Singapore's Vouch launches car insurance with No-Claim Rebate cash back

• Partners are NTUC Income, Sompo Insurance Singapore, Tokio Marine Insurance Singapore
• The company aims to expand regionally, initially targeting Thailand and Malaysia

SINGAPORE-based startup, Vouch Insurtech, has launched Singapore’s first car insurance “No-Claim Rebate” (NCR) feature.

Three insurance companies - NTUC Income, Sompo Insurance Singapore and Tokio Marine Insurance Singapore – have partnered with Vouch Insurtech (Vouch), to offer customers up to 15% cash back on annual premiums, in addition to existing No-Claim Discounts (NCD).

Through its digital platform, Vouch is set to disrupt the car insurance industry, a sector that has experienced little change in the past several decades.

“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 Vouch Insurtech CEO and co-founder Chean Yujun.

Vouch 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% 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% cash back of their premium. With less than 15 claims for every 100 drivers in Singapore annually, many safe drivers will stand to benefit from this cash back.

The benefits of using Vouch’s service are:

• Fair – Vouch makes car insurance fairer, by rewarding safe drivers with cash back on their premiums. Drivers can also choose to group themselves with friends/ family, and other known safe drivers.
• Seamless – Vouch is a fully-fledged digital insurance platform that integrates seamlessly with insurance companies’ systems, offering the best customer experience. Drivers can quickly and easily apply for their car insurance policies via Vouch’s website. It takes less than five minutes to get a quote, make payment and receive policy details.
• Transparent – Customers can retrieve essential policy information via Vouch’s website anytime. They can also monitor any changes in their NCR and choose to join or form new groups. Vouch operates within Singapore’s regulatory framework.

Vouch Insurtech’s entrepreneurial journey

Vouch was set up in late-2016, with the first year spent developing the algorithms and analytical technology for their cash back service and also securing the partnerships with insurers.

The three cofounders have diverse experience and are located in key markets. Chean Yujun is based in Singapore with a banking and big data analytics background; Prateek Jogani, the company’s CTO, is based in India and has previously worked in multiple software startups; and Thanasak Hoontrakul is the country manager in Thailand and has experience as a business analyst.

In 2017, Vouch was selected by global reinsurer Swiss Re as one of five startups globally to be part of their InsurTech Accelerator programme, which mentors startups with the potential of disrupting insurance practices.

By end of 2017, the company raised S$1 million (RM2.94 million) in seed funding from investors like GREE Ventures, Nogle Capital Management and several angel investors.

Vouch is also incubated by NUS Enterprise and benefitted from being based at Technopreneur Circle, a platform initiated by Vertex Ventures to help the early stage start-up ecosystem by providing mentorship, and help with business development by way of opening doors.

Moving forward, the company aims to expand regionally, initially targeting Thailand and Malaysia.

“Fewer accidents on the road will result in lower claim cost, which is the most important factor for premium pricing. We look forward to working with Yujun and his team to promote safe driving culture thru their on-line platform. Better road safety is a win-win for both car owners and motor insurers in Singapore,” said Tokio Marine Insurance Singapore chief executive officer A K Cher.