Aiming to launch in July 2018 with 15+ insurance brands, honcho is a reverse-auction marketplace where insurers enter a competitive real-time bidding process to offer the best price to customers. Insurers pay a £1 fee to bid rather than the average £50 commission charged by comparison sites (PCWs).
Are Price Comparison Websites (PCWs) good for insurance consumers?
WE DON’T THINK SO!
- They're not free: they charge an average £50 for each policy sold.
- They only show quotes: no real-time competition.
- They don’t have to present the lowest price and show PAGES of results.
- They're not all independent: some are owned by insurers.
- Regulators agree: they are currently reviewing the sector.
We think there's a better way: honcho - a mobile-first reverse-auction marketplace where insurers bid and re-bid to win a consumer’s business.
How does it work?
- Users enter their details through a simple and convenient app and request bids.
- Insurers decide to bid, then re-bid against each other in an open and transparent auction.
- The user sees the bidding process in real-time and can inspect each bid’s details.
- The purchase of the chosen policy is concluded directly with the insurer.
- We charge a £1 fee to each insurer who bids.
The aim is that the entire process is simple, convenient, transparent, free to the user, cheaper to the insurer, and drives competition.
A survey we conducted concluded that 89% wanted an alternative to PCWs, 72% wanted to see a change in the market, and 64% of millennials said they would use honcho.
PCWs take more than £650m from the £7.8bn motor insurance market each year. We believe our distribution channel will be 5 times cheaper.
Honcho aims to launch July 2018.