The 4 Small Business Friendly InsurTech Ventures
CoverWallet looks like a Robo Broker and they offer hybrid support, with phone support as well as a digital service. This makes sense as Insurance is too complex and mission critical for a pure digital service. They aim to cut through the complexity by offering Insurance that is tuned to the specific type of business. As they put it:
“The coverage you need depends on the type of business you run. A restaurant owner needs to be covered against customers possibly getting food poisoning while an accountant needs to be covered against calculation errors.”
FounderShield focus on high growth startups and are based in New York where they can find many of these close to home (although I noted some high trajectory Silicon Valley firms in their customer list). This makes sense on the “get them young” approach to marketing. When you are starting a high growth venture you know you need insurance but want to spend very little time thinking about it. You will sign with whoever makes it easy and as long as they work with you as you grow they can get some big clients for a low CAC. I also noted that they offer phone support.
They focus on the application process. This is similar to how ventures like Ondeck and Kabbage won in Small Business Lending – by making a cumbersome process simple. For example, they note how paper intensive the Insurance application process is – the last bastion of the Fax machine.
Insureon also focus on the application process and the fact that offering Insurance needs to be tuned to the specific type of business by offering a multiple choice tree structure type application process that reduces form filling time.
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