honcho's unique reverse auction brings fairness, innovation and transparency to buying insurance.
- Multi-VC backed, Tech Nation-accelerated insurtech
- Car insurance launched in August 2019
- Significant traction with B2B partners
- Raised £1.2m from VCs & crowd in April 2020
The insurance market is obsessed with "cheap." We're constantly encouraged to search for the cheapest cover.
But cheap comes with risks.
If you wanted a TV, you could buy one for £20, or for £200. Both will let you watch shows.
However, if you want a remote control and your shows in colour, the £20 TV might miss the spot. The cheapest TV is good in theory, but the chances are it won’t match what you actually want when you think about it.
honcho brings this exact principle to insurance, helping consumers to find the cover that’s right for them. If never being without a car so that you can still pick up the kids is critical to you, we’ll help you find that cover.
But you still want a great deal, so we pit insurers against each other in a real-time bidding war with ever-lowering prices as each competes to offer you the cover you want as cheaply as possible. Think of it like eBay, but backwards.
The outcome? You get the right cover for you, at the best possible price.
Welcome to honcho.
With over 32m cars & 4m vans on the UK's roads we are initially focussing on the motor insurance market to benefit from its scale.
By attracting consumers into honcho via a mix of direct acquisition (including via social media with the support of Social Chain) plus via partnerships (including two major employee benefits providers and a major affiliate network), we have minimised our acquisition costs whilst maximising our brand exposure and reach.
honcho’s primary revenue stream is our insurer £1 pay-to-bid fee. Contrasting with the hefty commission paid by insurers to PCWs, honcho has no commission. By choosing to bid to try to win a consumer’s business – something our £1 fee provides access to – insurers only chase risks that are right for them, at a potentially lower CPA.
Our secondary revenue stream will be our market data. Our unique platform facilitates market analysis at a granular risk level, something which we plan to monetise from year 2 of active trading.