Trov Insurtech: Insurance on Demand
- 20 September 2019 | 1909 Views | By Mint2Save
In a very short time since its inception, Trov (popular also as Trōv) has left a lasting impression in the world of general insurance and premium. With customizable insurance plans, Trov seeks to let the insured optimize his insurance needs, with the usage.
The world has drastically changed over the past two decades. Things and methods of working have changed entirely in the post-internet age. Everything is on-demand and all the businesses have to adapt to this change accordingly. Today’s generation adopts technology at a rapid rate, which in turn is consequently directing a dramatic shift in purchasing behavior. Consumers are mobile-savvy and thus they demand everything being done on mobiles using the apps. Every sector is hit by this and is thus incorporating technology in their working style.
Technological advancement has even hit the Insurance sector. Which means the old ways of selling insurance isn’t going to last long anymore. With the integration of technology in Finance, many FinTech opportunities have open up for the world, and so has the integration of technology with Insurance leading to opportunities in the whole spectrum of InsurTech. The InsurTech methodology is aimed to solve the customer’s problem. In distribution, this is all about making it simpler and comfortable for the customer to purchase insurance. The manner in which the customer wants to buy it and the time they want to buy it making the whole process easy, transparent and fair.
With the Internet of Things – telematics, wearables, connected homes – insurers have new sources of data to rate and underwrite risk. Adding to this data science, machine learning, artificial intelligence, and high-performance computing and insurers are able to process data in completely new ways.
What is Trov?
Founded in 2012 by entrepreneur Scott Walchek, Trov is the world’s leading insurance technology platform, enabling the new ways people live, work, and move. Its full-bodied insurtech platform enables financial institutions and insurance incumbents to swiftly implement modern solutions for homeowners, renters, drivers, and small businesses. Its technology-enabled brokerage syndicates powerful software with tailored insurance products to resolve the multifaceted risk management issues facing companies in budding mobility and work. Trov’s customers base includes industry leaders and giants such as Waymo, Groupe PSA, Lloyds Banking Group, and Suncorp, amongst others. It is currently operative in 5 countries and has raised over $114 million from leading VC’s and strategic partners. The company is based in the San Francisco Bay Area and maintains offices in New York and London.
Using Trov, people can easily insure just the things they care about, entirely from the convenience of a mobile app. With a simple swipe, users are delivered with a personalized quote and they can speedily turn insurance on or off for any item without the need for any interaction with any traditional insurance agent. Items protected through Trov are covered internationally against accidental damage, loss, and theft.
Trov’s flexible, on-demand coverage may be very useful for people in situations that are riskier than their normal lives. For example, if someone normally uses a laptop or computer at home but are bringing it on an international trip, a temporary protection plan from Trov would be very valuable.
What all can be covered using Trov?
Trov provides protection for common electronic items, such as laptops, mobile phones, and cameras. When coverage is active on a specific item, the customers are protected against damage of any kind (including accidental damage), theft, loss and mechanical breakdown. The fact that Trov includes coverage for all of these circumstances sets it apart from traditional renters insurance.
The categories are divided into 4 major sectors:
- Mobility Insurance: Aimed at insuring any type of fleet be it a scooter, a car, a bike or a bus. Their insurance services are extensively custom-built for modern fleets and multi-modal transportation, using real-time data from connected vehicles to match each moment’s level of risk with the appropriate level of insurance coverage.
- Single item insurance: This is aimed at insuring any item be it from cameras to bikes and that too for any duration as per the user requires.
- Renters Insurance: This is flexible insurance built for the modern-day renter offering comprehensive liability coverage, plus personal contents at home and flexible itemized protection. Policies are dynamic and can easily be adjusted as per the needs of the customer, requiring no long-term commitments.
- Small Business Insurance: This is adaptable insurance created for small and medium businesses. Professional liability coverage along with adjustable itemization and safety for any equipment needed to get the job done.
How does it work?
Trov is a lifestyle app that gathers data about customer’s possessions, builds it into a list, then provides machine enhanced risk pricing for single item coverage. Trov provides micro-duration policies (that is breaking down to the second), charges micro-premiums (that is breaking down to the cent) and uses chat robots to manage claims.
Claims are handled through an inapp called “chatbot”, which asks users specific questions regarding the incident, making claims notification as easy as sending a few texts. Once a claim is accepted, the item will be replaced, repaired, or if that isn’t possible, the user will be reimbursed for the same. Trov makes the claims process simple and faster, while also dissuading dishonest claims.
Coming to the pricing policy, customers can select their own protection level. The more they are willing to fork out on the cover, the higher the payouts will be. For example, you could choose to protect your iPhone X for anywhere from $0.40 per day up to $0.55 per day. The prices will fluctuate from product to product, differing based on how old the product is. Also, prices will change based on customers history with Trov, which will evolve over time.
The app’s design is relatively simple and easy to operate. Customer can add items to their policy, swipe to protect what’s important to them at the time, select the type of coverage and price that they desire for each item and swipe and chat to claim damage, loss or theft.
Features
- Smart Pricing: Trov enables dynamic pricing based on real-time data customized according to consumer needs.
- Easy claims: The world of claims is a very negative experience. It assumes claimants are telling a lie. But Trov believes in an opposite approach, to initiate a claim the user engages with a chat robot that is based on an expert system. The technology uses contextual verbiage to collect date and location information, description and images of the claim. This online chat becomes a record of the claim which the claims adjustor can see the near-real time.
- Secure and compliant: From login to log out, customer’s information and information related to their possessions are safe and encrypted with the highest standards available.
- Streaming insurance on and off at will: The signature feature is “SWIPE TO PROTECT”. This makes turning insurance coverage on and off very easy and swift. From the Trov list of assets, the user “swipes right” to activate the insurance cover. To turn off the cover, the user does the exact opposite. They swipe to the left over the item in the list.
Benefits
- Efficient Pricing:
- Customized Product Offering:
- Value for Money:
- Digital Assessment:
Conclusion
Trov is clearly targeted at the millennial, the generation that has become alienated from insurance as they see it as a luxury that is too hard to buy with no obvious benefit. Trov’s coverage is only available online, so one can’t buy a policy from a local insurance agent like the traditional methods. However, coverage is available on its website as well as on apps for iPhone and Android.
It’s worth recording that KnightBrook Insurance, an insurance company that has been in this business since 1934, is backing Trov’s policies. KnightBrook has a B++ rating from A.M. Best, which means it has a “good” level of financial stability and is likely to be able to pay out for the consumer claims.
Trov’s super flexible coverage is worth considering if someone needs short-term coverage for high-value electronics, instruments or sporting goods. But its high prices prevent it from being a worthy long-term method of insuring products.
Last but not the least, is to keep in mind is that Trov is a fairly new company. It’s only been doing insurance business in the United States since 2018. It does not have a proven track record of customer service, so it’s difficult to say whether it’ll be able to meet customer demand over time. Insurance, though is popular and needed globally, does vary in premiums, regulations and of course, end users.