The insurance industry has not changed much in the last hundred years. In the last five years, we have seen a number of startups rolling out products to disrupt the market. InsurTech is a term broadly used to refer to any digital innovation or technology which is targeted at buyers of insurance. The goal of InsurTech is to reduce costs and satisfy the needs of consumers. The market opportunity for Insurtech is huge when you consider that an estimated US$ 1.2 trillion was collected as insurance premiums in just the United States during the year 2015. Globally the insurance sector is growing at a healthy rate of 5% annually.
Buying insurance is a complex process that involves thoroughly vetting the conditions of the policy. The rising cost of insurance has made customers cautious, before they finalize a plan. Customer needs are also changing and they expect more personalised offerings. New data and analytics that have become available in the last decade now make it easier to finalise an insurance policy online. Earlier this month we featured Indian startups working on insurance offerings. Given below are some more insurance startups that are disrupting markets globally.
Coya – coya.com
This Berlin based startup announced today that it had raised US$ 10 million (Rs 60 Crore) in seed funding from Peter Thiel’s Valar Ventures. Founded only in 2016, the company’s seed funding round is one of the biggest ever seen in Germany. The company has hired close to 30 employees from different tech companies across Europe till date. It is yet to begin operations but you can sign up on their website to get updates about their product launch.
Wilov – www.wilov.com
This company is focused on car insurance which can be used only when you drive. Providing the worlds first Pay-When-You-Drive insurance, the company offers insurance for different time intervals depending on your needs. The insurance policy can be activated or cancelled anytime on your smartphone, no questions asked.
In some parts of the developed world, it is estimated that the majority of cars are parked for almost 95% of their lifetime, yet they are required to have insurance for regulatory reasons. Wilov solves this problem with it’s subscription model where users pay a monthly fee for insurance when the car is parked and a daily usage fee when you drive the car. You can subscribe to a new policy on their mobile app in less than eight minutes.
Alan – alan.eu
Considered the world’s first digital health insurance company in Europe, it is the first to be licensed in France since 1986. The company is reshaping the health insurance landscape in the European Union with a focus on simple plans, diverse coverage and enhanced user experience. The company provides full fledged insurance plans which not only cover risks but also makes healthcare simple. The company has till date raised close to € 12 million during it’s seed funding round held in 2016. It has been co-founded by former Twitter and Facebook employees.
Roadzen – roadzen.io
Roadzen provides on-demand road side assistance, claims management and inspection for the global insurance industry. Based on big data, artificial intelligence, and computer vision, the company uses an automated process to cut operational time and the cost of processing claims. The company launched it’s operations in July 2015 and currently operates only in the United States.
Clark – www.clark.de
Founded in June 2015, Clark enables users to know about their insurance status through the Clark Mobile Application. The robo-advisor then provides alternative insurance renewal quotes to end users. With just a few clicks, customers can improve their insurance situation. Clark currently accesses and scans more than 160 insurance companies to offer you the best quote on your insurance needs. Based in Germany, the Clark team currently has more than 25 employees.
We Fox – www.wefox.de
WeFox provides online guidance to customers using personalization and high technology. You can sign up to use a free digital insurance folder where claims and invoices can be handled digitally. It has partnered with traditional insurance brokers to reduce premiums payable by end users. On WeFox you can consult with more than 350 certified advisers and choose a policy from more than a hundred different companies.
GetSafe – www.getsafe.de
The company’s goal is to make insurance truly mobile. Based in Germany, it launched operations in April 2015. It’s mobile app helps people get the best insurance coverage within minutes and allows you to manage all your insurance policies in one place. The smart phone is now a one stop solution to compare insurance policies and even tailor them to your requirements. Try GetSafe today to buy health, life, vehicle and travel insurance.
Minalea – www.minalea.com
Minalea was one of the first Robo-advisers for insurance distribution when it was launched in October 2015. The unique solution studies the insurance offer and generates a unique sales pitch for vendors. The A.I assistant is also able to highlight the salient features of a policy and can customise its offerings. Based in France, Minalea is able to improve sales conversion rate and decreases the incidence of customers opting out.
Insurance clients all over the world are dis-satisfied with policy providers because they are not user friendly. Most insurance companies just collect the premiums after which you don’t hear from them until it’s time for renewal of the policy. Based in China, TongJuBao helps create communities which help people make group insurance decisions by excluding the insurer. The company recently received regulatory approvals to expand its group insurance schemes in Europe.
Personetics – personetics.com
This Israel based startup helps over 15 million digital users get personalised real time guidance. The company provides financial institutions with analytics powered by artificial intelligence which can then be used to guide their clients. Led by a team of top-notch Fintech entrepreneurs, the company was named among the Top Ten FinTech Companies to watch out for by accounting giant KPMG.