Show HN: Software to give insurance advice like an agent would • Hacker News Board

Re: Show HN: Software to give insurance advice like an agent would

#51

Post by chrisplotz » Fri, Jul 06, 2018, 3:04 AM UTC

lucasjans wrote: post #44

If you focus on the risk management side of personal lines I think you're going to have a hard time to scale. The problem is most consumers don't care enough about coverage to shop for it. What attracts new clients is price, price, price. Clients unfortunately won't worry coverage until they really need it. The problem with focusing on price is you'll attract clients who won't renew after 3-5 years, messing up the re…

Yes, I hear you on fighting the price war, and agree navigating a balance of price and coverage will be important. In our view, we intend to keep prices low through the use of technology and our dividend of risk profit, but definitely charge a sustainable premium for the cover we provide. Policyholders will be able to see where the money goes so it'll be an ongoing conversation.

Would love to get in touch, will drop you a line.

Re: Show HN: Software to give insurance advice like an agent would

#52

Post by chrisplotz » Fri, Jul 06, 2018, 3:08 AM UTC

secabeen wrote: post #47

chrisplotz wrote: post #38

Earlier quoted context omitted.

Yes, you're right - "abnormal" is a bit in the eye of the beholder. It would have been a relative assessment - a 3k deductible is much more than most people carry (even HNW, an area I've worked in before). On guessing rebuild, in CA you shouldn't have to guess, as it's the insurer's legal requirement to recommend something accurate, and the DOI supports the consumer there. Generally those increases will do the job on…

Ahh, good to know that the DOI has some teeth on the accuracy of the recommendations. That makes me more comfortable to take the extended replacement. Still frustrated that I can't just sell that risk to an insurer. After all if GR has caused big claim headaches in the past, and ER wouldn't have had those headaches, wouldn't that be to the customer's benefit to have GR?

The headaches as I understand it are mathematical really - without a limit to cap costs, outliers have the potential to completely mess up the pricing. Anything where one claim could destroy the predictability of results is hard. So only a few wildly inaccurately priced GRs can take down a whole book - hence capping. If you aren't likely to have outliers, you don't need limits, and some HNW insurers are removing limits entirely since they just price accordingly.

Re: Show HN: Software to give insurance advice like an agent would

#53

Post by chrisplotz » Fri, Jul 06, 2018, 3:47 AM UTC

phonon wrote: post #43

chrisplotz wrote: post #34

Earlier quoted context omitted.

Awesome, I will - thanks! Property insurance attritional losses are fairly predictable, and reinsurance is there to smooth out Catastrophe loss years; they'll be there to support us and bring our Loss Ratio back under control. So key is to charge enough to cover attritional (i.e. predictable) losses + reinsurance premiums. But yes in those bad years where there's no UW profit, there's no dividend - everyone's contrib…

If you're covering CAT risk 100% using reinsurers, you are at a competitive disadvantage compared to insurers who can cover some of that risk themselves...reinsurers have their own returns they look for.

That's true, but I've yet to see a primary insurer that doesn't use reinsurance.

Re: Show HN: Software to give insurance advice like an agent would

#54

Post by chrisplotz » Fri, Jul 06, 2018, 4:04 AM UTC

phonon wrote: post #40

chrisplotz wrote: post #17

Earlier quoted context omitted.

Underwriting profit hasn't always been a big component of insurer profits - typically "float" or that interest on the premiums held has been the big driver. But in a low interest rate world, companies have had to keep more and more underwriting profit in order to exceed cost of capital. As they need more UW profit, so the fight over claims gets worse... You are right though that money needs to be set aside for bad ye…

CAT Reserves are not IBNR...IBNR would, e.g., be after the CAT event happens, but before the claims are reported. I'd like to see a definition that says otherwise!

Yes, correct, IBNR can come from cat, or non-cat.

Re: Show HN: Software to give insurance advice like an agent would

#55

Post by epoch_100 » Fri, Jul 06, 2018, 4:13 AM UTC

chrisplotz wrote: post #50

phonon wrote: post #41

Your T&C are poor. "[add if applicable];" "You are granted a limited, non-exclusive right to create a text hyperlink to the Site for noncommercial purposes, provided such link does not portray Goodcover or any of its products and services in a false, misleading, derogatory or otherwise defamatory manner...This limited right may be revoked at any time." "You acknowledge and agree that any materials, including but not…

Thanks for the feedback, happy to consider. Could you be more specific about what you would expect? That would help us make adjustments.

It seems like the ToS is just filled with typos and "insert here" type statements that you'd find in a template.

I don't think there are specific items that the parent commenter is trying to change; instead, the entire document just seems sloppy...

Best of luck with your business, but make sure the fundamental legal contract between you and your customers is thorough so that both you _and your customers_ are protected.

Re: Show HN: Software to give insurance advice like an agent would

#56

Post by phonon » Fri, Jul 06, 2018, 4:54 AM UTC

chrisplotz wrote: post #53

phonon wrote: post #43

Earlier quoted context omitted.

If you're covering CAT risk 100% using reinsurers, you are at a competitive disadvantage compared to insurers who can cover some of that risk themselves...reinsurers have their own returns they look for.

