Opportunities and Challenges in the VAPS Industry: A Conversation with Danny Collins

Look, technology in the VAP space is almost non-existing.

Yeah, it's all on PaaS systems, but the PaaS systems were never designed for these products.

Mm.

So it's always a add-on product that needs to be added to the system.

There needs to be development on the system, and it still doesn't work 100%.

And in that lies the opportunities of a, a, an PaaS system that can cater specifically for the value added products industry.

Because the value added industry has actually become very big.

When I started Xissure in 2005, I was the very first guy to wanna insure excesses.

I was certainly the first guy that insured tires against pothole damage.

And it was a small industry with very little players.

The only players that was in my space around about those times were the actual insurers, where the actual insurers were presenting excess waivers and products like that.

But excluding the tire products, which we quickly brought into the space.

Today, the, I can tell you now, there is more than 1,000.

I wouldn't be surprised if there's 2,000 value added products companies out there in the industry right now.

Because everybody has realized that it's a massive industry now, and there's a massive need for these products.

The underlying insurers have to cut their cloth for premiums, and they have to exclude certain covers.

And with those covers being excluded, that is the opportunity for the value added products companies to create a product to fill that spot at a, how can I say it? At a premium that's competitive for the client to still take that cover.

So there's a massive, massive opportunity for the IT.

And as you, I am busy developing th- this IT system.

And it's not just gonna be a, a system for Xissure per se, but it's a, a system that the whole value added products industry will be able to utilize, which gives them immediate on risk take premiums, claims, everything will be live.

Yeah, that's as much as I want to say right now.

[laughs]

No, that sounds, that sounds amazing.

Look, technology in the VAP space is almost non-existing.

Yeah, it's all on PaaS systems, but the PaaS systems were never designed for these products.

Mm.

So it's always a add-on product that needs to be added to the system.

There needs to be development on the system, and it still doesn't work 100%.

And in that lies the opportunities of a, a, an PaaS system that can cater specifically for the value added products industry.

Because the value added industry has actually become very big.

When I started Xissure in 2005, I was the very first guy to wanna insure excesses.

I was certainly the first guy that insured tires against pothole damage.

And it was a small industry with very little players.

The only players that was in my space around about those times were the actual insurers, where the actual insurers were presenting excess waivers and products like that.

But excluding the tire products, which we quickly brought into the space.

Today, the, I can tell you now, there is more than 1,000.

I wouldn't be surprised if there's 2,000 value added products companies out there in the industry right now.

Because everybody has realized that it's a massive industry now, and there's a massive need for these products.

The underlying insurers have to cut their cloth for premiums, and they have to exclude certain covers.

And with those covers being excluded, that is the opportunity for the value added products companies to create a product to fill that spot at a, how can I say it? At a premium that's competitive for the client to still take that cover.

So there's a massive, massive opportunity for the IT.

And as you, I am busy developing th- this IT system.

And it's not just gonna be a, a system for Xissure per se, but it's a, a system that the whole value added products industry will be able to utilize, which gives them immediate on risk take premiums, claims, everything will be live.

Yeah, that's as much as I want to say right now.

[laughs]

No, that sounds, that sounds amazing.