Price comparison disruptor prepares for several insurers to join its platform

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Price comparison website disruptor Honcho has begun integrating several motor insurers onto its platform that will allow them to bid for customers.

Following the Financial Conduct Authority’s decision to grant the insurtech regulatory approval, Honcho has already began integrating several motor insurers onto its platform.

The insurtech is in talks with approximately 40 insurers and is planning to have at least 15 of those insurers on board the platform by the time of its launch in the fourth quater this year.  

Honcho commercial director, Frank Speight, told Post: “Our proposition and app is pretty much 90% complete and we will begin testing this soon.

“We are currently juggling conversations with more than 40 insurers but we are not expecting all to be involved in the launch due to the varying speed of which different companies can integrate. By the time we launch in Q4 this year, we expect to have at least 15 insurers on board. Already, we have begun integrating several of them. Once our proposition is of satisfaction to our initial partners, we will start bringing in more during Q1 2019.”

The app aims to act as an alternative to price comparison websites by reducing high commission charges and passing on savings to customers. Insurers using the platform will pay £1 to bid for a customer through a market place that is designed to encourage insurers to reduce the price of their premiums. 

The insurtech is expecting to acquire a 2% share of the motor market within three years of its launch and will move into other areas of insurance within the first 12 months following its launch.

“Within a year of launching, we expect to achieve at least 250,000 downloads of our app” Speight said. 

“During Q4 2018 we will be focusing on car insurance. Over the course of the following year, we will be moving into pet and home and contents insurance. We expect to approach a Series A funding round six months after launching, once we are able to demonstrate our capability.”

As well as being in talks with insurers, Honcho will also be working with two software houses so that it can bring insurers onto its platform via a system which will run parallel to their business.

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