Back Me Up, a new insurance brand powered by Ageas, highlights a fresh approach to servicing a millennial market that is both under-insured and – until now – poorly targeted.
Back Me Up is an app- and website-based provider. With it, Ageas has made the leap in understanding that traditional insurance purchasing processes and products do not necessarily suit a younger demographic that rents their home, does not own a car, possesses a number of increasingly expensive smart devices but – so far – has not been engaged by insurers via traditional touchpoints.
The brand’s offer is to cover any three items (excluding pets or vehicles) for £15 per month, with “core” items thrown in: phone screen cover, travel insurance, and house key protection. Policies are provided on a monthly subscription basis. The brand looks built for success given its recognition of a number of elements underpinning its model.
Identification of a gap in the market
According to our General Insurance Consumer Survey, only 52% of 18–34 year olds who rent their home hold contents insurance. Only 44% hold travel insurance and, despite smartphone/tablet ownership being almost ubiquitous within this demographic, again only 44% are insuring these items. This low level of insurance take-up does not correspond with need but with insurance product engagement.
Flexibility in payment and product
Focused on a demographic that is, as yet, perhaps neither engaged nor convinced by the concept of insurance, a monthly subscription is not only flexible to the needs of the customer but can attract those turned off by locking themselves into an annual policy.
Further, by providing flexibility in the items customers wish to insure within the core cover and then offering “bolt-ons” to allow for a customizable policy, Back Me Up offers an air of customer-centrism that meets the benchmark of other non-financial services digital brands.
Utilizing a familiar, tried, and tested package structure
Looking at how Back Me Up has packaged its proposition is reminiscent of the steps made in recent years by mobile network operators to improve flexibility by offering month-by-month contracts. In fact, the term “bolt-on” is now synonymous with the mobile phone space. But this is positive: insurance is looking outside of financial services for strategies to bring complex products to market. It also has the benefit of offering a familiar structure to customers.
Effective use of digital solutions
As a digital-first brand, Back Me Up has focused on how its target demographic is increasingly looking to purchase goods of any kind, including insurance. The key for digital brands, however, is delivering enhanced service through technology, and Back Me Up provides this through an app that can effectively be used as an insurance manager. It provides ease-of-access for making a claim and uses the phone’s camera function to record the items the customer wishes to insure. This makes the process slick and accessible.
By Stewart Mcewan, Head of Content, UK General Insurance