Hi,
At the Open and Embedded Insurance Observatory, we conduct ongoing market research and intelligence on open and embedded Insurance. As a valuable member of our network we are delighted to share with you our monthly selection of key facts, insights, and news that we believe are meaningful and relevant. This newsletter covers all the insights and pertinent features from April 01 to April 30, 2024.
We hope you find these resources beneficial for your business.
Embedded Insurance Partnerships
Apr 30, 2024: AEGIS London has teamed up with the acclaimed InsurTech Kayna to enhance its online quote and bind platform, Opal Underwriting. With Opal Underwriting facilitating over $120 million in premium annually, particularly for insurance types often mandated by commercial lenders, Kayna and AEGIS London are jointly developing insurance coverage for borrowers in the loan application process, accessible through surplus lines brokers. Their aim is to leverage insurtech and data orchestration within Opal to maximize its capabilities. Furthermore, Kayna's infrastructure is poised to explore property insurance options for US borrowers, aligning with AEGIS London's extensive premium underwriting through Opal.
Apr 19, 2024: Mulberri, an AI-powered insurance platform, revealed its collaboration with Acronis, a worldwide pioneer in cyber protection, to incorporate Mulberri’s Cyber Insurance into Acronis' small and medium-sized business clientele in the United States. This strategic partnership allows Acronis customers to easily access Mulberri's Cyber Insurance directly in minutes through the Acronis platform. This smooth integration empowers SMBs to secure cyber insurance coverage swiftly, augmenting Acronis' offerings in cybersecurity, data protection, and endpoint management solutions.
Apr 18, 2024: Matic, a prominent digital insurtech platform, and USA Mortgage have formed a strategic alliance to offer property & casualty insurance products to USA Mortgage clients. Within this collaboration, Matic’s innovative insurance marketplace will seamlessly integrate into the USA Mortgage home lending process, enabling borrowers to explore personalized rates and coverage options while securing their mortgage. Utilizing Matic’s advanced matching technology, borrowers can swiftly compare insurance offerings from a diverse network of over 50 national and regional carriers, facilitating informed decisions tailored to their specific requirements and streamlining the policy purchase process. Through Matic’s digital platform, USA Mortgage customers will have access to a comprehensive range of P&C insurance products, including home and auto insurance, as well as umbrella, jewelry, flood, dwelling fire, pet, and various other personal lines of insurance, catering to diverse customer needs throughout the mortgage origination journey.
Apr 17, 2024: Motorhome and campervan specialist Comfort Insurance has teamed up with ARAG to enhance its breakdown cover services. The updated insurance offerings now feature increased indemnity limits for overnight stays in both the UK and Europe, along with an expanded annual claim limit that covers up to six incidents, capped at £10,000. This adjustment aims to align with the rising costs associated with the recovery of campervans and motorhomes. Additionally, an extra benefit of up to £150 is now available to assist drivers with travel expenses when returning to their vehicles post-repair. As part of these enhancements, ARAG, a legal expenses insurance provider, will now manage Comfort Legal Protection, integrated into Comfort’s motorhome and campervan policies. This addition seeks to provide legal assistance and guidance in scenarios involving accidents, motor prosecutions, or contractual disputes related to the insured vehicle.
Apr 15, 2024: Oyster, a platform specializing in embedded insurance for commerce, has announced its partnership with Electric Bike Company, a prominent player in the micro-mobility industry. The collaboration is motivated by a mutual objective: to enhance the safety and security of electric bike riders. As a result of this partnership, Electric Bike Company customers now have access to a range of insurance benefits specifically crafted for electric bike enthusiasts. These benefits encompass theft protection, coverage for crash damages, and liability insurance, providing riders with comprehensive coverage and peace of mind. By teaming up with Oyster, renowned for its expertise in seamlessly integrating customized insurance solutions through technology platforms, Electric Bike Company reinforces its dedication to delivering an unparalleled customer experience.
