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Insurance Simplified Europe AB

Advanced insurance advisory for everyone.

Today, the insurance business is struggling with making their products understandable. The products are really a bunch of legal terms describing what is covered and what is not. People may have double or even triple insurance coverages without knowing, or no insurance cover at all. The result: the insurance holder is often left without compensation when most needed, and may pay insurance premiums unnecessarily.

We aim to remedy this situation! Our service helps consumers find the right insurance for the right price and to make sure help is guaranteed when need arises.

Investor proposal

New shares in the company refer to class B shares.
Class B shares have a voting value corresponding to 10% of the voting rights of Class A.
Our mobile app DrJones® is currently on Apple App Store and Google Play and is serving a selected few pilot members that are instrumental in the development. A early version of the landing page for the app is available at http://www.drjones.io/

The insurance industry is one of the few industries that have not yet had its "Uber" moment and the broker fees alone is about 12 Miljarder SEK (12B€) in EU.

Product

The problem this product solves

Insurance have one of the lowest customer satisfaction ratings of all consumer products.

The insurance business doesn’t really work for anyone unless you are a large corporation. If you don't have access to highly advanced insurance specialists you will most likely never have the insurance that you actually need/want.

Ambiguous terms & conditions contribute to increased uncertainty and misleading expectations of people’s actual insurance coverage. Few actually know what they really are protected against, and if they have the most suitable insurance coverage according to their needs.

How the product solves it

Our member-based service helps consumers to get the appropriate insurance coverage they need. Our AI, DrJones® matches insurance products and companies with our members’ specific needs. In short, we offer an advanced AI insurance broker, bringing to the masses what used to be available only to a selected few.

DrJones® will be connected to all insurance companies in the market, have access to all insurance policies terms & conditions, have read and understood everything. DrJones® matches the members unique needs with the best possible insurance policies independent from any insurance company.

Product features

Our service recommends and provides insurance products based on the members needs and life situation. When their life changes, their insurance coverage also needs to be adjusted to ensure adequate protection for them and their loved ones.

With the service the members have an overview of all insurance policies, they know how they are covered if something happens. DrJones® will also give support for claims and all history is available all the time for the members.

Through testing we have identified 99 SEK (9,9€)/month suitable for our member-service. It will also be possible to use a limited version free.


Product use cases

Our service is a proactive, personal insurance specialist that never sleeps and that will make sure our members get the insurance coverage they really need at an affordable price. When the AI finds a possible improvement, DrJones® contacts the member with an easy to understand explanation on what's recommended. The member then approves the change and the insurance is changed at the next possible time. The system will also look into external data sources, approved by the member, and react to changes in the member's life automatically.

