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 among the highest out-of-pocket medical prices on the earth, however regardless of this, over 50% of Australians wouldn’t have non-public medical insurance, the vast majority of these being underneath the age of 35.
Chris Borrett, Chief Officer at Flip says, “We began with a problem to create an insurance coverage proposition that will interact and be related for a youthful demographic. Younger customers 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 revenue to have the ability to pay for sudden remedies and follow-on bills.
We had been naturally working throughout the well being and life insurance coverage verticals as this presents one of the simplest ways to leverage our company backer’s (HCF) privileged belongings.”
Flip has turned the insurance coverage buyer expertise on its head, remodeling it from a grudge buy to a genuinely useful, customer-centred product. The consequence: one of many world’s first episodic damage insurance coverage merchandise that buyers can ‘change on and change off’. For instance, a buyer happening a mountain bike experience or hike can change 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 Cross’ product, an ‘At all times On’ subscription product and a ‘enhance’ perform that enables subscribers to double their cowl for chosen days. In spreading the phrase in regards to the product, they’ve actively tried to reset the insurance-consumer relationship.
Borrett says, “The character of Flip cowl is episodic, so we wish to have a relationship with clients whether or not or not they’re presently paying for canopy. We count on our clients to show their cowl on and off many instances in a 12 months. So when the quilt is off, we proceed to have interaction. We’re working unique adventure-based competitions and inspiring clients to do extra actions by means of offers and associate presents.”
Along with direct buyer engagement, Flip can also 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 constructive environmental impression.
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 is not any much less spectacular, with 90%+ of claims accredited inside 24 hours. Flip has additionally integrated a free membership construction which is exclusive throughout the insurance coverage house and basically modifications the standard acquisition and retention of shoppers. Chris Borrett provides, “One of many main items of suggestions we’ve acquired from clients so far is the convenience of becoming a member of.”
Flip continues to be new out there, however is making waves for being the primary of its sort, a brand new breed of insurtech firms seeking to provide younger customers a purpose-driven, related and reasonably priced product.
The outcomes of this innovation are breaking by means of throughout various subjects:
- Notion: Serving to to reposition insurance coverage within the minds of younger customers, 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 accredited inside 24 hrs and members can join in underneath 2 minutes.
- Insurance coverage product innovation: A primary of its sort episodic insurance coverage product from scratch and dropped at market in lower than 6-months.
Wanting ahead, Flip plans to attach with customers even additional, and leverage on the precious belongings throughout the HCF group that allows speedy innovation and speed-to-market.
Borrett says, “The frequent thread to our future technique is a concentrate on younger energetic customers and on persevering with to construct insurance coverage merchandise that folks love. We now 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. Along with damage product extension, we’re additionally starting to scope out new merchandise in adjoining areas. We’re working with companions throughout the exercise, journey and sporting industries in order that we will educate youthful customers in regards to the worth of insurance coverage and provide cowl when and the place customers 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 material Supervisor says, “We actually appreciated Flip Insurance coverage’s providing and their revolutionary manner of approaching a distinct segment market with a unique mindset from what we historically see in insurance coverage. Their willingness to middle the corporate round a particular group is the kind of recent concept we like to have fun within the Efma-Accenture Innovation in Insurance coverage Awards and use to encourage others.”
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