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Smart Group Companies, LLC

Smart Digital Insurance

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

Date of last change: 09.07.2020
Min investment
$  100.000
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Total required
$ 1.223.000
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Idea

We implement digital technologies in the insurance field.

Smart Digital Insurance - is a SaaS B2C/B2B/B2G digital ecosystem that allows Policyholders and Insurance Companies to interact only with a help of digital tools, while saving their money and time.

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;

PAM - $ 4 Trillion;
TAM - $ 3.2 Trillion;
SAM - $ 800 Billion;
SOM - $ 8 Billion;

Margine - 15%;

Income - $ 1.2 Billion.

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. 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;
 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;
 EWA;
 DUBAI POLICE;
 ALFA INSURANCE;
 YELLOW BUTTON.

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: - $ 1 Million;
Turnover, year 2: - $ 2.7 Million;
Turnover, year 3: $ 35 Million;
Turnover, year 4: $ 433 Million;
Turnover, year 5: $ 1.2 Billion.

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: $ 685 200; 56%;
Fixed assets: $ 109 600; 9%;
Administration: $ 93 700; 8%;
Overhead expenses: $ 79 500; 6%;
Advertising & Marketing: $ 255 000; 21%.

Offer for investor

Equity entry on convertible note basis to be discussed.

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
$51 000 000
with profitability ratio of 4 128%.

Team or Management

Risks

WEAKNESSES/PROBLEMS OF THE PROJECT

1. Bureaucracy of Insurance Companies.
2. 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

YCombinator 2019 0nline summer school.

Won the competition and other awards

N/a.

Invention/Patent

Copyright Registration Certificate DEC 2018.

Product Video

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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