Team

Christer Braaf avatar
Christer Braaf CEO
Christer is a senior business professional with a digital mindset and strong business acumen. He holds a computer engineering degree from the institute of technology at Linköping University, Master degree in Business Administration from Stockholm School of Economics and is also a chartered insurance advisor by IFU at Stockholm School ... See more
Christer is a senior business professional with a digital mindset and strong business acumen. He holds a computer engineering degree from the institute of technology at Linköping University, Master degree in Business Administration from Stockholm School of Economics and is also a chartered insurance advisor by IFU at Stockholm School of Economics in combination with 25 years of cross industry experience whereof more than 15 years spent within financial services companies supporting P&C Insurers, Life and pension companies as well as credit market companies and banks. Christer has long experience as advisor, business- and IT management consultant from global companies such as Accenture, Hewlett-Packard and nine years of leadership positions within one of the largest insurer in Sweden. He has successfully been the leading many change-, business- and IT initiatives (programs/projects) including co-founding several companies. Latest an IT support company based on a gig-economy platform that went from business idea to customers deliveries within 10 months. Today Christer focus on leading and setting the operative model for Insurance Simplified creating the next-gen digital insurance advisory service, DrJones. He believes that technical knowledge is the key for change and digitalization – success together with business knowledge! See less
Bo Valpeters avatar
Bo Valpeters CDO
Bo's focus is user experience and design as our digital executive. Bo has 25+ years of experience from projects ranging from logistic systems to mobile applications. Bo is also one of the owners of one of Sweden's top tier digital agencies, Bazooka. Bo is a serial entrepreneur and have started ... See more
Bo's focus is user experience and design as our digital executive. Bo has 25+ years of experience from projects ranging from logistic systems to mobile applications. Bo is also one of the owners of one of Sweden's top tier digital agencies, Bazooka. Bo is a serial entrepreneur and have started several successful companies. Bo is also chairman of Insurance Simplified. See less
Patrik Kähäri avatar
Patrik Kähäri COO
Patrik is our Chief Operating Officer. He focuses on insurance product modelling, risk profiling and machine learning, the core of DrJones®. Before Insurance Simplified he worked at Länsförsäkringar Insurance Group. Patrik has been operating within the Swedish P&C insurance market since 1997, assisting all of the largest P&C insurers on ... See more
Patrik is our Chief Operating Officer. He focuses on insurance product modelling, risk profiling and machine learning, the core of DrJones®. Before Insurance Simplified he worked at Länsförsäkringar Insurance Group. Patrik has been operating within the Swedish P&C insurance market since 1997, assisting all of the largest P&C insurers on the Swedish market. See less
Alexander Hedlund avatar
Alexander Hedlund CIO
Alexander has an M.Sc in Applied Physics (computer simulation) with additional Business Economics. He has successfully delivered in many roles most often in the enabling interface between business and IT. Starting off in banking security (sw (software) development / Product Manager), he continued with starting a bespoke business admin sw ... See more
Alexander has an M.Sc in Applied Physics (computer simulation) with additional Business Economics. He has successfully delivered in many roles most often in the enabling interface between business and IT. Starting off in banking security (sw (software) development / Product Manager), he continued with starting a bespoke business admin sw company with 5 employees. He has worked in management consulting in Sweden and Europe (lots of insurance / banking customers) and as a Service Manager in USA for 130000 users in 132 countries. Alexander has also worked as Chief Architect & Head of Enterprise architecture and strategy for Swedens largest insurance group. He built the first sw maintenance portfolio Saas on Microsoft Azure and is an owner of a bespoke management consulting firm focussing on digital transformation using agile techniques and OCM. See less
Steven Batiste avatar
Steven Batiste CAIO Chief Data Scientist
Steven is our AI, Machine Learning and big data specialist. Before Insurance Simplified he has worked at various large institutions in these fields, started a software development offshoring company from scratch and built it to a 100 developers + 10 at the onshore bridge head. Prior to that he has ... See more
Steven is our AI, Machine Learning and big data specialist. Before Insurance Simplified he has worked at various large institutions in these fields, started a software development offshoring company from scratch and built it to a 100 developers + 10 at the onshore bridge head. Prior to that he has built software for almost everything within graphical and number crunching. See less

Market

Target Market

Swedish market for insurance distribution is 2 890 Million SEK (289 M€).
Rest of Nordic market for insurance distribution is 5 360 Million SEK (536 M€)
Rest of EU market for insurance distribution is 120 380 Million SEK (12 038 M€).
That is a total of 128 630 Million SEK (12 863 M€) per year in possible insurance distribution revenue! We aim to take 5‰ of that in 4 years’ time.
Our key market is EU where regulation and FSA rules is converging and harmonising, this reduces our compliance costs radically as DrJones® is a completely digital and automated solution.

Competitive landscape

Very large global players:
  • Willis
  • Marsh
  • AON
  • JLT

- All of them are just too paper based with an operational cost that is astronomical per sold insurance in comparison to DrJones®.
 
Local players that are trying to become digital:
  • Säkra
  • Hierta
  • Söderberg & Partners

- Coming from the old analogue insurance businesses and are having a hard time with costs.
 
Local insurtech players that are just out of their launchpads:
  • GoMono
  • Wefox
  • Clark
  • Brolly

- None of these are operating on the Nordic market in our roadmap time frame.

Unique differentiator from competitors

Insurance Simplified differs from its competitors in the sense that we believe and have researched that most people don't want to do the work of selecting the right insurance for themselves and their family. We offer a smart service giving our members an understanding of what insurance they need.
With DrJones® functions: Insurance Product Scoring Model and risk profiling, automated digital purchases and renewals, individually AI tailored insurance coverage we think we have the best possible service. We have not yet seen any startups that are taking the same route as us.

