“For Every Risk, There’s a Relevant Insurance Product That Can Be Offered at Point of Purchase”

InsureTech company Pattern Insurance offers a platform that brings significant business value to online retail stores. “Our solution precisely tackles the point at which consumers look to abandon cart; the moment the consumer feels concern. The platform presents the potential buyer with personalized protection relating directly to their concern. This protection or guarantee product is integrated seamlessly into the customer journey,” explains Noam Shapira, the company’s president and founding partner. “Our platform differentiates itself by its ability to identify, evaluate, and price risks, in real-time. Along with the unique ability to bring totally new insurance/security products to the market in record time. Offering consumers a personalized product resolves the risks involved in online purchases.”

Product development – led by Eyal Gluska, one of the company’s founding partners, together with Meitav Harpaz (founding partner and CEO) and Shapira – our platform is designed to empower businesses to help consumers overcome the feeling that something “will eventually go wrong.” “It’s a revolution within the insurance world. We’ve created a WIX-type product for the insurance world; we enable our customers to build their own, smart insurance offerings, without having any prior knowledge in insurance. They can expand their revenues from their products and create ancillary income with accompanying insurance products.”

Pattern Insurance’s platform is SaaS-based. Shapira: “This type of service reduces costs and speeds up integration. Within just a few days, online services are up and running, and our customers can instantly enjoy additional income. We enable businesses to decide what the products will look like, within the scope of regulatory compliance. The platform is based on advanced technologies that enable quick verification and identification of risks, and new updated products are continuously made accessible to our customers.”

A solution that adapts to comply with local regulations

Early on, the company unveiled its platform to the tourism industry, as a complementary product to be used when booking flights, hotels, special vacations, performances abroad, RV rentals, and ski trips. Once the product had proven itself, its use cases were expanded to include other sales avenues. In Europe and the United States, the platform offers insurance and chargeback products, in full compliance with local regulations. In other countries, security products that aren’t insurance-related are sold. This includes in Israel. The company’s customers include lastminute.com, Liknoss, Amadeus, lastminute, and Issta. “We’re growing at a rapid rate, and are noticing an excellent improvement in our customers’ sales results.” While the company cannot provide information on its customers’ performance, Shapira says that a number of the company’s customers are experiencing significant additional/related sales – one-third or event more of the total number of products sold by those same companies.

Dynamic, Flexible and Fast

According to Shapira, the secret to their success rests in the idea that proper risk management is extremely dynamic. “We understood that if the consumer isn’t provided a precise and personalized response that causes their concerns to dissipate, then they are likely to abandon their cart. As a result, the business loses out on a deal. On the other hand, if we are able to cope with this challenge in the right way and offer the consumer a complementary insurance or security product, we can increase the odds of that same deal taking place, and, in turn, of the business enjoying additional revenues from satisfied customers. When the user experience is good and high-quality, it’s safe to assume that the consumer will feel safe returning to the site for future purchases as well.” Shapira’s words are supported by the significant change that has been taking place in the online store space for a long time, one that has led the user experience to become more personal.

Simplicity and transparency as a way of life

While Pattern’s main goal is to make the products accessible to the entire market by transforming the businesses themselves into distributors of personalized insurance products, the company is transforming insurance into a more consumer-friendly product as well. “Often, insurance can be hard to understand and use,” Shapira admits. “Between the generic consumer experience, the regulatory language, and the complexities involved in making claims, should the need arise, most insurance packages/policies are not user-friendly, nor are they simply enough. This fact highlights the gap between the typical insurance product and the online consumer experience.” To improve the consumer experience, Pattern makes use of parameter insurance products, alongside other products, as part of a new security approach. While the use of parameter insurance is not yet approved for use in Israel, it is becoming increasingly more popular across the world, as parameter insurance products do not require claims to be filed or damage to be proven. They automatically activate when certain pre-set conditions take place, and consumer indemnity is completed, shortly after the event takes place. “We believe that accessible and personalized insurance (according to relevant risks) is only part of the task at hand. It may sound counterintuitive, but we believe that when our job is done – right and in full – the insurance becomes unseen and unfelt. The use of parameter insurance is a big step in the right direction, as it is simple, transparent, quick, and automatic. That’s how all insurance should be.”

Calming concerns, ahead of every purchase

“In today’s market, this is a really ‘hot’ product, as it is capable of responding to any consumer concern and interface with many online consumer platforms,” Shapira explains, referring to demand for the product, and detailing server use cases relating to purchases from online stores. “For example, a person books a flight from Munich to Paris, and intends on returning that same day. In such a case, we could offer him ‘Flight Delay’ insurance; if takeoff is delayed by over two hours, he could give up his spot on the plane and get his money back. For someone vacationing in Tanzania, we might offer insurance that covers healthcare.” In this way, complementary insurance products and other security products are “personalized” to the person making the purchase.

Pattern Insurance is the product of a merger between two companies, British Setoo, which was established by Israeli entrepreneurs Gluska and Shapira, and Pattern Insurance, which was established by entrepreneurs Meitav Harpaz – the company’s current CEO – and Board Member Assaf Wand, CEO of Hippo Insurance. The company’s investors include Comcast ventures, Kamet, FINTLV, MS&AD, and Foundation Capital, which will soon be joined by a leading Israeli insurance company. The company has offices in Palo Alto, London, and Paris, with most of their development taking place in Tel Aviv.

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