$1,000 Grand Prize: Mitigating Risks to Vulnerable Populations

Renter's Protector Insurance

Last Edited by Lawrence P.

Product Name: Renter's Protector (insurance via mobile app)
Populations it would protect: Lower income populations which are least likely to be insured and most likely to rent, also the most vulnerable to property crime, fire and other crises, such as a catastrophic hospital bills. This population is also most likely to utilize the Internet exclusively via a smartphone.
Impacts this product / service will protect against: Theft, fire, family liability, guest medical, living expenses when experiencing a crisis
Trigger event that would result in a claim: For example, your apartment is burglarized, or an uninsured child you're babysitting is injured.
Scope and nature of the insurance response: The idea is to create an insurance platform which achieves economies of scale through adoption and a mobile app user experience which mitigates fraudulent claims. Renter's Protector offers affordable policy tiers ($120-200 a year) managed through a mobile app. As part of the onboarding process, the insured uses their mobile app to photograph all personal property items of value. Alternately the policy holder can scan receipts for their purchases of value using the app. The app also provides ongoing education to policy holders to help protect their personal property (for example, tips on the best way to always lock your bike). Property coverage up to $50K, optional liability coverage up to $100K.
Why this would be a compelling product: Speedy payouts. No deductible. The incentive for the policy holder is affordable coverage for common risks (property loss, lawsuits) and a mobile user experience that processes claims promptly for these documented items. This documentation reduces claim fraud for the insurer and also boosts the recovery rate of stolen items (for example, how many people have not registered the serial number of their bike). Additional tiers at a slight additional expense could cover family liability, such as lawsuits resulting from damage to others' property or person. Over 60% of renters are not insured, so the untapped market potential is significant.
Thoughts on how this product would be sold: The product would be sold both direct-to-consumer and via landlord channels. Tenants often mistakenly think their landlord is on the hook for property loss, and this provides a no cost avenue for landlords, property managers and housing authorities to avoid these difficult conversations while promoting coverage for their tenants and driving scale for insurers. Insurers which promote themselves as philanthropic organizations and donate a percentage of their profits to non-profit organizations can also market themselves through their beneficiary organizations.

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Idea No. 2170

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