Cover (YC W16) Helps You Insure Anything with the Snap of a Photo(blog.ycombinator.com)
blog.ycombinator.com
Cover (YC W16) Helps You Insure Anything with the Snap of a Photo
https://blog.ycombinator.com/cover-yc-w16-helps-you-insure-anything-with-the-snap-of-a-photo
21 comments
I used to share office space with a different Cover (paywithcover.com), and they were occasionally confused for any one of several other Cover brands (coverscreen.com, madewithcover.com, readcover.com, etc). Seems like the "Cover" space is a little tricky for that reason.
This is true. Although, we do like the name alot in the insurance context.
We’re working on a property and casualty insurance product built from first principles on mobile for millennials. Our product takes in a picture of property you want to insure, and connects you with a network of brokerages across the US & Canada to fulfill the requests. Soon we’ll be binding insurance ourselves.
Depending on the geography, 80-90% of all insurance transactions end up getting bound over the phone, it only makes sense that they start there.
Happy to take any questions. Thanks y’all!
Depending on the geography, 80-90% of all insurance transactions end up getting bound over the phone, it only makes sense that they start there.
Happy to take any questions. Thanks y’all!
1. Assuming you get a cut from your insurance company partners, wouldn't your incentives be aligned towards displaying higher priced insurance plans?
2. What kinds of things do millenials tend to insure other than cars and health? I, like most of my friends, don't own very much else worth insuring. If it wasn't mandated by law, I probably wouldn't insure either - it's basically a tax on the majority of young, healthy, white collar workers.
3. As a young person, cost of insurance is my primary concern. How does the tech help you compete on price with large, nationwide insurance companies with huge, diversified pools of clients? By targeting only millenials are you able to weed out high-risk, high-cost clients and bring the overall premiums down? Is that even legal? If so, I would be very interested in joining.
2. What kinds of things do millenials tend to insure other than cars and health? I, like most of my friends, don't own very much else worth insuring. If it wasn't mandated by law, I probably wouldn't insure either - it's basically a tax on the majority of young, healthy, white collar workers.
3. As a young person, cost of insurance is my primary concern. How does the tech help you compete on price with large, nationwide insurance companies with huge, diversified pools of clients? By targeting only millenials are you able to weed out high-risk, high-cost clients and bring the overall premiums down? Is that even legal? If so, I would be very interested in joining.
I can see why a young person might want to gamble with health insurance. It's harder to understand how car insurance could be characterized a tax on the young and healthy.
Teens and senior citizens are the most dangerous drivers due to lack of experience and declining motor skills, hand eye coordination, etc., respectively. Plus, there are some drivers on the road without insurance. So all decent/low mileage drivers subsidize these groups, to an extent.
But you're right, it is unfair to characterize auto insurance as a tax. It's more akin to a mandatory expense that should be factored into the price of owning a car and operating it on shared roads along with people of all driving skill levels.
But you're right, it is unfair to characterize auto insurance as a tax. It's more akin to a mandatory expense that should be factored into the price of owning a car and operating it on shared roads along with people of all driving skill levels.
2: Valuable personal property. I have a bunch of camera gear I used to insure though a USAA VPP policy. It was stupid cheap, like $30 or $50 per year for $1500 of coverage and if it ever gets stolen on vacation or I drop it and break it or whatever then the bank pays. Could see it being useful for laptops/portable electronics, musical instruments, etc. Checkout-lane insurance policies are a scam but I think there would be a market for legit coverage.
1. We're of the opinion the best fintech companies win because they build great products, and find ways to transfer wealth back to the customer (Robinhood undercuts brokerages, Sofi the banks etc). To scale, we need to be a fairer deal, and that involves finding ways for our customers to save money.
2. We get folks insuring cars, homes, pets, jewelry, race horses, boats - just about anything you can take a picture of. It's not so much what you're insuring, but the experience. If you wanted renter's insurance, how cool would it be if all you needed to do was do a video walk through of your place, or snap a few photos?
