Photo - Smart Digital Insurance
35116

Smart Digital Insurance

Ukraine, Kyiv city
Market: Insurance
Stage of the project: Prototype or product is ready

Date of last change: 24.01.2019
Min investment
$  250.000
Total required
$ 4.858.000
Rating
equalizer 188 из 1000
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Idea

We implement digital technologies in the insurance field.

We save time and money of policyholders, increase insurance companies’ profitability, enhance convenience of processes in insurance for all insurance market players.

Current Status

MARKETING:
Fundamental Project marketing principles were determined;
NEGOTIATIONS:
Preliminary negotiations on cooperation were held with some Insurance Companies;
Terms and conditions of the cooperation agreements are being agreed upon;
PRODUCT:
The Data-Driven prototype in Justinmind was developed;
The Product is being developed;
TECHNOLOGIES:
The technological solutions of the Product were determined;
STRATEGY:
The development strategy was defined.

Market

The number of cars registered in Ukraine: 8.5 million units;
The auto insurance market in Ukraine, per year: $265 million;
The market of assistance companies in Ukraine, per year: $3.2 million;
The costs of Insurance Companies in Ukraine associated with the conclusion of Insurance Contracts, per year: $72 million;
THE VOLUME OF THE UKRAINIAN INSURANCE MARKET: $965 million;
THE VOLUME OF THE GERMAN INSURANCE MARKET: $205 billion;
THE VOLUME OF THE WORLD INSURANCE MARKET: $4 trillion.

Smart Mobile Insurance Software Product has been designed in six (6) versions:
1) User Version for Policyholders — “Version User”;
2) User Version for Policyholders with the SOS function activated and included in the Insurance Contract — “Version User SOS”. Activation of the SOS function can be carried out both in manual mode and using a remote device that measures the vital signs of the User and transfers them to Smart Mobile Insurance Program;
3) “Version Pro” for Assistance Companies in the Insurance Field to verify information about the registered Insured Event and/or to compile the Case for the current Insured Event with the maximum convenience and speed for all parties involved in the MVC, including the Insurance Adjuster visiting the scene of the Insured Event;
4) “Version Broker”, which allows Insurance Brokers to buy/sell Insurance Products;
5) “Version MVW”, which allows Motor Vehicle Workshops repairing Motor Vehicles to participate in the Tender for repair and restoration works and in the Auction to purchase damaged vehicles from Insurance Companies and/or Policyholders;
6) “Version Police” designed for representatives of road patrol services, as well as other law enforcement agencies, and designed to register the Insured Event. This version of Smart Mobile Insurance Service has the expanded functionality that allows you not only to digitize the actions of representatives of law enforcement agencies during registration of the Insured Event but also to digitize any accident that, due to the specifics of their work, can be registered by them.

Problem or Opportunity

POLICYHOLDERS
PAINS

1. EXPENDITURE:
 of FINANCE for expensive Insurance Contracts;
 of TIME for each insurance process and
 INCONVENIENCES while implementing them:
• selecting an Insurance Contract;
• purchasing an Insurance Contract;
• registering an Insured Event
• and relevant documents.
2. OUT-OF-DATE INFORMATION about the Insurers and their activities.
3. LOW LEVEL OF SERVICE — the risk of contacting the unqualified personnel of the Insurance Company, impossibility of contacting the Insurance/Assistance Company by phone.

POLICYHOLDERS
GAINS

1. SAVING:
 MONEY — purchasing the Insurance Contracts less discount of 15-20%;
 TIME per each insurance process and
 INCREASING CONVENIENCE while implementing them:
• selecting an Insurance Contract and an Insurance Company in a more convenient way and 8 times faster than now;
• purchasing an Insurance Contract 24/365 from any part of the world and 5 times faster than now;
• registering an average Insured Event and relevant documents during 25 minutes instead of 3-5 hours.
2. UP-TO-DATE INFORMATION — the information, which is necessary and valuable to a Policyholder, is put together within the framework of one solution.
3. HIGH LEVEL OF SERVICE — guaranteed contact with a streamlined system with no influence of a human factor, and instant response.

INSURERS
PAINS

EXPENDITURE:
1. OPERATING COSTS — high operating costs of selling Insurance Contracts;
2. PAYMENT for Assistance Companies’ services;
3. POLICYHOLDERS’ FRAUD;
4. PAPER WORKFLOW SYSTEM — outdated paper workflow system working with a time lag.


INSURERS
GAINS

SAVING:
1. OPERATING COSTS — saving 12-15% of operating costs of selling Insurance Contracts;
2. PAYMENT for Assistance Companies’ services less discount of 20%;
3. NO POLICYHOLDERS’ FRAUD;
4. ELECTRONIC WORKFLOW SYSTEM — electronic workflow in real-time mode.

Solution (product or service)

SDI’s VALUE PROPOSITION

 Sustaining life;
 Convenience/practicality and benefits;
 Saving money;
 Saving time;
 Access to new possibilities previously inaccessible, the novelty of processing methods of conventional processes;
 Automation and robotization of most processes in the Insurance Field;
 Autonomy of interaction without the need to personally contact the counterparty;
 Online 24/7 performance with full functionality, which is comparable to a contact with a person during working hours;
 Access to verified and unbiased information;
 Protection against Policyholders' fraud and unscrupulous practices.

