Startup looking to disrupt market and build trust with new profit-share model

Recently launched insurtech Blip is looking to disrupt the UK insurance market with its new profit-share model.

That was according to the firm’s founder and chief executive Gary Ross, who told Insurance Times that the solution ”represents what we stand for as an insurtech”.

Blip, which announced its launch in the UK in February, aims to provide affordable business insurance for small enterprises.

Its profit-share model is designed to return up to 10% of its total policy premiums to policyholders to help members save money and share in the company’s profits.

Ross said that the model was not “just a nice to have” and that “it represents what we stand for as an insurtech working to disrupt the status quo of the insurance industry and improve the quality of insurance for small businesses in the UK”.

“We are taking insurance back to first principles, where the losses of the few are covered by the premiums of the many,” he added.

”This is the basic understanding of insurance that seems to have been lost over the years and now big insurance companies dominate the landscape and dictate the status quo.

“We believe that through transparency and showing our customers the mechanics behind their premium going into a collective pot, which protects likeminded small business owners, we are creating a community.”

Trust

Blip’s model came after trust between companies and insurance firms took a hit when businesses that could not operate due to Covid lockdowns sued insurers.

Ross said Blip aimed to “empower its customers and build back trust between policyholder and provider through greater transparency and sharing in the profits”.

“The UK is facing a cost-of-living crisis and small businesses are being pressured by rising inflation and interest rates, so there is a need to get more from your insurance,” he added.

”Building a community of like-minded small business owners, Blip provides tools to help you succeed and grow.”

Partnership

Blip has also partnered with European insurer Wakam to integrate a full stack technology proposition into its proprietary distribution website.

Specialist incubator Pro MGA Global Solution is also working with the insurtech to help it ensure compliance within a regulated envrionment.

Danny Maleary, chief executive of Pro MGA Global Solution, said: “Digital transformation is putting the need for the insurance industry to think more about its end users and that’s exactly what Blip is looking to achieve for the small business market.

“There is strong growth potential for Blip and I’m confident the talented team there will take the business from strength to strength with this customer centric strategy. We are excited to be supporting the launch of Blip’s digital-first insurance platform in the UK.”

Meanwhile, claims management firm McLarens will be working with the insurtech startup to provide third party administration and loss adjusting services.

Jason O’Sullivan, head of global TPA development at McLarens, said that “claims are the shop window of insurance” and explained that it’s crucial claims were handled in a way that “mitigates risk, reduces costs and meets customer need”.