In recent years, neo-insurance has developed on the French home insurance market for tenants. Luko, Leocare, Lemonade, Lovys, these new fully dematerialized players rely on simple procedures, maximum services and low prices to stand out from traditional insurers. What do they actually promise?
With a traditional insurer, the formula is not always adapted to its needs, the customer journey is sometimes laborious and the contribution is often too high.
Anyway, to be sure to choose the best tenant home insurance both in terms of guarantees and price, the comparison remains in order.
In order to revolutionize the sector , insurtechs are increasing fundraising and relying on artificial intelligence to offer a completely different image of insurance.
To dust off the sector, these new players are all betting on the fluidity of the user journey:
If the relationship is often digital and with a robot, the companies each bring a little more human touch to distinguish themselves. This is the case of Lemonade which focuses on generosity with the giveback which allows donations to associations . These donations are made when the annual fee has not been used in full to reimburse the client. Not only are the prices low, but also if there are few claims, the funds are donated in part to an association selected by the customer.
The guarantees offered by these new insurers are quite similar to those of traditional insurers. For home insurance in particular, tenants are covered in the event of fire, vandalism, glass breakage, theft, climatic events, water damage and civil liability.
Unlike those of traditional players, these guarantees have the advantage of being easily customizable from a mobile phone and a dedicated application. Policyholders can do the same for deductibles and options.
Where the new insurances hit hard, it is especially at the level of tariff competitiveness. These startups, which have sometimes become Unicorns, are distinguished by the price of their home insurance:
Since their arrival on the market, these insurtechs have managed to find a place for themselves, particularly with an audience aged 20 to 40. However, they have some challenges to overcome.
For market connoisseurs, it is still early to draw conclusions. For their part, the neo-insurers affirm the profitability of all the contracts marketed. Moreover, some claim to be able to cover the cost of acquiring a customer in a much shorter time than traditional players. Others prove their economic resistance by not increasing any tariffs for a few years.
Despite their very aggressive prices, these young shoots face limits including:
Taking out home insurance is part of the tenant’s legal obligations. The article of law in force is n°7 of law 89-462 dated July 6, 1989. This requires the person renting to insure the accommodation, furnished or empty, and the goods which are find there. The owner also has the possibility of requiring proof, or a certificate of home insurance contract, at any time or upon entering the accommodation.