It’s a sad but true fact: most people expect to be bamboozled by their insurance provider, more than they expect being helped. Indeed a study showed one in ten consumers in the UK (11%) said they do not trust insurance companies to pay out, despite the fact that the Association of British Insurers (ABI) and Group Risk Development (GRiD) figures reveal that 97.8% of all claims were paid in 2017.
This lack of trust is particularly worrying when it comes to health issues, as customers feel they will be penalised for sharing details on their medical history. Thankfully insurtech startups are trying to change the perception of the industry by providing more customer-centric and tailored policies.
Among the newcomers is UK-based HealthyHealth, which aims to help insurers engage with customers and tailor policies to health risks. The startup has developed a software that collects individuals’ data and analyses their probability of developing 200+ medical conditions. Insurance companies can then use the startup’s API to adjust premiums to specific risk profiles and offer rewards to low-risk policy renewers. The startup also has a ‘prevention’ app that insurers and employers can offer to individuals to help them track and improve their health.
Our analysts saw in the startup many “healthy” signs of potential growth which placed it in the top 4% of pre-revenue startups rated by Early Metrics. The management team has extensive experience in the insurance sector and therefore a very strong awareness of the market as well as a leverageable business network. The founders also demonstrated a clear ability to convince as they were able to onboard top-level executives and partners. They seem to have picked the right time to enter the digital health and insurtech markets as these are growing at a fast pace without any competitor having taken the definite lead. Moreover, their offering shows a good level of innovation as it adds new dimensions, such as the preventative tips, to products already available on the market.
While HealthyHealth’s team and board of advisors are very savvy on insurance-related topics, the young venture hasn’t yet built very strong barriers to entry from a technological standpoint. This could prove problematic as other similar players, such as Dacadoo, are competing for the same market shares. Nevertheless, HealthyHealth is an early stage venture that shows good promise. Indeed, since its rating in April 2018, the startup has started generating revenue and has made around £100k in the last 4 months.
As HealthyHealth is currently raising funds, we wish them the best of luck in attracting the funding and most importantly the investors that will help them catalyse their growth. We also hope they will fulfil their ambition of bringing more awareness to preventative health measures to the public as well as build stronger trust between customers and insurers.