The insurtech will also donate 25% of its policy revenue to charity each month
Startup insurtech Arma Karma has launched a new contents insurance subscription product tailored for renters, where 25% of the policy revenue is given to the customer’s choice of charity each month.
The offering, which can be cancelled at any time with no fees, has been designed to provide renters at home or abroad with flexible contents cover, enabling them to only insure the items they value most.
According to Arma Karma founder and chief executive Ben Smyth, the new product aims to reduce the barriers for renters looking to insure their contents.
He said: ”I’m the first one to admit that I didn’t have a contents insurance policy because it just seemed like an added expense and extra hassle.
”We’re able to keep our policy cost down by only focusing on the items our customers care about and, as they pay through a subscription, they’re not tied into a typical annual policy.”
As part of this subscription model, Arma Karma will also donate 25% of its policy revenue to a charity of the customer’s choice each month - the insurtech provides policyholders with a panel of four charities to choose from, which rotates each quarter.
“By concentrating on a select few charities, we’re not overwhelming new subscribers with choice whilst making a huge positive impact to charities, which mean a lot to us and our subscribers,” Smyth continued.
“Insurance doesn’t work for this generation, so we are changing it.
”We’re focusing on a customer demographic that is very in tune with the environmental challenges we face globally and, as part of this demographic also, we know how vital it is for businesses to have a strong social conscience.
“It’s been so positive to see just how many of us are seeking this change for the better and are beginning to act on it. Ultimately, everyone stands to benefit.”
So far this year, charities customers have been able to choose from include the Railway Children, Rainforest Trust UK, ShelterBox and Young Minds.
Making a positive difference
For Smyth, it is imperative that Arma Karma is an ethical business - it is currently pending B-Corp certification, which will stand as a testament to the firm’s social and environmental performance. With this in mind, the startup intends to raise a collective £1m for charity over the next three years.
Further focusing on sustainability, Arma Karma also has 434 trees to its name through climate action enterprise Ecologi, which should lead to a 24-ton reduction in carbon.
“It’s been quite a journey to get to this point of our launch and we’ve thrived on collaboration. Now we just can’t wait to fulfil our mission of transforming insurance for good, one policy at a time, hopefully by working together with more like-minded businesses along the way,” Smyth added.
Arma Karma provides simple insurance solutions for young professionals, renters and students using a low cost, subscription-based service.