Startup Insurance

Thu 31 May 2018 00:00:00 UTC

Startup insurance

The Startup Insurance solution

Business insurance in India is, generally, split into two categories, large risks and non-large risks(all others). Large risks have different policies, different structures, and are mostly serviced by brokers. Non-large risks are mostly called SME risks, and is an underserved and underpenetrated section of the market. We have previously written about SME Insurance, the problems plaguing the sector and the methods through which perilwise resolves those issues. Today, we talk about a specific subsegment of small and medium companies: Start-ups.

First off, Start-ups are not exactly SMEs; they work to disrupt industries and business models, and are almost always planned at a grand scale, with a large focus on top line. For insurance purposes, however, they fall under this category.

Catering to start-ups for their insurance has much the same issues as SMEs, but there are some that are unique to start-ups:

  1. Price sensitivity
  2. Responsiveness in after sales service
  3. Lack of Customised policies at small scale
  4. Lack of understanding of disruptive business models by the industry at large
  5. Tech adaptability

Perilwise is built to bridge these gaps in the industry, and service this sector. Read on to find out how:

Problem #1: Price, and necessity

The biggest issue in the insurance industry is price, always has been. With Start-ups, who have to be frugal to survive, there is often no interest in taking insurance.

As Brokers, we represent clients, and essentially manage risks for them. Many Start-ups are not in a position where insurance should be a priority, and to these companies we tell them so instantly. Perilwise is built on the idea that businesses need a transparent, tech-savvy, one-stop insurance provider for all their needs, and that is the company we are.

As brokers who serve small risks, we are especially aware of price sensitivity and ensure transparency of pricing in all the things we do.

Problem #2: Responsiveness

The insurance industry has a lot of processes and set documentation requirements, especially when it comes to claims and endorsements. Start-ups work at a fast pace, and often are slightly understaffed, with one person handling multiple roles.

We provide instant rate estimates for most lines of insurance, and our algorithm allows you to customise your product requirement and benefits and get an instant, live estimate of the quote. This allows a very transparent selling process, where the client company is clear on what they are getting and have a rough idea on what it is going to cost them.

Our automated dashboard allows companies to handle all their insurance requirements with just a few clicks. This allows our highly responsive and proactive team to work in the backend and process your claim, endorsement, etc while you can go about your work. This eases the after sales process for companies, enabling the full outsourcing of your insurance needs. The dashboard also serves as a platform to manage new policies, quotes, renewals, etc.

Perilwise, being a startup ourselves, are best suited to understand the requirements of startups when it comes to insurance.

Problem #3: Understanding of business models

Many insurance providers get stuck in a box, thinking only in terms of their products, and how to sell them to companies. This lack of flexible thinking is a fault of the industry as a whole.

Being a startup, and having dealt with a lot of startups at various stages of their life cycle, we understand the various business models that startups have, and work with insurers to customise the policy offering to add the most value to the start-up.

We create niche solutions and customised policies that dont readily exist in the market today, and find unique ways of deploying them.

Problem #4: Tech and adaptability

Startups, more than any other sector, tend to work digital, in all aspects of their work. Now lines of insurance such as marine cargo insurance (aka transit insurance) require declaration of trips on a frequent basis to the insurer. Perilwise provides API solutions that tie into what ever system you use, and allows you to monitor your insured assets, trips, whatever the case may be. Our APIs also allow you to report claims, track statuses, etc.

Some businesses also wish to sell insurance as an auxiliary product offering to their customers. We facilitate the tech integration of the APIs to offer insurance to your customers, and manage that entire module for you.

You can read more about our dashboard here