(Image source: Poncho Insurance homepage.)
IAG (Sydney), Australia’s largest insurance group (over USD$8.3 billion in premium), has announced that it is using Socotra’s (San Francisco) core platform to power its recently-launched Poncho Insurance brand and new direct-to-consumer auto insurance product.
Poncho Insurance was developed in 2019 by IAG Satellite—an independent business model within IAG—with the aim of providing an easier, simpler and more flexible car insurance product to Australians. IAG Satellite serves fast-growing customer segments for IAG, both through an existing portfolio of brands and by creating a new accelerator model to fast-track innovation.
Socotra reports that its API-driven, cloud-native platform which provided IAG with the agility needed to build a product on-budget and with an accelerated timeframe, going into production within 10 months. The vendor says that it was able to offer IAG a tailor-made solution to create a multi-car, multi-driver monthly auto insurance product, that works in a similar way to a monthly subscription, and that could be purchased online.
Poncho’s digital platform, powered by Socotra, was designed to make buying insurance less daunting by allowing customers to buy monthly car insurance policies instead of the traditional annual policies. Policyholders can also change or cancel their coverage as needed online without incurring traditional cancellation fees.
Socotra’s platform has also helped IAG drive business continuity, at a time when customers cannot easily leave their homes, the vendor says. Poncho’s self-service model has also minimized reliance on more traditional customer service channels while increasing operational efficiencies. This new model was enabled by the adoption of a series of new technologies, including Socotra.
IAG Satellite Executive Manager Phil Wilson-Brown reports that the partnership with Socotra has enabled the company to deliver an innovative insurance service through Poncho Insurance.
Super Flexible and Low-Cost
“With Socotra, we were able to develop Poncho Insurance, a unique customer proposition for comprehensive car insurance in the Australian market, in a short timeframe,” Wilson-Brown elaborates. “The platform is super flexible and low-cost allowing us to continually improve the product and deliver it at a great price to customers. We’re excited to further leverage this partnership as we look to expand our customer offerings.”
IAG recently won an Innovation Execution award for Poncho Insurance at the Celent (Boston) 2020 Model Insurer awards.
“We’re pleased that IAG has chosen Socotra to power its vision for transforming insurance,” comments Socotra CEO and Founder Dan Woods. “This partnership integrates technology and product design to make affordable, accessible, and self-serve insurance products. We look forward to continue partnering with IAG as they use Socotra’s platform to deliver new and innovative products.”