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Development of a Reverse Auction Marketplace for Competitive Car Insurance Pricing
  1. case
  2. Development of a Reverse Auction Marketplace for Competitive Car Insurance Pricing

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Development of a Reverse Auction Marketplace for Competitive Car Insurance Pricing

hedgehoglab.com
Insurance
Financial Services

Challenges in Traditional Car Insurance Pricing for Young Drivers

Young and first-time drivers face inflated insurance premiums due to perceived risk, while existing platforms lack competitive pricing mechanisms. Entering a heavily regulated £1.8 trillion industry requires validation, technical expertise, and a brand capable of differentiation.

About the Client

An InsurTech startup aiming to disrupt traditional insurance pricing models by leveraging mobile-first technology and reverse auctions.

Objectives for the Reverse Auction Platform

  • Validate the reverse auction marketplace concept through user research and market analysis
  • Design an engaging, mobile-first platform to reduce user drop-off rates among Gen Z and Millennials
  • Integrate complex backend systems with major insurers for real-time bidding functionality
  • Establish a scalable solution for future expansion into van, learner, and home insurance products

Core System Functionalities and Features

  • User registration and secure login with cookie-based consent management
  • Reverse auction mechanics with three-round bidding from insurers
  • Real-time bid updates and comparison visualization
  • Multi-language support via WordPress integration
  • Analytics dashboard for traffic and performance monitoring
  • YouTube video integration for educational content delivery

Technology Stack and Tools

iOS app development (Swift)
Android app development (Kotlin)
Web app (React.js)
UI/UX design with Figma/Adobe XD
WordPress for multilingual content management

Critical System Integrations

  • Legacy backend systems of major insurance providers
  • YouTube API for video content embedding
  • Cookie consent management platform (CookieYes)
  • Analytics tools (Google Analytics, Mixpanel)

Non-Functional Requirements

  • High availability (99.9% uptime SLA)
  • GDPR-compliant data handling
  • Real-time bidding latency <500ms
  • Scalable cloud infrastructure (AWS/Azure)
  • Cross-platform UI consistency

Expected Impact on Market Accessibility and Pricing

By creating competitive pressure among insurers through transparent bidding, the platform is projected to reduce premiums by 15-25% for young drivers while increasing market accessibility. The solution aims to capture 5% of the UK motor insurance market within three years through its differentiated user experience and real-time value proposition.

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