ITC DIA Europe

Tribe: an awesome peer to peer insurance player from Norway

Written by Roger Peverelli and Reggy de Feniks - Founders The DIA Community on May 29, 2017

Norwegian startup Tribe is also called the Tinder for insurance customers. Tribe makes simple and fair insurance solutions for responsible people and their friends by using their social network.
Tribe’s insurance proposition is based on social mechanisms, the sharing economy and claims to give customers up to 50% discounts on their existing insurance, given that the customer and his or her friends and family stay claim-free. 

Insurance customers know far more about good and bad risks in their social network than the traditional insurance companies do. Through using social networks Tribe is able to dramatically reduce risk and distribution cost. The concept especially appeals to young people who already have good online experience. In the past, social insurance concepts were based on the fact that users themselves carry the full risk of so-called personal-to-person insurance. Tribe instead rely on the company to move the risk further by signing insurance through the UK Lloyd system – almost a for insurance. 

Tribe provides an infrastructure for grouping together with people you trust –providing insurance coverage for the really big accidents that can you encounter, even if you are careful. If you and your friends avoid insurance claims and injuries, you get a discounted policy that becomes cheaper, the more harmless friends you have in your “tribe”. The result will be something that sounds like a Per Fugelli philosophy: A friend’s insurance where you earn to care about your flock. However, the goals of Tribe are somewhat less selfless, namely, to let the customers do the job of finding the insurance customers that you expect not to cost you much in damages.

The concept gives freedom and opportunity to choose, but at the same time it requires that you get more information. Traditional insurance is by far a shelter, while at Tribe you have to get into the offer, evaluate your friends, and agree with others inside the network and ensure that you have the coverage you need.

The startup raised $ 9.4 million in an issue: 3.6 million comes from the entrepreneurs and the staff and 1.6 million from friends and family. The remaining millions come from investment companies Etime and Snow Ventures. Tribe’s link to the Lloyds insurance market in London, the Norwegian Underwriting Agency (0.3), and private investors. This gives them the capital they need to build the company and start marketing.

Friction between insurers and insurance companies
“For years I’ve been frustrated with the friction between insurers and insurance companies. The relation between the two has turned bad – as insurers need to be wary of insurance fraud and sceptic to any insurance claim – and the customers know that they are being overcharged by the insurers. I was convinced there had to be a better way. I knew many of my friends were careful with their possessions – as I am. But the legislation makes it difficult for us to group together and form «our own insurance company». With the technology platform that we’ve built this becomes possible. We provide an infrastructure for grouping together with people you trust – and we provide insurance coverage for the really big accidents that you might encounter – even if you are careful.” Says Rune Brunborg, founder Tribe.

Two main benefits
Less insurance fraud: there is a downside in cheating, because you are basically cheating on your friends and effective identification of “the right” insurance customers. For insurance companies, it is about finding the right customers. Friends who point out who of their friends are good and responsible insurance customers, will mean that we will find insurance customers with lower risk than the market generally can handle. The question which remains, will it destroy a friendship when your mate costs you 5,000 dollars because the driver drives the car in the ditch? At Tribe they do not emphasize who and what makes you receive less discounts. You will get an answer if you wish, but with a mutual agreement from the other party.

Why we selected Tribe for DIA Amsterdam?
Tribe challenges the existing, conservative insurers in the market with providing a fair and simpler alternative. Tribe takes the share economy into the insurance market.

Who are Tribe?
Founded by Rune Brunborg. Rune previously worked as a consultant for most banks and insurance companies in Norway, has been a fellow at NHH and led the company, Penger. He works to create transparency in the banking and insurance market. The first phase of Tribe he financed with his savings. He had some financial buffer from co-founding Monobank – a successful start-up bank launched 2015.

At Tribe they have insurance competency on board, but they have an overweight of digital competency on the team – making their customer orientation higher than the traditional insurance companies.

“Together with our customers we manage to pick up the inner fillet in the market. Those who clean leaves in the rails do not drive too fast when it’s slippery on the road and are good at looking after their things, Rune Brunborg, founder Tribe.


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