The following post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga.
The 21st century brought an onslaught of disruptive technology to industries, fundamentally changing the way people interact with the world.
The next time you sign in to your Netflix NFLX account, order an Uber UBER ride on your phone or rent a room through Airbnb Inc. ABNB, remind yourself that not too long ago, none of these services would’ve been available.
Despite the prevalence of such disruptors, they’re not ubiquitous, and some industries lag desperately behind others. The insurance industry is one such industry. Despite its $1.1 trillion size, many of the largest insurance-industry operators depend on outdated methods such as third-party sales agents, brokerage deals, and physical consultations to drive revenue.
Companies like Kin Insurance Inc. OCA cater to customers who want their insurance experience to be intuitive and consumer-grade, akin to the personalization that they experience in their everyday lives. Through its direct-to-consumer (DTC) approach, the company is on a bold mission to change the way consumers buy home insurance, and it’s off to a great start. The company reported a gross profit of $8 million in the nine months that ended September 30, 2021, constituting a 200%+ year-over-year growth.
With almost $8 billion in insurtech funding in 2021, the industry breached all-time-high funding totals, introducing to the world key contenders such as Oscar Health Inc. OSCR and Duck Creek Technologies Inc. DCT.
Kin Insurance: A Brief Overview of the Metrics
In contrast to a low overall customer satisfaction rate for the home insurance industry, Kin boasts a Net Promoter Score of 85, a 4.8 review on Trustpilot Group PLC TRST, 99% customer retention, and lower churn than peers.
Kin attributes these successes primarily to the customer’s dissatisfaction with current industry standards; research bears out this trend, as 72% of customers prefer a digital insurance experience. The company repeatedly identifies its DTC approach as one of its key differentiators that have generated exceptional customer loyalty, which signals the proper execution of this vision.
Kin says that its strong favorability among customers translates into best-in-class unit economics. It states that compared to peers, the company has a vastly higher revenue growth rate for 2021 to 2022, a higher premium per customer, a higher lifetime value to customer acquisition rate (LTV/CAC), and a significantly lower adjusted loss ratio for the first half of 2021.
Based on prior financial performance and its customer retention rate, Kin believes it will generate $400 million of premiums by 2023, representing a 5-year CAGR of 139% and a revenue generation based roughly 50% on renewals.
The preceding post was written and/or published as a collaboration between Benzinga’s in-house sponsored content team and a financial partner of Benzinga. Although the piece is not and should not be construed as editorial content, the sponsored content team works to ensure that any and all information contained within is true and accurate to the best of their knowledge and research. This content is for informational purposes only and not intended to be investing advice.
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