Scout InsurTech Interview with Bonzah

Bonzah is an auto rental insurance company. They seek to provide travelers with an affordable and convenient protection alternative to the rental giant’s rental car damage insurance rates. Chris Luiz sat with Chief Bonzahn, Brandon Rockow, to learn more about how Bonzah is impacting the industry.

Who are Bonzah’s clients?

Our clients fall into two main groups: renters and rental car companies. Renters are the ultimate purchasers of auto rental insurance, needing protection when renting a car. Rental car companies, on the other hand, need to protect their assets. Our goal is to serve both groups effectively by balancing their needs.

What does your product do?

We provide daily auto rental insurance for individuals who don’t own cars. Without a personal auto policy, these individuals require coverage to protect themselves and the rental car. Our insurance serves various customer groups, including city dwellers in places like San Francisco or New York who occasionally rent cars and international visitors whose insurance doesn’t apply in the U.S. It ensures both the renter and the rental company are adequately protected.

How much capital have you raised?

We’ve raised $40,000 externally, funded by GIA about eight or nine years ago. That investment predates our current iteration of the business, which we now run at a break-even point. While we haven’t needed to raise additional capital, we recognize the potential benefits for accelerating growth if we choose to.

Was the company born from within or outside the industry?

Our company was born from within the industry. It evolved over time, starting with our Co-founder, Steve Sherlock, who worked in embedded insurance at Virgin Airlines and later launched an auto rental aggregator in Australia. Upon moving to the U.S., he recognized an opportunity in auto rental insurance and was inspired by a similar business he and his brother started in Australia. The U.S. market had less competition and more potential, guiding us to where we are today.

What growth metrics have you accomplished over the last 12 months?

We’ve seen exciting growth, especially as we have added partnerships with businesses and channel partners. Over the past year:

• We’ve achieved monthly growth rates of 30-70 percent year-over-year, depending on the month.

• Our overall growth has been accelerating as we continue refining our business model.While not yet at the 200-300 percent growth we aim for, the changes we’ve made are setting the stage for future success.

Within your domain, what is the current challenge the industry is facing?

The opportunity and challenge are closely tied: car ownership is declining, with experts like Tony Saba predicting up to 80 percent of car ownership could disappear. This shift would turn the $400 billion private auto insurance market into a $300 billion fleet and rental insurance market.

Key challenges include:

1. Geographical Barriers: Many carriers avoid markets like New York due to complexities in insuring fleets and episodic rental insurance. This is problematic since New York is a massive population center.

2. Rising Costs: Inflation has driven up claim settlement costs, putting pressure on pricing, which renters dislike.

3. Partnership and Product Alignment: Ensuring the right products are available in the right markets is a constant balancing act.

   
   

Navigating these challenges while staying ahead of the curve is critical for the industry.

How does your company take a unique approach to providing value?

We differentiate ourselves by focusing on simplicity and ease of use. Legacy carriers often struggle with innovation, and we address that gap by:

1. Offering insurance through four channels: direct-to-consumer, co-branded websites with rental partners, portals for counter sales and embedded options.

2. Exploring future channels, like SMS/WhatsApp integrations and voice bots, to meet renters where they prefer to purchase insurance.

   
   

Our goal is to simplify transactions and create seamless insurance purchasing experiences. 

What inspired the team to start this company?

Steve, our Co-founder, was inspired by his personal frustration with rental car insurance. As someone without a car for eight years, he frequently rented vehicles and found the cost of insurance through major providers to be excessive—often as much as or more than the rental itself. This led to the original tagline, “Beat the Rental Counter,” and the mission to offer more affordable and accessible options.

Over time, we expanded our vision to “That Covered Feeling,” reflecting our goal to deliver complete and accessible coverage through multiple channels. Steve’s personal experiences and background in travel and insurance deeply influenced our focus.

Can you share any goals for the next 12 months?

Our main goals include:

1. Continuing to simplify insurance transactions in auto rental and expanding product offerings.

2. Exploring fleet insurance as a logical extension, given customer demand.

3. Enhancing our analytics and intelligence capabilities to become better partners to carriers and channel partners.

4. Listening to the market by engaging with partners, tech platforms and carriers to refine our product roadmap based on real-world feedback.

   
   

Our overarching aim is to remain adaptable, collaborative and customer-focused as we grow.

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