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Wedou rewards a commitment to self-care with lower rates
Patrick Bacchetta co-founded wedou.fr, the start-up facilitating the change of borrower insurance. With the entry into force of the Lemoine law, he explains how he is developing his model around behavioral data.
How does Wedou operate?
Patrick Bacchetta: "When we launched, we wanted to simplify the process of changing borrower insurance as much as possible to allow the insured to do it alone thanks to technology. We quickly had a huge audience success, with a lot of simulations online... but few transformations. Simplicity gave rise to suspicion as to the seriousness of our offer. But this obstacle was quickly removed if we accompanied Internet users during their navigation. To do this, advisers can access our back office from home. They can follow live which page the customer is surfing on and even where his mouse is to intervene if necessary. Thanks to this, we have a transformation rate of one out of five.
Cancellation at any time was great news, as it encouraged insurance changes. But the abolition of medical selection led to an increase in premiums, which is problematic for an actor seeking to save money for his clients... If it is no longer possible to ask medical questions, nothing prevents us to collect, on a voluntary basis, all the behavioral data of our customers to obtain better rates."
How do you collect this data?
Patrick Bacchetta: "They are reported to us through an application that customers can download and feed with information on their diet, their physical activity, etc. From this, an overall score is assigned to each one. This anonymized information is reported to reinsurers, who see if they can use it to adjust their rates. Today, this data is not an element of pricing, because it is not personalized, but it is one of our objectives for the future, this which means working to secure this information."
On what basis are price reductions offered to your customers?
Patrick Bacchetta: "The price advantage is not, for the time being, based on risk analysis: it is based on the overall score of the person concerned, from which a price adjustment can be granted by the insurers. In one or two years, when we have collected enough data, the insurer will be able to analyze it and make it a real risk management tool."
How do you stand out from the competition?
Patrick Bacchetta: "Our strategic positioning has evolved over time: originally, we only offered a solution to people whose premiums we could halve, i.e. young clients in good health. As our technology has evolved, we have opened up to all personal situations. We are able to quote for any insurable risk, which is rare among online brokers."