In Feb. 2019 Built In NYC listed Clyde among 8 startups changing insurance.
At Clyde we pride ourselves on being tech experts, collaborators and students of our market. We learn from practical experience, experience that is anchored by the day-in, day-out of running a retail business. And so Clyde was borne by necessity. Similar to many of the businesses that we now serve, when searching for accessible product insurance options, we found none. Next we identified the core challenges surfaced by our search. Then, we solved them.
Through problem solving we developed a new platform as an insurance technology solution. The Clyde Platform turns a once cumbersome problem into a scalable solution by seamlessly connecting the dots between retailers, insurers and administrators.
According to a report by the CBRE, which assessed retail data from the US census, about 30% of all ecommerce retail is sold by small and midsize enterprises - a notoriously overlooked segment. By solving for this core group of businesses, Clyde addressed larger, intractable problems that have slowed the product insurance industry for years. Here is how we met that 30% disconnect.
We shortened the underwriting runway.
The Clyde Platform matches submitted items with pre-approved contracts to cut down the underwriting process.
Warranties, like other insurance options, are offered based on a risk assessment process called underwriting. Underwriting applies dollar amounts to known variables of an associated product, for example, the likelihood of me dropping my cell phone into a toilet. In this case the cell phone is the associated product and water damage is the known variable. Traditionally, underwriting is done on a case-by-case basis. But there are a few problems with traditional underwriting:
1. New products are unknowns.
When it comes to known unknowns, new products might be the greatest headache insurers face. For instance, how could an insurance company know that 75% of Americans use their cell phones in the bathroom, if no one has owned a cell phone before. This gap in analysis would normally be a big problem. But, by working with retailers to establish a base level of risk and fine-tuning over time, we remove requirements for years worth of insurance company data.
2. Case-by-case underwriting is a lot of manual labor.
By knowing a little more about the variables that underwriters contend with, it becomes easier to understand their workload. New products aren’t easy. But neither are catalogs of thousands of known products -- each with its own set of variables.
3. Time and money are positively correlated.
In today’s world we expect inverse correlations, especially between money and time. The more money we pay for something, the less time we expect is needed for its completion. But that is not always the case with product insurance, where more money may simply mean a more complex item, more variables and more time spent analyzing it all. Matching items brings this equation back to something we’d expect. With the right investment, businesses can reduce the time it takes to get coverage and even minimize their spend.
By matching new items with similar, existing contracts, everyone wins. Insurers can more simply scale their services up or down to fit a larger set of retailers. Businesses, enterprise to small, can find an insurance option that fits their product without investing heaps of time and money.
We added technical interoperability.
Forty years ago the internet was a defense department communication network. Nowadays the internet is the retailer’s shopping mall. But, having been designed for a largely analog shopping experience, pre-internet insurance and administrator institutions are understandably slow to meet the demands of new technology. By working with top e-commerce platforms like Shopify and Magento, developing an API and providing an SDK for custom work, Clyde brings retailers the coverage they want and delivers it where it’s needed.
We connected the dots between insurance players.
Every industry has its own supply chain nuances. The product insurance industry is no different. Insurers, administrators and tech each have a distinct checkpoint along the path to service delivery. By approaching the industry as students, rather than pharmacists, we learned before getting prescriptive. What was our one big learning? Networking counts.
Most product insurance providers have a fairly narrow market of product categories under their coverage. Considering the manual labor it takes to maintain insured products, that limited scope makes sense. But for retailers, limited coverage quickly becomes a quagmire of matching products to insurers and administrators. If a retailer sells road bikes and electronics like GPS units to be mounted on those bikes, then they likely need a specialized insurer for the bike and a separate one for the GPS. Now imagine this retailer dreams of complete sports market domination. That retailer will be dependent on more insurance relationships, more rates and more administrators based on the growing number of product categories it offers.
The Clyde Platform solves the problem of divergence by leveraging our network of cross category insurers and administrators to serve our partner businesses. Clyde fits in to provide the product and market knowledge needed to connect retailers with the insurers and administrators that they need. Our matching capability uses technology to keep retailers moving - no checkpoints, no speed bumps.
We deliver customer loyalty.
We believe that customer loyalty is more than a benchmark. From our beginning as retailers and through our launch of the Clyde Platform, customer experience and loyalty have been our guide.
Loyalty happens when a customer makes a purchase they can trust, when that trust becomes a narrative of enjoyment, assurance and reliability.
Clyde is here to help move customers, touchpoint by touchpoint, toward enjoying their purchases and building brand loyalty. We aim to surpass the insurance market status quo. By working with partner businesses to understand average order value, margin and attachment rate, Clyde helps translate touchpoints into action plans, from consideration to repeat customer.
Where once there were numbers and variables, Clyde is there. We’ve learned to speak insurance so you don’t have to.