Bought by Many (BBM) is a startup from the UK, which leverages social media, keyword analytics and quote request data to help individuals create and join afﬁnity groups relating to a specific risk. Interestingly, BBM negotiates with traditional underwriters on behalf of their members in order to secure group buying discounts for niche insurance products such as pet insurance and extreme sport insurance.
Bought by Many leverages social media and analytics in its customer acquisition strategy and helps individuals ﬁnd insurance solutions at the best price for their speciﬁc needs
To acquire customers in the hyper competitive UK insurance industry, BBM anlyses anonymised social and search engine keyword data to look for niche insurance product needs, builds affinity groups and then negotiate deals with insurers. According to BBM’s co-founder Stephen Mendel, “BBM negotiates discounts directly with insurers for the client’s unique situations, helping them save an average of 17.9% on their premiums“.
Interestingly, BBM has also partnered with Ping An, China’s largest private insurer, to create seven new travel insurance propositions and market it through China’s ubiquitous WeChat platform.
Bought By Many has just (Jan 2017) closed a £7.5m Series A funding round led by Octopus Ventures, with participation from Munich Re / HSB Ventures as well as existing investors. BBM plans to use the funds to launch a new range of branded insurance products co-created using customer feedback in 2017.
Benefit to Customers
Addressing unmet needs which were earlier not possible
Cheaper insurance premiums due to group buying ability
Benefit to the Insurer/Partner
Choice to underwrite the risk or reject it
Lower loss ratio from abstract risks due to pool of policy holders as opposed to individual policy holder
Data driven channel insights into consumer behavior and needs
The Digital Insurer's View
Community insurance platforms are an increasingly popular way to disrupt traditional underwrites and disintermediate traditional relationships. Unlike other community insurance players such as Friendsurance, Guevara and PeerCover who are focused on disintermediation, Bought By Many has embraced another form of community insurance that benefits traditional insurers in addition to consumers who have specialised insurance needs. Also in a shift from its usual model, Bought by Many will now also start offering insurance itself (niche markets that are ignored by big insurers), ultimately turning into a full-stack insurer instead of just focus on the distribution side which in part will address the issues around the scalability of the P2P and community model.
Ultimately, as Bought By Many continues to identify unmet insurance demands and create affinity groups, it is simultaneously providing traditional underwriters with a valuable insight into what customers actually want both in terms of type of risk coverage and the willingness to pay for that risk. Although Bought By Many has established the fact that analytics and social media keyword data mining is an effective method of customer acquisition, its model is based on niche lines and it therefore remains to be seen whether it will be able to achieve the scale and mass required to be a significant player in the market. However, as Bought by Many will now also start offering niche insurance products itself , ultimately turning into a full-stack insurer instead of just focusing on the distribution side, this in part will address the issues around the scalability of the P2P and community model.
Steven Mendel, the CEO of BBM will be participating in our Peer-to-Peer Insurance & Community webinar to discuss and answer the questions on the theme of “Peer-to-Peer Insurance & Community on Wednesday, 8th February 2017, 9am-10.15am (UK time). To hear more about BBM product/model
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