Rental insurance for a fast-growing neo-broker

Garantme is a fast-growing neo-broker, which offers a guarantor scheme for future tenants in need of a guarantor. It has innovated by offering a guarantor solution to tenants, instead of selling classic rental insurance  to landlords. Its guarantor product is mainly aimed at students and independent workers - particularly foreigners - who do not have a guarantor based in France. This offer fills an unmet need within the rental insurance market, which traditionally excludes this population. Garantme has formed partnerships with major companies that promote its guarantee system, such as Nexity.

In order to build a solution adapted to Garantme’s expressed need, Seyna faced several challenges:

• Designing an attractive product in terms of pricing, to facilitate the adoption of the product.
• Being able to monitor accurately and in real time the evolution of the technical performance of this insurance product, in particular of its claims in a tense macro-economic context.
• Adapting to the regulatory constraints linked to the use of branch 15 (ACPR approval), which includes different underwriting rules compared to branch 16.
• Specifically, there are differences in the legal documentation required (deed of guarantee vs. "classic IPID").

The design of a solution adapted to the market's needs is a good example of the synergy of Garantme and Seyna's expertises.

Garantme used its proprietary scoring model to determine the eligibility of the insured person. The effort rate is determined according to several criteria, including a behavioural analysis to predict the probability of non-payment of their rent according to the insured person’s behaviour observed on the Garantme website. The scoring is also completed by the presence of a "sponsor" who, unlike a classic guarantor, is only called upon to act as a relay for reminders in the event of non-payment. The sponsor may be a student manager, an employer or a relative abroad.

Seyna used its statistical tools to offer a competitive rate and to monitor the evolution of the claim expenses. Seyna and Garantme, in partnership with the reinsurer, set up a provisioning policy specific to Garantme's data, which from simple and automatable rules allows the calculation of reliable provisions adapted to the risk of each contract.

Beyond its insurance expertise, Seyna's real added value lies in its capacity to reconcile the proposal of a very competitive price while securing the viability of the programme with a very close monitoring of the technical performances. This is only possible thanks to the portfolio monitoring tools developed by Seyna.

In addition, Seyna showed a speed to answer to its partner's requests to make the product evolve to take into account the market feedback. For example, the product was adapted to meet landlord’s' requests for specific features (covered ceilings, etc.).

Finally, the use of Seyna’s API-as-a-service greatly facilitated the fluidity of exchanges and the rapid implementation of the program.

Through its proposed solutions, Garantme has modified the rental deposit landscape by proposing a very innovative product. Seyna has actively enabled Garantme to make this success possible.

The proposed products have been a great commercial success and the loss ratio has been very well controlled.

Garantme also underlines the quality of the collaboration with Seyna's teams, in particular our capacity of fine understanding of Garantme’s business objectives and our speed which enabled Garantme to adapt its product to the market needs. Finally, Seyna distinguished itself by the speed of the product deployment!

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