Will Kin be the Simple of Insurtech with a better UX to crack open the home insurance market?

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Kin recently raised a $4m Series A from top tier investors for a proven management team. The plan does not sound exciting.There is no conceptual breakthrough. Nor is there any deep, proprietary technology.  All they are doing is using better digital UX to reduce the time it takes to buy house insurance from hours to minutes.

Simple to say, but valuable if done well.

This is a bet on execution. In VC lingo, this is betting on the jockey not the horse.

One of these Insurance companies will buy them

Kin does not sound exciting…unless you are a shareholder of Kin. Reducing sign up time from hours to minutes is not conceptually exciting but if it reduces Customer Acquisition Cost and grows the top line, the acquirers will be forming a line outside their door.

Reducing sign up time is also relatively simple to do. Most of the data that Insurance companies ask us to enter could be found online. This is a 1% inspiration, 99% perspiration business where the devil/god is in the details. Reducing sign up time also  works because having spent a lot of time buying the house of our dreams we want to be done quickly with the boring but essential insurance task. Time matters.

Look at the following list of top 15 Home Insurance companies from A.M. Best:

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Any one of these could be an acquirer.

The Simple BBVA story

Way back in the early days of Fintech, we had Simple. They did a $2.9m Series A in September 2010 and sold to BBVA for $117m in February 2014 – 3.5 years later. All they did was offer a better digital UX. Naysayers would ask “where is the moat/defensibility?” but the reality is incumbents are bad at digital innovation so they will pay to buy it if it is proven to acquire customers.

Given the accelerating pace of innovation, the Kin exit story will probably be written in less than 3.5 years from now.

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Bernard Lunn is a Fintech deal-maker, author, investor and thought-leader.

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