Competitors

Competitors:
 CASKO2GO;
 POLIS.UA;
 HOTLINE.UA;
 DUBAI POLICE;
 ALFA INSURANCE;
 YELLOW BUTTON.
WHY NO COMPETITORS SIMILAR TO SDI

 Some Insurance Companies are trying to automate insurance processes within their activities, creating mono brand products aimed solely at meeting their own needs.
 There is no example of even two Insurance Companies that would come up with an integrating product among themselves to facilitate the life of their Clients.
 Companies, brokers-agents-intermediaries, create a kind of integrators for selling Insurance Contracts, but without proper management and marketing activity they remain at the rudimentary level and work as before: provide information in a digital form, and we will contact you by phone, and then the current procedure for purchasing an Insurance Contract is applied.
 The sale of compulsory motor third party liability insurance contracts in a digital form is implemented so inconveniently that it is better to buy Insurance Contract as before.
 There is a limit to the amount in the European Accident Statement, and registration of an Insured Event in a digital form is implemented so inconveniently that it has not got widespread use at all.

MOST CLOSELY RESEMBLING COMPETITOR 1
DUBAI POLICE
PRINCIPAL FEATURES

PROS
 The only product in the world that professes philosophy of the Information Service, through which an Insured Event can be registered and some actions in the Insurance Field and related areas can be performed.

CONTRAS
 Only suitable for Dubai;
 No scaling capability.


MOST CLOSELY RESEMBLING COMPETITOR 2
ALPHA INSURANCE IC’s APPLICATION
PRINCIPAL FEATURES

PROS
 One of the few applications in use in the Russian market;
 Circumspect functionality;
 Permanent work on improvement and development.

CONTRAS
 Mono brand application;
 Performing functions of “reminder”, but not the real tool;
 Problems with the application, certain functions do not work or work with problems and are inconvenient;
 The application is not intended to create a service that will be convenient for customers, but to be used as a resource for increasing sales;
 It is impossible to get a consultation through the application;
 The status of Insured Events is invalid, which is misleading.


MOST CLOSELY RESEMBLING COMPETITOR 3
APPLICATIONS KASKO2GO & KASKO4U FROM ASKA IC’S PARTNER
PRINCIPAL FEATURES

PROS
 Application is in use in the market;
 The application is in use in the Swiss market for 5 years;
 Attracting strong top managers in 2018;
 ICO preparation.

CONTRAS
 Only 25 thousand downloads over the course of 5 years;
 Performing functions of “reminder”, but not the real tool;
 Problems with the application, certain functions do not work or work with problems and are inconvenient;
 The application is not intended to create a service that will be convenient for customers, but to be used as a resource for increasing sales, although under the guise of savings for Policyholders;
 The idea of the application contradicts the Insurance Companies’ goals.

Advantages or differentiators

SDI’s COMPETITIVE ADVANTAGES

VERSATILITY
Use by any player of the insurance and insurance-related markets

COMPLEXITY
Implementation of all processes in the Insurance Field

UNIFICATION
Application of uniform quality and design standards

REGISTRATION OF AN INSURED EVENT
Self-registration of an Insured Event

PERSONALIZATION OF SERVICE
Use of “personal account” protected functionality

TRUST & REPUTATION
Objectivity and focus on protecting the rights and interests of Users

Finance

The project IRR — 73%.

Turnover, year 1: $0;
Turnover, year 2: $1 893 982;
Turnover, year 3: $7 767 722;
Turnover, year 4: $17 550 959;
Turnover, year 5: $21 098 948.

Business model

Business model, % of the SDI turnover
Service — 6%;
Advertising — 29%;
E-commerce — 65%.

Money will be spent on

STRUCTURE OF INVESTMENT UTILIZATION
SMI development: $685 100; 14%;
SMI further development: $368 900; 8%;
Fixed assets: $147 000; 3%;
Administration: $596 400; 12%;
Overhead expenses: $560 600; 12%;
Advertising: $2 500 000; 51%.

Offer for investor

The period prior to the investment conversion is 29 (36) months,
with profitability ratio (at the time of conversion) of 201%,
and the possibility of early exit starting from the 36th month
at a rate of 21%.
The value of the investor’s share as of the 60th month is estimated at
$205 000 000
with profitability ratio of 4 128%.

Team or Management

Risks

WEAKNESSES/PROBLEMS OF THE PROJECT
1. Lack of project’s fully-formed development and support teams.
2. Bureaucracy of Insurance Companies.
3. Possibility at the initial stages of disputes, arising from the registration of Insured Events via SDI, between Insurance Companies and Policyholders.

MAJOR RISKS OF THE PROJECT
1. Investing in a new, not ongoing project.
2. The risk of making a profit in a smaller amount and/or at a later date compared to that planned due to market and competitive factors which are beyond the SDI’s control.
3. Establishment of cooperation with Insurance Market players, the number of which may not be sufficient to achieve the planned indicators on time.
4. Adverse market conditions.

Incubation/Acceleration programs accomplishment

N/a.

Won the competition and other awards

N/a.

Invention/Patent

Copyright Registration Certificate #83574 dated 11 DEC 2018.
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Idea
Current Status
Market
Problem or Opportunity
Solution (product or service)
Competitors
Advantages or differentiators
Finance
Invested in previous rounds, $
Business model
Money will be spent on
Offer for investor
Team or Management
Mentors & Advisors
Lead investor
Risks
Incubation/Acceleration programs accomplishment
Won the competition and other awards
Invention/Patent
Product Video