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Today I sit down with Alexis Pantazis Co-Founder of Hellas Direct, a full-stack InsurTech with operations in Greece, Cyprus and Romania. Launched in Athens a decade ago, Hellas Direct now generates over $150 million in annual revenue.
Co-Founded by Alexis and Emilios Markau, the company has raised $56 million of equity and debt from Portage, Third Point, the World Bank, Endeavor Catalyst, amongst other great investors.
In this episode, we discuss:
A masterclass of what they’ve learned from launching new products and countries over the last decade
"When you think about entrepreneurs in parts of the world like ours, I think the problem set is very different. It’s less about competition and competitive powers, it’s more about can you make it and can you survive in a much more uncertain environment?"
Selective Product Focus: Despite the temptations to branch into diverse insurance products, Hellas Direct remains laser-focused in non-life insurance products, primarily centered on the mobility ecosystem (cars and motorcycles). Their product offerings also touch on housing, but they refrain from chasing highly specific niches in smaller markets like Greece.
Listening to Customers and Introducing Financial Solutions: Recognizing the wider financial needs of their customers, Hellas Direct has ventured into offering financing solutions. By leveraging their expansive digital network of garages and controlling the customer journey, they started to provide consumers with timely, last-mile financial assistance for car repairs and other related services, bridging the gap banks often fail to address in smaller transactions.
Their strategy of going after ‘Blindspot Markets’ to increase market dominance and reduce competition
“We're going to continue going after what we call ‘Blind Spot Markets’. It's markets that collectively are big enough. So when you look at them it’s the equivalent of an Italy or Germany, but the profit pools are much, much better, because these are kind of neglected by the big guys. So it gives us an opportunity to go and disrupt with a good beta.”
As Hellas Direct started to analyze a potential international expansion, they identified potential markets using seven filters, including regulatory frameworks and consumer preferences. They faced a choice: target larger markets riding the insurtech wave or opt for longer-term sustainable and profitable markets. Their choice prioritized markets where they believed they could be a top-five player within three to four years and where their technology could be efficiently ported cross-border, primarily within the European Union. While they estimate 80-90% of their technology is transferable across borders, localized claims teams are crucial for understanding local cultures and languages. They believe in centralizing functions like pricing, regulatory reporting, and tech development but emphasize the importance of local customer service.
Timing is pivotal when entering new markets. Regulatory environments that enforce fair competition indicate healthy market opportunities. Hellas Direct aims for "blind spot markets"—regions equivalent in size to major countries like Italy or Germany but overlooked by industry giants, presenting lucrative disruption opportunities. They have set sights on Czech Republic, Slovakia, Slovenia, and Croatia for the next four years.
Dealing with fraud, why it’s so important to modernize the insurance industry… and a lot more!
"I don't think it's important to modernize insurance for the sake of it. Technology for the sake of technology. But it's important for the sector to catch up with some of the trends that other companies… have already done in their worlds. It’s important to steal the best ideas from there and adjust them to our customer journeys. And I think insurance companies and banks have been very, very, very bad at doing that historically."
Insurance, one of the world's oldest sectors, faces a significant gap in awareness and uptake, as seen in Greece where only 16% of homes have insurance despite recurring natural disasters. This underscores a general lack of understanding around risk pooling. The contemporary landscape presents both opportunities and challenges: a data surge, safer and eventually self-driving vehicles, and more informed consumers. Clients today demand better service, products, and pricing, requiring insurers to step up.
There’s an urgent need for modernization of the insurance industry, especially since Alexis argues many traditional insurance companies have become complacent, outsourcing core functions and neglecting true customer service. Modernizing isn't about embracing technology for its sake but adopting best practices from leading companies in other sectors to improve customer journeys.
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Miguel Armaza is Co-Founder & Managing General Partner of Gilgamesh Ventures, a seed-stage investment fund focused on fintech in the Americas. He also hosts and writes the Fintech Leaders podcast and newsletter.
Alexis Pantazis, Co-Founder of Hellas Direct – A Contrarian Play That Led to $150M Annual Revenue, Mastering Product & Market Launches, The Future of Insurance