SCOR Global P&C’s Channel Syndicate has partnered with InsurTech start-up Hokodo to provide an invoice protection product to small and medium sized businesses.
The partnership will see the Channel Syndicate and SCOR Global P&C develop a range of insurance products which will then be underwritten and distributed using Hokodo’s innovative distribution technology.
Hokodo is a dedicated provider of commercial ‘Insurance-as-a-Service’ and delivers solutions to small and medium sized businesses using Application Programming Interfaces (APIs) that can be integrated into cloud accounting platforms, online marketplaces, and other technology platforms.
The start-up is launching its service with an invoice protection product that will insure small and medium sized business owners against the risk that customers will fail to pay a covered invoice.
Will Thorne, Innovation leader at the Channel Syndicate, commented: “We expect that accounting packages, and other technology platforms used by small and medium size business owners will grow to become a critical distribution channel for commercial insurance. In Hokodo we have found a team with unparalleled expertise to execute on this exciting opportunity.”
“Late payment of invoices is one of the leading causes of small business failure across Europe,” added Richard Thornton, one of Hokodo’s founders. “In the UK, for example, the Federation for Small Business estimates that 50,000 small businesses fail every year because they are owed payment on their invoices.
“Although the insurance industry has developed commercial products to address this problem, the products are rarely readily or economically available to small and medium sized businesses. This is a major problem Hokodo aims to fix.”
Louis Carbonnier, co-founder at Hokodo, also stated: “SCOR Global P&C and the Channel Syndicate have been great partners for us. Their open and transparent approach to doing business impressed us from the start; and once we agreed the terms of our partnership, the Channel Syndicate ‘s effective execution capability got us up and trading in record time. SCOR and Channel are business partners that understand innovation and back it up with real delivery.”
“Whenever two businesses trade with each other, they are exposed to risks,” Carbonnier continued. “We believe that we can help mitigate all those risks through our Insurance-as-a-Service solutions — be they goods in transit risks; professional liability risks; or performance risks.
“Working closely with the risk transfer experts at SCOR Global P&C and the Channel Syndicate, we will be developing a range of covers to address these broader exposures and to help small and medium businesses trade safely.”