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How Start-ups Disrupt Insurance Business?

Recently researched insurance providers acknowledge that their business is undergoing massive disruption. It occurs due to insurance technology (InsurTech) start-ups, which overcome regulatory issues quicker,  understand platform economics better, dig out market insights deeper, and deliver customer experience not available before.

What is there for insurance holders?

If you are a car owner who pays their car insurance each year and doesn’t drive that much, you might feel insurance prices are a little bit unfair for you. Metromile proposes pay-per-mile car insurance model, which results in less money spent on insurance for those who drive only occasionally.

Extensive drivers might be interested in comparing vehicle insurance offerings in their area before they decide which one to purchase. Everquote provides such quotation, comparison and connection of drivers with insurers in their areas.

Goji also aggregates insurance company’s data in once place and presents you low price insurance options based on your car, driving profile, and needs.

Drivers, who insure their cars, but want to avoid situation when issuing insurance claim is needed might appreciate Zubie. Zubie promises to make your car exploitation smarter by enabling scheduling maintenance alerts, providing trip analyses, and delivering driving style feedback for greenhorn drivers.

Benefits offered by companies are also the domain of InsurTech disruptors. This area might be particularly interesting for companies eager to attract and retain employees, for whom personalization of benefits portfolio matters. Liazon enables employees to configure their non-financial benefits mix including health, lifestyle, saving plans, and of course insurance items.

Stride Health enables employees to optimize and manage health & dental services on their mobile devices, and also offers concierge and preventive services aiming at discounts and savings for their customers.

Those who travel with their valuable items could be interested in Trov. Company offers on demand insurance for damages, losses or thefts for laptops, tablets, digital cameras, and music instruments.

Insuring cars, travels, real estates or business activity might not be easy, and people often need solid advice with human contact. Therefore Coverhound, PolicyGenius or Finance Fox along with identification of insurances matching customer needs provide you with time of licensed advisors to walk you through them. As advising on particular insurance product could be biased by commission fee received by advisors from products sold, these companies transparently explain how they remunerate their advisors.

Some InsurTech start-ups focus on single product and specific type of customer. On of such is Ladder Financial providing value for customers interested in personal insurance. Artificial algorithms of Ladder Financial deliver initial insurance quotation matching person’s profile and needs within blink of an eye. Issuing insurance policies takes place online and is backed-up by existing, reputable insurance companies.

Quotations of personal insurance policy on demand, which take into account vide tapestry of people professional profiles are offered by Next Insurance.

What is there for insurance carriers?

InsurTech start-ups haven’t forgot about companies thattraditionally have been offering insurance policies.  EIS Group for example offers a multi-line insurance platform, which fosters customer’s relationship management (CRM) of insurance carriers. It’s modular in design and support processing policies, billings and claims, offer analytics, and enable engagement with customers within whole insurance lifecycle.

Acquisition, retention and growth of customer base is essential in every business. For companies that use call centers in daily operations with their customers Cogito offers solution enabling real-time analysis of phone conversation to provide immediate guidance for better engagement and connection with customers.

One of the most important parts of operations management in insurance business is claim management, which relates to request to insurance companies for payment relating to insured incident, damage, or loss. Snapsheet offers technology that enables settling claim between insurance holder and insurance carrier in virtual environment.

As claims to insurance companies are often unjustified, and might be an object of frauds, Shift Technology provides insurance carriers with artificial algorithm analyzing insurance claims to prevent such situations.

As insurance business in essence is about managing calculated risk, some carriers might appreciate proposition of Cloudcover with virtual risk diagnostic analytical tool and real-time risk visualization panes enabling advance risk analytics.

Calculating risk is crucial to determine insurance policy terms. Therefore in certain types insurance use drones or satellite images, which enable to predict certain events impacting on risk. Orbital Insight for example offers analysis of millions of satellite images at a time, which can support anticipating crop, or oil shortages, predict deforestation and other natural and social disasters.

What is there for InsurTech start-ups?

InsurTech start-ups require good orientation in regulated environment to hone their MVPs and run pilots of their products. Innovation ecosystem stakeholders, which might be supportive here, include company builders or start-up accelerators partnered with insurance companies. One of InsurTech company builder is FinLeap, which seat is in Berlin. FinLeap provides access to specific technical consulting, development platform, stakeholders’ network, and also up to EUR 5 mln seed financing.

One of star-up acceleration programs focused on InsurTech is Huge Thing organized in Poland with application deadline at 2nd of April 2017. 10 start-ups qualified to the program will experience mentoring from one of the biggest financial institutions in Central and Eastern Europe and travel to Berlin and London. They’ll also be able to apply for EUR 45k equity free investment within the program.

What will be the next InsurTech big thing?

Dzida!

2 comments

  1. Andre says:

    My car insurance company in South Africa put a tracker in my car, recording driving behavior and location. When entering a “no go area” I got a call emidiatly, offering help. Driving to fast increased fees as well.

    • Tomasz Pilewicz says:

      Thank you for sharing user’s experience, Andre. Vehicle tracking solutions might impact car insurance terms. In context of vehicle’s tracking I’ve found that myTrackee (https://site.mytrackee.com/) offers real-time location of car not only for single users but also corporate customers. It might be useful for customer visits scheduling and optimizing car fleet management. I’ve also noticed growing popularity of mobile cameras purchased by drivers to record the travel in case of for insurance carriers. Auto I for e.g. http://theautoi.com/) started offering 360 degree camera able to send footage to mobile devices upon any movement in vehicle. In my view, what might particularly impact individual car insurance terms are solutions overviewing driver performance and style, incentivizing incidents preventive and safe driving. Like “wearable for car” of Wayray (https://wayray.com/element). I believe that traditional insurance carriers are under technology pressure and might be interested in solutions they could easily bundle in form of “add-on” to their existing insurance policies for vehicles and real estate, but also health and life.

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