Insurance disruptors: digital

startups or digital giants?

Insights from the US market

Jennifer Fitzgerald
Co-founder & CEO, PolicyGenius
@jenlfitzgerald
This is the US insurance market
 Its big, fragmented and complicated

Complex 50-state Hundreds of thousands Hundreds of

regulatory environment of insurance agents insurance companies
The US life insurance industry has been in a long
slow decline
 Could you cover an emergency expense of $400?

No
47%
Yes
53%

Source: Federal Reserve Report on the Economic Well-

Being of U.S. Households in 2014
 Insurance consumers get a poor digital experience

Online is the channel But delivers terrible

of choice consumer satisfaction
% of respondents who have used
Digital Satisfaction Score
the internet to shop

Travel Banking 15.2

Books & magazines

TV & DVD
Media 11.1 18
Electronics 10.0 MILLION
Restaurants
Apparel 8.9
Media
Airlines 8.5
Entertainment
Investments 8.5 Stuck shoppers
Mobile phones
Hotels 8.0 People who want/need life
Financial products
Supermarkets 5.8 insurance but get derailed.
Phone contracts
Utilities 5.0
Insurance products 66%
Auto 4.3
Shoes
Gov. Services 4.2
Luxury products

Home decor Health Care Providers 4.1

Jewelry Insurance 4.0

Pet food & pet care Real Estate 3.8

Household products Cable Provider 3.5

45% 68% 90% 0 8 16

Source: BCG global consumer sentiment survey, BCG/Morgan Stanley - Insurance and Technology 2014, McKinsey - Agents of the Future 2013
Investment in insurance tech is up 6x since 2011
INSURANCE TECH TODAY
Healthcare Auto Mobile Insurance Management

Insurance
Software/SaaS

P2P SMB Commercial

Life

Product
Financial services innovation has occurred in waves

Payments Banking, Wealth & The final

Budgeting, investing frontier:
Lending insurance
Here comes PolicyGenius
 Were taking everything an insurance agent does

POLICY A

$104
MONTHLY
YOU SHOULD APPLICATION POLICY
POLICY B
HAVE

Life $76
MONTHLY
Pet POLICY C
Renters
Health
$25
MONTHLY

Product
Tailored Advice Quotes Application Purchasing
Recommendations

and bringing it online.

Wait, hasnt this been done before?
 Yes.

In Retail In Retail
Banking Investing

In
Tax Preparation

but not for consumer insurance in the US!

 We've started in high-opportunity products

Long Term
Term Life Pet Renters
Disability

ANNUAL SALES ANNUAL SALES ANNUAL SALES ANNUAL SALES

$3 billion $382 million $138 million $35 million

GROWTH OPPORTUNITY GROWTH OPPORTUNITY GROWTH OPPORTUNITY GROWTH OPPORTUNITY

3 in 10 households dont 7 in 10 private sector Average annual growth rate since 7 in 10 renters dont have
have any life coverage and 5 employees dont have 2009 has been 13%, but still only renters insurance
in 10 say they need more disability insurance 1% of pets in the US are insured
(compared to 20% in the UK)
 The cornerstone of our distinctive approach:
The Insurance Checkup

1 2 3
Assesses your coverage Grades your financial & Creates your personalized
needs, risk tolerance, and insurance safety nets insurance to-do list, ready
financial base for action
We've built powerful quoting engines that
you won't find elsewhere

14
 Our Vision

Distribution Innovator Product Innovator

Build the premier digital brokerage Use our unrivaled data to build better
brand in the US insurance products

Here are the tailwinds at our back

The ACA &

Disappearing Electronic Wearable health
consumerization of
agents medical records technology
insurance

Favorable market shifts Decreasing friction in underwriting

10
Heres what weve learned about
consumers
We're not asking consumers to change behaviors
US consumers have been DIYers for 30 years
for the most complicated nancial task
 You cant just be an aggregator.
Why we took a dierent approach:

Insurance is more Lead generation is a terrible People dont think about

complicated than flights customer experience insurance every day

SO WE SO WE SO WE

Emphasized education & Designed an oering that

Built an end-to-end
decision support throughout maximizes the upfront
broker model
the user experience opportunity and lifetime value
Insurance is bought, if you make
it easy to buy and build trust

PolicyGenius
20%
MoM growth

Term life
insurance industry

2015 life insurance growth

 Its not just a Millennial thing

People over 35 use Were reaching the

the Internet too! mass auent segment

Baby-Boomers
(Age 50+)

20% $80K
Millennials
(Under 35)
50%
30% average user income
Gen-X
(Age 35-50)

Our User Base

 Consumers will do more than
you think they will do

9:30 5 days 90%

Average time spent on the Between landing Applications completed

Insurance Checkup and application self-service
 DIY and "robo-advice" should be
eectively used throughout the funnel

Awareness Consideration Evaluation Purchase

Auto customized Automated quoting Self-service Self-service

content & advice & underwriting shopping tools application
process
 If you don't have a digital funnel, you can't
optimize as quickly
Keys to
Life conversion to
next step

Visitors
(land on product page)
Great TOFU targeting and decision support on page
Shoppers
(complete quote flow)

Rapid A/B testing

Qualified Leads*
(contact info & indicate
interest in next step)
Smart re-engagement
Applications

Customer-focused operations
Sales

Digital matters from top to bottom in the funnel

We think about the digital experience
from the consumer point of view
Thanks!

jennifer@policygenius.com
@jenlfitzgerald

Visit us at policygenius.com
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