vlot demystifies life risk coverage and offers solutions that adapt smoothly to small and large life changes.

vlot. Four letters easy to remember and to pronounce, meaning “smooth” or “slick”, in Dutch. Daniel Schmidheiny and Sandro Matter, the two founders of the Swiss start-up, first met for business. Daniel, owner of an insurance brokerage and risk analyst for a major mortgage broker in Switzerland, helped Sandro, who had worked in banking for several years, analyse his family’s financial situation when buying a house. They became friends, and it was by riding bikes together that they arrived at the conclusion that the insurance industry was not moving with the times. A proper life risk analysis takes a considerable amount of time for insurance companies and banks, and the solutions offered to customers are not always in line with the hazards of life. Together, they thought of a digital solution to enable insurers to be more efficient, and policyholders better advised.

WHEN AI GIVES CUSTOMIZED ADVICE

This is how vlot was born in Zurich, in 2017. The start-up follows an approach based on 3 modules. The first is a comprehensive assessment of the customer’s risk coverage, including benefits from the state and the employer in the event of death or disability. This analysis, which is usually done manually by insurance consultants, takes a lot of paperwork and time, and can be costly for clients. With vlot, everything is managed by a sophisticated artificial intelligence-supported algorithm that asks questions to customers and provides them with an understandable report. If an income gap is identified in the customer’s coverage, the second module offers a tailor-made insurance from a Swiss risk carrier. But if the first phase showed that the prospect has no need for life insurance, it will not be offered! The goal is not to sell at all costs, but to advise truthfully.

AN INSURANCE IN HARMONY WITH YOUR LIFE

The third module offered by vlot proactively engages with the customer to update the changes that take place in their lives, in a timely manner. Getting married, giving birth, purchasing a home, changing job, divorcing … All these events affect household finances and insurance needs. The vlot algorithm recalculates life insurance according to the changed needs of the customer. A model that breaks with the standard processes of the insurance industry, which will benefit both banks/insurers and clients.

THE FIRST ONLINE CONSULTING SERVICE WITHOUT COMMISSION

What is the price of this new approach to risk coverage? No commission! Because vlot’s economic model is disruptive, too. Instead of taking an upfront commission that is usually embedded in the life insurance premium, vlot only asks for a minor monthly platform usage fee. Besides getting access to a highly tailored life risk coverage for an unrivalled value-for-money ratio, the platform fee particularly covers the ongoing guidance to customers. vlot gives advice on when it makes sense to adjust coverage upon relevant life events. On the B2B side, vlot further charges a yearly platform license fee as this solution also makes their backend processes more efficient. The Swiss start-up already attracted many accelerators, such as the prestigious Plug and Play in the Silicon Valley and in Munich and plans to launch its B2B2C platform in early 2019, accessible directly by the user. vlot will also offer its technology to major insurance companies, banks and banking software providers for them to supply additional services to their customers.

With vlot, let’s expect to see our insurers and banks grow in customer centricity and gain efficiency. When advanced technology is at the service of protecting those who are dear to us, we can only pay tribute to the approach.