Apr 5, 2024: Igloo, a Singapore-based insurtech company, has joined forces with Tokopedia, an e-commerce startup from Indonesia, to offer accessible insurance coverage to both consumers and small businesses in Indonesia. Through this collaboration, Tokopedia and Igloo aim to expand insurance protection to individuals across 99% of districts in Indonesia, as well as to over 14 million micro, small, and medium enterprises (MSMEs), which play a pivotal role in the Indonesian economy. Tokopedia will introduce three insurance products powered by Igloo, including gadget protection starting from IDR 48,300 ($3.09), electronic protection starting from IDR 14,334 ($0.92) for a 12-month period, and total loss only (TLO) coverage starting from IDR 500 ($0.032) for a duration of three to 12 months. This partnership reinforces Igloo’s network of online shopping platforms as distribution partners across Southeast Asia, encompassing notable players like Lazada, Shopee, and Loship in Vietnam.
Apr 4, 2024: Aktivate, a prominent scholastic sports management platform, has unveiled a new collaboration with Vertical Insure, the embedded insurance provider catering to vertical SaaS platforms. This partnership aims to offer students, athletes, and their families a seamless method to safeguard their engagement in extracurricular activities. It will achieve this by integrating Gap Medical Insurance and Registration Cancellation Insurance directly into Aktivate’s registration process. Each year, over 3.5 million student athletes under the age of 14 require medical treatment for sports-related injuries. The Gap Medical Insurance provided through this alliance addresses this concern by covering up to $5,000 in out-of-pocket medical expenses (including deductibles and copays) in case of an accident or injury during the activity. This assurance allows families to prioritize their child's participation without being burdened by unexpected medical costs. Moreover, Registration Cancellation Insurance ensures peace of mind by reimbursing up to 100% of registration fees if a participant is compelled to withdraw for a covered reason, thereby further safeguarding families' investments in extracurricular activities.
Apr 3, 2024: Boost Insurance, a prominent insurance infrastructure platform, has announced a partnership with Amwins Program Underwriters, a division of Amwins Underwriting, to introduce an upgraded, technology-driven iteration of two established Lawyers Professional Liability (LPL) programs: LawGold and Firemark. Additionally, they are relaunching their Attorneys’ Select program. These three programs offer coverage tailored for law firms comprising one to 40 attorneys. LawGold furnishes an admitted solution tailored for firms with minimal loss history, while Firemark offers both admitted and non-admitted solutions specifically designed for intellectual property lawyers. The newly re-launched Attorneys’ Select program delivers a non-admitted solution catering to law firms facing challenges in finding coverage due to difficult areas of practice, remediable claims histories, or those requiring minor retroactive date repair.
New Releases and Launches
May, 24, 2024: Habit, a Portuguese insurtech specializing in embedded insurance, digital and contextual distribution solutions, announces the launch of a new protection solution for recurring payments / expenses: "Habit Bill Protection Insurance". The new product is intended to protect the payment of the end customer’s various regular bills, whether they be utilities (electricity, gas, water, telecommunications or other domestic expenses), house rent, college fees or any other where there is a recurrence of payments for services provided. The insurance offers several capital levels, from €80 to €600, to adapt to different customer profiles and their expenses.
April 18, 2024: Modern Life has launched instant quoting capabilities for permanent life insurance, empowering financial professionals with a new tool. This feature, exclusively accessible to advisors using Modern Life's platform, allows for immediate generation of quotes for various types of permanent life insurance products. These include whole life, indexed universal life, universal life, and variable products, offered by over 20 leading national carriers. This functionality is a cornerstone of Modern Life's broader initiative to develop the first fully integrated financial protection toolchain for advisors. It seamlessly integrates into their advisor experience, complementing features like an integrated client fact finder, medical underwriting, proprietary AI tools, and comprehensive agency management capabilities.
