Protecht – Insurtech Company Committed to Protecting Live Event Experiences

Five years ago, fraud accounted for more than half of total chargebacks. Not surprisingly, the chargeback rates were significantly higher for card-not-present transactions. That migraine would only intensify for online merchants. Of the nearly $7 billion in estimated revenue lost from e-commerce chargebacks in 2016, nearly three-quarters was tied to fraud. For every dollar attributed to fraud, online merchants were drained $2.40. Overly tasked with implementing online store best practices, marketing, and researching the competition, most merchants didn’t have the time or expertise to even begin to understand how to deter fraud.

But the team at Protecht had an arsenal of strong talent and extensive experience in fraud protection, payments, insurance and technology. Additionally, they had the drive and bandwidth to dedicate toward combatting chargeback fraud. With forty percent of fraud offenders attempting a repeat performance within 60 days, the rise of chargebacks was a significant vulnerability for merchants and they needed a solution. A major frustration for merchants at the time was the inability to validate a fraud claim. They didn’t have fulfillment tools to confirm shipment delivery or verify package condition. Dishonest consumers recognized the opportunity and loyal customers lost trust and patience. Protecht recognized this, and their implementation of microinsurance policies to mitigate the risk of losses for eCommerce companies evolved into Protecht’s first product - comprehensive shipping protection for merchants and customers. Five years later, the re-named ShopGuarantee continues to strip merchants of the stress tied to shipping snafus and gives consumers confidence in knowing their important packages will arrive safely.

The rate of e-commerce fraud continues to accelerate. According to the National Retail Federation, in 2020, consumers returned an estimated $428 billion in merchandise, or 10.6% of total U.S. retail sales. Roughly 6% of returns, equating to $25.3 billion in losses, were fraudulent.

Protecht continues to strengthen its robust suite of product solutions within the e-commerce marketplace and the live events ecosystem. Its initial affordable “shipping insurance” brought an increased eCommerce buying confidence from shoppers and an uptick in revenue for merchants. Bryan Derbyshire, CEO of Protecht, and his team quickly identified what made consumers uneasy and reluctant to buy – the inability to protect a purchase.

Before long, Protecht launched FanShield, which afforded event goers the peace of mind that, should unexpected, covered circumstances occur, the cost of their missed experience would be reimbursed. When Protecht started in 2016, the average price of a major North American tour concert ticket was $77, jumping to $92 in pre-COVID 2019. FanShield was a groundbreaking option for relief in the largely non-refundable event space. Other offerings in the Protecht product suite, such as RegShield, for active event participants, have also helped to reshape purchase behavior and increase conversions. Those buyers and participants previously uncertain and on the fence are now committed and all in.

Protecht’s industry-leading, proprietary live event technology and consumer-facing protection products support its B2B partners and offer ticketing platforms control over inventory, real-time data reporting, additional lines of revenue, fraud prevention tools, and fan engagement through enhancements like an improved checkout flow and upgraded security. This added value to consumers lends peace of mind with a single click purchase at checkout. Likewise, Protecht’s investors, who have deep roots in the traditional insurance space, were drawn to Protecht’s unique approach of listening and helping to solve for a voiced need.

“Unlike others in the industry who may opt to sit in a closed room and ideate new self-defined cutting-edge insurtech, which they assume consumers will want, our team at Protecht chooses instead to focus on ultimately protecting the consumer’s defined passion, whether it be a first-time half marathon, a favorite artist’s concert, a playoff ballgame or a highly anticipated package,” said Derbyshire. “We believe the onus is on us to keep that passion at the forefront as a core building block for new products. We need to help consumers understand how insurance is there for them and their experience.”

Continued Derbyshire, “Insurance often gets a bad wrap for instilling the fear factor – ‘bad things could happen; don’t lose your stuff’. At Protecht, we take a positive approach – ‘Sure, things can happen. But don’t let that stop you from buying that awesome pair of boots or scoring section one seats with your rainy day fund. We can cover those costs so you can get back out there again.”

Protecht’s secure and versatile payment processing platform, ModernTransact, offers a rich selection of integration tools and a developer-centric API.

“Conducting tens of millions of transactions a year, we have a tremendous responsibility to our partners,” said Derbyshire. “Protecht takes a best-in-class approach with everything we do but when it comes to security, we go above and beyond with extensive testing to achieve the highest level of certification.”

Protecht has succeeded in addressing long-running challenges in the insurance industry. While their embedded purchasing widget is a current differentiator, Protecht’s team is cognizant that technology must be continuously sharpened for the betterment of the overall consumer experience.

Comprising Protecht’s team are avid concert goers, distance runners, competitive cyclists and those with a keen eye for fashion – fans, participants and shoppers, just like those consumers its products set out to protect. Collaborative strategic planning is encouraged across the company. Early on during COVID, some on the team Zoomed in wearing their parental hats, sparking a conversation surrounding a very important topic in the live events space - how to best protect kids in organized school sports.

In concert with its vision of protecting what matters in the e-Commerce universe, Protecht will soon launch AthleteShield, accessible accident and health coverage for athletes and participants. While it’s sure to help to ease the nerves of parents watches from the sidelines during practices, it will offer coverage for both adult and youth athletes.

“We can never grow complacent in Protecht’s drive to help fans, shoppers, merchants, participants and spectators. Every day, we focus on making insurance easy to understand, buy and use.” said Derbyshire. “Themore confidence we have, as consumers, in getting out and enjoying live experiences again, the more memories we make, the more positive our lives become. We all need an escape back to reality.”

Meet the CEO

Bryan Derbyshire is the CEO of Protecht. As the Founder and CEO of Protecht, he manages a suite of cutting-edge InsurTech products, primarily in the live event, endurance, and ecommerce spaces, rapidly expanding across industries. The InsurTech products Protecht Suite are designed to create seamless transactions, reduce fraud, manage inventory, and offer peace of mind to buyers and sellers. Bryan is passionate about revenue generation, sales, and growth in the financial service industry. His interest and knowledge in the sector gave him the confidence to start his own business. Bryan holds his Bachelor of Arts in Political Science from Arizona State University.