Mango Insurance prepared its product line for the apartment in three packages
Recently we took an interview with CEO of Mango Insurance Viktor Lavrenko, where we discussed the present and future of the company, first success and plans for the future.
We noticed that on the first page of the insurer’s site the new service packs now appeared. Then it is not necessary to progress move-by-move along a web-site.
What is a company
This is an insure tech start-up – an insurance company with a license (“not life”).
Main products: insurance of apartments and home property, civil liability, pet insurance. Plans – Insurance of “Favorite Things” (photo and video equipment, bicycles and scooters, computers, etc.).
They stay out of Auto insurance, the main distribution channel is a straight line (web-site), but they still have plans to develop other directions.
An important accent, what they are trying to stand out on the market – to pay quickly. Insurance payments they produce, according to the site, from 45 minutes to 3 days. Failures 1 out of 10 (10% – also a lot).
Their web-site with a variety of useful information, including their blog is daily.mango.rocks.
At the end of 2020, about 50 people worked at the company. According to the words of founder of the company Viktor Lavrenko in our interview “Mango – Russian Insurtech”
How much money is spent on the project?
So let’s look.
In an interview with our informational analytical resource “Announced Insurance” in December 2020, the CEO of the Mango Insurance project V. Lavrenko announced that “Money for the first steps” – 500 million rubles – the shareholders of Alpha provided even in the autumn of 2018. They went to the formation of the minimum authorized capital of the insurer in 300 million rubles, staff members and market research.
The new investment tranche from the shareholders of Alpha Group was confirmed on November 23, 2020 “Mango Insurance” in the amount of 300 million rubles.
Previously mentioned the general agreed amount of investment in the project about 1.5 billion rubles.
Thus, more than half of the designated funds have already been invested.
And what are the results, according to the Bank of Russia, for 9 months of 2020?
During 9 months of 2020, the company concluded 166 thousand agreements for a total of 17.2 million rubles. Since so far the company’s main specialization is insurance of property of individuals, fees in this area amounted to 11.6 million rubles.
According to voluntary insurance of civil liability (in front of the neighbors) “Mango” gathered 5.5 million rubles.
For 9 months, the company settled 375 insured cases in the amount of 10.9 million rubles.
The average payment amounted to 29 thousand rubles (the average for the market – 47 thousand rubles).
Is there a “mango insurance” “Economics” project?
Thus, we see that the company goes to new changes and Generation Z in full swing. But the main question remains, is there any economic justification in such a sonorous and juicy project?
We can not answer this question yet. But the Company’s plans are huge. It remains a slight problem – to implement!
However, there are examples in the market, such as Limonade (USA), let’s say, foretype “Mango Insurance”, which is still in trend, but works with growing as a multi-billion loss.
Another example is the Ozone company, which has multi-billion losses, but hurriedly passed the IPO on the stock exchange. Investors believe in it.
In Mango Insurance, there is one nuance – this is the license of the Central Bank of the Russian Federation, which requires constant compliance with the rather stiff regulations of the Bank of Russia (capital, profit, etc.). And, as seen, the main question is whether the company’s time is enough to become understandable for shareholders in terms of growth, profits, costs and adequacy of capital.
Even the goal that disclosed the CEO startup “Mango” in an interview is millions of customers will be difficult to achieve in the coming years (if there is no other resource, for example, access to the Alpha Bank client portfolio). As we can see, on the projects held and successful inserts in Europe and the United States, startups, with the support of investors, were able to achieve the result – hundreds of thousands of customers – on the horizon for 5 years.
We will follow the results of the company and hope that such results will allow it to live and develop for many years.
Afterword: Meeting with the mango team on the clubhouse expanses
Our expert, Lebedev Denis, on February 17, 2021 took part in the discussion with colleagues from insurtech startup. Young guys, positive, charged, were interested in new ideas and wishes.
Our expert noted and recorded several interesting statements (a general meaning is given), which characterize the project:
- Our target audience is 25-35 years old – that is, we ourselves;
- We now have 10,000 clients, this year we want 500,000, then – doubling-triple, and after 5 years (starting from 2020, that is, in 2024) we plan -1 million customers;
- American startup lemonade – the prototype of Mango, and we are closely looking at their experience;
- We need bloggers, not agents – this is our sales channel and direct B2C. Customers of agents so they will remain, and blogger clients are ours;
- Insurance of property and domestic animals is one of the best on the market. In the process of discussion – traveler insurance, which was deposited due to a pandemic, insurance against NA and Mortgage;
- Insurance in Cyber risks for individuals was discussed, but since the main risk is the recovery and the hackers are not entirely ethical.
Denis also participated in the discussion and proposed a number of ideas:
- Make them their mango-social network to the blockchain (this is a Hype and the instrument), the blockchain will allow you to make cyber insuring on smart contracts. Double hype;
- Look at insurance agents not as “evil”, but on challenge and new opportunities. To the same, they are already becoming others. As for bloggers, at some point they will understand monetization and missed benefits, and will begin to track their customers (through LC and TD). That is, it is necessary to be to this ready;
- Mango products are now quite good, even to some extent, very interesting and new (subscription), but there is something to work on what and we can help them. Our resource conducts control purchases and writes author’s articles that can help the insurer make better products and get Our “test purchase” of neo-volunteers is the view of the Armons of the Mango team, which with them on the “single wave”. And healthy criticism is the possibility and point of growth.
- Noticed that many successful Inshurtech startups in the United States and Europe were able to achieve a result of only hundreds of thousands of customers, instead of millions (with higher insurance culture).
Therefore, to achieve goals you need to be open to mind, be fast, client oriented and look for any opportunities for such explosive growth.
Usually everyone loves to ask a question:
What monetization is in the mango project with such crazy investments?
We will reply on the example of the social network Clubhouse:
- The first part of earnings – getting money from the investor – they have already passed,
- so we are waiting for these two projects the second part.
We hope that the project will not close in a couple of years, and will be able to become something big and necessary market. While Gen Z does not insure in a hurry – this is not their priority. But the “generation of one button” will soon begin to affect the market and behavior even more older generations.