Innovation of the month is a chance for innovators to obtain recognition for his or her improvements early on within the awards program. This month’s successful innovation goes to Flip, a brand new insurtech enterprise constructed particularly to supply damage insurance coverage to roughly 50% of younger Australians with out medical insurance.
The market want was clear. Australians pay a number of the highest out-of-pocket medical prices on the earth, however regardless of this, over 50% of Australians would not have personal medical insurance, nearly all of these being beneath the age of 35.
Chris Borrett, Chief Officer at Flip says, “We began with a problem to create an insurance coverage proposition that may have interaction and be related for a youthful demographic. Young shoppers don’t take into consideration sickness and typical continual circumstances, however they’re risk-takers, they do get injured, they’re underrepresented in having medical insurance they usually sometimes have much less disposable earnings to have the ability to pay for sudden remedies and follow-on bills.
We have been naturally working throughout the well being and life insurance coverage verticals as this gives one of the best ways to leverage our company backer’s (HCF) privileged property.”
Flip has turned the insurance coverage buyer expertise on its head, reworking it from a grudge buy to a genuinely useful, customer-centred product. The end result: one of many world’s first episodic damage insurance coverage merchandise that customers can ‘swap on and swap off’. For instance, a buyer happening a mountain bike trip or hike can swap Flip on for the day and unlock as much as $20,000 paid in money in the event that they get injured (and relying on the damage).
Flip launched in October 2021 with a ‘Day Pass’ product, an ‘Always On’ subscription product and a ‘increase’ operate that permits subscribers to double their cowl for chosen days. In spreading the phrase concerning the product, they’ve actively tried to reset the insurance-consumer relationship.
Borrett says, “The nature of Flip cowl is episodic, so we need to have a relationship with clients whether or not or not they’re at present paying for canopy. We anticipate our clients to show their cowl on and off many occasions in a yr. So when the duvet is off, we proceed to have interaction. We are operating unique adventure-based competitions and inspiring clients to do extra actions by way of offers and accomplice gives.”
In addition to direct buyer engagement, Flip can be exploring extra embedded insurance coverage fashions by partnering with mountain bike races, journey races and different venues and occasions. Flip is backed by a not-for-profit that has made a dedication to tying the enterprise mannequin (particularly their loss ratio) to a charitable giveback scheme focussed on driving optimistic environmental influence.
The sign-up expertise is digital-enabled and fast. Members are in a position to enroll and have cowl begin inside two minutes. The claims expertise isn’t any much less spectacular, with 90%+ of claims permitted inside 24 hours. Flip has additionally included a free membership construction which is exclusive throughout the insurance coverage house and essentially adjustments the standard acquisition and retention of consumers. Chris Borrett provides, “One of the main items of suggestions we have now obtained from clients thus far is the benefit of becoming a member of.”
Flip remains to be new out there, however is making waves for being the primary of its variety, a brand new breed of insurtech firms seeking to provide younger shoppers a purpose-driven, related and inexpensive product.
The outcomes of this innovation are breaking by way of throughout various matters:
- Perception: Helping to reposition insurance coverage within the minds of younger shoppers, turning insurance coverage into one thing related, related and even cool.
- Non-traditional distribution channels: Influencers, sports activities occasions, charities, Instagram, and so forth.
- Digital expertise: >90% of claims have been permitted inside 24 hrs and members can join in beneath 2 minutes.
- Insurance product innovation: A primary of its variety episodic insurance coverage product from scratch and delivered to market in lower than 6-months.
Looking ahead, Flip plans to attach with shoppers even additional, and leverage on the precious property throughout the HCF group that allows speedy innovation and speed-to-market.
Borrett says, “The widespread thread to our future technique is a give attention to younger energetic shoppers and on persevering with to construct insurance coverage merchandise that folks love. We have various new enhancements to our current damage product that we are going to be launching within the subsequent few months, all of which is able to add further worth to our members. In addition to damage product extension, we’re additionally starting to scope out new merchandise in adjoining areas. We are working with companions throughout the exercise, journey and sporting industries in order that we will educate youthful shoppers concerning the worth of insurance coverage and provide cowl when and the place shoppers most want it.”
Innovation is as a lot about enabling applied sciences as it’s about connecting to underserved markets. Flip is an inspiring instance of each. Congratulations to Flip for his or her thrilling innovation!
Boris Plantier, Efma, Content Manager says, “We actually appreciated Flip Insurance’s providing and their revolutionary method of approaching a distinct segment market with a distinct mindset from what we historically see in insurance coverage. Their willingness to heart the corporate round a selected neighborhood is the kind of recent thought we like to have fun within the Efma-Accenture Innovation in Insurance Awards and use to encourage others.”
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