April 9, 2024: Propel Holdings, a fintech company dedicated to expanding access to credit for underserved consumers, operates under the Fora Credit brand in the Canadian market. Today, it has announced the launch of Fora’s Payment Protection Plan, a digital credit insurance product developed in collaboration with Walnut Insurance and underwritten by Trans Global Insurance and Trans Global Life Insurance Company ("TGI"). The program is currently accessible in eight provinces across Canada. This marks the debut of an insurance product under one of Propel’s operating brands and offers Fora customers a compelling value proposition to shield themselves against unforeseen financial challenges. The insurance benefits may include coverage for a customer’s balance payments to Fora in the event of circ*mstances such as job loss, loss of life, or critical illness.
April 8, 2024: Ibexis Life & Annuity Insurance Company has unveiled several improvements to its FIA Plus™ fixed indexed annuity series, available through the independent marketing organization ("IMO") sales channel. The FIA Plus™, an accumulation-focused fixed indexed annuity, now incorporates a Bonus Rider, Bailout feature, and an annual declared rate option ("ADR"). It maintains its existing crediting strategies tied to two distinct proprietary indexes from Bank of America, HSBC, and the S&P 500®. Moreover, it features embedded optionality with floor options to enhance accumulation potential.
Investments and Funding Rounds
April 26, 2024: Flashaid, a startup specializing in healthcare-focused insurtech, has secured $2.5 million in a pre-Series A funding round, co-led by Piper Serica Angel Fund and SOSV. Additionally, Z21 Ventures Fund and ZNLGrowth Fund participated in the funding round. Flashaid distinguishes itself by offering a full-stack health solution with an API-first approach and proprietary pre-underwritten products, open APIs, and embedded solutions. The infusion of fresh capital will be directed towards fueling the company's growth and expansion initiatives. The startup is actively engaged in forging exclusive partnerships with insurance companies to craft customized products and collaborating with e-commerce platforms and brands to distribute insurance offerings to their user base. With a vision to democratize access to affordable health insurance, Flashaid is establishing a retail health plan distribution channel via a B2B2C platform.
April 23, 2024: Rainwalk Technology, a leading provider of white-label pet insurance technology, announces a $4 million Seed funding round led by ManchestorStory, with participation from Insurtech Gateway, Bridge Capital, Seaplane Ventures, and various insurance and reinsurance executives. This funding will be directed towards enhancing personnel, products, and technology to drive partnerships and initiatives that set Rainwalk’s pet health ecosystem apart in the market. While many US pet insurers have achieved success through Direct-to-consumer channels, Rainwalk aims to significantly expand market reach by exploring innovative distribution channels often neglected by established players.
April 09, 2024: Honey Insurance, employing smart technology to streamline the purchasing process and enhance risk monitoring, has successfully concluded a $108 million funding round. The company's objective is to intensify its challenge against the dominance of the local home insurance oligopoly. Notably, Honey Insurance describes this fundraising round as Australia's third-largest Series A funding, achieved despite the technology sector facing a downturn in venture capital investments last year.
April 04, 2024: Singlife Philippines, a digital insurance provider, has received $10.65 million (₱600 million) in funding from its parent firm, Singapore Life Holdings (Singlife). With close to a million policies initiated and strong customer trust ratings, Singlife Philippines intends to expand its market influence by providing insurance solutions customized to contemporary consumer demands. This funding will empower the company to introduce advanced digital insurance offerings, such as embedded and bundled insurance, and bolster its platform with AI functionalities.
April 02, 2024:Zhibao Technology, a digital insurance brokerage firm based in China, successfully raised $6 million by issuing 1.5 million shares at $4 each, which fell within the projected range of $4 to $6, albeit at the lower end. The initial public offering (IPO) constituted 4.7% of the total basic shares outstanding. Surpassing expectations, an additional 0.3 million shares were offered. Operating under Zhibao China Group, the company delivers digital insurance brokerage services in China, employing a business-to-business-to-customer (B2B2C) digital embedded insurance model. This model provides a tailored insurance brokerage approach, enabling the digital embedding of insurance solutions into the existing customer engagement framework of business entities, thereby reaching and serving their current customer base more effectively. Zhibao inaugurated its digital insurance brokerage platform in 2020, offering a comprehensive suite of services that includes insurance brokerage and managing general underwriting services.
