Mobility tech startup Tyred is launching a connected insurance service that uses AI and IoT devices to support more accurate underwriting for e-cargo bike fleets and micromobility operators.

While most insurance companies currently base quotes on static information such as a rider’s postcode, Tyred’s new service takes data directly from connected IoT devices embedded in vehicles. This provides an accurate, real-time understanding of how vehicles are actually used, stored and maintained to provide fairer, risk-adjusted pricing for users and fleets.

A connected hardware device will be provided with each eligible policy, generating first-party information that supports underwriting, identifies potential risks and provides evidence when an incident occurs.

Fleet operators who ensure their vehicles are ridden responsibly, secured properly and well-maintained can unlock more personalised pricing, subject to underwriting criteria, while Tyred gains a clearer understanding of the risk they are covering.

Beyond underwriting, this data is expected to transform the claims experience. By replacing forms and manual investigations with real-time device data, Tyred can instantly validate incidents and automate key parts of the claims process. All claims remain subject to the policy terms, conditions and assessment requirements.

While e-cargo bikes and micromobility vehicles are transforming urban transport, insurance products have failed to keep pace and operators face a gap in specialist protection, according to Tyred.

The market is also facing growing pressure from bicycle theft, more expensive e-bikes, battery risks and an expanding population of commercial and shared micromobility vehicles. At the same time, insurers often lack the first-party usage, security and maintenance information required to price these risks accurately.

Nikita Baranov, co-founder and COO of Tyred, said: “The micromobility insurance market is already worth billions but it is still being served through processes and pricing models that were not designed for modern bicycles, e-bikes or connected fleets.

“This is particularly important for fleets, where connected information can provide a clearer picture of usage, maintenance and risk across hundreds or thousands of vehicles. Better data should mean fewer preventable problems, more accurate cover and improved fleet availability for the customer.”

The insurance launch is part of Tyred’s wider ambition to create a connected platform for bicycle and micromobility ownership, bringing together preventative maintenance, mobile repairs and emergency support into one digital experience. This aims to reduce the cost and complexity of keeping bicycles and micromobility fleets safe, operational and protected.

Lancelot Hoare, co-founder and CEO of Tyred, finished: “Our aim is simple: riders who look after their bikes should be recognised for it, while insurers should have the information they need to offer better cover at a sustainable price.”