3. As an independent brokerage, we'd have access to multiple carriers to make a market for most risks. Right now, we're focused on building a large book of business. In the future, we may underwrite products that are tailored to specific audiences (e.g. automagic travel health as soon as you're at the airport for frequent travellers). This we can do via an MGA relationship with carriers.
2. We get folks insuring cars, homes, pets, jewelry, race horses, boats - just about anything you can take a picture of. It's not so much what you're insuring, but the experience. If you wanted renter's insurance, how cool would it be if all you needed to do was do a video walk through of your place, or snap a few photos?
3. As an independent brokerage, we'd have access to multiple carriers to make a market for most risks. Right now, we're focused on building a large book of business. In the future, we may underwrite products that are tailored to specific audiences (e.g. automagic travel health as soon as you're at the airport for frequent travellers). This we can do via an MGA relationship with carriers.
Doesn't 1 apply to just about everything everywhere? Every business has an incentive to charge more, and every referral business has an incentive to refer higher-priced services. This is balanced by the desire to be competitive in order to win business, and the desire to win repeat business and referrals from your customers by pleasing them.
I have an expensive gaming PC that I have toyed with the idea of getting insured. I might try Cover out, just to see what kind of options there are.
>2. What kinds of things do millenials tend to insure other than cars and health? I, like most of my friends, don't own very much else worth insuring.
Why do you spend your money on?
Why do you spend your money on?
Rent, food, debt, travel, and save.
We get mostly cars but next on the list would be electronics - cameras, drones, laptops - and also pets.
What does the phrase "built from first principles" mean?
Sounds good if I did not already have insurance. But I do have insurance. Multiple policies, some of which are practically free after the multi-policy discounts you get when working with a single broker. And my broker is local, easy to deal with, will drop by if I need him.
I do like the ease of adding a new big ticket item via mobile, but I don't need the middleman, and don't want competing offers from a network of brokers.
Maybe I'm just not the target market. But I suspect there are more people like me who would get a better deal with my current broker vs. a new policy on a single item with a new broker.
I do like the ease of adding a new big ticket item via mobile, but I don't need the middleman, and don't want competing offers from a network of brokers.
Maybe I'm just not the target market. But I suspect there are more people like me who would get a better deal with my current broker vs. a new policy on a single item with a new broker.
Multi-line discounts are a key selling point of going with one carrier, something a good independent broker should arrange for you.
As an insurance customer, you have the right to switch agent representation at no cost to you (generally). What other value-added services do you think your local broker could offer outside of accommodating the occasional drop-in? What would compel you to switch brokers?
As an insurance customer, you have the right to switch agent representation at no cost to you (generally). What other value-added services do you think your local broker could offer outside of accommodating the occasional drop-in? What would compel you to switch brokers?
I'm not sure there is much that would compel me to change... Finding a broker is a question most people solve when they first start needing insurance. The only reason to switch would be a breakdown of my current broker. It just isn't something I shop for... the problem is solved acceptably in the status quo.
Which is a bit of a problem for this idea... you aren't solving a problem... just adding a new flavor to existing solutions.
Which is a bit of a problem for this idea... you aren't solving a problem... just adding a new flavor to existing solutions.
> Cover connects you with an insurance brokerage in your area best suited to insuring that piece of property.
I want to send you a picture, you quote me a price and I pay. If I have to talk to someone else, you've totally lost my interest - I can go talk to an insurance broker myself.
Side question: How many penis pictures have you gotten?
I want to send you a picture, you quote me a price and I pay. If I have to talk to someone else, you've totally lost my interest - I can go talk to an insurance broker myself.
Side question: How many penis pictures have you gotten?
One so far. Funny story, he gave his real phone number, real driver's license, took a picture of penis and then took a picture of his laptop for insurance.
Great idea. Using mobile to reduce friction and risk will dramatically grow the insurance market.