When we started Wrisk back in 2016, we set out with little more than an ambition to make the insurance industry better. But one thing we knew from the get go was that without greater transparency, things were never going to change.
Our customer research at the time showed almost unanimously that people felt traditional insurance industry approaches were opaque, complex and “one-size-fits-most” at best.
We’ve always believed that insurance as an idea is truly purposeful – giving people the chance to pool their collective risk. Protecting individuals when misfortune strikes. And yet, while this underlying objective is laudable, it’s not often how people “feel” when interacting with insurance services.
As we got deeper into this problem, we realised just how hard a nut transparency was to crack. The way that risk is assessed and insurance is priced has long been a mystery – a secret that insurers hide from customers inside a black box. Go to any comparison site and you will see that the prices of “comparable” products can often vary by hundreds of pounds with little justification or explanation.
In the UK especially, this has given rise to a “race to the bottom”, where price (being the only visible differentiator) has become the only criteria upon which purchase decisions are made.
Our solution – the Wrisk Score – allows us to be completely transparent about the way we price. A bit like a credit score, but for personal risk, it shows you the things most insurers keep secret.
The way in which it works is simple – we ask you a series of questions, and give you instant feedback on how each piece of information you give us impacts your risk.
The whole process is gamified too – so aside from getting feedback, you see your score building up. A higher score means lower risk and better premiums.
Our research has shown that customers love feeling empowered in this way. It not only helps them make better decisions – it also builds trust and means we get access to much better data.
We also put customers in control of how many questions they answer, moving away from the mandatory big, upfront disclosure experience and instead allowing them to choose whether or not they want to share more information. It’s part of our commitment to always be “clever”, but never “creepy”.
As we start on our pricing journey with Wrisk, we know we won’t get everything right. But we are set up to continuously improve. And, before long, we should have an experience that not only delights and is trusted by customers, but one which leads the way in terms of truly predictive pricing.