That's true, but I've yet to see a primary insurer that doesn't use reinsurance.

It's not about using "reinsurance", it's about how much risk you are laying off to them. Large insurers don't insure "just the predictable losses" (unless they set up their own reinsurers) because it lowers their ROE too much to give reinsurers so much of the underlying risk.

Re: Show HN: Software to give insurance advice like an agent would

#57

Post by phonon » Fri, Jul 06, 2018, 5:06 AM UTC

chrisplotz wrote: post #50

phonon wrote: post #41

Your T&C are poor. "[add if applicable];" "You are granted a limited, non-exclusive right to create a text hyperlink to the Site for noncommercial purposes, provided such link does not portray Goodcover or any of its products and services in a false, misleading, derogatory or otherwise defamatory manner...This limited right may be revoked at any time." "You acknowledge and agree that any materials, including but not…

Thanks for the feedback, happy to consider. Could you be more specific about what you would expect? That would help us make adjustments.

The first and last quoted sections are sloppy/bad drafting.

The second is egregious, and embarrassing to be found in a YC company. You should not be asserting rights to how people "link" to you.

Third and fourth basically say any user provided "content" (whatever that may mean) is now "non-confidential" the "sole property of Goodcover", "entitled to the unrestricted use and dissemination of these materials for any purpose".

That sounds like you plan to use some relatively sensitive user provided materials in any way you see fit to advance your company.

But wait! you say...we have a privacy policy! Great, except the privacy policy has an exception...

"We may share information about you as follows or as otherwise described in this Privacy Policy: ... With your consent or at your direction, including if we notify you through our Service that the information you provide will be shared in a particular manner and you provide such information."

which arguably means that since the user accepted the T&C, they've approved your usage of their materials.

I don't feel you did this maliciously, you probably copied this from some template. Doesn't mean you shouldn't be thinking about this much more carefully though.

Re: Show HN: Software to give insurance advice like an agent would

#58

Post by chrisplotz » Fri, Jul 06, 2018, 5:12 AM UTC

chrisplotz wrote: post #50

phonon wrote: post #41

Your T&C are poor. "[add if applicable];" "You are granted a limited, non-exclusive right to create a text hyperlink to the Site for noncommercial purposes, provided such link does not portray Goodcover or any of its products and services in a false, misleading, derogatory or otherwise defamatory manner...This limited right may be revoked at any time." "You acknowledge and agree that any materials, including but not…

Thanks for the feedback, happy to consider. Could you be more specific about what you would expect? That would help us make adjustments.

Hi guys thanks for the comments, and yes, I see what you mean. Will be reviewing these in full.

Re: Show HN: Software to give insurance advice like an agent would

#59

Post by phonon » Fri, Jul 06, 2018, 5:16 AM UTC

chrisplotz wrote: post #54

phonon wrote: post #40

Earlier quoted context omitted.

CAT Reserves are not IBNR...IBNR would, e.g., be after the CAT event happens, but before the claims are reported. I'd like to see a definition that says otherwise!

Yes, correct, IBNR can come from cat, or non-cat.

I am not sure you understood. This sentence--

"You are right though that money needs to be set aside for bad years - in insurance we call it "reserving", and actually it is already accounted for before the 5-15%. It is stashed away in the loss ratio as "incurred but not reported"

Is not correct. CAT reserves are not related to IBNR. IBNR is a) we know the loss has already occurred b) the policyholder has not reported the loss yet. (Or at least in a probabilistic sense, like the hurricane has landed, and we know it will take 10 days for all the claims to be reported, and that 2 days after landfall, say 20% of claims have been reported, and the other 80% of those hurricane claims will be reported over the next 8 days. So at that moment "2 days after landfall" the actuaries will estimate how much IBNR there is.)

What you described is a CAT reserve...it's a seperate reserve taking into account, say, over a 10 year period, the odds and severity of a CAT risk.

If you still are unclear about the distinction, please consult your local actuary or CPCU :-)

Re: Show HN: Software to give insurance advice like an agent would

#60

Post by SOLAR_FIELDS » Fri, Jul 06, 2018, 6:43 AM UTC

cosmie wrote: post #29

PaulHoule wrote: post #20

Earlier quoted context omitted.

I don't know if it makes sense to get renter's coverage. I had a friend who had his apartment burn, the first thing the cops asked him was if he had insurance, and the they told him they were very relieved, otherwise he would have been an arson suspect automatically. Homeowners generally do have insurance, so they don't face this stigma, but renter's coverage is rare enough that having it and using it makes you look…

I've moved about a dozen times over the last decade, and all but one rental required me to have a renter's insurance policy as part of the lease terms - most of whom also required me to list them as an interested party[1]. A renter's policy is ridiculously inexpensive for what you get. Because it only covers liability and personal property, and not the full breadth of coverage a homeowner's policy would have, it's ea…

My wife used to be a leasing agent for an apartment complex. One day a tenant from her complex started the dishwasher, something broke and it flooded the entire apartment and the apartment below it. Had tenant paid the $13 or so a month for renters insurance it would have been nothing or only a few hundred out of pocket for a deductible. Instead, tenant was looking at over $20,000 in repairs.