Who’s leading the region’s insurance efforts? And do we need more innovation?
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It's no secret that the insurance industry is ripe for disruption. The way we buy and sell insurance hasn't changed much in the last century, and there are a number of startups looking to change that.?
Searching the term “insurtech” on the top MENA and Pakistan startup news websites comes with little to no results. Though there are a number of innovators in the field, the whole industry could be huge potential for entrepreneurs in the region.
From the widely popular car insurance to life insurance and pet insurance… The list just doesn't end.?
One thing people figured out is that offering insurance policies the same old way without utilizing the advancement in technology is a lost opportunity to give better services with fair compensation.?
And this was the moment “Insurtech” was born.
The need to be digitally innovative has never been more urgent than now, especially after a pandemic took the world by surprise.
Insurtech startups have since thrived because due to the digital-first approach that helps them navigate these hard times efficiently.
Insurtech Startups Around the World
In 2021, funding in insurtech surpassed $14 billion reaching a total of 644 deals. Overall, the insurtech market is forecasted to grow at a CAGR of 10.8% from 2019 to 2025, reaching $10.14 billion in revenue by 2025.
Here are some examples of international successful startups worldwide.
?? UK-based Zego offers commercial car insurance. The platform includes a range of options, including private car, scooter, and courier van insurance. They also offer fleet coverage for corporate clients. The pricing model is based on usage.
Funding: $202.2M (Series C)
?? Next Insurance is a digital insurance provider for self-employed and small businesses in the United States. The company offers general and professional liability insurance, as well as commercial property and auto coverage. The platform currently has coverage options for more than 1300 professions, including third-party Amazon sellers, contractors, and fitness instructors. Next Insurance reports that they have over 100,000 clients.
Funding: $881M (Series E)
?? Car insurance provider Marshmallow ’s algorithm considers international driving records in order to offer competitive prices to drivers in the UK with limited driving records in their current country of residence. The startup has sold over 100,000 policies to date.
Funding: $116.2M (Series B)
?? Hippo Insurance offers a different kind of home insurance, to provide a new standard of care and protection for homeowners. Harnessing real-time data, smart home technology, and a growing suite of home services, the home insurance company is creating the first integrated home protection platform.
Funding: $1.3B (Post-IPO Equity)
Insurtech Companies in MENA and Pakistan
Insurtech startups are on the rise in the Middle East, North Africa and Pakistan regions. Many of these startups are well-funded and have attracted interest from major players in the industry.
领英推荐
Here’s a look at some of the most promising insurtech companies in the MENA and Pakistan regions.
?? Saudi Arabia-based insurance as a service (IaaS) platform Eltizam offers insurance-related products spanning different industries, such as automotive, health, protection, and savings, among others.
The platform, which was founded by Hani AlMalki (CEO) and Khaled Al Ahmadi (CTO), has raised raised SAR2.5 million ($666,000) via the crowdfunding platform Scopeer.??
?? yallacompare from Dubai is the finance comparison site in the Middle East with operations across nine countries in the MENA region. Since 2011, the company has helped users compare banking products saving each one thousands of dollars every year.
Since banking and insurance go hand in hand, they told their team to go out and build a platform that could save their users even more money. Their insurance tech is state of the art and built in the UAE by their team of ninja geeks.
Yallacompare has raised a total of $21.7M in funding over 7 rounds.
?? Cairo-based Amanleek aims to simplify insurance services and make them more accessible for a wider base of individual and business customers. They do this by leveraging transparency, trust, and innovation to deliver an enhanced experience for all parties involved through tech-based solutions.
Regional Gap to Fill and Why it’s Important to Invest in Insurtech
With the rise in Insurtech funding, we can expect more innovation and new players in this multi-billion dollar industry.
The MENA and Pakistan region needs more leaders to guide the region into the realm of insurtech. Their duty will be to utilize data analytics and AI tools to help people choose better, pay less, and be safe wherever.?
We also need a wider variety of insurtech companies to offer more options to the waiting customers.
Pet insurance, for example, is a whole market that has not yet been tackled in the region. Insurance for self-employed workers and couriers insurance is yet to be offered by any company.?
A few more examples of how we can dive deeper into insurtech are:
The market is huge and we just have to start.
The insurtech space is heating up in the MENA and Pakistan regions, with well-funded startups and major players taking notice.
We need more innovative solutions to bring insurance into the digital age, and we need your help.
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If you or someone you know is working on an insurtech solution, send me a message! I’d love to connect and see how we can help each other achieve success.
And don’t forget to share this newsletter edition with others who might benefit from it!
Until next time. ????
Strategic Partnership | Digital Transformation
2 年I agree with you Ziyad, insurance market still young and there is huge opportunity of growth and innovative startups. In saudi market we have great examples as insurtech platforms (Tameeni | ?????? & Bcare | ?? ??? ) you can create a car insurance in few steps. These platforms are integrated with all insurance companies and the customer can see all these prices in less than 2 minutes and two more steps you can issue your motor policy. Meanwhile, they are selling car insurance for individuals and medical insurance for SME. Again, there is a huge opportunity in the market and I believe the government can lead this initiative and support the market.