Company revenue streams

Insurance Simplified's main source of revenue is membership fees, both from commercial and private lines. We use an advisory fee e.g. when we package a specialised insurance coverage for a member, in order to maintain independence against insurance companies and strictly adhere to the new Insurance Distribution Directive (IDD), i.e. compliance regulation. This is different from the old insurance distribution companies (brokers).

Product/service distribution

Insurance Simplified is a truly digital company and our main distribution channel is the DrJones® app, downloadable at Apple App Store and Google Play.

Execution

Previous milestones/traction

  • Jan16 – Company founded.
  • Mar16 – 500 000 SEK (50 000 €) investment by founders.
  • May16 – Received authorization from the Swedish Financial Supervisory Authority to conduct insurance mediation.
  • Sep16 – Registered as Commercial Lines insurance broker partnership with most Swedish Insurers.
  • Oct16 – Digitalization of power of attorney process.
  • May17 – Selected by VINNOVA as one of 100 innovative startup to receive a grant of 300 000 SEK (30 000 €).
  • Aug17 – Chief AI Officer, AI-/Big Data expert, new partner on-boarded.
  • Jun17 – Jan18 – MVP development focusing on front-end.
  • Jan18 – Pre-seed investment round towards external investors.

Next key objectives

  • Q4 2018 Launch "Small business product portfolio" Sweden market. Continuous DevOps towards full version. First release commercial/consumer market leveraging GDPR, offer member full policy overview. Full automation.
  • Q1/Q2 2019 Launch "Small business product portfolio" Nordic market. Continuous DevOps, Full back-end functionality. Full consumer product launch Sweden market.
  • Q3/Q4 2019 Increased focus on sales and Nordic consumer launch. White labeling marketing towards none-bancassurance players. Continuous DevOps, Full automation.
  • Q1/Q2 2020 European market entry. Continuous DevOps, Localization.
  • Q3/Q4 2020 Increased market reach through acquisition.
  • 2021/2022 We have 5‰ of the European broker market = 700 000 000 SEK (70 M€).

Previous Financing

  • Insurance Simplified Europe AB (INSU) have since the start been funded by the founders.
  • In May 2017 INSU was selected by VINNOVA as one of 100 innovative startups to receive a grant of 300 000 SEK (30 000 €)
  • In January 2018 Insurance Simplified carried out a pre-seed round, 4% of the company, to a number of external investments aimed at broadening ownership. The founders also participated.

Partnerships

  • Bazooka, a leading Swedish digital agency, supports Insurance Simplified in the UX design creating the next-generation user friendly GUI and user experience.
  • Sigma Software support Insurance Simplified in software development both mobile and cloud towards a scalable and robust complete AI Insurance Advisor.

Use of funds

The near term plan is to continue develop DrJones® and at the same time start marketing and acquisition of more members as we also on-board more insurance policies.

  • Development (58%)
  • Sales and marketing (28%)
  • Operational costs (14%)

The rate of spend in the different areas will change during the year according to our agile way of working and it will differ depending on how this round will go. Initial focus will be on development and member acquisition.

Industry Certifications/Awards

  • Authorization from the Swedish Financial Supervisory Authority to conduct insurance mediation
  • Selected by VINNOVA, The Swedish Innovation Agency, as one of 100 innovative startups

Return on Investment

End of 2019 we expect Insurance Simplified to make a profit according to financial and marketing/sales plans. In 2021 we plan for an IPO with annual revenues of 700 MSEK (70M€).

Accenture recently calculated that Europe is a booming market in InsurTech investments and transactions are up 385% from last year (679 million dollars), so a future buyout is very likely possibility.

Risk Analysis

For us as a startup the financing and the burn rate risk is very much intertwined. We are determined to keep our burn rate on schedule utilising our agile operating model following our financing roadmap. We work diligently according to our financing plan in order to meet those Financing KTOs/OKRs. Scaling our operations and increasing membership numbers and growth rate moves us faster into positive. We have a marketing plan and an onboarding process to accomplish this i.e. reach our Marketing/Membership KTOs/OKRs. We have a comprehensive risk management addressing all risks above as well as: regulatory, technology, demand etc.