Policygenius Business Model and SWOT Analysis – How Does Policygenius Make Money?

Overview

Policygenius is basically an online insurance broker based in the United States. Life insurance comes with a complex process, but Policygenius claims to improve it by creating a one-stop shop. It deals with insurance purchases, particularly life insurance. Policygenius involves various reputable providers from whom you can make customized quotes. Moreover, the platform digitizes the process as much as possible.

The company was founded by the two former McKinney employees who had worked as marketing consultants to prominent insurance carriers. Policygenius forms one of the most well-funded direct-to-consumer insurance startups. You get various price quotes and life insurance options to figure out what is right for you.

Company Profile

Here is a brief overview of Policygenius’s company profile.

Company NamePolicygenius Inc.
WebsitePolicygenius.com
Founded2013
FounderFrancois de Lame, Jennifer Fitzgerald
Key PeopleFrancois de Lame – Co-Founder and Chief Product Officer, Jennifer Fritzgerald – Founder and CEO, Justin Ternullo – Chief Design Officer, David Kaplan – SVP of Engineering, Keith Dufresne – VP, Product (UX) Design, Growth, Kevin Fusick – SVP, Finance, Blayne Smith – Associate Director, Acquisition, Nick Ackerman – Senior Operations Manager, Life Insurance Case Management
HeadquartersNew York, East Coast, Northeastern United States
Company TypePrivate Company (For-Profit)
Revenue$71.4M per year
Key CompetitorsYieldStreet, Bestow, Liberty Mutual, Lemonade

What is Policygenius? A Brief History

Policygenius is an online marketplace for insurance. The platform is free and secure and offers real-time quotes for users. All you need to do is visit the official website of Policygenius mentioned above.

You will be required to enter some basic information, and with just a few clicks, the website will give you personalized insurance quotes for free. Also, you are under no obligation to make a purchase.

Let’s now get to a little background story of Policygenius. It was the year 2014 when two brains came together to lay the foundation of Policygenius. Francois de Lame and his partner Jennifer Fitzgerald founded the company. Jennifer Fitzgerald has attended Harvard Business School is also an ex-Mickensey Consulting professional.

Check  Freemium Business Model-How Does It Work?

The company is based in the New York City of the United States and holds a solid financial position. Policygenius has amassed more than $161 million in funding. Some of the leading investors of the firm are as follows:

  • KKR
  • AXA
  • TransAmerica Ventures
  • MassMutual

Policygenius initially focused on life insurance policies. As the company grew, it started offering its services in more types of insurance. As of today, Policygenius has extended its assistance to the following concerns among others.

  • Renters insurance
  • Long-term /short-term disability insurance
  • Vision insurance
  • Auto insurance
  • Health insurance
  • Homeowners insurance
  • Pet insurance
  • Jewelry insurance
  • Travel insurance
  • Trusts
  • Wills

How Does Policygenius Work and What Does it offer?

Policygenius works on the most straightforward process to make it easy for the consumers to find out the right life insurance policy. The platform is a one-stop solution for all your insurance needs.

To get started with Policygenius, you need an account on the platform. You can start off by creating your free account on the official website. You would be required to mention your first name, email and create a password.

This would help you in tracking your application status. Furthermore, creating your own account will allow you to chat with your agent regarding the aspects of your insurance policy.

Following account creation, the website will inquire you about three questions to help customize the insurance advice you get. The questions will be straightforward, mainly about you and your family, so you don’t need to worry about that one. Those can be

  • Do you have children under the age of 18?
  • Do you plan to have kids soon?
  • Do you rent or own your home?
  • Are you currently employed?

After completing this brief questionnaire, you will be able to access your recommendations. Clicking on the “Get Started” button will direct you to a page that aims at determining your level of seriousness at that point. There too, you will be inquired about a few things, such as whether or not you are married.

This is to ensure that the consumers get the right coverage in accordance with their needs and wants. The site would also like to know about your health condition to determine the right insurance.

Check  Product as A Service Business Model – How Does It Work?

