The insurtech industry is all about using technology for efficiency and savings from the current insurance industry model. It is an exciting new space with its own challenges and innovative business applications in the modern world.

Being a new industry, insurtech has its own set of challenges and these are primarily focused on the regulatory aspect and the viability of new business models in the long run.

In this case, our client was a Canadian insurtech player who created an offering that solved for the guarantor problem for fresh college graduates & other people in Canada. Typically, to get an apartment on rent, a person needs to show their income as more than 40 times the monthly rent. If one is unable to do the same, they need to have a guarantor who is contractually bound to pay the rent in case of any default.

The key challenge was to understand the market and deliver a Go-to-market strategy for the client that laid out the market prioritization, price point validation & strategy on how to enter the market itself. The key challenge was to understand this for a dynamic and rapidly evolving industry.

The key challenges were –

Prioritization of international expansion

Market sizing of different cities and states in Canada

Evaluate product focus to meet customer expectations & differentiate from competition

Pricing focus in different geographies to complement the GTM strategy

The way we approached the problem was to take a case by case view of the competition, analyse the strategies and recommend what suited the market need best by creating differentiation for competitive advantage. We also ran a customer survey to validate all the hypothesis and generate insights to back up our recommendations. The key takeaways are as follows –

Different factors like market scale, competitive landscape & so on were chosen and analyzed to recommend the international expansion plan with a priority list for countries.

Calculated the potential market size of various Canadian states basis rental guarantee, security deposit and renter insurance market.

Expanded product focus to tap into more consumers and get an edge over the existing market players in Canada

Evaluated the willingness to pay for the consumers by running a customer survey & used the insights to create different packaging options for the customers.