Despite being one of the largest industries in the world, the insurance industry has operated the same way for hundreds of years. Unlike many other industries that have utilized technology to make processes more streamlined and suited to the lifestyle of digital native millennials, the notion of claiming insurance brings up a host of memories of jumping through various hoops on the phone or via email to claim back money for a late train or changed flight. In an age where many other industries such as banking are seeing change with the rise of neobanks there is room for improvement, an opportunity which accounting firm PWC claims stands at £50bn for companies willing to innovate in the space. One company that has raised €200m and is based in Dublin, Ireland, has built innovative digital add-on insurance products you didn’t think were possible. Companjon leverages EDI (event-driven interactions) at scale across the entire customer journey, enabling them to turn negative experiences into positive ones. They work with online businesses and booking providers to help them differentiate from their competitors and generate additional revenue by offering their end-customers add-on insurance that is activated through EDI and tailored to their digital lifestyles. Companjon is a tech-driven disruptor that is changing the way people think about insurance.
Bringing a successful business model from Asia to Europe
The idea and offering from Companjon, whilst new in Europe and the U.K., has thrived in Asia for years. Five years ago, seasoned business leader Matthias Naumann who had a long and very successful career at Boston Consulting Group had a discussion with colleagues about the idea of adopting insurance to peoples’ everyday lives, given his exposure to the Asia market where it was already successful. He preached the idea of leveraging technology to transform the way people do business and change the way traditional providers offer solutions. And just like that, there was an ‘ah-ha’ moment. “I said to myself, if we could build and offer insurance solutions that are engaging, event-driven and fully digital, we could make an impact on how they view and experience insurance.”
Building & Scaling Growth During A Pandemic
Whilst the team were able to raise a substantial amount of money from a leading Swiss insurer, they ended up building a significant amount of the product and team in the middle of the COVID-19 pandemic. This meant they had to develop new processes so they could adjust to a remote working environment but also build out insurance solutions for a world which would likely look very different after the COVID-19 pandemic. The international team managed to develop 100% cloud-based technology capable of processing 32,000 policies per second with a flexible product design and development to allow for customization, is easy to integrate through tailored API gateways and achieves seamless connectivity to third party data sources. Additionally, the company is one of very few digital insurers who are licensed and regulated by the regulators which provides a significant advantage of being faster and able to carry the entire risk, acting as both underwriter and broker giving them the flexibility to offer the service they desire without reliance on a third party.
How A Fully Digitized Insurance Journey Works
Companjon is reinventing how customers experience insurance with instant EDIs (event-driven interactions). This goes far beyond just purchasing a product, distributing, or even paying out the claim, it’s interacting with the customer throughout the entire journey from start to finish. They do this through full end-to-end digitization, push and pull notifications, dynamic offerings and pricing, fully triggered automated claims that require no human intervention and instant payouts, all completely unique and almost unheard of among traditional insurers.
“Customers expect a consistent digital experience and want to buy from businesses who are, fully dynamic and bring experiences that make their lives easier” says Matthias Naumann.
“EDI across the entire value chain will be the future of customer retention and loyalty for businesses. If you don’t interact across your value chain, you run the risk of losing your customers and becoming just a capital provider.”
“Today traditional insurers fail to adopt to the lifestyle behaviors of today, where claims processes can take weeks to come through and assessments are paper based and lack transparency. It’s no surprise that there is a lack of customer trust toward insurers. We at Companjon love claims, it’s what makes us different and adds value for both our partners and customers. Without technology that allows for EDI, dynamic offerings and on demand real time claims interactions, businesses will miss the opportunity to become the sole interface with their customers. Those who provide dynamic offerings and fulfilment will outplace traditional products of today.”
In a time when customers require more flexibility when making purchases to fit their lifestyle, whether it’s travelling or making an online purchase they can significantly benefit from companies who have Companjon’s offerings on their booking platforms. And when things go wrong, this is how the insurtech brings a frictionless and enjoyable experience. An example of what this customer journey looks like in practice is below:
- Paul selects a flight to Madrid for a weekend trip using an online travel provider
- At check-out, he adds Flight Delay Insurance to his purchase
- Companjon’s technology tracks the flight and recognizes immediately that there is a delay, triggering an automated pay-out once the flight delay occurs
- Paul is instantly compensated as soon as the delay is confirmed
No burden of manually submitting a claim, filling out forms, posting documents and waiting weeks to receive compensation after assessments. In this scenario, the booking provider monetizes from the policy purchased and despite the delay, the customer is happy and likely to purchase again. Companjon aims to delight customers and pay out claims with ease when others have not, and online booking platform providers are seeing the benefit. From gaining commissions for every Companjon policy purchased on their platform, customer satisfaction and retention, and not having to worry about carrying the risk or building the tech infrastructure in house.
A Future Disruptor
A similar experience extends to things such as Minute Match where the payout amount matches the minutes delayed for a flight, Weather Protection for events, Social Distance Guarantee that covers if social distance measures are not in place at your event, Flex Cancellation allowing to cancel at any time without any reason, and more options which will be available at checkout to give customers a peace of mind when they make purchases. And what starts with a simple add-on for purchases mentioned, will soon be adapted to the classical household name cover such as car, health, and home insurance. As we exit the pandemic the team at Companjon have continued business partner growth. They have ambitions to be the leader in add-on insurance in Europe. Finally, they are not done with innovation with new features such as a blockchain initiative which will enable them to pay out customers in cryptocurrency and will bring more new unique digital products to the market, making this relatively new startup definitely one to follow in the insurance space.