September 4, 2019 @ 9:12 by Richard Dawson
A free app aimed at changing the way UK drivers buy car insurance has launched after being developed in the North East.
Durham-based honcho, the UK’s first reverse-auction marketplace app, requires insurers to bid against each other for customers in real-time, driving down the price of premiums.
honcho is particularly interested in reducing insurance costs for young drivers, who typically fork out £1177 for car insurance – 149 per cent more than the national average.
The app presents a challenge to price comparison websites who have come under increasing scrutiny for charging insurers expensive commission fees.
Gavin Sewell, CEO of honcho, said: “honcho is one-of-a-kind and will be revolutionary for drivers of all ages. However, we’re especially keen to see the benefits to young motorists who, for so long, have struggled to acquire fairly priced policies.
“We see honcho taking on the role of ‘matchmaker’ between customers and insurers or brokers, initially for car insurance, but with a view to offer the service across a range of other insurance products and markets later this year.
“We’re also very much championing consumers’ interests with absolute clarity and transparency in all that we do. It’s going to be the way forward and price comparison websites are going to feel us hot on their heels.”
The honcho bidding process takes 30 seconds, goes through three rounds of bidding and encourages insurance providers to offer the best policy and price to the consumer.