Hand-picked embedded insurance insights and news which are worth reading
Over the next decade, embedded insurance in Europe is expected to account for 30% of P&C and 10% of total life markets…
#Embedded insurance #AIInsurance #SyntheticData #Insurtech #PrivacyRegulations #DigitalizationInsurers
According to IDC FutureScape projections, by 2027, 40% of AI algorithms utilized by insurers will integrate synthetic data to ensure fairness and compliance with regulations. This incorporation will span various aspects of insurance operations, from underwriting to claims handling. However, concerns regarding privacy and bias necessitate insurers to adhere to evolving regulations, such as the European Union AI Act.
IDC's 2022 survey indicates that 18% of enterprises are incorporating synthetic data to address privacy regulations and facilitate secure data exchange within insurance services. Synthetic data mimics real-world scenarios while safeguarding privacy, offering advantages such as privacy preservation and impartial risk assessments.
IDC's AI predictions for 2024 and beyond include:
AI Empowered Sales: By 2027, tools based on generative AI will lead to a 5% increase in distribution sales volume and a 10% rise in sales ROI.
Outcome Optimization: By 2025, the consolidation of insurtech will drive adoption of outcome-based pricing by 15% of tier 1 insurers and 10% of tier 2 insurers.
Accelerating Insurer Digitalization: By 2024, 25% of insurers will enhance investments in external app development services, resulting in a 10% increase in digital revenues.
Embedded insurance will grow significantly in line with embedded finance…
#EmbeddedFinance #B2B #Fintech #OpenBanking #DigitalInsurance
A recent study conducted by Juniper Research predicts that the Embedded Finance market will exceed USD 228 billion by 2028. This growth trajectory is attributed to market maturation and growing consumer confidence, fueled by expanding acceptance and applications, particularly in business-to-business (B2B) contexts.
Additionally, embedded insurance emerges as a segment experiencing significant global adoption, with a projected growth of 125% from 2024 to 2028. The convenience offered by embedded insurance offerings, particularly on e-commerce platforms, is enticing consumers to opt for policies during the checkout process. Governments in the Asia-Pacific region, such as Singapore and Malaysia, are actively promoting digital insurance uptake, further propelling growth in this segment across the region.
Open and Embedded Insurance Paid Newsletter
We have published our first paid newsletter which delves into the primary factors driving Q1 2024 Embedded Insurance growth, featuring an in-depth analysis of 34 new embedded insurance partnerships.
On this month’s radar we have:
Key drivers of Q1 2024 Embedded Insurance growth
Our analysis of 34 new embedded insurance partnerships
Insights: Triggered vs Holistic embedded insurance, what is it about?
Cover Whale and Geotab - An embedded insurance business case: digital transformation and innovation
Zurich and Klook: the insurance goal behind the partnership
bolttech and Singtel: the customer problem solved
Allianz One-Click embedded auto and home insurance price estimate: a new automated underwriting solution to improve the user experience
Read More
Open and Embedded Insurance White Papers
We have published five white papers in collaboration with ELEMENT, Generali, Wakam, Sapiens, Fit2You and SAS.
This playbook – created in conjunction with ELEMENT – sheds light on how MGAs looking to distribute insurance products in the EU are able to leverage the capabilities of an insurer that is specialized in risk transfer to access additional capacity, allowing them to model, manage and deliver personalized customer solutions.
The Generali white paper investigates and analyzes emerging models in the field of digitally embedded health services and health insurance. Embedded health ecosystems offer insurers an unprecedented opportunity to expand their offering while also contributing shared value to all stakeholders. This paper evaluates the current market for Embedded Health Insurance and Services, examines some of the market leaders, and reveals how insurers can remain competitive in an evolving landscape. You can download it below.
