so-sure, an insurance disruptor, has announced its launch, following its oversubscribed early stage investment round
Funds were secured from a group of angel investors, tech entrepreneurs and other key figures from the financial and insurance world. Investors include Silicon Valley entrepreneur Andrew Gault, Bought by Many advisor, Charles Burgess, as well as the early stage fund, 7pcVentures. The capital will be used to support so-sure’s launch into the UK mobile phone insurance market.
so-sure was founded by former city worker, Dylan Bourguignon, who was fed up with the traditional phone insurance model. Bourguignon says, ‘People don’t trust insurance companies. Insurance is too expensive and when you need to claim, it’s a nightmare. We wanted to create an insurance policy that provides complete peace of mind that irrespective of whether your phone is lost, stolen, damaged or broken down, you’re covered. And, if you and your friends don’t claim, you can get up to 80% money back.’
Bourguignon went on to say, ‘Your mobile phone is one of the most important items you own, not to mention expensive and we think there’s a real need for a better and more rewarding option.’
Customers buy mobile phone insurance through the so-sure app (available on Android and iOS) and the company creates a ‘Reward Pot’. The customer builds their Reward Pot by connecting to people they trust; every time they connect to a friend who’s also bought a so-sure policy, they both get up to £10 added to their Reward Pots.
Customers can connect to as many people as they like, until their Reward Pot is worth 80% of the premium. If neither the insuree nor their direct connections make a claim, the reward pot is paid out at the end of the year - or it can be used to reduce the following year’s premium. If an insuree does claim, their Reward Pot and their network’s Pot are used to help fulfil the claim. For example, you can insure your iPhone 6 for £8.64 a month and if you and your 8 connections don’t claim, you get £80 back at the end of the year.
‘Our solution goes back to the fundamentals of insurance – the mutualisation of risk. That’s how insurance started: people knew and trusted each other and they had each other’s backs. By re-introducing mutuality into the insurance equation, we can reduce the cost of insurance and give those savings to customers. Moreover, contrary to most insurance providers, so-sure manages the customer experience from purchase to claim. This allows us to provide customers a better insurance experience. so-sure is the insurance that keeps on giving!’ he adds.
Bourguignon states that his desire to build a new model of insurance stemmed from concern about the direction that the insurance industry was taking. ‘While insurance value chain members make handsome margin, consumers trust insurance less than they do banks. It has to change!’
so-sure plans to take it’s new ‘social insurance’ concept beyond mobile phones and into other sectors. Bourguignon says, ‘We’re excited about changing the face of insurance for the better and this early stage funding will ensure we can successfully launch so-sure in the UK, focusing on mobile phones. so-sure is also proud to have Salva Kindlustuse AS and Digital Partners, Munich Re as capacity providers behind our policies. We’re aiming to raise another round of investment in 2017, in order to fuel further product lines, as well as expansion into other countries.’