Better Insight for Greater Success
Anybody can set striking missions and lofty goals, but only a few gains the insight to fulfill them. Genadi Man is one among the few. Being a serial entrepreneur across industries, Genadi was entirely new to the insurance sector when he co-founded kasko2go—a game-changing motor insurance solution for safe drivers. Little did he realize that this concept will become a true disrupter in the motor insurance business.
Believing that “insurance justice is for everybody,” kasko2go creates the ecosystem which grants safe drivers with much lower insurance premiums and finds low risk customers for insurance companies. “Safe drivers should be rewarded by paying less, no matter what nationality they are. Especially as they all contribute to safer streets,” notes Genadi.
Transforming the Industry
With the kasko2go solution approach, there is a real and enormous potential to change the entire industrial landscape in terms of motor insurance. They have created a new and profitable win-win situation for both the industry and the customers. “That is, the industry finally has a successful motor insurance business and the customers get fair prices for their policies. This makes a huge difference considering that within the EU with an annual turnover of more than 130 Billion Euro, one still dreams of an average profit of more than 2 percent,” points out Genadi. “The number game is actually very simple. The best drivers reduce the loss ratio of the insurance company up to 74 percent. Our insurance partner has the possibility to reduce the price for his good driving customer by 50 percent and still benefit from a loss ratio reduction of 24 percent.”
Additionally, under their telematics premiums, costs will be shared out according to who causes accidents, so that drivers with fewer accidents really do pay less and those who cause accidents pay correspondingly more. The roads will become safer, because nobody really wants to pay more. This in turn means fewer accidents and fairer motor insurance prices for drivers. According to Genadi, “If we compare the accident rate between the best and the worst drivers, the worst drivers are 5.5 times more likely to be involved in an accident than the best rated drivers.”
The Unique Approach
The current industrial challenge, Genadi believes, is a poverty in relation of technological developments and, ultimately, of the will and quality to change and sustainably improve as an industry. This is where kasko2go comes in, taking a refined technological approach not only to optimize processes but also to change the whole motor vehicle industry in the right way and make it more profitable. “We make use of AI and machine learning to interpret data on the driving habits of customers. The data that we do not have are also recreated using AI,” Genadi claims. kasko2go provide 100 percent data protection without any ifs and buts. At the same time, they create unknown and unavailable information for the creation of new transparent risk profiles. “And this is exactly the highlight of our technology: we don’t know of any other company that can demonstrate this from professional data sources as described,” he adds.
At this year’s telematics trade fair (Leipzig, Germany, 6 – 7 October 2020), Genadi Man announced that kasko2go’s advanced open source solution would be made available. In recent years, their product has been developed and tested on more than 100,000 drivers. In Switzerland, the software has already been on the market for almost two years.
The main reason for this decision was to give all 900 European and Swiss motor vehicle insurance companies free access to telematics technology. This should enable the insurance companies to create their own Usage-Based-Insurance (UBI) products for their portfolio without high investment costs. With this step kasko2go is aiming at a real change and optimisation in the currently not very lucrative car insurance market
Price and Data
Price continues to play a key role in the motor industry, but the main component will become the data. The ability to have more data than the competitor or to be able to get better insights will become even more important that the price. “For instance, if you can be reasonably sure that a person has a low potential of being involved in an accident, you can charge a much lower price and generate a much higher benefit by collecting the entire premium ,” says Genadi.
At the end of the day, it is the power of insight that guides business leaders to make smarter decisions and generate greater profit. In fact, Genadi undoubtedly agrees with the very concept that continues to lead him to bigger success.