13 Mar 2023

careless is making personal item insurance accessible

Insurance plays a fundamental role in our lives, protecting both individuals and companies from financial risks or losses. The EY 2021 Global Insurance Consumer Survey found that the Covid-19 pandemic’s powerful financial and psychological effects were felt most intensely by younger consumers and in emerging markets. Given increased consumer interest, there is a tremendous opportunity for insurers to develop accessible, purpose-led solutions and updated distribution channels.

Recently, digital technology has revolutionised the way we live, work and socialise. However, it can be said that traditional insurance companies have not kept up with technological advancements, and some have not adapted to the needs of modern consumers. Their offerings can be outdated and inflexible. With the rise of the digital economy and the remote working revolution, many modern consumers have changed how they live and work, and have an increasing number of valuable items on their person every day. They need insurance that reflects their fast-paced, digitally entwined lifestyles.

The Reinsurance Group of America reports that millennials in particular are underserved by today’s insurance market, and EY research shows that the digitally savvy demographic vastly prefers handling their insurance through online channels. Over 70% are likely to purchase some form of insurance digitally, and nearly 60% prefer contacting their agents or brokers digitally. Millennials and Gen Z form a huge segment of the market, and they need a simple digital insurance solution.

A 2021 article by The Future of Commerce states that the overriding public perception of insurance companies is that of “a necessary evil”. In addition, it claims that most people view their insurance providers with ambivalence – they are seen as needed, but not liked or trusted, as a lot of traditional providers still tend to rely on processes that are outdated and complex.

After experiencing first-hand how difficult it can be to get insurance in the UK, co-founders Scott McKenna and André de Neergaard realised that there was a unique opportunity to disrupt, digitise, and simplify the insurance industry. Frustrated with the often-lengthy processes required to make claims, they thought: why not create a product that can provide a quote in 90 seconds, and cover within minutes? They teamed up to create something that people would not only want to use, but love to use. This led to the inception of careless.


What is careless doing in the insurance space?

Ultimately, careless aims to change the public perception of insurance. Designed specifically for digital natives, users will be able to insure any item, old or new, in a matter of minutes. In addition to its ease of use and transparency, careless is creating a strong lifestyle brand, and will build a loyal community of individuals who have previously been overlooked by the industry. The platform aims to provide comprehensive product offerings that will cover the changing insurance needs of users throughout their lives.

careless aim to initially address the £5bn personal-items insurance market in the UK. Its flexible personal item insurance will be aimed at a currently underserved generation. By offering solutions that are in line with today’s technology, careless will also convert existing insurance customers who are fed up with the non-digital experience offered by many traditional players.


Who are careless hoping to help?

According to Global Data research, in 2021 the UK insurance market was valued at £70bn. However, there is a real gap in the market. Property Claim Assist reports that while there are over 22.6 million homes in the UK, over six million of these do not have any form of home insurance. In addition, a report from Admiral Home Insurance shows that in London alone, 45% of homes are not insured. careless’ internal research shows that 76% – or 38 million people – in the UK do not have mobile insurance, and 89% – or 46 million people – do not have gadget insurance.

Many of these figures are attributed to younger people, put off buying insurance cover by the often lengthy, complex processes required by many traditional insurance providers and brokers. In fact, a study by Insurance Age shows that the Millennial and Gen-Z markets are most likely to not have any insurance cover; these tech-savvy generations often do not resonate with the current insurance industry. careless aims to provide insurance value and convenience to these digital natives who need more engaging and better curated offerings, as well as customisable insurance solutions.



How does careless work?

The careless app will provide personal items insurance, with streamlined insurance options for a customer’s particular needs. It also offers full coverage for work and leisure with one flat excess fee. And coverage is not limited to the UK – careless aims to have their customers’ back, wherever they are.

The application process is simple. Customers choose an item to insure from a list of options on the app, provide their information through a secure chatbot, then receive their quote and purchase their insurance package directly through the app. Customised quotes are generally generated within 90 seconds, and coverage is activated in minutes. In addition, all claims are automated and customer support is available around the clock.

Meet the Founders

Scott Mckenna, Co-founder
André de Neergaard, Co-founder

Scott was born and raised in South Africa and moved to the UK in 2013. He holds a bachelor’s degree in Global Financial Management from the University of Cape Town and Regents University, London.

Scott has a background in finance, first working in wealth management before moving into e-commerce venture incubation. He has incubated and operated five D2C retail brands, with products in over 127 countries. Scott has also launched two standalone agencies offering in-house services in the brand incubation and influencer digital marketing sectors.

Having worked with over 35 businesses and founders, Scott found himself drawn to the exploration of potential opportunities in underserved and developing markets in the UK. After meeting André, they decided to create a company together that could change the insurance landscape.

André launched his first business – a technology consultancy firm – when he was just 16. He holds a master’s degree in accounting and finance from the London School of Economics, and a bachelor’s degree in finance from Cass Business School and the University of Hong Kong.

After moving to London from Sweden, André quickly identified a lack of technological innovation in the financial industry, particularly given the emergence of neobanks and robo-advisory platforms. Driven by his passion for technology and his exposure to entrepreneurship, he joined a technology-focused hedge fund after spending more than 3 years in investment banking at Citigroup and launched the company’s first growth fund. André played a key role in fundraising and investing over $100m in disruptive tech companies such as Bolt Technologies, Neo4j, Monzo, and Revolut.

André’s experience with startups and investments inspired him to start his own disruptive technology company. Ultimately, this led him to cross paths with Scott. After discussing their experiences of securing insurance and making claims in the UK, they joined forces to try and change the insurance industry through technology.

Looking to the future

Since inception in 2022, careless has established several partnerships with companies including Hypesight, Stubben Edge, and Our Social Creative. careless have been an Appointed Representative of Stubben Edge since February 2023. Stubben Edge is a firm authorised and regulated by the Financial Conduct Authority (FCA) FRN: 943286. careless aims to launch its app publicly in May 2023.

careless is currently focused on developing a seamless user experience and product offering through its app, to maximise its value proposition for a currently underserved digital-native demographic. Following optimal product delivery and target market penetration, careless looks to further develop its product offering to tap into additional insurance categories.

*Floww Markets Limited is a company authorised and regulated by the Financial Conduct Authority (FCA). Firm reference number 980098. 

The information contained within this article does not represent the opinions of Floww. Floww does not have a view on opinions provided by careless in this article and elsewhere where they may be expressed, and is not responsible or liable for the information within this article. 

This company has now closed their fundraise on Floww.