2020 will be an amazing year for Eusoh. We want to continue our growth and our mission of protecting the things we love in an easier, more affordable, and simpler way. To help us do that, we need YOU! Here’s how you can help!
Send us a video of yourself and your furry friend telling the world what Eusoh means to you. Was it our community? Was it our customer service? How did Eusoh help you and your pet? These videos will be used for our upcoming ad campaign featuring testimonials from our community members.
How do I send a video to you?
Just record yourself on your smartphone or webcam. Send us the video or upload it to the social feed on our website. If we use your video, we’ll reward you with a special gift!
If you have any questions regarding sending a video, contact our Marketing Director, Joe Cayetano – firstname.lastname@example.org
I want to start out with two statements that I’m sure will shock you:
Healthcare costs are out of control. The system is broken.
93% of people surveyed do not fully trust insurance companies.
We live in a strange time when, quite often, it’s more cost-effective to pay cash for healthcare services rather than run them through insurance. Trouble is, you don’t know which is the better deal until after you’ve had to make the decision.
The incentives that drive insurance companies are grossly misaligned with the best interest of their customers.
Insurance companies spend massive amounts of money to collect and hold massive amounts of money to pay for something that might never happen. Wouldn’t it be great if we had a system that only paid for things that actually did happen?
Let’s take a quick look at how the Eusoh platform works.
A group of 20 people have individual contracts with each other to share an uncertain future expense. That’s 380 contracts in all.
The monthly platform fee is $10.
By contract, each member of the group maintains a deposit account of $40. There are stop-losses built into the system that guarantees that their monthly cost will never exceed $40.
In November; Jane submits $50 of expenses, John submits $25 and the remaining members submit -0-.
Each member contributes $3.75 for the losses. Distributions are made to Jane and John for their losses. The monthly fee is deducted, and drafts are made from member bank accounts or credit cards to replenish their deposit accounts to the determined level.
Now, expand the concept to 10,000 people. All have individual contracts to share some future uncertain cost. Nothing wrong with that except you’re dealing with millions of contracts and massive transfers and reconciliations of relatively small amounts of funds. It’s only recently that technology has evolved to the point of handling a challenge like this and Eusoh has harnessed that technology.
The resultant technology creates significant savings, transparency and aligned incentives. If you’ve heard of Eusoh, you see Pet care is likely what you’re aware of. As we studied the concept, we realized that the Eusoh model could be applied to an unlimited number of what the insurance industry refers to as “short-term risks.” Rather than tackle human healthcare head-on, we decided to beta another segment.
We wanted something that mirrored human health but flew under the radar. Nobody is going to get real upset if we disrupt the pet insurance industry.
Pet care serves as a proof of concept.
There’s room for market penetration. Only 2% of US pet owners have insurance vs. 30-40% in some European countries.
We found that there’s potential to make good money in the pet sector while we’re gearing up for the big game of human healthcare.
I want to spend a little time telling you how we’ve spent our capital to date:
The idea is worthless if it’s not legal, so we engaged a top law firm and worked with insurance regulators across the country to develop a white paper to prove that Eusoh meets regulatory requirements. A congressman, whose name you would recognize, heard about Eusoh and invited us to Washington because he wanted to learn more about it. He was very knowledgeable about healthcare and asked all the right questions. Evidently, we had all the right answers because, at the end of our meeting he said, “I’m in. You’ve covered all the regulatory issues. This is something that I can support.”
Next, we built the product:
We have an end-to-end platform that handles the payments, pricing and money transfers on an on-going basis.
Perhaps more important, we have armed our members with a comprehensive price list of services. I’m only slightly embarrassed to admit that It was through the Eusoh platform that I learned I was paying 4X’s more than I should for my dog’s monthly heart guard medication.
We have mitigated the legal risks
And removed many of the administrative layers of traditional insurance.
It has been an interesting trip.
Actuarial studies by two of the largest reinsurance companies in the world indicate that our model will save the average healthcare consumer >50% a year on insurance premiums, deductibles, and other out-of-pocket costs.
We have been live in the pet care segment for over a year. Our real results indicate that our members are saving 80% vs. traditional pet insurance.
We have an LOI with a large online provider of pet products that wants to use the Eusoh platform on a white-label basis to market their own pet care products. The launch is set for the 1st quarter of 2020.
We have an RFP from a national manager of multi-family properties for 400,000 units.
The trip to DC was surreal.
Unlike insurance, most of Eusoh’s costs are fixed. That means that once we hit scale, additional revenue will carry a gross margin of 80%.
That’s Eusoh: Innovative, Disruptive, a better way.
