Apollo Insurance is a privately held company based in Vancouver, British Columbia. It is Canada’s leading online insurance provider. Apollo Insurance was launched in April 2019. Apollo Insurance has been able to create the largest selection of online insurance in Canada, with opportunities to expand into the United States.
The premise is quite simple: speed is of the essence in today’s world. All business in most sectors is done online. You can get an insurance policy that is a promise on a piece of paper. When you go to buy insurance from Apollo, you can answer a few questions online from a chat interface, get a quote, pay for that policy and it will be emailed directly to you in real time in less than five minutes. 24 hours a day, 7 days a week, no matter what device you use!
Apollo Insurance aims to target the underserved small business and personal insurance segments, as these customers are largely ignored by the existing market, creating a significant opportunity for Apollo Insurance. So if you are a small business, you need fire insurance for your lease. You may need professional liability insurance. If you’re an individual, you need renters insurance for your landlord, for example.
These are the types of products that Apollo Insurance will be able to offer you. Only 1.3% of Canadian insurance is sold online and Apollo Insurance is at the beginning of a life cycle of innovation in a huge industry. What we have seen in other fintech areas with online banking?
None of this has touched the insurance space yet, so it’s very early in this life cycle. This is really how insurance is sold today – it’s a simplistic description, but it’s really the reality: the bulk of agency work is reduced to employees, printing emails and policies. That’s mostly it!
If you’re a small business today, you’re going to have to fill out a bunch of paperwork, send it to a broker who is going to send it to a bunch of different underwriters. There’s all this back and forth and paperwork that takes up to six weeks to get your policy obtained at the expensive price!
Insurance is mandatory. It’s a massive market and Canadians spend about $66+ billion each year on property and casualty insurance. The U.S. market is about 10 times larger, at $600 billion, and globally, it’s one of a few trillion dollar industries. We estimate that there are about 40 million Canadian insurance transactions that are under ten thousand dollars, so they’re perfect for a digital agent, so I basically believe that there’s going to be a renaissance of entrepreneurship from that given there.
Insurance prices are going up because of inflation, and if the wood in your chimney is more expensive, your insurance is going to be more expensive. Insurance is mandatory. We are also seeing record numbers of real estate transactions and every time someone gets a new mortgage, they are more likely to shop around and therefore buy insurance.
So the Apollo Insurance solution is almost a no-brainer for small and medium-sized businesses: it’s pretty simple! Using technology, Apollo Insurance creates a better experience for both insurance brokers and entrepreneurial customers.
Apollo Insurance is a 100% online application. It is mobile friendly, you will get an immediate quote from this new technology, you can purchase it with your credit or debit card, you can pay monthly or annually and you will receive an insurance policy via email immediately, without any human intervention from Apollo.
Apollo Insurance works with reinsurance companies or Lloyds of London in the background to take on the balance sheet risk, but Apollo Insurance is able to underwrite, price and sell this policy directly from the Apollo Insurance technology. Apollo Insurance automates the renewal process to maintain a recurring revenue stream from these customers and obviously Apollo Insurance collects so much data that there are opportunities for artificial intelligence, machine learning, algorithms, as Apollo Insurance builds a robust data set in the subject matter, the way it works is pretty simple at its core.
Apollo Insurance is targeting an underserved segment, which can be healthcare professionals, fitness professionals, hairdressers, stores, technology companies and emerging segments, for which an online insurance product was born, Apollo Insurance.
Apollo Insurance has a unique market approach in its kind compared to what you may have seen in other online insurance providers, Apollo Insurance has an online channel approach in their broker portal. This is their wholesale channel. Apollo Insurance has about 2,300 insurance brokers. Who can connect to the platform, and help you!
What’s unique about the Apollo Insurance approach is that they don’t do very expensive advertising, like pay per click and that type of advertising. Apollo Insurance focuses on integrating these insurance products into other companies that already have an active user base, such as other technology companies that have large users of small businesses, such as building societies, that have a whole bunch of tenants that live in their buildings, and we partner with them to cross-sell insurance in their market. Every time we sell one of those policies, we make about 35% on that transaction, and that’s both new and recurring, because in the pnc space, that policy is supposed to renew, which creates a lot of lifetime value for that customer.
E-commerce and Apollo Insurance
Today, as we all know, with the impacts of Covid19, online shopping has become a natural trend, the world is moving towards e-commerce. So, at a dematerialized approach, Apollo Insurance tends to compare with e-commerce companies and again, Apollo Insurance targets small insurance policies.
So compared to e-commerce companies, a very successful e-commerce company might have an average transaction of about $100 and so again, a very high transaction. Even though Apollo Insurance sells an intangible product, they have a cart-to-buy ratio of 65, which means that if you get to the checkout page for an Apollo product, 65 of those times you’re actually going to buy that insurance policy. I think that’s a testament to the excellent user experience that makes people want to buy an insurance policy.
The conversion is very high for Apollo Insurance. So what this suggests is that as Apollo Insurance builds more and more complex insurance products, the more decision trees and the more sophisticated the algorithms become.
Apollo Insurance is able to sell larger and larger types of insurance to more and more complex businesses or to meet more complex individual needs.
Most e-commerce companies don’t have lifetime value, they only sell one type of item, so for Apollo Insurance to have an 81 renewal rate is an incredible recurring revenue stream for these products, but it’s also an intangible product in the sense that there is no shipping, no warehousing, no manufacturing no inventory. Apollo Insurance is not affected by the global supply chain, or it’s you know that kind of famous image of ships getting stuck at the Suez Canal where manufacturing is interrupted because of container blockages…
Apollo Insurance has an unlimited product to sell and they are able to deliver that product immediately and by email. Their product strategy, is that in terms of the insurance products it offers on the platform, is really to become the store of everything for small transactional insurance.
What Services Does Apollo Insurance Provide?
On a single platform, Apollo Insurance provides numerous forms of insurance for 500 different sorts of businesses. The following are some of the insurance options available via Apollo Insurance:
Owner-Occupied Condo Insurance
Rented Condo Insurance
Miscellaneous Professionals/Freelancer Insurance
Builder’s Risk/Renovation Insurance
Contents & Equipment
Non-profit Directors & Officers Insurance
Small Business Insurance
Protecting your business with insurance starts with choosing the right insurance company, Apollo Insurance can be the right choice for yours!