Australian insurtech firm BizCover has landed in SA, targeting small, medium and micro-enterprises (SMMEs) with its Bi-me marketplace, which it says makes it easier for local start-ups to be insured.
Bi-me is a digital broker that provides business insurance to SMMEs, and is set to change the face of business insurance in the country, claims BizCover.
The Bi-me platform − which is underwritten by short-term insurance brands Hollard Insure, iTOO and Discovery − provides SMMEs with the information needed to grasp exact insurance requirements, including pricing and onboarding.
The platform is a registered financial service and had all the necessary regulatory approvals before launch in December.
The launch of Bi-me locally comes as SA sees the growth of insurtech firms that are developing new business models that aim to disrupt the traditional insurance sector.
These insurtech firms are making use of technologies such as automation, robotics, internet of things, machine learning and artificial intelligence to shake up the insurance industry.
Insurtech firm Naked, Naspers-backed digital insurance platform Ctrl, Discovery and Assupol are some of the companies making their mark locally with new products.
For Bi-me, BizCover is confident its platform removes most hindrances that start-ups faced when buying insurance.
Digital-first proposition
In an interview with ITWeb, Bi-me CEO Francois Potgieter says: “Fewer than half, and possibly only a third, of SA’s 750 000 formal small businesses are insured. Yet in a sector where cash flow is king, it takes just one unforeseen calamity to upset an SMME’s balance sheet and spell disaster.
“Just as BizCover’s founders were bothered that time-starved small business owners had to jump through hoops to get their dream ventures insured, putting up with big players who don’t really cater to them, time-consuming paperwork and processes, lack of transparency and poor service, we believe SA’s entrepreneurs deserve a better deal.
“Our digital journey makes insurance purchasing simple by creating an efficient digital-first solution for buying insurance, thus removing inefficiencies, paperwork and potential errors from the journey. Our process reduces the cost, brings price transparency and increases efficiency in finding the right solution.”
Potgieter says customers can get instant online quotes from multiple underwriters 24/7 and “be covered within 15 minutes, a first for the South African business insurance market”.
“We are able to provide enhanced customer service through a self-service quoting journey, whilst also providing the option of omni-channel engagement, whether through chat, phone or e-mail should the customer prefer.”
Right set of circumstances
Potgieter says the local market presents a huge opportunity for insurtech companies like his.
“Looking at the historical changes that took place in the insurance markets of SA and internationally, it is amazing to see that personal lines insurance moved from a traditional broker-distributed product dominant market share, to digital and call centre business over the last 25 years.
“We see no reason why small business insurance, which is often less complex, will not do the same. During the last 12 years, we have seen our corporate shareholder achieve an attractive new business market share in Australia on a similar model.
“We are therefore very optimistic that these channels will start converting new business in the near future.”
Potgieter notes his team is optimistic about the potential adoption in the local SME market.
“We have seen the success of digital insurers in the personal lines space. The adoption of digital solutions in the insurance industry is potentially attributable to the numerous constraints that consumers face in SA, leading to them having to be more tech-savvy.
“In addition to the financial or other constraints leading to an increase in tech-savvy users, COVID-19 demonstrated the importance and ability of consumers to adopt digital. This is even more prevalent for SMEs.”
Nonetheless, Potgieter acknowledges the challenges the company may encounter in the local market.
“We are mindful thereof that financial education may be required to overcome barriers in terms of technology and the ambiguity the insurance industry may hold.”
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