Reinventing Insurance > The Future of Insurance in Personalisation – Not Exploitation

We’re all aware that we need to take out insurance to protect our belongings, but we’re not necessarily clued-up about how to do it in the most cost-effective manner. For most people, dealing with insurance firms is an annoyance that they don’t want to deal with but are aware that they have to. Rather shockingly, however, research carried out by the Association of British insurers revealed that 28% of U.K homes have no home insurance whatsoever.

This negative attitude towards insurance companies can lead to people being fairly blasé when it comes to getting their policy, with a lot of us just going with whatever we are quoted on the phone and not asking any questions.

But, as more people are now finding out, choosing to ignore the fine details of your insurance can lead to serious consequences.

Nick Munday, a 61-year-old from the U.K, recently discovered that his loyalty to his insurance provider was costing him £1250 a year. Nick had been with the same insurance provider for 20 years and was paying £2,000 a year for their services. However, when he rang up the company to query the excessive pricing, his premium was quickly reduced to £750 a year.

Nick had been looking at other providers and was quoted a price of £469 from another company. Shocked by how much cheaper this quote was, Nick called his provider who said that they would be able to reduce his premium to £750 without any questions being asked.

Speaking to the BBC, Nick said: “It is despicable. They are treating loyal customers really poorly.

“Loyalty should be worth something. It would be good if big companies rewarded people accordingly.”

Unsurprisingly, Nick isn’t the only person dealing with this issue. The UK’s competition watchdog has said that millions of people are being exploited by insurance firms, leading to a ‘super complaint’ from Citizens Advice. Findings from the Competition and Markets Authority (CMA), also support this claim. Research carried out by the CMA found that insurance providers were guilty of implementing year-on-year ‘stealth price rises’, increasing exit fees and making it difficult for customers to cancel their contracts and switch providers.

According to Citizens Advice, customers who stick with their supplier are losing a total of £4bn a year, which is the equivalent to an average of £877 per customer. But what can we do to stop this from happening?

Buzzvault is the world’s first hyper personalised home insurance company that is based around the consumer’s digital inventory of their home. The app, which puts the consumer in control of their insurance premium, is the brainchild of Becky Downing, CEO, who was the victim of a burglary and saw the potential to use technology and human expertise to create a home insurance company that offers a personalised policy for each customer. No more guesswork over the value of their possessions, no more disputes over what is and is not covered by their policy.

Using video technology in their user-friendly app, buzzvault makes it easy for their customers to create a highly secure digital log of every possession and its value.  This inventory is then stored in the customer’s buzzvault and they can access and edit it at any time from their smartphone or tablet, making buzzvault the only place where consumers will be able to buy home insurance with clarity on both sides regarding what is covered and its value.

In order to get an insurance quote, customers just need to download the buzzvault app and book in a survey. With a team of fully vetted and certified surveyors to guide customers as they use buzzvault’s specifically developed video technology for each room, buzzvault is able to complete the surveying process in just 15 minutes, making it the perfect solution for those of us who have busy schedules and don’t want to be on hold for an hour while we wait to get through to our insurance provider.

The data from the survey is loaded into a secure buzzvault, meaning that if a customer should choose to take out building and home contents insurance with buzzvault, they can be safe in the knowledge that all the information they need to support a potential claim is stored securely within the app.

Unlike other insurance providers, every home contents item in the buzzvault is protected both in and outside of the home, with the option of accidental damage cover. Customers can edit their inventory, with there being the option to remove items, edit their value and add new purchases with receipts. The customisable nature of buzzvault means that customers aren’t left in a situation where they are paying over the odds for their insurance premium and gives them complete control and understanding over what items are covered within their policy.

Buzzvault is recognised as a pioneering resolution to the growing issues within the U.K insurance market. The app is backed by White Mountains Insurance Group, one of the world’s largest investment groups, and has won multiple awards, including the highly prestigious DIAmond Award at the Digital Insurance Agenda in Amsterdam.

Sadly, Nick Munday’s situation is becoming an increasingly common issue in the U.K, with many people being let down and ripped off by their insurance providers. However, through the use of state of art technology and a personalised approach to insurance, buzzvault is making it easier than ever to take out an insurance policy that works for you. A personalised insurance policy will prevent situations like Nick’s from manifesting and will make the whole insurance process easier and more efficient for both parties. Insurance shouldn’t be a hassle and a nightmare to manage, it’s meant to be there to protect the customer and their goods, not exploit them.

(Original BBC article written by Kevin Peachey)