The insurance market is highly regulated in many countries. First markets for the project is Russian Federation and Ukraine.
There is only few hundreds downloads of current version of mobile app. According to roadmap, already there have to be 15000 users in Russia. The earlies version of the mobile app was realized in December 2017. It is almost impossible to calculate repair costs after accident without detailed analysis of the car. (only by photo) There is no own insurance company. Usage-based Insurance is going to be in partnerships with other insurance companies.
Business model is not proved nowadays. It is unclear, why insurance companies should work with Kasko2go. All business fully depends on partnerships with insurance companies, there is no own insurance company.
Substantial decrease of insurance premium would not lead to maximum profitability. No exact expenses are presented.
All Kasko2go team located in Ukraine and Russia, except Advisors and investors.
Insurance market is enormously huge. Telematics-based usage-based insurance (UBI) is relatively new segment. As a result, it has highest growth rate within insurance industry. These data are strengthened by IHS Automotive report indicating that the number of consumer subscribers to UBI is expected to raise up to 142M globally by 2023. North America represents the biggest market to date with over 7.1M active policies comparing to 6.5M active policies in Europe and less than 0.4M in the rest of the world. Penetration of Usage-Based-Insurance is extremely low now. Italy (3.6M subscribers in 2015 HIS, 4% of all contracts) and the United Kingdom (1% of all contracts) are considered by IHS to be by far the most mature UBI markets in Europe. France, Germany and Spain are also following this trend, though the solution is still niche-like due to insurers being unsure of what business propositions work best and consumers still unfamiliar with the product as well as privacy concerns. Dynamic Evaluation Of Driving Conditions, Accident Risk Map and Fraud Detection are the distinguishing features allowing us to stand out from the competitors. At the same time, first markets for the Kasko2go are Russian Federation and Ukraine. In all this researches there was nothing about this markets. However, insurance market in Ukraine is significantly less, than in average European country.
Kasko2go project consists from two key parts. The usage-based insurance is in fact consequence of previous work – telemetric solutions. In 2012, founders began to analyze driving styles with the help of our GPS app and maps. During that time, a sample size was three million, one hundred and twenty-nine thousand drivers. By this time it was one of the largest dataset in the world for studying driving habits. The second component is fraud detection system. It is the Israeli technology project is committed to implement is developed by GetMeIns™. It has been recognized by major tech awards. Founded by people with over 25 years of experience in the Israeli counter-terrorist service, GetMeIns™ is one of the most advanced anti-fraud solutions, able to cut 98% of fraud automatically. According to website, Kasko2go has 35% share in developer of this technology. Usage-based model allows users to pay the insurance coverage per minute, kilometer or day. There are two main actions on the platform: Motor insurance purchase Customer applies for registration. After the risk assessment and fraud prevention procedures, registration is complete, and the contract data is stored in the blockchain. Customer pays the insurance fee based on an individual rate of the pay-as-you-go model. Claim processing When the customer submits a claim, fraud detection and claim evaluation take place. When damage is confirmed, the data is transmitted into the blockchain, requests to the liquidity pool and for reinsurance are filed, and then the K2G token amount is unlocked for the customer. 1. Photos of the car after an accident are uploaded via the mobile app and turned into a unique damage fingerprint. 2. Damage ID is checked by the anti-fraud system and goes to blockchain. 3. Repair cost is calculated automatically and the transaction goes ahead. 4. After the transaction is complete, payment is unlocked automatically via smart contract.
Key difference of the project with all other insurance company is Usage-Based Insurance. It is the insurance coverage is per minute, kilometer or day. Moreover, insurance premium would be personified for every driver. As a result, more accurate drivers should gradually benefit from this product. There is also few unique distinguishing features of this project, that allow to stand out from the competitors. Dynamic Evaluation Of Driving Conditions, Accident Risk Map and Fraud Detection. Project use blockchain for two key actions. After the registration on the platform and purchasing the contract, all data is stored in the blockchain. In case of claim processing blockchain technology helps to prevent fraud and make all process significantly faster. When damage is confirmed, the data is transmitted into the blockchain, requests to the liquidity pool and for reinsurance are filed, and then the K2G token amount is unlocked for the customer.
Project promise to have better economy than any insurance company. There are few components to it: Fraud Detection system, better scoring models, less management and general costs. Fraud detection system is developed by Israel company GetMeIns. It analyze a driver pre-& post-accident behavior, set a trust index on the basis of the driver’s insurance and claims history record. The system will allow 98% accuracy in fraud detection, drastically reducing the loss rates. The use of the innovative telematics scoring model allows to cut the insurance cost for the client by up to 30% depending on his/her driving style and car operating conditions. The savings are achieved through tailoring the rate calculations for each user. The process of settling claims is significantly simplified. It is estimated, that this will help us to reduce the Premiums by up to 10%. At the same time we expect the maximum claim process timeline (its processing, settlement and payment of insured amount) not to exceed 24h. In addition, 15% cut would be achieved through result of optimization and automation of business processes. As a result, Kasko2go is promised to be one of the least expensive and most effective way to get an insurance. Hard cap of the project is 35 mln EUR. If we take into consideration all achievements, technology and client base of subsidiary companies, it is fair valuation. However, k2g tokens is not an equity, it has only utility functions. As a result, only actually available products could be relevant for valuation of the company. It is weak mobile application with few hundreds downloads on AppStore and Google Play. As a result, hard cap for potential investors is extremely high for current development stage. It should not exceed 10 mln EUR.
Project team is unclear. At the first glimpse, team is well-balanced and experienced in both insurance business and technological sector. However, in fact, different teams are joined in one. According to the website, Kasko2go has 35% share in Israel company GetMeIns™, but team members of GetMeIns are included in team of Kasko2go. Also, Kasko2go has a distributor in Russia – R-Telematica. In addition, project has an investor from Switzerland and advisors from other European countries. The founder – Genadi Man. He is entrepreneur, founder of Telesens KSCL AG telco billing company with 1600 employees in 13 countries and revenue of about EUR 300m. Also, he is founder of ManOilGroup AG, which specializes in technologies for large-area treatment of oil spills and oil sludge. Co-Founder and Board Member – Raj Singh is expert in insurance industry. As a group of company, there is very strong team. However, interconnections between each other is unclear.