Locket

Idea

Introduction

We're Locket, and we're everything your old insurer isn't.

Insurance is a $7tn industry that’s in dire need of a shake-up. Old insurers treat our world as replaceable. Everything has a price. When “bad things” happen, payouts fix them.

However, we know that the things that matter most can never be replaced.

We’re on a mission to change the odds. Using advanced technology, including automated quote & buy journeys, ML-based pricing models, smart device integrations, and gamified coaching, we aim to increase satisfaction and help homeowners to reduce their risks – leading to lower premiums and fewer claims. Everybody wins.

We’re building a flexible, fair, and socially responsible alternative to the old home insurance proposition. Insurance for things worth money, and assurance for things worth so much more.

Join us, and be part of the movement to change insurance for good.

Substantial accomplishments to date

Built our own tech stack in-house. Backend, frontend apps, cloud infrastructure, ML-driven pricing engine, Policy Admin System, and more. The stack has been built in a way that enables us to offer multiple, easily adjustable insurance products and bill for them in real-time, on-demand.

Developed two new insurance products. Both on a monthly subscription, not an annual policy - more like Netflix than traditional home insurance. They’re extremely flexible, too, with MTAs (mid-term-adjustments) applied in real-time, via the app. We ‘ve also removed cancellation and admin fees. Isn’t this refreshing?

Innovated in our approach to pricing risks, developing a gradient-boosting, machine-learning model that doesn’t rely on historical claims data.

Grown our team, bringing in some truly exciting talent to work alongside the founders.

Curated high-profile partnerships with big names in smart home technology, including Ring, Yale, Philips Hue, and many more. This means we can talk to customers in spaces where no other UK insurers operate.

Agreed terms to bring Locket to the masses on top UK price comparison sites, securing a route to significant traction.

Delivered a complete rebrand which secures our potential to expand internationally, and more importantly, gives us a brand identity that we feel more truly represents our mission.

Built a community of over 700 investors, who helped us deliver one of the fastest crowdfunding campaigns of all time.

Monetisation strategy

To start with, we’ve structured as an MGA (Managing General Agent), meaning that we earn a percentage commission from every policy we sell. The level of commission increases as we write better risk, allowing us to benefit financially from our knowledge that smart homes are safer homes. Ultimately, we want to become a full-stack insurer, at which point, we will start underwriting some of the risk ourselves, with reinsurance backing.

By coupling our flexible monthly subscription with our personalised, rewards-based services, we believe that we can achieve industry-leading retention rates and, ultimately, a significant improvement in customer lifetime value compared to old insurers.Our members-only marketplace represents a second revenue stream - equipping homeowners with the best tech to protect their homes at extremely aggressive prices.

On the roadmap are more services, like gamified coaching, professional home wellness checks, AirBnB add-ons, and further insurance products.

Use of proceeds

This transitional funding round will provide us with the firepower to keep moving fast ahead of a planned Series A fundraise in Q2 2022. We plan to recruit 5,000 new members with these funds. They will be deployed in three key areas:

Fully launch our go-to-market strategy, coupling our price comparison site integrations with digital advertising, influencer campaigns, growth-hacking tactics, content-led social media campaigns, partnerships, affiliate marketing, and much more.

Research & Development. We’ve made enormous strides by building an entire insurtech stack fit for 2022, but that’s just the beginning.

Our overheads are very low compared to traditional businesses. However, we will need to grow headcount in a few key areas to keep moving fast, ensure we meet our legal and regulatory obligations and put the infrastructures in place to support future growth.