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Insurtech start-up ‘DeadHappy’ is looking to revolutionize life insurance by introducing its flexible, pay-as-you-go product, to a market lacking true innovation, according to GlobalData, a leading data and analytics company. 

The company is set to target younger generations, as GlobalData’s 2018 UK Insurance Consumer Survey found that only up to 17% of 18–25 year olds hold a personal life insurance policy, while the overall penetration for that policy was 22.2%.

DeadHappy’s premiums are priced by age and risk level, meaning the younger the customer starts, the cheaper the policy will be. The company’s website is also very clearly geared towards younger consumers, using uncomplicated, informal language; to invite the younger audience to engage with the websites questions/requests.

Ben Carey-Evans, UK General Insurance Anaylst at GlobalData, comments: “The complicated nature of life insurance means it is harder for start-ups to emerge in the direct-to-consumer channel, where they have had more success in general insurance. DeadHappy’s simplified approach is looking to change that.”

Its innovative feature is its ‘death wishes’, which allows customers to pick and choose exactly what they want to happen when they die. Potential wishes range from standard options, such as paying off a mortgage or to leaving the funds to a relative/friend to purchase something of value.

In allowing people to select exactly where their money goes it instinctively expands on the pay-as-you-go theme from other product lines. The theme is particularly evident within the gig economy, where companies and contractors purchase insurance by the hour, and within motor insurance; this is where customers increasingly have the opportunity to pay for cover by the mile. Here it allows consumers to add cover and tweak their wishes throughout the policy.

Insurers across the board are desperate to win over millennials and Generation Z, and flexible digital insurance appears to be their latest method. Aviva Plus is one high-profile example of a leading insurer; looking to appeal to younger consumers by offering a Netflix-style subscription service.

Carey-Evans adds, “DeadHappy offers consumers the quick, digital service they have become accustomed to from all other industries. The flexibility to allow customers to pick and choose exactly what they want should help set the company apart from its more traditional competitors.”