You would then be asked to enter your email address and phone number. Then, a representative from Policygenius will contact you to verify the details you have entered along with discussing different insurance options with you.

Policygenius has a mission to provide a customer-friendly online platform where customers can compare quotes, understand their options, buy a policy and all in one place.

Policygenius Business Model

Did you know that Policygenius is now in a position to shape a $2 trillion-dollar industry? Well, it’s true. But what actually goes behind the process? Let’s have a look at the Policygenius business model.

The insurers pay the commission to the platform for each sale they make from them. Consumers don’t have to pay an extra amount while making a purchase from Policygenius. The pricing policy holds the same at both places. Policygenius follows an affiliate business model.

Policygenius Unique Selling Proposition (USP)

Policygenius offers a great deal of services while being a free online service. The ease of use is one of the biggest strengths of the platform. You get a consistent experience while receiving a simple, straightforward, and streamlined solution to all your needs.

Policygenius provides high-quality help if you are shopping for something high-stakes. Not only life insurance, but the platform also offers a wide array of insurers and insurance types. It is best for budget-conscious shoppers and customers who wish to understand what exactly they are paying for.

How Does Policygenius Make Money?

Policygenius is an independent online insurance broker affiliated with insurance companies. These insurance companies pay the commission for each purchase someone makes from their company.

The commission is already included in the pricing policy of the insurance company, and thus the consumers don’t have to pay an extra amount while buying a policy from Policygenius.

SWOT Analysis of Policygenius

Policygenius aims to provide insurance knowledge to its consumers while providing multiple options before they can make a decision. Here is the SWOT analysis of Policygenius to walk you through the crucial aspects of the company.

Strengths

  • Policygenius aims to digitalize the insurance business to meet the current demands of the consumers and provide them a better experience
  • You would not come across pushy salespeople while trying to talk to a representative because their job is to answer your questions so that you can make an informed decision
  • The representatives are salaried and don’t work on commission to ensure unbiased advice
  • You are not required to input contact information to get quotes for the insurance products
  • You can get quotes from multiple companies to save yourself time and money
  • The platform is easy to use, with extensive FAQs explaining almost everything you need to know
  • Still, if you find any confusion, each piece of information comes with a small “?” symbol, which you can click to see the rating, question, and meaning of the term
  • Policygenius aims to educate its customers about different insurance policies to help them make an informed decision
  • The company is transparent about the pros and cons of each insurer it is affiliated with
  • The platform gives you tailored recommendations based on the information you put in
  • Policygenius provides an excellent customer service
Check  Gemini Business Model and SWOT Analysis - How Does Gemini Make Money?

Weaknesses

  • Policygenius does not offer life insurance through every possible insurance company, and thus you may find a better deal elsewhere with a quality insurance company within the same amount
  • Policygenius allows the users to chat or talk on the phone with the representative, but you can’t meet the person
  • You don’t deal with the insurer face-to-face while using Policygenius, so if you prefer in-person contact, Policygenius might not be the best choice for you
  • If you have unique health circumstances, you should prefer someone to talk in person to help determine all of your options because complex discussions are confusing when you are only contacting through the chatbox
  • There may be some additional steps required from users to get the final quote from the provider

Opportunities

  • Improved digital capabilities can prove to be helpful for the independent platforms like Policygenius to make the experience better for the costumers
  • Artificial intelligence and machine learning can help companies, including Policygenius, to know their customers better so that they can create new insights with technology-based capabilities

Threats

  • Policygenius require a medical exam in almost all cases, while other competitors, like Bestow, does not require a medical exam
  • The platform requires a lot of steps, and the whole process can take 4-6 weeks before getting you insured, while you can get insured within 90 seconds from services like Lemonade
  • Policygenius is only able to work with independent brokers, which implies that you are unable to get quotes from some of the top-notch insurance companies
  • Some users have found it confusing to use their services
  • The firm does not stick to only partnering with A++ or A+ A.M. Best rating
Scroll to Top