After years of fundraising, prototype development, developing partnerships with insurance providers, app and platform development, the insurance revolution is finally here.
Today we’re delighted to launch honcho - the reverse auction marketplace for financial services.
honcho asks insurance providers to bid against each other for customers, competing for their custom in real-time. The bidding process takes just 30 seconds, goes through three rounds of bidding and encourages insurance providers to offer the best possible policy and price to the consumer with a product that matches what they have asked for.
During the process insurers get to see how much their competitors are bidding for the customer’s business and can therefore reduce their own prices to try to win.
Unlike some price comparison websites, which charge insurers expensive commissions of up to £60 per policy which is passed onto the consumer within the price they pay, honcho charges insurers and brokers just £1 to compete for consumers’ custom. This encourages more competitive policy prices for motorists.
Users are able to request further bids, and the insurers’ or brokers’ £1 fee allows them to re-bid for each user as often as asked across a four-week period.
Our aim is to reduce insurance costs for all – and especially for young drivers aged 17-24, who typically fork out £1,177 or 149% more than the national average (ABI, 2018) on annual car insurance fees
Multiple insurance providers including some of the UK’s most recognised brands are now bidding for customers’ business on our platform, including Brightside, Flux Direct, Quoteline Direct, Freedom Brokers, Marmalade and Think Insurance, with insurance underwritten by well-known names including Axa, Ageas, Aviva and LV and with many more to follow in the coming weeks.
Speaking of today’s launch, Gavin Sewell, CEO of honcho, said: “It’s been a long time in the making and words can’t describe the level of excitement that can be felt around honcho HQ now that the service is live to the public.
“honcho is one-of-a-kind and will be revolutionary for drivers of all ages. However, we’re especially keen to see the benefits to young motorists who, for so long, have struggled to acquire fairly priced policies – with many paying 149% more than the average driver.
“We see honcho taking on the role of ‘matchmaker’ between consumers and insurance providers, initially for car insurance, and with a range of other insurance products and markets coming later this year.
The insurance revolution is here!