“To attract the right talent, you need to let go and let them run their own stuff and not intervene” | Ctech – CTech

It’s become all too common to spend hours on the phone struggling with an insurance agent who will not provide adequate information or compensation. There has to be a superior alternative to the traditional home insurance company, and Assaf Wand, CEO of Hippo, is on a mission to provide one. Hippo is a unique, customer-centered home insurance organization that prides itself on creating “win-win” solutions for customers and its business. In order to do so, Wand explains that Hippo will contact customers when its technology, driven by big data, ongoing underwriting and AI, shows a possible problem with their home or needs to update coverage after changes were made, like a roof repair or a pool being added to the backyard. It also provides smart home kits to allow customers to be notified of certain issues inside the home, like water leaks, smoke alarms, and temperature shifts to prevent extensive damage and claims. With so many aspects of the world changing and advancing, the insurance industry seemed to be lagging behind. Wand is determined to bring innovation into the field.

 

 

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What drew you to entrepreneurship?

 

I believe entrepreneurship is in the creative environment and because of that, you’re always sharing lessons learned and helping where you can, which I love.

 

When did you consider yourself an entrepreneur?

 

First, I disliked employment, so the only other option for me was entrepreneurship. And even as a kid, I often thought of how I could change the status quo, and I believed I could do that best through entrepreneurship. And looking back at the roles I’ve previously held, I thrive more as an entrepreneur.

 

Why did you opt to go into the insurance industry?

 

All the things I believe about entrepreneurship and all the lessons learned from my mistakes are in that field. Secondly, it’s a massive market with a lot of space for other players in the market. Just in the U.S. alone, it’s a $100 billion market that grows at $5 billion a year.

 

In the U.S., over the past few decades, what are we seeing when it comes to home insurance?

 

Over the last century, home insurance has been sold solely via agents. And in the last decade, the number of agents has gone down by more than half.

 

But more people are buying homes. So, how does that make sense?

 

Agents don’t want to sell home insurance. They’d rather sell you a commercial product that doesn’t have high frequency and make a lot of money in the process.

 

How is Hippo’s insurance business model game-changing?

 

With us, you can purchase insurance directly, via mobile, online, via a call center that belongs to us, via another insurance that sells it, and you’re always going to get the same price. We also discovered that the coverages offered were archaic so things like electronics are capped at $2,000 while things like fur coats are capped at $5,000. Another challenge we encountered is for states that didn’t recognize gay marriage, only one person could be registered in one insurance policy.

 

So it became our goal to create a modernized and progressive insurance. We’re also in the process of shifting from a reactive company to a proactive one because insurance is a reactive experience. More importantly, we’re focusing on being more customer-centric and less on viewing customers as policyholders.

 

How did you go about creating a proactive, customer-focused company?

 

First, we make the onboarding seamless; we prefill all the data for you. Proactively, we avoid claims from taking place. We do this by continuously underwriting using data gathered. So, for example, if we see through an aerial image a discoloration on your roof, we’ll inform the customer and send them a roofer free of charge. And in that regard, we’re actively looking and developing technologies that can look at pictures, look at aerial maps, consolidate with different APIs and then real perform a high analysis.

 

Additionally, we advise customers to increase their liability insurance when they renovate or add installations. We also give a self-monitoring kit and once they install it, they get a smart home discount. These kits come with a motion sensor, so they can promptly alert customers of things like water leaks or fire alarms. So all these things create brand loyalty.

 

Would you say your strategy is proving itself?

 

Well, we need more time to collect statistics on that, but I often receive emails from homeowners thanking me because their self-monitoring kits detected incidents like water leaks. If you wanna build a brand, in general, you need to bring consistent benefit to a customer. Our strategy keeps us in touch with our customers.

 

Why the name Hippo?

 

It’s unique, easy to grasp, memorable, and it’s non-associated with insurance, which gives it an edge.

 

You’re in a hyper growth state. The company is doing very well. Did you think when you sold your last business that you were going to be running five years later?

 

No. But the growth motivates us to show up every day. As a team we’re continuously learning, evolving, and growing; no one day is the same.

 

Do you feel the same intimacy with the brand even as you continue to disassociate with everyday things?

 

The hardest part of growth for me has been letting go and entrusting other team members to run everyday things. But it’s been necessary because now I get to focus on broader things and figuring out the next step to take, which is part of evolution and growth.

 

What’s the driving force for you?

 

Education, growth, doing good, making an impact, learning every day. And as long as I’m working on something interesting and exciting and with people that I like, and I can see the influence, the culture, and I like the culture of the company, I’m probably going to keep on doing it. I love it.

 

How would you describe yourself in three words

 

Independent thinker. Mensch. Honest.

 

 

Michael Matias, Forbes 30 Under 30, is the author of Age is Only an Int: Lessons I Learned as a Young Entrepreneur. He studies Artificial Intelligence at Stanford University, while working as a software engineer at Hippo Insurance and as a Senior Associate at J-Ventures. Matias previously served as an officer in the 8200 unit. 20MinuteLeaders is a tech entrepreneurship interview series featuring one-on-one interviews with fascinating founders, innovators and thought leaders sharing their journeys and experiences.

 

Contributing editors: Michael Matias, Amanda Katz

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