Monzo has launched a contents insurance product as it continues to expand its range to compete with, and take market share, traditional banks.
The digital bank’s customers will be able to insure items after answering five questions about themselves and their home in Monzo’s app. Monzo states that usually customers are asked around 48 questions for similar policies, as reported by The Standard.
Phoebe Hugh, Head of Insurance at Monzo, stated: “We’ve heard from customers that contents insurance is an area they find confusing and tricky to manage – so we’ve put a simple and flexible offering into their Monzo app, making it easy to get the cover they need and track it alongside the rest of their money.”
Those who use the product will be able to insure products against damage and theft inside and outside the home. Given that Monzo is a digital bank, claims can either be made using the app or over the phone.
Monzo has noted that items such as laptops, phones, jewellery and art can be covered, with no fees for changing or cancelling the cover.
As alluded to by Hugh, the bank’s motivation to launch this offering came from research. According to a Monzo survey, half of renters either have no contents insurance or do not know what it is. Additionally, the bank found the value of renters’ items amounts to £12,140 on average.
Given these findings, Monzo believes there is a significant gap in the market for this type of product. It is also looking to enhance the offering compared to similar products offered by other providers, such as by reducing the questions asked to customers.
This innovation fits with the bank’s product strategy of ‘keeping customers at the heart of its thinking’, a line used by TS Anil, Group CEO of Monzo, last month when naming Andy Smart as its new Chief Product Officer.
This marks the second product launch since Smart entered the role, with the challenger bank introducing Monzo Split last month, a tool that allows customers to share bill payments with non-customers.
