop new bicycle insurance product

The insurance company, which offers protection for a wide range of bicycles – from the simplest to those with high added value modifications to electric bikes – will soon launch a solution for the most basic models with values below $350.

The idea is to offer a product to serve the public that today is opting for the bicycle as a form of transportation and would like to have protection against theft, accidents and damage against third parties.

“Argo Seguros strongly supports the increased use of bicycles as a means of transport, as this brings a great benefit to health, as well as to the environment.”

— Newton Queiroz, CEO and President of Argo Seguros

“We emphasize that, as leaders in this market, our vision is to serve the largest possible audience in a focused manner in relation to their demands,” he says. “This is in line with the company’s objective of continuing to be known as the best bike insurer on the market, especially when we talk about the moment of indemnity.”

Learn more about Argo Seguros.