Singapore-based insurtech startup Vouch Insurtech has announced that it has raised SGD 1 million (US$755,000) in seed funding from GREE Ventures, Nogle Capital Management and several unnamed angel investors.
As per a press statement, the company aims to expand regionally, initially targeting Thailand and Malaysia.
Set up in late 2016 Chean Yujun, Prateek Jogani and Thanasak Hoontrakul,Vouch Insurtech is an insurance platform for private communities. It partners with major insurers to offer no-claim rebate cashback for car insurance. Customers who purchase their car insurance via Vouch Insurance receive up to 15 per cent cashback (on top of existing no-claim discount or NCD) from insurers if they do not make any claims. Customers can maximise their cash back by forming groups with other safe drivers.
Vouch Insurtech works by grouping drivers of similar driving profiles together via their online platform. Drivers may also choose to form private groups with friends and family. At the start of each drivers’ policy (policies can have differing start dates), the insurance company sets aside 15 per cent of the drivers’ premiums as NCR. This is pooled with members in the same group. During the policy period, if any member makes an own-damage claim, part of this claim is deducted from the rebate pool, and the remainder of the pool split amongst the members at the end of their respective policy period.
If the pool runs out, there is no negative impact to customers, as everyone is still covered by their respective insurance company. If the group stays accident-free, everyone receives 15 per cent cashback of their premium.
The firm has partnered with three insurance companies, namely NTUC Income, Sompo Insurance Singapore and Tokio Marine Insurance Singapore, to offer customers up to 15 per cent cash back on annual premiums, in addition to existing NCD.
In 2017, Vouch was selected by global reinsurer Swiss Re as one of the five startups globally to be part of their InsurTech Accelerator programme. Vouch was also incubated by NUS Enterprise.
“In the traditional car insurance model, safe drivers pay higher premiums to cover the risks of unsafe drivers. This is unfair, and we saw an opportunity to work with insurance companies, to give drivers more choice to influence the premiums they pay and also reward safe drivers. Insurance companies also want to encourage a safe-driving culture in Singapore and we were delighted when three established insurance companies came onboard. Drivers can now receive a cheque from their insurer for driving safely, instead of for making a claim,” said Chean Yujun, CEO and Co-founder of Vouch Insurtech.
GREE Ventures is a VC firm with assets under management of US$120 million. Since its establishment over six years ago, the firm has made more than 40 investments in startups in Asia.
Nogle Capital invests in high-growth technology ventures. Its investment strategy is focused on developing companies with technology innovations (cloud computing, Artificial Intelligence, blockchain, cybersecurity, data analytics and much more) through active financial and operational facilitation that can benefit from Nogle’s extensive business network.