FR: Bought by Many is an unusual concept - tell us about it.
Bought By Many is a start-up helping consumers to club together into social buying groups to get a better deal on insurance. The concept is simple - the more people who join the group and buy, the cheaper it becomes. We’ve already secured better deals for consumers and the types of communities we’re helping to get a fairer insurance deal include young drivers, French bulldog owners, people with homes in flood risk areas and over 50s iPad and iPhone owners.
FR: How have you found making a name for yourself in the insurance industry?
It hasn’t been easy, as you can imagine. Insurance is a huge market and for us, coming up with our concept – social insurance – has been initially seen as unknown ground for many insurers here in the UK. We’re trying to do things a little differently too. However, once insurers understand that they can easily reach consumer groups with specific insurance needs, they soon want to find out more. It also opens up the opportunity for new products in a way that hasn’t been easy to do before.
FR: What has been the biggest milestone for the business over the last 6-8 months?
That would have to be our first partnership with a mainstream insurer for one of the groups we launched. We signed a long-term agreement with Legal & General and went live with an offer for home insurance for people living in the Yeovil area. As the first partnership, it did take a while to complete, but once it was all agreed, it was worth it. Over the last few months, we’ve also seen an increase in the number of insurers that are coming to us directly to find out more about the concept which is great. The first partnership really did help to get the ball rolling, and now the insurance industry is beginning to take notice.
FR: What makes the Bought By Many proposition interesting to an insurer?
Working with us, insurers will be able to do a number of things. They can directly target groups of people with specific insurance needs, they can limit their dependency on aggregators, as well as diversify their book of business from a Solvency II perspective. Our concept provides an interesting argument for the industry to try something new.
FR: Are you open to working with any insurer or are there specific criteria they need to meet?
We’re open to working with any insurer that wants to target different groups of people, and there are no specific criteria to meet at all. If an insurer wants to contact us about a type of group they’re looking to target, they’re more than welcome to get in touch and we can take it from there. We’re open to working with insurers both large and small, niche or vast.
FR: How does the process work? Do consumers give you ideas for groups or can insurers request groups?
We analyse insurance data extensively, listen to the needs of consumers as well as talk widely with insurers to find ideas for groups. Then we use social media – extensively – across Facebook, LinkedIn and Twitter platforms. Social media is important to us, as if you enjoy a particular sport, live in a particular area or have a particular medical condition, you’ll most likely know others in your area that share the same interests or have the same issues and connect with them on social sites. That’s how the groups are growing.
FR: How has the concept been received?
Very well indeed! We’ve had a lot of interest not only from consumers, but also insurers too. We’ve had requests to set up particular groups or people telling us about their experiences with trying to get insurance. We’re starting to expand the number of groups we have launched, recently adding groups for IT contractors, beauty therapist, management consultants, B&B owners, Chihuahuas as well as travel insurance for cancer sufferers.
FR: How important do you feel social media is – or could be – in financial services?
I think with the rise in usage of social media, the industry has to start using it more. Many are, and with our whole concept relying on social media, it’s definitely important to us.
FR: What advice would you give to anyone looking to start up in the industry?
Persevere. If you’re sure about your idea or concept and confident in it, focus on making it a reality. Build a strong team, listen to consumers, respond to feedback from all sources and be prepared to iterate your initial plans
FR: If you weren’t in the financial services industry, what would you be doing?
I would be designing buildings as an architect – but suspect that’s for my next life.
Steven has over 20 years’ diverse experience in the financial services industry - as a qualified actuary at AON, as a strategy consultant at McKinsey, and as a business leader at Barclays Wealth and Close Brothers. Steven founded Bought By Many with Guy to shift the balance of power in insurance. He feels strongly that the insurance industry treats corporates better than individuals, and that it’s time for that to change.
He is married with three kids, and has a passion for cycling, his sax, and for the charities he’s involved with.
