Friendsurance makes insurances social again

Friendsurance is the first company to add social networks to the insurance equation. Through connecting on our platform, policy holders can build up a “network deductible” and thereby significantly lower their insurance costs.

How it works

On our platform, people can find their individual insurance coverage, selecting from a broad range of providers. In most cases, they can already lower their costs significantly through this comparison.

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People then can connect to each other. This process is similar to, and facilitated by social networks: send invitation, accept invitation, done. In this process, people can connect regardless of the scheme or the provider they chose. When two people connect, they agree to support each other with a small amount of money in case of a claim (e.g. max. 30€). The more connections a user has, the higher his support in case of a claim. The insurance provider only has to regulate the part of the claim, which lies above the network support, and he rewards the policy holder with a payback. With about 10 connections, a payback of 50% of the insurance fees can be achieved.

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Additional perk: We built in a stop loss, which guarantees each customer, that the support he has to provide to others never exceeds his premium payback. Everybody can only win through our system.

Why it works

Friendsurance has found that connecting people leads to a number of cost decreasing effects, which include:

  • Reduced fraud – Fraud reduces the payback of a policyholder’s network, causing a strong moral blocker for fraudulent cases.
  • Better risk selection – Policyholders use private information to decide whom to connect with, shutting out bad risk profiles.
  • Reduced process costs – Small claims can be handled without using the insurance company, using the network’s payback.
  • Reduced cost of sales – our model offers incentives for viral growth, reducing the customer acquisition costs and thus the cost of sales
Cost Reducing Effects

Who benefits

Utilizing Friendsurance’s services benefit both the policyholders and insurance providers on different levels. The insurance provider receives a new mode of distribution, increasing their accessibility to attractive groups, as well as simultaneously reducing their claim ratios. Friendsurance offers policyholders high discounts in insurance premiums and provides users with tools including an accessible, friendly website and helpful support staff.