In an attempt to make insurance slightly less dull, the new startup app Trov takes a Tinder-styled approach to insuring individual items.
Described by founder Scott Walchek as “insuretech”, Trov allows users to easily control what they insure, with the ability to turn it on and off when desired. Insurable items start with common electronics like laptops and phones, but there are plans to expand that cover to other items such as musical instruments.
Need to make a claim? No worries, just send a text message to an automated chat bot and you’re good to go. Purchasing a $US5 million equity stake in the business, Suncorp Group will be coughing up the dough for payouts.
Targeting the millennial market, Mr Walchak says, according to a World Insurance Report, just 36 per cent of young people reported a good experience with a traditional insurer in 2015, compared to 52 percent of others.
“The generation that we’re serving cares about their lifestyle — their ambitions, weekends, hobbies, experiences. Those things are all powered by laptops, snowboards, skis,” he told news.com.au.
“It is the generation for whom almost everything of importance is channelled through the smartphone. Social networking, food delivery, dating — you name it. The team has built a beautiful user experience that is designed to make protecting your stuff as simple as swiping right.”
Premiums are based on the insurable item’s retail value, offering prices on a monthly or daily basis.
“We literally track to the second. When you select your coverage, we give you a slider to select how much excess you want to participate in, and as you slide left and right the premium is adjusted down to the penny,” said Mr Walchek.
When questioned on whether the app opens up opportunity for fraudulent claims, Scott says the risk is low.
“Will the convenience and control we give through [the app] lead to more fraudulent claims? We don’t know,” he says.
“We believe there will be additional fraudulent behaviours, but the most important thing is whether we can both identify and mitigate that fraud. [But] because we’re single-item, the exposure is pretty low.”