In our interview, Philip Knott, founder and CEO of Hayuno, talks about the strategic realignment of Freeyou AG. What once began as a motor insurance underwriter has evolved into a pure software provider under a new brand name. The pivot was motivated by economic challenges in the motor insurance market and the growing opportunities offered by automation and AI.
Knott explains how internal transformations, technological innovations and market requirements have driven this change. The focus remains clearly on the insurance industry: Hayuno wants to increase efficiency and sustainably improve the customer experience with innovative software solutions. An exciting insight into the development of an industry pioneer!
Strategic decision:
What was the main reason for the pivot from an insurance underwriter to a pure insurance broker? Software provider?
In recent years, we at Freeyou AG have worked hard to create a fully digital car insurance company. In doing so, we have succeeded in achieving exceptionally high automation rates. Unfortunately, this has not been enough, as the economic situation in the motor insurance sector is currently very difficult. The high expenses for claims are leading to operating losses, so we have decided to discontinue the motor vehicle business. We would now like to make the experience we have gained in recent years available to other insurers. We see the opportunity as a software provider that can help to sustainably improve efficiency and customer experience in the industry with innovative solutions.
Was there a particular event or market feedback that triggered this change?
There was no single event. But through intensive discussions with our long-term partners, we have become increasingly aware of the growing need to make complex processes more efficient.
The release of powerful LLMs such as ChatGPT and Claude has given us an additional boost. We already had highly automated business processes at Freeyou. But there was still a lot of direct interaction with customers, especially in the areas of customer service and claims processing. In this area, the new AI models now also offer the possibility of high automation and an outstanding user experience at the same time.
Market and industry analysis:
How has the insurance landscape changed that you came to the conclusion that a pure software strategy is more promising?
The insurance industry has undergone a profound transformation in recent years. Digital technologies are increasingly playing a key role in meeting changing customer requirements. Consumers today expect fast, personalized services and transparent communication with their insurers. At the same time, insurance companies are faced with challenges such as high costs, slow processes and a multitude of regulations. It is precisely in these areas that we have been able to achieve many outstanding results in recent years.
What market needs or gaps have you identified that can be better addressed by your software?
We still see a need to catch up in the insurance industry when it comes to digitalization. There is no panacea for this, but in many areas the solutions used must fit together. Particularly in customer interaction (such as telephony or replying to emails), a lot is still done by clerks. There are also demographic challenges. Insurance companies are finding it increasingly difficult to fill all of their customer service positions. This is where generative AI can be a real help. Our software solutions offer the advantage of AI-supported automation, which enables insurers to optimize their processes, react faster to market changes and better adapt their offers to the needs of their customers. Another key topic is improving customer interaction through intelligent, personalized communication solutions.
Internal transformation:
How did you prepare the internal organization and the teams for the pivot? Were there any cultural or structural challenges?
The pivot was a very challenging, but also very exciting process. We not only had to adapt our business model, but also our corporate culture. The transition from an underwriting company to a software provider required a new way of thinking and new skills. We involved our employees in the process right from the start. To approach the topic of generative AI, we immediately started building our first software. The team's results were then regularly presented to other employees and our stakeholders. We also always involved team representatives in the development of the new "Hayuno" brand. At the beginning of September, we then presented our new direction to the entire team and took enough time to understand this change, classify it ourselves and discuss it with our colleagues. The whole process is still ongoing.
Technological perspective:
What role do modern technologies such as AI, cloud solutions and automation play in your new Alignment?
These modern technologies play a major role for us. We have consistently relied on cloud solutions for years. The automation of business processes is also deeply rooted in our DNA. We are now making intensive use of the new opportunities offered by AI and generative AI in particular. Not just every employee for their own work, but we also want to make these new technical possibilities usable in business processes. Of course, while taking into account all the regulatory challenges of the insurance industry and in compliance with data protection regulations. Our solutions are designed to combine these technologies in order to offer a truly holistic and future-proof software architecture.
With Hayuno, you are focusing on the insurance industry. Why do you see the potential of using these modern technologies in this sector in particular?
The insurance industry is still one of the most heavily regulated and at the same time most traditional industries, which makes it a particularly exciting but also challenging sector for innovation. It is precisely here that modern technologies such as AI and automation offer enormous potential to revolutionize existing processes. With the right tools, companies can increase their efficiency enormously and at the same time better understand and serve their customers. We also see that the industry is increasingly recognizing that digital transformation is not just a trend, but a necessity to remain competitive in the long term. We therefore believe that our solutions address exactly where the need is greatest - for both large insurers and InsurTech start-ups.
Customer acquisition and market positioning:
How did you go about switching from an end customer business (via insurance products) to a B2B software model?
As described above, it is a major challenge to convert the entire business model from B2C to B2B. On the one hand, we also have to support the automotive run-off in parallel with our realignment. This ties up important resources. On the other hand, acquiring new customers is of course a major challenge. This is where we are currently relying on our network. In recent years, we have made many good contacts to whom we are currently presenting our realignment and our software solutions.
future of the industry:
In your opinion, what trends and developments in the insurance industry are significantly influenced by software solutions like yours?
I believe that the insurance industry will be characterized by several key trends in the coming years, which will be significantly influenced by software solutions like ours. Above all, this includes increasing automation and the use of AI to optimize processes and offer a better customer experience. Individual personalized insurance advice will also be strengthened by a data-driven approach and AI algorithms.
Lessons learned and recommendations:
What lessons have you learned from the pivot process that you would pass on to other companies in the insurance or software industry?
One of the biggest lessons from the pivot was that it is incredibly important to continuously address the actual needs of the target customers and respond flexibly to their requirements. The pivot process also showed us how important it is to establish a clear vision and communication both internally and externally. Especially in times of change, misunderstandings and uncertainties can arise and it is crucial to keep everyone involved on the same page. Another important point is that you have to be prepared to make mistakes along the way - the important thing is to learn from them and not lose course.
When you look back today, would you do anything differently?
Looking back today, I would probably have started it earlier. With the speed at which the industry is changing, it is crucial to remain agile and react quickly to market requirements. Otherwise, I would say that we were on the right track and the pivot was ultimately exactly the right decision.
Dear Philip, thank you very much for the interview - we wish you continued success!