The à la carte insurance application significantly reduces the cost of premiums

ByLance T. Lee

Mar 23, 2022

Technology

The à la carte insurance application significantly reduces the cost of premiums


Bimaleo CEO Shreyas Patel in his office in Keystone Park, Riverside Drive, Nairobi. PICTURES | PETER CHANGTOEK | NMG

Summary

  • Bimaleo offers private and professional drivers personalized car insurance policies in real time.
  • The CEO says a customer can easily subscribe to his services by going to his site and creating an account.
  • Once the account is activated, they will be guided through a simple KYC process, where they will need vehicle details, like vehicle registration number, make, model, chassis number, etc.

When the Covid-19 pandemic hit Kenya in mid-March 2020, it came with various challenges that greatly affected various operations including businesses.

As a result, people had to be innovative in order to stay afloat. One such innovative entrepreneur is Shreyas Patel, who partnered with George Richard to create a company that offers pay-as-you-go auto insurance services to private and commercial vehicle owners.

“The idea came to us in 2020 when Covid-19 hit and many fleet owners had their vehicles immobilized and subscribed to telematics services that could benefit from à la carte car insurance, allowing to the data generated by the telematics units installed in the vehicle to pay for the insurance only while using the vehicle,” explains Mr Patel, who is the CEO of the company.

“We noticed that corporate fleet owners were paying an entire year of full premiums while using their vehicles for half the year. So the compelling reason to purchase usage-based insurance came to us. ‘spirit’, he says.

Bimaleo’s co-founder is based in Palo Alto, California. “He has extensive experience in the startup and growth business sector across various industries in Africa and Southeast Asia,” Patel reveals.

“With over 14 years of experience in fleet tracking and management, we both identified that the insurance industry needed a digital disruption in the automotive sector, and drawing inspiration from markets that have successfully implemented integrated insurance using technology, we could provide a platform where customers could purchase usage-based insurance with cost savings in mind. of the data that we collect in the event of an accident and would contribute to the rapid processing of claims, ”explains the Patel.

He specifies that Bimaleo offers private and commercial drivers personalized car insurance policies in real time. “Bimaleo ‘as needed’ and Bimaleo ‘per mile’, instead of the industry standard annual premiums based on approximations and estimates that have always made pricing unfair. “Bima” means insurance in Swahili, while “leo” means today. We thought naming the service Bimaleo helps customers remember that they can purchase insurance on the day of use. And it’s catchy.”

He says Fidelity Shield Insurance was the first underwriter, who they worked with to refresh the service and KK Security (part of Garda World) as distribution partners, who can offer the service to their existing tracking customers. . He adds that the integration of other subscribers and distribution partners is in progress.

The CEO says a customer can easily subscribe to his services by going to his site and creating an account. Once the account is activated, they will be guided through a simple KYC process, where they will need vehicle details, like vehicle registration number, make, model, chassis number, etc.

“Once this information is provided, we require the customer to have a trusted tracking device installed in their vehicle. The data from the tracking device will allow us to speed up claims with our underwriting partners in the event of an accident. We have partnered with trusted tracking providers in the market and if you have a device from one of the partners then the customer can proceed to purchase insurance for the day(s) in question at from a list of underwriters in the market,” explains Patel.

“Premium purchase is made through M-Pesa and the policy note is emailed to the customer. Customers can also purchase liability insurance on the platform for the year as required. If they have a tracking device from a supplier that is not on our list of partners, they are free to contact us, and we will advise them on how they can purchase insurance through the platform.Additional benefit, through Bimaleo, customers can purchase full premiums from us while maintaining their existing third-party insurance with any underwriter they currently have.

He says that since their launch last month, they have “continued interest in our services and are currently in the process of onboarding many corporate clients across various industries.”

“Through the telematics data collected from the tracking device installed in the vehicle, if a customer agrees to our premium discount package, we can assess the quality of a driver on the road taking into consideration the data such as speeding, hard braking, sharp turns, etc. This results in a daily score. If a customer’s score is high based on good driving practices, the next premium purchase they will make through the platform will benefit from a reduction on the premium rate. This service aims to encourage safe driving on the roads and to promote cost savings,” he said.

He says that Bimaleo is an insurance agent licensed by Bimaleo Insurance Agency Ltd and therefore adheres to strict practices regulated by the IRA. “We provide clear service transparency on the platform and give the customer the ability to choose the service that meets their needs.”

Patel says onboarding subscribers to the platform is a challenge.

“Insurers are notoriously slow to make a decision when it comes to adapting new technologies. The platform is mobile friendly. However, we are in the process of developing an application which will soon be available on Google Play and the Apple store,” he adds.

Patel reveals that they intend to launch the services within the next six months across the region provided that “we meet all regulatory requirements”.


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