insbee is developing Asia’s first social peer-to-peer (P2P) car insurance platform that rewards car owners for responsible driving. insbee is a dedicated online car insurance platform offering car insurance from partnering insurers, with their biggest value-add being the introduction of a “No-Claim Rebate” (NCR); that’s cash back to the policyholder at the end of the policy year if no claims are made. insbee also gamify the customer experience on their platform to encourage social selling and improve the customer experience. This is a new-to-market innovative digital insurance solution that delivers value to both customers and insurers.
Application for THE DIGITAL INSURER’S ASIAN START UP INSURTECH AWARD
insbee is developing Asia’s first social peer-to-peer (P2P) car insurance platform that rewards car owners for responsible driving and provide a more engaging customer experience for policyholders. We are a dedicated online car insurance platform offering car insurance from our partnering insurers, with the biggest value-add being the introduction of a “No-Claim Rebate” (NCR); that’s cash back to the policyholder at the end of the policy year if no claims are made. We also gamify the customer experience on our platform to encourage social selling and improve the customer experience.
insbee works with insurers to enable responsible drivers to come together to form or join public / private groups and pool a portion of their premiums to cover for small sums of own damage claims while large claims above the deductible/ excess will still be covered by their preferred insurers. The amount that remains in the group pool at the end of the policy year will be redistributed to members who did not make any claim in the policy year (i.e. NCR).
Briefly, the customer’s lifecycle on our platform as follows:
- Customer purchases a policy from one of our partnering insurer via our platform with premium split between premium paid to insurer and pool contribution
- Customer is first placed in a public group. Customer can choose to remain in the public group or form / join a private group when he has more control and transparency on who he is in the same group as
- At the end of policy year, if customer has made no claim, he will receive his proportional share of what remains in the group pool as a NCR, and proceed to renew his policy
A video explanation of our value proposition for customers can be found here:http://tinyurl.com/insbee-introduction
insbee is designed to be a “one-stop” platform for members to compare and purchase insurance products, interact with fellow members, and facilitate damage claims. Anchoring the insbee platform is a multi-functional interface, called “insbook”, that enables members to create new groups, join existing groups, invite new members, purchase and review policies, make claim submissions, receive real-time updates of driving accidents and observe the claim patterns of other fellow members. A key feature is a “Newsfeed” page where we gamify the experience by allowing members to reject new invitees to their private groups, “save” other members who will be “kicked out” of their respective private groups by the system for high claims, receive awards for safe driving, receive update about activities within the group while also curating auto-related content for members. This will greatly increase the level of engagement with the community, improve customer satisfaction and help with customer retention.
Via insbook, members can observe the driving record and claim patterns of other members in their private group. This increases the accountability of individual drivers towards fellow members, which in turn influences their driving behavior positively. Safe drivers will result in greater cashback, while unsafe drivers will drain the common pool and impact the cashback distributed to members at the end of the policy year. Naturally, an element of self-selection will come into play since unsafe drivers will be gradually excluded from the group while safe drivers will be encouraged to join the group. Transparency on the platform also imposes a level of self-discipline in damage and claims reporting. Therefore, other than encouraging safer driving, insbee’ssocial platform also reduces the tendency for an individual to over-claim, and eliminates the likelihood of outright fraud. This is thus a cost-effective way to augment current insurer underwriting practices by leveraging on community knowledge to better assess the risk profiles of drivers (i.e. crowdsourcing of risk segmentation) and to fine-tune premium pricing. Furthermore, with a clear value proposition (in terms of savings and engagement), coupled with an attractive referral program, members will be sufficiently incentivized to invite friends and family to the platform, thus transforming the way car insurance is distributed.
Value proposition to customers:
- Lower insurance premiums: Members can save up to 20% on their premiums if they do not make any claims during the policy year (i.e. NCR). It is important to note that there are no switching costs to being on our platform, as customers will pay the same premium that they ordinarily pay, but now with the opportunity to get cashback. Therefore, they will never be worse off.
- Increased engagement: Via “insbook”, members will be able to preview the details of their policy, their group, enable them to create new groups and invite friends and family into it. Members will also be updated about new members (invited by other members of the group), accidents and claims approved.
Value proposition to partnering insurers:
- Improved risk segmentation: Unlike other distribution channels, insbee promises to bring “better risk” to our partnering insurers. The P2P mechanism augments their underwriting practices and is also an avenue to grow market share without being exposed to adverse selection.
- Lower risk of fraudulent claims: The self-selection process in the creation of member groups will bring “better risk” to insurers. For insurers looking to go direct to consumers (i.e. online channel), they face the risk of dealing with “faceless” customers who have a higher propensity to conduct fraud. P2P brings the benefits of an online channel with the community element acting as protection against fraud.
- Better customer experience: With a more engaging and rewarding experience, customer satisfaction will also increase, enabling higher rates of retention
- Innovation partner: With strategic partnering insurers, insbee can also operate as their innovation partner, using our combination of community building and data collection capabilities to enable the development of alternative car insurance products over time.
Overall, we believe insbee can transform both the way car insurance is being distributed as well as risk segmented. As such, we believe we are deserving of THE DIGITAL INSURER’S ASIAN START UP INSURTECH AWARD because we are introducing a new-to-market innovative digital insurance solution that delivers value to both customers and insurers.