LFP114 Insuretech and Leveraging Creativity with Steven Mendel CEO Bought By Many

Bought By Many are one of the UK’s oldest Insuretechs from when it was nigh on impossible to launch one and to do so meant one was laughed at. Now BBM have over 600,000 members in over 320 specialist insurance groups. They get a super-impressive Feefo trust rating of 4.7/5 from nigh on 6,000 reviews which is great going in any sector but particularly in the insurance sector which is not always loved by its clients.

In this episode today Steven talks to us about what has changed in the three and a half years since he was last on the show way back in LFP027, where Insuretech is and where it is going.

He also focuses on one of BBM’s key focuses – ensuring that they leverage human creativity alongside the tech in all their roles. Across the economy as a whole many MegaCos are versions of the Ford production line factory with people doing mundane jobs that will eventually be replaced by robots. This also applies within FS. However to be a successful startup, the small mammals taking on the dinosaurs one needs to be nimble, fast moving and agile – and for this one needs humans not robots.

Topics discussed on the show include: 

  • cycling from Berlin to London to celebrate the 80th anniversary of the amazing Kinder Transport
  • the recent study showing 80% of Americans think political correctness has gone too far – Americans Strongly Dislike PC Culture (it’s super telling I had to use duck duck go to find that not google… :-~)
  • Redemption Roasters
  • “we were literally called bonkers when we set up in 2012”
  • now Europe’s largest Insuretech conference had >2,000 attendees and one in Vegas had 6,500 attendees
  • “a massive opportunity space”
  • BBM had to buy an MGA in order to do insurance back in the day
  • the seminal role of Munich Re “reinsurance as a service” in terms of opening up the market
  • how Insuretech has changed the expectation of consumers
  • the nature of insurance compared to banking transactions
  • BBM’s money back policy and cf no claims bonus
  • the increasing realisation in the insurance market as a whole that past poor practices cannot continue – for example renewing customers paying more than new customers
  • BBM will never charge a renewing customer more than a new customer
  • “one of the big insurers makes more than 100% of its profits just from interest charges [on paying monthly rather than annually]”
  • BBM interest rate for monthly payments is 0%
  • progress in comparing insurance by quality
  • the important difference between Feefo and Trustpilot
  • segmenting user reviews versus the overall picture
  • Peter Thiel on computers, people and business
  • Insuretech, chatbots and people
  • the role of people in each business area of BBM
  • the importance of Google Direct Answers
  • using tech to create empathic people
  • requirements to work at BBM/in Fintech:
    • a genuine interest in technology
    • customers must come before profits
    • know the space
    • be bold/aspirational/stretch targets
    • care
  • BBM going live in Sweden soon
  • how BBM gets the word out about BBM
  • pets, niche travel, micro businesses

And much much more 🙂

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