In the dynamic realm of insurance, Yas Micro Insurance is making waves. Originating from Hong Kong and having expanded its reach to Malaysia and the UAE, Yas is redefining the insurtech landscape.
Origin of the Name 'Yas'
The inspiration behind the name 'Yas' is both unique and memorable. During a trip from Dubai to Abu Dhabi, CEO and co-founder Andy Ann was captivated by Yas Island. A subsequent search revealed that in the UAE, 'Yas' means "Jasmine," a type of flower. In Hong Kong, it translates to "extreme satisfaction." This dual interpretation became the foundation for the company's mission: delivering unparalleled satisfaction in the insurance domain.
Redefining Insurance with a Fresh Lens
One of Yas's distinguishing features is its novel perspective on insurance. Interestingly, none of the founders had a background in the insurance sector. This allowed them to approach the industry with a fresh, consumer-focused lens. Their primary target? Understanding the Gen Z and millennial demographic.
Their research highlighted a significant industry gap. Traditional insurance models weren't aligning with younger generations' priorities. For instance, the value placed on AppleCare for gadgets like MacBooks or iPhones often surpassed that of life insurance. This insight was pivotal in crafting products tailored to this demographic.
Yas Micro Insurance's product offerings and their approach:
- On-Demand Insurance via GPS:
- Yas has developed a system where insurance can be activated on-demand using GPS technology.
- This feature allows users to get insured for specific events or durations. For instance, if someone is hiking and suddenly encounters rain, they can activate insurance for their gear instantly through the app.
- Consumer-Centric Products:
- Yas's products are designed with a focus on the younger generation, specifically Gen Z and millennials.
- They've researched the psyche of these demographics to understand their priorities. For example, they found that younger individuals might prioritize insuring their gadgets (like MacBooks or iPhones) over traditional life insurance.
- Dynamic Pricing:
- Yas envisions a future where insurance pricing can be dynamic, based on personal data.
- With the rise of smart cities and increased data availability, they aim to offer personalized pricing based on individual behaviors and needs.
- Streamlined Claim Process:
- Yas has significantly reduced the claim processing time. Claims can potentially be processed within 24 to 48 hours, a stark contrast to traditional models that can take weeks or even months.
- Data Privacy and Analytics:
- Yas places a strong emphasis on data privacy, ensuring that customer data is protected and used ethically.
- They also leverage data analytics to offer insights and improve their product offerings. Their background in data aggregation, with experience collecting data from platforms like Facebook, Google, Instagram, and LinkedIn, provides them with a unique advantage in this area.
- Digital Asset Insurance:
- Yas has shown interest in insuring digital assets, particularly non-fungible tokens (NFTs). As the world shifts towards virtual assets, there's a growing need for insurance in this space.
- Unique Selling Propositions (USPs):
- Yas aims to eliminate traditional pain points in the insurance industry. This includes reducing the need for agents and brokers and offering a more direct, user-friendly approach.
- Their products are designed to be relevant to the user, focusing on real-world needs and scenarios.
Customer Acquisition:
- Consumer-Centric Approach: Yas focuses on understanding the psyche of Gen Z and millennials. By tailoring their products to the needs and preferences of these demographics, they aim to attract and retain younger customers.
- Digital and Tech Integration: Yas's use of technology, such as on-demand insurance via GPS and data analytics, positions them as a modern insurtech company. This tech-forward approach can appeal to tech-savvy customers and those looking for convenient insurance solutions.
- Expansion: Yas has expanded from Hong Kong to Malaysia and has plans to enter the UAE market. Geographic expansion can help them tap into new customer bases.
- Partnerships: Yas has APIs that can integrate with different insurers, suggesting they might collaborate with other companies or platforms to offer their services, potentially driving customer referrals.
Pricing:
- Dynamic Pricing Vision: Yas envisions a future where they can offer dynamic pricing based on personal data. This suggests that they aim to provide personalized pricing models that can adjust based on individual behaviors and needs.
- Event and Time-Based Products: Yas has shifted from traditional models to event and time-based insurance products. This might mean they offer pricing based on specific events or durations, rather than long-term fixed contracts.
Incorporating Technological Advancements
Yas's methodology is twofold: simplifying and enhancing. They've streamlined processes, reducing the reliance on agents and brokers and expediting the claim process to potentially as short as 24 to 48 hours. Moreover, they've harnessed technology, introducing features like on-demand insurance through GPS.
Data privacy is another cornerstone of Yas's operations. In an era where personal data is ubiquitous, Yas emphasizes its ethical use and protection.
