Would you buy insurance from #GAFAM? ?? Insurance start-ups face credibility crisis, Insurers want agents to benefit from digital too and more
A new perspective on an old-established industry. Find latest report, news and information about startups and innovations in the insurance industry, with a focus on best #insurtech initiatives and venture capital investments
“Forget everything you know about insurance,” was the brash tagline on a banner adorning the New York Stock Exchange when Lemonade went public in July 2020. The message captured the confidence that propelled the US insurance start-up and its peers, including Hippo and Root, on to the stock market at valuations far above those of more established peers.
The self-styled disrupters had a beguiling pitch to investors: our technology can track risks in real time; cut the number of insurance claims by anticipating incidents such as leaks; and speed up the processing of paperwork. The result, they said, was businesses that would ultimately outperform older rivals.
But two years on from its Wall Street debut, Lemonade, along with Hippo and Root, are among the biggest casualties of a brutal rout in tech stocks, as rising interest rates prompt investors to ditch high-growth companies in favour of those that generate reliable profits.
Read the full story on?the?Financial Times?here.
Must-read insurtech stories
Insurers today recognize the sharp competitive edge that the Internet of Things (IoT) provides through real-time and continuous data, enabling optimized risk assessment, customized products and services, enhanced customer experiences, and more. Yet, the number of insurance IoT use cases and the maturity of IoT in the industry vary depending on the line of business.
UK banks and insurers that fail to manage the risks associated with climate change could suffer a 10-15 per cent hit to their annual profits, the Bank of England warned. Insurers can mitigate that by leveraging the increasing amount of data sources available for underwriting which is itself benefitting from combining AI with those data. Increasing premiums is an option and processing claims and payments more efficiently and effectively.
Disintermediation isn’t positive for the industry, and agents’ and brokers’ roles can evolve. As more insurance back-end processes become digitized, and thus more streamlined, agents can focus more heavily on providing excellent customer service and support agent-customer relationships.
Insurtech Reports and Studies
Climate change is significantly impacting people and business. Insured natural catastrophe losses have increased by 360% within the past 30 years. It has upended traditional coverage, underwriting and investment dynamics as policyholders seek protection and peace of mind. Insurers need to position themselves to generate deeper customer trust and offer personalized solutions tailored to individual needs.
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Would you buy insurance from?#GAFAM?
Investment and Startup Use Cases
Wrisk is a digital-first insurance business that “works with leading automotive brands to shape the future of their customers’ mobility and insurance protection experiences.”
Istanda?digitises the complex insurance value chain, allowing business users to innovate, manage and distribute insurance products across all lines within P&C (property and casualty) and Life & Health.?The funds will be used to grow the London company’s geographical presence in Europe, US, Japan and the UAE, as well as to rapidly augment platform capabilities including developing the existing ecosystem into a future-proofed marketplace.?
Wefox would be nearly doubling its valuation from?last year, when it raised $650 million in a Series C?round?valuing the company at $3 billion.?Wefox has carved out a different niche in the insurtech space, opting to distribute its insurance policies through a network of agents rather than hawking its products directly to consumers like some other startups.?Munich Re AG?backs Wefox’s policies with reinsurance coverage and also provides know-how and infrastructure.?
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Web3 & Gen AI Enthousiast | Speaker, Advisor, Influenceur, Modérateur | Auteur des livres "Social Commerce" & "Innover ou Dispara?tre" | Chroniqueur Forbes.fr, HBRFrance.fr | Directeur Marketing, Digital & Innovation
2 年Thanks Alberto for the mention in your article ??
Opinions are my own
2 年The best answer for a company like this is to provide a great service and make a healthy profit in the process, reinvest that and come up with solutions that use AI and deliver smart outcomes. There is a lot of space for disruptors in an industry where there are cash cow segments, with customers who are overpaying in relation to their risk, and subsidising others. That graph tells me there is a lot of up-side to come for companies who can pivot.
Author, Advisor, Mathematician .Thinkers360 Global Thought Leader/Influencer iAI, Analytics, Predictive Analytics, National Security, GenAI, International Relations, Design Thinking, InsurTech, Quantum, and Health Tech
2 年Sort like my opening comment when I was teaching a course at an actuarial conference about AI Ethics. I said, "Do not, under any circumstances, repeat anything I say in a job interview."
I'm into Innovation, Tech and Sustainability
2 年A special mention for recent?#insurtech?rounds. Well done to?Wrisk and?INSTANDA | Insurance Software?teams! ??
Interesting as usual Alberto, thank you for sharing. It's healthy for the industry to look at KPIs that have always guided it and that should eventually guide also the new players. Successful startups eventually should become money making machines, their valuation should eventually reflect whether they are or can really become that. We have a couple of good positive examples in Europe, one of which Julian Teicke's Wefox. It seems to me that insurtechs need to move beyond the hype and get to the next level. To everyone's benefit: their own, traditional insurer's, insurance agents, new distribution channels. And the answer to ypur question is defimitely yes: GAFAM can sell some insurance, why not? They can be part of the picture too.