Bindcover’s Efforts to Streamline Insurance Business Processes for Companies
Bindcover is an insurtech platform that tries to make it easy for brokers and insurance companies to connect with each other.
The inspiration came when Victor Roy as Founder & CEO of Bindcover came to visit London in 2018. There was Lloyd’s, which is the largest insurance/risk market in the world — the concept is similar to an exchange, only focused on insurance prospects.
It brings together insurance brokers/brokers and insurance companies. From there Lloyd’s was able to accommodate a variety of unique insurance needs, from insurance for the Titanic to today’s electric vehicle products such as Tesla.
However, when exploring the business process, Victor saw the potential for the digitization that could provide efficiency. When a company wants to do a placement, there are a lot of documents that must be prepared and brought, meeting face to face.
The process is still considered manual, computerization is only carried out at the recording stage. When he returned to Indonesia, he came up with the idea for a digital version of Lloyd’s to become a forum for brokers and companies to run their business.
Even in the local market, based on Victor’s experience in the insurance industry since 2004, he sees that when a big business (famous for fire insurance) wants an insurance product, the process cannot be as easy as finding car or life insurance.
Solutions Presented by Bindcover
Currently, Bindcover has been listed in the Digital Financial Innovation at OJK for the Insurance Broker Marketplace cluster.
As defined by OJK, the Insurance Broker Marketpalce is a shared platform that is closed and is intended for the community of business entities with insurance licenses; ranging from insurance/reinsurance brokers and insurance/reinsurance companies.
Within the Bindcover web platform, there are many brokers and companies that can sign up. Brokers can upload various prospect clients with unique risks in them, then insurance companies can see and weigh to facilitate these needs.
All administrative processes are recorded and documented on the platform — both from the side of the broker who uploads the client data or the company that manages the transaction. The ultimate goal, Bindcover wants to be a “one-stop” service.
Another feature that is also provided allows brokers and insurance companies to negotiate on the platform. This is considered by Viktor to be an important aspect because it is related to compliance — the insurance business is one that is tightly regulated.
The communication presented was thorough. For example, a broker who uploads a risk profile on the platform can find out which companies downloaded the data and when, so that further follow-up can be carried out.
Usually, by email or telephone, the recording becomes less structured. Bindcover is also developing AI-based technology to provide supporting data in the risk assessment process of a business.
For example, by crawling relevant data from the internet related to certain businesses that will become insurance clients. However, for now, risk management is still manual, both data recording and analysis — especially for risks with large values.
Already Got Pre-Seed Funding
Currently Bindcover’s business model is B2B. Furthermore, Victor said that they have two revenue streams that are being run. First, charge per policy with a value that depends on the premium that is successfully underwritten. For policies worth under 2 million, Bindcoverdoes not charge a fee.
While the second model, there is a sharing fee from brokers who get client inquiries from Bindcover. It is undeniable, with the existence of digital services, several companies are also trying to order their needs through Bindcover.
However, because it is not a broker (does not have a broker license), what is usually done is to forward the inquiry to a partner registered on the platform.
Bindcover also received pre-seed funding in July 2021 from Canada-based Loyal Ventures. At the beginning of 2022, the company also began to raise funds to accelerate the business it is working on.