Operational Framework of Yas
Yas operates under the insurance authority in both Hong Kong and Malaysia, functioning primarily as an agent. However, their insurtech capabilities set them apart. They've integrated a range of technological solutions, from GPS-based on-demand insurance to in-depth data analytics.
Challenges faced by the company:
- Industry Experience: None of the founders had a background in the insurance industry. This lack of experience in a traditionally complex industry could have been a significant challenge.
- Understanding the Younger Demographic: Traditional insurance models weren't resonating with younger generations, particularly Gen Z and millennials. There was a need to understand their psyche, priorities, and preferences deeply.
- Digital Asset Insurance: Yas showed interest in insuring digital assets, especially non-fungible tokens (NFTs). Venturing into this new domain of virtual assets comes with its set of challenges, given the nascent and volatile nature of the digital asset market.
- Traditional Pain Points: The insurance industry has traditional pain points like the need for agents and brokers, long claim processing times, and fixed, non-flexible policies. Addressing and eliminating these pain points was a challenge.
How Yas handled Challenges:
- Fresh Perspective: The lack of industry experience turned out to be an advantage for Yas. The founders' diverse backgrounds allowed them to approach the insurance sector with a fresh, consumer-focused perspective, enabling them to think outside the box.
- Consumer-Centric Products: To resonate with the younger demographic, Yas developed products tailored to their needs. They researched the priorities of Gen Z and millennials, understanding that they might prioritize gadget insurance over traditional life insurance, for instance.
- Leveraging Technology: Yas introduced on-demand insurance via GPS and streamlined the claim process to potentially as short as 24 to 48 hours. This tech-forward approach addressed some of the traditional pain points in the industry.
- Data-Driven Approach: With a background in data aggregation, Yas leveraged data analytics to offer insights and improve their product offerings. They emphasized data privacy and ethical use, ensuring customer trust.
- Innovative Product Proposition: Yas shifted from traditional models to event and time-based insurance products, offering more flexibility and relevance to modern consumers.
- Expansion and Partnerships: To navigate the challenges of entering new markets, Yas expanded geographically and integrated with different insurers through APIs, suggesting potential collaborations to strengthen their market position.
Future insurtech founders can draw several valuable lessons from the Yas Micro Insurance interview:
- Leverage Diverse Backgrounds: Even if founders don't have direct experience in the insurance industry, diverse backgrounds can bring fresh perspectives. Yas's founders came from data aggregation, e-commerce, and IoT sectors, which allowed them to approach insurtech innovatively.
- Consumer-Centric Approach: Understanding the target demographic is crucial. Yas's deep dive into the psyche of Gen Z and millennials helped them tailor products that resonated with this audience.
- Embrace Technology: The integration of technology, like on-demand insurance via GPS and streamlined claim processes, can address traditional industry pain points. Look for opportunities to leverage technology to enhance user experience and efficiency.
- Innovate Traditional Models: Yas shifted from traditional insurance models to event and time-based products. Being open to rethinking and reshaping established models can lead to more relevant and flexible offerings.
From the Yas Micro Insurance interview, several lessons can be drawn regarding securing support from reinsurers and insurers for an insurtech venture:
- Innovative Product Proposition: Presenting a unique and innovative product proposition can make a difference. Yas shifted from people and belonging-based insurance to event and time-based models.
- Data-Driven Insights: Leveraging data analytics to provide insights can be a compelling argument for support. Yas's background in data aggregation and their ability to offer data-driven insights can be seen as an asset by reinsurers and insurers, who can benefit from such data to refine their offerings.
- Addressing Traditional Pain Points: By addressing and offering solutions to traditional industry challenges, insurtech ventures can position themselves as valuable partners. Yas's focus on streamlining the claim process and reducing the need for agents and brokers can be seen as addressing significant industry pain points.
- Proof of Concept: Before approaching reinsurers and insurers, having a working proof of concept or a track record of success can be persuasive. Demonstrating the viability and potential success of the insurtech venture can make the case for support stronger.
- Consumer Trust and Data Privacy: Building consumer trust and emphasizing data privacy can be a significant selling point. Reinsurers and insurers would be more inclined to support ventures that prioritize ethical data use and have robust data protection measures in place.
- Flexibility and Adaptability: Being flexible and adaptable in negotiations and collaborations can foster support. Understanding the needs and concerns of reinsurers and insurers and being willing to adapt can pave the way for fruitful partnerships.
Check out the full interview to hear directly from the CEO, Andy Ann. https://www.fsbrew.co/s2e14
