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The latest, iFaaS (Insurance Finance as a Service), which was recently launched at the 2021 BIBA conference, is one that Rangar and his team are particularly proud of, as it reflects demand. growing number of consumers for increased flexibility in their insurance services. . This premium finance app works by offering users monthly subscriptions to different insurance channels, he said, and allows easy adjustments to suit their needs.
iFaaS has the ability to be to the insurance industry what Airbnb is to the hotel entertainment industry and what Uber is to the taxi industry, Rangar said, and this was conceptualized at through conversations and market research carried out with brokers and insurers in the sector.
“Half of what you do for a living is listen to what people in the market are telling you,” he said, “and the other half then works on delivering the right solution based on that. that you hear. Looking at where the market is going, three factors have really led [to this development]. One was the macro trend of people and businesses looking for flexible on-demand insurance that they can turn on and off, almost on a utility basis.
“The second part was: if the insurance industry has to adapt to this, how does finance fit in? Until now, finance has been about providing a monthly payment for an annual premium, but, when the premium is not annual, how does that work? Then the third part was how to make this solution in a way that balances the consumer journey and experience while ensuring [iFaaS] is aimed at all players in the insurance value chain.
Being a premium finance company is not a zero-sum game, he said, but rather an offering of added value all along the chain, from insurers and brokers, to MGAs and the final user. Creating such a solution from scratch is complex and requires a highly skilled team, noted Rangar, and this is where PremFina’s position as a technology company, albeit offering funding, has enabled it to take its place. differentiate from its competitors.
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Considering the behind-the-scenes work leading up to the launch, it was gratifying that the BIBA Q&A session showcasing iFaaS to the market went well, Rangar said. And while attendees wondered about how the app worked, no one questioned its need in the market, highlighting the growing trend towards on-demand insurance.
A variety of start-ups have spotted it, he said, and are looking to tap into this mobile and app-friendly millennial generation that has rich purchasing power but plans to consume fuel. ‘assurance in a service-oriented way, rather than a product-oriented, way.
“The market [more widely] seems to recognize this demand as well, ”he said,“ and after talking to larger brokers and insurers, there is a feeling that people want to buy insurance in smaller proportions. Certain categories seem to lend themselves to this better. On the personal insurance side, auto insurance is automatic because most of your car’s life is parked somewhere and your risk when parked is different from when you are driving, so you should have variable pricing that … So it seems to work well for lines of insurance where the elements tend to be more concrete and a bit more finished.
Some personal lines may not lend themselves to the application, he said, which is the same among some business lines. For example, while businesses may be comfortable paying for SME insurance or fleet insurance through an app, they may be reluctant to do the same for large property coverage, which they will not seek to turn off often. And that makes sense, he noted, because iFaaS was specifically designed to improve market flexibility, where appropriate.
The next steps for the application, Rangar said, will be to navigate the whole new landscape it has opened up in terms of regulatory processes, taxation and the changed contractual relationships that PremFina will now have with its insurance partners. The app itself will launch with a number of beta clients, which he hopes to have completed by the end of the year, and from there the next steps will be to gain more traction and following for this. market innovation.
“One thing is certain,” he said, “we are not lacking in ambition.