The Wakam white paper is a playbook that provides an introduction to embedded insurance for non-insurance brands. The playbook scrutinizes the copious benefits of embedding an insurance proposition, provides insights into the various embedded insurance models, and explains how embedded insurance has a real impact on societal trends and consumer needs. It also explains how to easily set up an embedded insurance offering, details real-world use cases, and defines a strategy to ensure your insurance solution's successful implementation. You can download it from the button below.
The Sapiens white paper explores how automation is reducing complexities in insurance products and processes - and improving insurer-retailer relationships. It explains how embedded insurance is key to simplifying insurance across the entire value chain and shows how - with the right technology partners - insurers and retailers are empowered to meet consumers' protection needs quickly, efficiently, and affordably.
The Fit2You white paper provides an introduction to embedded insurance in the mobility space, demonstrating the value that can be added for all stakeholders when embedding insurance as part of a mobility offering. It explores the societal trends and technological advancements that make this type of insurance offering so valuable. And looks at the future potential market of embedded insurance in the mobility sector.
The SAS white paper: Based on new research from SAS and the Open and Embedded Insurance Observatory, this report tracks current trends in the embedded insurance space. It identifies levels of data sharing between insurers and tech enablers, the impact of process automation and how customer experience (CX) is measured - highlighting opportunities for insurers to gain significant business advantages by making optimal use of theirdata.
Recently published report by the observatory
Insights and analysis from the Open and Embedded Insurance Observatory and its members. Including exclusive interviews, member profiles, analysis of the current open and embedded insurance marketplace, in-depth articles on trends and key topics, and a round-up of recent fundings and investments in this space.
2024 Singapore Plenary Meeting
When: 3rd June 2024
Where: Gucco Midtown Network Hub, 126 Beach Road, Singapore 189772
On the 3rd of June the Open & Embedded Insurance Observatory, in partnership with ZA Tech and Temus, will organise its Singapore annual plenary meeting, an invite-only event dedicated to the members of the Observatory.
#MOI2024 INNOVATION DAY (Vienna & Digital)
When: 4th - 5th June 2024
Where: Schwarzenbergplatz 3 1010 Wien Austria
Scheduled for 4th - 5th June, MOI2024 delves into the realms of insurance, banking, telecommunications, retail, automotive, and travel industries. The event provides exclusive access to cutting-edge insights and trends shaping the future of finance and beyond, helping you discover the transformative power of embedded technologies.
Join Asia’s largest insurance ecosystem conference – ITC Asia 2024
We would like to personally extend the warmest invitation for you to attend ITC Asia 2024. The event will take place in Singapore’s Sands Expo & Convention Centre on 4th June 2024. Join over 250 speakers and connect with industry leaders, innovators, and investors from around the world.
Along with the morning plenaries, and 3 breakout tracks, plus an on-floor demo stage, you’ll also be able to connect and engage with people from all around the region through world-class networking at ITC Asia 2024.
Use OEIO200to get $200 off tickets to ITC Asia 2024!
E-mail ITC Asia to enquire about special rates, travel bookings, and hotel reservations at asia@insuretechconnect.com
The Open & Embedded Insurance Observatory is supported by: Abi, Admiral, Ageas, bolttech, CDL, Datafolio, Dai-Ichi Life International, Element, Epoq, Fit2You, Generali, Habit, HDI Embedded, Insurely, Marsh, Meiji Yasuda, Metlife, Munich Re, Net Insurance, Open, Otonomi, Quotall, Reale Mutua, SAS, Sure, Swiss Re, Tokio Marine, Wakam, Wolt, WTW, Yolo.
For any information or request, feel free to reach out to us at info@openinsuranceobs.com.
This newsletter is curated by Chi Tran Research Analyst at the Observatory.