Great news! We’ve been recognized by the Digital Insurer, world’s largest dedicated knowledgebase on digital insurance, as a finalist for their 2019 Startup Insuretech Award. The award will be handed out as part of their Global Livefest 2019 festival.
The November event, will recognize the excellent achievements and digital and technological innovations in the entire insurance industry. Eusoh is proud to be one of those companies to be recognized.
Take a look at the Digital Insurer’s website for the event.
You’ll see that Eusoh is on the shortlist of the many startups making waves in the insurance industry. LIVEFEST 2019 is an opportunity to share knowledge and learn more about the digitization of the insurance industry.
May has passed and as the Eusoh community continues to grow and grow, the more everyone saves. With summer already here and pets are out-and-about, enjoying the summer sun and heat — it’s a good time to visit the vet. Unfortunately, accidents and health issues are going to happen at this time of the year. It’s good for you and your pet to have the assurance that there is a cost-sharing and cost-solution out there.
Yes, We Saved
Here are the simple numbers for May: $19 is the average cost Eusoh members paid for the month. $19 is the cost of subscription ($10) plus the cost of shared expenses (average=$9). Compare that to the national average for pet insurance premiums, $80. It’s obvious to see how much the difference is. We’ll do the math for you: $61.
Taking that national average for pet insurance premiums, $80 and apply it over a 10-month period, pet owners are paying $800 dollars over that time. Month to month, the monthly price of Eusoh ranged from $10/month to $19/month. Altogether, over a 10-month span, Eusoh members paid on average $133. The difference between Eusoh and traditional pet insurance was astounding. We’ll do the math for you again: A $667 difference.
“You saved $667 and helped fellow pet owners while paying under $20/month for pet protection. You should be happy!”
Here’s a listing of services, surgeries, and procedures Eusoh members shared in the month of May.
Annual checkup and shots
Foreign Body in GI Tract
And that’s just the shortlist. You can see here that the Eusoh platform and the community are there for one another. If you are considering Eusoh for your pets and you have questions, please leave us a message on our contact page. https://eusoh.com/Public/ContactUs
A frequent question we hear is, “Why is Eusoh’s emphasis on community?” Eusoh introduces a financial model that saves consumers significant money. Ironically, the emphasis on the community only further complicates our platform. Requiring our members to join community groups is a significant frictional barrier that has been an impediment for user adoption.
Experts in the Marketing and Startup fields would suggest that we eliminate all frictional barriers to registration. The addition and the requirement of the community component of Eusoh totally break these accepted norms. So why do we focus on community to the detriment of our growth?
Our focus on community introduces a behavioral component that is non-existent in the traditional insurance model. This behavioral change is a significant component of how we are drastically saving money for our members. Combined with the savings achieved strictly by the financial aspect of the platform, the overall savings have been eye-popping.
Our emphasis on the community may decrease early adoption, but we’re in this for the long haul. We are confident that an inflection point will soon give way to rapid organic growth. The setbacks now are absolutely worth the long term gain for our members.
There are several important elements to our community — the pertinent ones include collective wisdom, accountability, and security. Attaining financial security is the undeniable core value proposition of Eusoh. We wanted to take it a step further and utilize community to transfer collective wisdom and keep our members, along with their providers, fully accountable to one another.
The Insured vs. the Insurance Industry, the Modern Day David vs. Goliath
In the individualized insurance model, for everyone insured, it is them versus the insurer. The individual versus the multimillion-dollar industry, the “David versus Goliath”. This is played out when the insured needs to employ their insurance and their only option is to extract as much as they can from the insurance titans.
This extraction from insurance companies is also practiced by the providers, the facilities, and ancillary providers, all of whom are trying to get as much out of the system as possible. They all forget that, in reality, the funds they are vying for, are being crowdfunded through premiums from the members. This leads to widespread abuse in the insurance market. It is precisely this widespread abuse that has caused exponential rises in premiums that are untethered nor hampered by any market mechanisms.
For the insurers, this volatile and unobstructed model is a good thing because, at the end of the day, they earn income as a percentage of total premiums collected. If revenue functions as a percentage of total premiums, would the insurance company prefer premiums to be at $100 or $400 per month? Obviously, the latter. They achieve this by allowing the insured to operate within the most inefficient market possible — inefficiencies that only drive prices up.
Conclusion: Community Fixes the Current System
Requiring our members to join community groups changes this calculation. It re-introduces the behavioral patterns of collective wisdom, accountability, and security. All of which are mutual benefits — our members expect to receive it, and in turn, know to provide it as well. To effectuate this, there is a heightened level of transparency, which for many is yet again another barrier to entry. But our members accept this when they join Eusoh — because the cumulative effect is a force unto itself that pushes down monthly costs far lower than ever achievable by any novel yet isolated financial model.