Fintech Innovation of the Year 2015 – Bought By Many – uses a combination of search engine optimization and social media to group together people who have similar insurance needs –such as diabetic travellers, pug owners or homeowners in flood risks areas. They present that group’s requirement to the insurance industry and negotiate on behalf of the group to bring them a better deal than they can get on their own. A better deal might be better pricing, it might be more tailored benefits, or it might be both. Once they bring the offer back to the group, individuals buy directly from the insurer on the better terms that Bought By Many negotiated for them. Creating a win-win for everyone. Insurers only write the risks that they want and members of Bought By Many get a better deal.
Average discount of 18.6%
There are many niche markets that are not well served by high street insurance giants. Launched in 2011, Bought By Many now serves 272 groups and 151,517 members with 24 insurers. The average discount for a member is 18.6%. Because each group is built around a specific need of individuals, the company gets enormous community engagement that they use to drive member-get-member effects. Around 100 people per group are needed, depending on the policy.
How does it work?
The company finds niche groups by looking at Google search data to see which niches have high volumes of search queries. There is also a data entry box on its website letting people submit their own policy ideas. They then validate those segments through social media and engaging with niche blogs, Facebook groups and other stakeholders. The site makes it easy for users to use social media and invite friends to join via Facebook, Linkedin, Twitter and the like. Having established the market, the company works out the group’s specific requirements and then approaches the insurance companies to negotiate a deal on a policy.
Bought By Many suggests to insurers to split the usual broker fee in three parts: one third for the Bought By Many members to get a better benefit, one third for Bought By Many and one third for the insurance company, because Bought By Many want you to want to do this business.
Why we invited Bought By Many for DIA Barcelona
We invited Bought By Many’s CEO and Co-founder Steven Mendel to share his vision at DIA Barcelona, because the company is leading the way in harnessing the powers of social networks and big data to shake up the insurance industry. They offer a complete new service by helping communities use their collective power to buy insurance on better terms than they could as individuals. All based on innovate use of data.
And in the meantime they help insurers to increase diversification so they can hold less capital across the whole of their book.
Who is Bought By Many
Launched by financial services veteran Steven Mendel along with IT specialist Guy Farley and strategist and marketer Sam Gilbert.
Mendel had the idea after leaving a corporate career and discovering that the cost of his family medical cover went up “fourfold”. He felt that it was incredibly unfair that large companies are able to negotiate such enormous discounts, while individuals don’t have an easy way to do so. At the same time he saw a trend for group buying of this sort in other sectors: utilities, telecoms, groceries, but not financial services. And thus, Bought By Many was born.
“Everybody’s different. It’s what makes us human. So why should being different make insurance difficult and expensive to get?”
“Bought By Many is helping people secure better insurance deals through the power of group buying”.
Steve Mendel, CEO and Co-founder Bought By Many
Presenting at DIA Barcelona
Steven Mendel, CEO & Co-Founder
Steven Mendel, CEO & Co-Founder, +44 7785 555255, firstname.lastname@example.org