Innovation of the Month is an opportunity for innovators to gain recognition for their innovations early in the award program. This month’s winning innovation takes place Flipa new insurtech business built specifically to provide non-life insurance to around 50% of young Australians without health insurance.
The needs of the market were clear. Australians pay some of the world’s highest medical costs, but despite this, over 50% of Australians have no private health insurance, the majority of which are under 35 years old.
Chris Borrett, Chief Officer at Flip says, “We started with a challenge to create an insurance offer that would engage and be relevant to a younger demographic. Young consumers do not think about illness and typical chronic conditions, but they take risks, they get hurt, they are underrepresented in having health insurance and they usually have less disposable income to be able to pay for unexpected treatments and follow-up expenses.
Of course, we were active in the health and life insurance verticals because this offers the best way to take advantage of our corporate supporter (HCF) privileged assets. ”
Flip has turned the insurance customer experience upside down and transformed it from an agghet purchase into a genuinely helpful, customer-centric product. The result: one of the world’s first episodic non-life insurance products that consumers can “turn on and off”. For example, a customer who goes on a mountain bike ride or hike can turn on the Flip for the day and unlock up to $ 20,000 paid in cash if they are injured (and depending on the injury).
Flip was launched in October 2021 with a ‘Day Pass’ product, an ‘Always On’ subscription product and a ‘boost’ feature that allows subscribers to double their protection for selected days. By spreading the message about the product, they have actively tried to restore the relationship between insurance and the consumer.
Borrett says, “The nature of the flip cover is episodic, so we want a relationship with customers whether they are currently paying for the protection or not. We expect our customers to turn their protection on and off many times in a year. So when “the lid is off, we continue to get involved. We run exclusive adventure-based competitions and encourage customers to do more activities through offers and partner offers.”
In addition to direct customer engagement, Flip also explores more built-in insurance models by collaborating with mountain bike races, adventure races and other arenas and events. Flip is supported by a non-profit organization that is committed to linking the business model (especially their loss ratio) to a charity program that focuses on creating a positive environmental impact.
The registration experience is digitally activated and fast. Members can register and have coverage start within two minutes. The claims experience is no less impressive, with 90% + of the claims approved within 24 hours. Flip has also incorporated a free membership structure that is unique in the insurance area and fundamentally changes the traditional acquisition and retention of customers. Chris Borrett adds, “One of the most important parts of the feedback we’ve received from customers so far is how easy it is to join.”
Flip is still new to the market, but is making waves to be the first of its kind, a new kind of insurance company that wants to offer young consumers a purposeful, relevant and affordable product.
The results of this innovation are reflected in a number of topics:
- Perception: Helps to relocate insurance in the minds of young consumers, turning insurance into something relevant, connected and even cool.
- Non-traditional distribution channels: Influencers, sporting events, charities, Instagram etc.
- Digital experience: > 90% of claims have been approved within 24 hours and members can register in less than 2 minutes.
- Innovation of insurance products: A first of its kind episodic insurance product from scratch and launched on the market in less than 6 months.
Looking ahead, Flip plans to connect with consumers even more and take advantage of the valuable assets within the HCF Group that enable rapid innovation and speed to market.
Borrett says, “The common thread in our future strategy is to focus on young active consumers and to continue to build insurance products that people love. We have a number of new improvements to our existing non-life product that we will launch in the coming months, all of which will in addition to adding value to our members.In addition to product extension, we are also starting to explore new products in adjacent spaces.We work with partners in the activity, adventure and sports industries so that we can educate younger consumers about the value of insurance and offer coverage when and where consumers need it most. ”
Innovation is as much about enabling technologies as it is about connecting to underserved markets. Flip is an inspiring example of both. Congratulations to Flip for their exciting innovation!
Boris Plantier, Efma, Content Manager says, “We really appreciated Flip Insurance’s offering and their innovative way of approaching a niche market with a different mindset than what we traditionally see in insurance. Their desire to center the company around a specific community is the kind of a new idea that we love to celebrate in the Efma-Accenture Innovation in Insurance Awards and use to inspire others. ”
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Disclaimer: This content is provided for general information purposes only and is not intended to be used in consultation with our professional advisors.