Meet the insurtech: Oyster

Insurtech Oyster Technologies co-founders Vic Yeh, Nikhil Kansal and Jonathan Patel had been software engineers and operations experts for financial technology providers and financial firms. They realized the rising consumer demand for modern checkout experiences across the board, and sought to create that for insuring valuable personal property, according to Yeh, CEO of the company.

"When you want to get insurance for your engagement ring or get insurance for e-bikes, for electronics and so on, typically, consumers have to call their insurance agents, add it to their homeowners policy, or do a tedious Google search post-purchase," he said. "That got us thinking about what this insurance would look like if it was redesigned."

That redesign paired a technology platform with merchant partnerships to sell policies for valuables right at the point of purchase. Items covered include bicycles, e-bikes, jewelry, phones, engagement rings, collectibles, art and electronics. 

"Let's say you're buying a ring," Yeh said. "Retailers have to refer the customers to legacy insurance incumbents such as Jewelers Mutual, Markel and so on, post-purchase. The purchase journey is highly fragmented, and typically consumers go without any insurance protection because of this coverage gap in the purchase journey."

The products Oyster works with directly include Zooz Bikes, Bulls Bikes, and jewelry brands Jewels By Grace, Bario Neal and Alexis Jae. After Oyster's December 2021 launch, it partnered with several e-commerce platforms that power online sales for items it covers, including Shopify, Woo Commerce, JS, Big Commerce, Magento, Ecwid, Wix and Lightspeed. "We have developed apps on platforms such as Shopify that empower retailers to integrate within 20 minutes," Yeh said. 

Oyster sought to cover personal valuables completely, without deductibles, for an affordable premium. "In the minds of everyday consumers, there's a lot of noise about what insurance is," Yeh said. "There's a disconnection about what insurance is actually covering versus what customers understand."

Buying coverage from Oyster reduces dependence on home-based policies, according to Yeh. "Homeowners and renters insurance have a lot of limitations and exclusions for items above $1,000," he said. "When you make a claim for the standalone product, that's going to affect your future premium. Specialty standalone insurance policies are just better fits for everyday consumers. The deductibles are a lot lower."

Yeh and Oyster believe in building customers' trust in insurance. "Customers think if an item is stolen or damaged, there will be a financial loss for them. We help reduce this financial uncertainty and provide peace of mind," he said. "It's really going to solve big pain points in the minds of both consumers and merchants."