Generation MZ forms the biggest consumer base for the digital fintech industry. Finance products like insurance are bought and sold through online transactions. The more convenient and consumer-oriented the transaction method, the more it is preferred. Korean startup Open Plan has been operating the life-oriented insurance platform Toggle, receiving rave reviews from consumers in the domestic insurance industry. The Insuretech startup received a Series A investment of about 3 billion won ($2.3 million) from TS Investment, Future Play, and US Plug and Play.
Open Plan, a startup launched in November 2019, develops an app / web-based digital insurance platform that quickly and conveniently provides insurance needed in daily life. Open Plan received 500 million won ($394 million) in seed investment from Korea Venture Investment last year, including 500 million won ($394 million) in angel investment matching funds and 500 million won ($394 million) in seed investment in 2020 from 4 places including New Paradigm Investment, CNT Tech, and Next Dream Angel Club. As a result, the Open Plan secured about 4 billion won ($3 million) in accumulated investment attraction.
Working towards enhancing short-insurance sales
Open Plan successfully launched an insurance platform, ‘Toggle,’ based on artificial intelligence and big data. Toggle provides customized one-day insurance that can be purchased even with a small amount. Through Toggle, users can easily compare and buy mini-insurance necessary in their daily life and receive various convenient services such as ‘Simple insurance subscription in 1 second’ and ‘Simple insurance claim.’
Toggle is 100% non-face-to-face, and it is easy to purchase mini insurance for daily life. Currently, it is being recognized for its growth potential by collaborating with ten non-life insurers, including Samsung Fire & Marine, DB Non-life Insurance, Hyundai Marine & Fire Insurance, Hanwha General Insurance, and Meritz Fire & Marine. From February last year to the present, more than 83,000 products have been sold, and the average rate of customers who have purchased insurance at least once on Toggle repurchasing other products within a year is 49.7 %.
“Toggle enhances consumer convenience by simplifying the complicated and cumbersome procedures that customers have faced with existing insurance, such as 3 -second simple insurance subscription, simple payment, and simple insurance claim,” said Yesol Jeong, an examiner from Future Play, who participated in the Series A investment. “In particular, we invested after seeing that it is the only platform suitable for the MZ generation, who wants to compare insurance from multiple insurance companies or purchase insurance only when necessary and pay fees,” he said.
Open Plan CEO Lee Kwang-hyun said, “With this investment, Open Plan has secured the cost for expanding embedded insurance and the cost of upgrading artificial intelligence technology necessary to create a user-centered mobile channel and discussing collaboration with famous platform companies. In the future, our goal is to become a specialized small-term insurance company by focusing on system development so that we can provide the insurance our partners need in the future.”