Exactly one year ago, insurance app Granadilla was launched into the South African market. Digital transformation is a business imperative in the insurance industry, and thus a consumer imperative. With this in mind, Granadilla has set the benchmark for insurtech in South Africa.
Underwritten by Bryte Insurance, Granadilla has experienced positive growth across various indicators including user numbers, policies sold and gross written premiums (GWP).
Jonathan Walker, founder and CEO of Granadilla says, “disrupting the way insurance works continues to be an exciting challenge. It’s exciting because Granadilla’s growth has exceeded expectations and because trends show that the market is becoming more digitally savvy.
“We’ve consistently enjoyed strong growth figures across all three growth metrics, since the start of the year. Proof that the demand for do-it-yourself, cost-effective, fast app-based insurance is on the rise amongst South African consumers.”
|Quarterly Growth||Users||Policies||Gross Written Premium|
In terms of Granadilla’s product mix, the majority of customers have one policy, but that is slowly changing as more people are adding additional products with each passing month.
Smartphone Cover is the most bought product, however, Travel Cover and Laptop Cover are growing the fastest.
Most customers (82%) have one item insured, whilst 12 % have two policies. Three policies have been taken by 3% of the customer base. The most policies held by clients are seven.
The average value of insured trips under our Travel Cover product is R69 222.00, for jewellery items it is R26 441.00, for laptops it is R19 509.00 and for cameras it is R16 611.00.
With no benchmark to work against, consumer trends, product trends and demand has been a monthly, and at times daily, process of data collection and engagement with consumers.
“We initially thought we’d attract a young, digital -first audience in their early twenties. However, our average customer is 32 years old, with the bulk of customers being between the ages of 28 and 43. Our female base is growing. Compared to 39% at the start of 2019, our base is now 44% Female and 56% Male. Just after launching, our base was male dominant and mostly iPhone users. That has changed significantly, with iOS app downloads accounting for less than 5% of our user base these days, which reflects Android’s popularity in South Africa,” says Walker.
What new functionalities can customers expect
Granadilla recently released a functionality for new customers to set a future policy start date, which has made an immediate impact. For example, consumers who know that they will be getting their new smartphone on a particular date can already administer insurance cover for it.
Granadilla listens to its customers, this is a vital part of the growth process because app-based insurance puts the power back into the consumer’s hands. As a result of customer feedback, Granadilla will also be releasing a functionality that allows users to take out cover for someone else, be it an employee, relative or friend. This is just one more example of how Granadilla keeps ears to the ground and responds to customer needs with speed and efficiency.
A word from Bryte Insurance
Wim Morland of Bryte Insurance says: “Granadilla has carved and maintained a strong presence in the South African market. Over the past year, we have witnessed the company transforming how consumers access insurance, as well as how they engage with it. Innovation, relevance and creativity in how we communicate to our target audiences is key to effectiveness and the insurtech space and how it is disrupting the traditional insurance model has proven to be exciting.
We cannot wait to see what lies ahead. Although a daunting endeavor, underwriting an app-based insurance over the past year has proven to be a fascinating process and we have observed the rapid change in consumer needs and products in response to this offering. As we celebrate one year in business, we are thrilled to be a part of Granadilla’s intrepid growth and its ambitions.”
Granadilla is a 100% digital insurance company that launched in July 2018, offering single-asset and on-demand insurance through their mobile app.
Granadilla’s itemized insurance model and low-cost premiums makes them unique in the insurtech industry vertical. The company is perfectly positioned for consumers looking for more affordable and more flexible insurance offers and who want a slick, paper-free experience that is available 24/7/365.
Artificial intelligence and machine learning are core to the business and its operational model. From initial client onboarding to generating quotes and issuing policies to fulfilling claims. Granadilla customers enjoy a slick, simple and fast experience that doesn’t require paperwork or human intervention.