On April 27, six #insurtech startups will be pitching at the Global Insurance Symposium. RiskGenius will be posting a series of articles on the Global Insurance Accelerator companies. We look forward to seeing you in Des Monies!
Hesus (CEO and founder of WeSavvy) suffered from a lifestyle that some of us are guilty of at one point or another. Poor eating habits, not exercising enough, never working off those extra pounds gained from working at a desk job or from former college days. In 2013, after having a revelation about his weight and health, he lost over 50 pounds by running and eating healthy. Despite his decrease in weight, his insurance premiums increased the next year.
Insurance companies aren’t rewarding those willing to change their lives and become healthier, thus creating the need for WeSavvy. Their mission is to put policyholders first by rewarding them for reaching their fitness goals, and to continue to incentivize them with cash/other bonuses when they increase their activity levels. This will ultimately improve their overall health and well being, while rewarding them with cash points and benefits on their insurance premiums.
Traditionally, health and life insurance is set-up so that young policyholders subsidize older ones. Premiums continuously increase, regardless of increased (or decreased) risk based on health. Often-times younger healthy policyholders end up paying more and more, which can cause them to not want to get things like life insurance, and cause dissatisfaction with their current health insurance policies and premiums.
Hesus Inoma believes that the current structure of health and life insurance policies are no longer working for us. By encouraging all policyholders (regardless of age) to participate in healthy and active lifestyles, the number or claims reported will lower, and as a result will make premiums more reasonably priced. At WeSavvy, he is focusing on, “prevention and loss control, rather than concentrating on indemnification.”
Benefits to using WeSavvy are not only the cash rewards, but the social aspect as well. You can create challenges with friends to compete against each other’s fitness goals. WeSavvy will also be working with providers in the future to offer more types of rewards, benefits, and incentives. Their target customers are younger people, usually ranging from 25-40 years of age. Their goal is to retain customers for the long-term. This product is probably better for those who are more tech-savvy, however, anyone who is health-conscious will benefit from WeSavvy. Early adopters of this app will be people looking to leverage the health data collected from this app against providers to lower their premium costs, and get better policies. The secondary market for WeSavvy is brokers and potential partners for their application.
WeSavvy is in the final stages of platform development, and is set to launch in the third quarter of this year (2016). Future growth involves moving into other insurance products and services, to connect providers to customers better through the use of telematics, IoT, and looking to create smart policies. Smart policies of the future will be data driven, through the use of smart devices to collect this data, assess risks, and create individualized insurance plans. No additional software will need to be built, their master API is agnostic and built to scale, which will make entering into different markets easier. Future growth is projected to be into the U.S., European, and common-wealth countries. He’s looking to partner with re-insurance carriers and with big carriers globally to perpetuate this growth.
The selling cycle for insurance products such as WeSavvy is long. It is hard to convince insurance providers of his value-proposition. Making a quick impact doesn’t usually happen, so persevering through has been extremely important. Insurtech is not an easy market and not everyone is convinced about the next generation of products as smart products.
WeSavvy is apart of the Global Insurance Accelerator, based in Des Moines, Iowa. Hesus joined because he was looking to get more information about the US insurance market, and to learn from top industry professionals. He advises anyone with an insurtech start-up to look at applying to this accelerator because the seed investment, mentoring, and access to insurance networks has provided to be extremely valuable.
Hesus will be apart of Global Insurance Accelerator’s Demo Day Pitches on Wednesday, April 27th (2016), at the Global Insurance Symposium in Des Moines, Iowa.
For this article I interviewed Hesus Inoma, Founder and CEO of WeSavvy