Local telematics insurtech Koba says it has partnered with a new underwriter after its arrangement with Eric Insurance concluded in July, forcing it to pause issuing new policies or renewals.

Koba’s website says policies purchased or renewed prior to July 4 were issued on behalf of Eric Insurance, but "Koba is no longer issuing insurance products on behalf of Eric”.  

A spokesperson tells insuranceNEWS.com.au Koba is "in the midst of transitioning" to a new underwriter, which it declined to name.

“We're yet to announce the exact date we'll be back in the market with our new underwriter but are hoping to finalise the date soon,” she said.

In March, it was announced ASX-listed underwriting agency Ensurance was investing up to $1.5 million in the insurtech and Ensurance CEO Tom Kent had joined the Koba board.

Ensurance was given the right to distribute Koba’s data-driven car insurance, under which premiums are calculated on a per-kilometre basis, while Koba could access Ensurance’s broker distribution network and corporate facilities. PSC has since announced a deal to acquire Ensurance.

Melbourne-based Koba launched in November 2021. It splits premium payments into two: a fixed premium to cover drivers while parked, and a per-kilometre rate, typically between 3-10 cents, while driving.

Koba measures the distance driven and only charges drivers by their use via its Koba Rider device, connected with the Koba app to automatically calculate driving distances. 

Advice sent to policyholders, seen by insuranceNEWS.com.au, was headed “Important info: Your Koba Insurance policy renewal,” and stated there would not be an offer to renew for now.

"While we’re disappointed we can’t offer you a renewal, Koba is currently transitioning to a new insurer … so that we can continue to offer our pay-per-km insurance. When we’ve finalised those arrangements we will be able to offer you a replacement policy.

"If you arrange cover elsewhere, and then decide that you like our replacement offer, we’ll offset any cancellation fees you might incur with free kms on us under your new Koba policy.

"Please keep your Koba Rider in a safe place. Once we’ve secured our new insurer, we’ll reach out to make you a new offer of insurance. You can then plug your Koba Rider back in, without the fuss of delivery. We look forward to having you back onboard with us soon.”

Koba investors include Hunter Equity Group and Insurtech Gateway. It won the Excellence in Insurtech category at the 2022 FinTech Australia Finnie Awards.