Guest blog by Ugo Weyl, Co-Founder at Koala.
Reinventing travel insurance
Travel insurance has been the same for about 100 years, and it sucks – Not just a little bit, it is a real nightmare!
- Have you ever bought travel insurance?
- Have you ever claimed on travel insurance?
If your answer is yes to both the questions above, chances are you have lost some hairs in the process.
Let me tell you a little secret about why the situation is so bad, and why existing players are not doing anything to make it better.
Have you ever heard of “rate of silence” in the travel insurance industry?
This is one of their most important KPIs and the definition is the following.
“Rate of silence is the % of insured people, eligible for compensation who will never receive their money.”
This is mainly due to 2 factors:
- People don’t claim: They do not know they are covered or just forget about it.
- The process is long and painful: Insurance companies make it this way so people just give up.
This rate of silence is very high in the industry, and can be above 95% for some warranties.
Do you know where I am going with this?
The insurance company revenue and margin is positively correlated to this rate of silence.
This means that if your insurance company manages to make you give up on a 1000 euros claim, their margin automatically increases 1000 euros.
Their incentives become crystal clear.
Koala has decided to change this status-quo, starting now:
- Koala’s rate of silence must be 0, every single eligible person will get their money back.
- Koala is proactive with its customers, so if you forget you have insurance, you will have a nice surprise next time you check your bank account.
- Koala takes a fixed fee per policy sold, meaning we will not increase our revenue by refusing claims. This guarantees our incentives fully align with our customers.
We believe it is high time to give people a fair alternative when it comes to travel insurance.
This is the reason why we wake up every morning with determination to make it happen.
If you share our vision and passion, we would love to have you join our adventure.
Feel free to email me at ugo@hikoala.co
Ugo, Co-Founder, Koala ?
We want to hear from you
If you have the vision to reinvent insurance, we want to hear from you. Whether it is an idea scribbled on the back of a napkin or a fully fledged business, the Gateway can get you to your destination faster!
Head to our contact page and “drop in for a chat” to set up an exploratory call.