In this Interview, Founder of Roojai, Nicolas Faquet, shares his insights on the implementation of online car insurance in Thailand. B2C auto-insurance has great potential to grow. With over 45,000 vehicles already using Roojai’s policies the idea has already been proved.
Keep reading to learn more about Roojai, a online company offering car insurance in a “MGA like” model in the Thailand.
What problem did you set out to solve when you founded Roojai?
Roojai is an online B2C insurance platform operating under a “MGA like” model in the Thai Market. We launched only three years ago, in 2016, and to date we have an in-force portfolio with over 45,000 vehicles. When we founded Roojai, we set out to solve 3 keys problems within the car insurance industry in Thailand:
Provide product transparency to customers. The Thai car insurance distribution is mainly agent and broker driven. They generally sell expensive product features (for example, less than 5% of customers are offered a deductible) pushing up prices, increasing handling costs and, to a certain extent, discouraging drivers from driving carefully. Our easy product customization interface lets customers play freely with the product features. On average, they look at 12 product options before making up their own minds and as a result choose what they really need. For example, 70% of our customers choose a deductible.
Reduce frictional cost. The industry is running with a 40% expense/acquisition cost. It needs a 60% loss ratio to break even. This basically means that for every 1.5 dollars of customer compensation, it costs the industry 1 dollar. Why should a customer feel reassured by that? Roojai, through digitalization of the purchase process, automation of its service and advance use of video, is on a mission to reduce wastage in the industry and ultimately benefit the customer. We aim to deliver a more reasonable 1 dollar of cost to pay out 3 dollars of compensation or, in industry speak, a 75% loss to 25% expense ratio.
Reward safer driving. In a country notoriously on the podium of the most dangerous place to drive with 20,000 deaths per year, something radical has to be done. We strongly believe that insurance can and should play a major role in reducing this toll by segmenting and rewarding better driving behaviour. We are achieving this through deeper behaviour based segmentation, encouraging consumers to opt for a deductible, and promoting technology such as in-car camera. Ultimately, safer drivers pay lower premiums with Roojai.