Monthly newsletter of Open and Embedded Insurance Observatory
Month of November 2024
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 November 01- November 30, 2024.
We hope you find these resources beneficial for your business.
Market Intelligence
Embedded Insurance Partnerships
Nov 05, 2024: APOLLO Insurance, a Canadian digital insurance provider has partnered with Townline to offer instant digital insurance solutions tailored to tenants across Canada. “APOLLO and Townline share the common goal of making it easier for residents to access tenant insurance,” said Jeff McCann, APOLLO Founder and CEO. “Townline works hard to provide their residents with an exceptional rental experience, and this partnership will only enhance that.” “Townline is partnering with APOLLO Insurance because we believe in the importance of collaborating with companies that share our commitment to community and innovation,” said Kelly Hannah, Director, Property Management and Leasing. “From our first building to our diverse projects across North America, we’ve always put relationships first. APOLLO’s digital platform not only provides our residents with an easy and efficient way to obtain insurance but also supports our property managers by streamlining compliance processes.”
Nov 14, 2024: Kwoon Chung Bus, a road passenger transport company, has partnered with insurtech firm YAS to offer Hong Kong's first embedded travel insurance for cross-border bus passengers. This service, which is integrated into the "Hong Kong-Mainland Express" WeChat Mini Program, provides customers with complimentary travel protection from YAS on their first trips when they purchase memberships or points. Kwoon Chung and YAS hope that this collaboration will improve the safety and convenience of the millions of travellers who cross the Hong Kong-mainland China border each year. YAS has collaborated with Generali Hong Kong to implement this program, which includes accident medical coverage and personal property protection.
Nov 14, 2024: Mulberri, an embedded insurance startup, has partnered with Qualys, a provider of cloud-based IT, security, and compliance solutions, to provide "exclusive discounts" on cyber insurance to eligible customers. Mulberri claims that its integration with Qualys will allow businesses to obtain cyber insurance by answering only one underwriting question. Qualys also lists Cowbell as a cyber insurance partner. “By aligning our cyber insurance with Qualys, we are furthering our mission to make insurance more accessible, affordable, and responsive to the actual Small and Medium-Sized Enterprises (SMEs) cyber risk landscape. Businesses that actively manage their security posture with Qualys deserve to see exclusive benefits.” – Hamesh Chawla, Co-founder and CEO of Mulberri.
Nov 14, 2024: Vertical Insure, the embedded insurance provider for vertical SaaS platforms, has announced an exciting collaboration with HLRBO, the leading online platform for hunting leases. This collaboration will provide hunters and landowners with a more simplified and convenient insurance experience by offering instant Hunting Lease Liability Insurance directly through the HLRBO platform. HLRBO has built a reputation for making hunting more accessible by giving hunters easy access to millions of acres of private and public land across North America. Hunters can browse listings, contact landowners, and sign leases all in one location. HLRBO's partnership with Vertical Insure will allow lessees to add Hunting Lease Liability Insurance as part of the leasing process, resulting in a fully integrated solution. This makes it easier for hunters to obtain the necessary coverage while also protecting landowners from liability issues.
Nov 18, 2024: Qover has partnered with Mastercard to enhance the online shopping experience for Mastercard credit cardholders in Belgium and Luxembourg.The partnership introduces a one-of-a-kind return shipping cost protection service that makes use of Qover technology. When retailers do not offer free returns, this new service will refund shipping fees. The protection is available through mastercard.be and mastercard.lu and covers up to €30 per return, with a maximum of three claims or €90 per cardholder per year. This addresses a growing demand, as nearly 90% of Belgians shopped online in early 2024, with clothing being the most popular category.
Nov 19, 2024: Kayna and WTW have partnered with Vibrant, an Easton, Pennsylvania-based platform that manages third-party vendor cybersecurity oversight through insurance coverage tracking. Vibrant's innovative platform enables businesses with large vendor networks to easily monitor the cybersecurity status of their entire supply chain, providing continuous, real-time insights without the need for time-consuming, expensive assessments. The partnership, which incorporates Kayna technology to facilitate WTW-brokered insurance distribution, improves Vibrant's insurance-based model by generating real-time alerts when a vendor's cybersecurity status poses a risk to the organisations they supply. The integration also provides at-risk vendors with immediate access to indicative insurance quotes and streamlined policy generation, thereby effectively closing supply chain protection gaps. This comprehensive approach not only simplifies third-party risk management, but also encourages higher cybersecurity standards throughout the vendor ecosystem. The solution will assist Procurement, Operations and Supply Chain functions by delivering effective oversight to organisations across Manufacturing, Education, Healthcare, Utilities, Financial Services, Retail and State & Municipal Government sectors.
Nov 20, 2024: Remote, a leading global HR platform and payroll provider, has partnered with InsurTech firm Kota to help businesses manage their employees' health benefits across multiple countries. The company has launched Remote Global Benefits to meet the growing demand for solutions capable of managing employee benefits on a global scale. This is often accomplished through a fragmented process involving brokers, complex laws, and multiple systems. The goal is to make this easier by giving businesses a streamlined way to offer competitive health insurance benefits that comply with local regulations. Remote Global Benefits incorporates Kota's infrastructure and insurer network into the platform, allowing businesses to easily manage their employee health benefits across multiple countries. The solution allows HR teams to browse and select plans from local insurance providers, instantly enrol employees, and automate administrative tasks like tax reconciliation and payroll deductions.
Nov 22, 2024: Cover Genius and Entrupy, a cutting-edge AI-powered luxury authenticator, have formed a partnership to improve protection for high-end retail customers. The collaboration aims to integrate product protection directly into the luxury purchase journey, allowing buyers to protect their investments against a wide range of potential damages while streamlining the warranty coverage process. Buyers of authenticated items through Entrupy can now select integrated product protection from Cover Genius during the checkout process. The comprehensive coverage includes common problems like seam or zipper separation, rips, snags and broken handles or clasps. Customers can receive repair or replacement services through an authorised servicing network, making claims simple. The service was initially launched in the United States for luxury handbags, with plans to expand to other products and markets in the near future.
Nov 25, 2024: Coverdash, SMB-focused insurtech broker, and LendingTree, the nation's leading online financial marketplace, announced a partnership that will give LendingTree customers access to business insurance for the first time. This strategic collaboration broadens LendingTree's suite of financial products for small and medium-sized businesses (SMBs), making it easier and more efficient for them to obtain business insurance and meet their financial obligations. Coverdash's fully embedded insurance offering allows LendingTree customers to obtain business insurance without ever leaving the platform. This partnership is a significant step forward in LendingTree's evolution, expanding its services for small businesses beyond loans and financial products to include comprehensive insurance solutions. According to a Federal Reserve Bank study, businesses with lower risk profiles, including those that carry insurance, were 25% more likely to be approved for loans than higher-risk businesses. By incorporating Coverdash's business insurance offering, LendingTree not only improves its own platform but also enables small businesses to lower their risk profile, increasing their chances of obtaining a loan and supporting long-term growth.
Nov 29, 2024: Aviva, a leading InsurTech provider of life insurance and health-related products, will distribute its protection insurance products through NatWest Group as part of a five-year partnership. According to the Coverager, the collaboration will provide NatWest's retail and mortgage customers with access to Aviva's term life insurance, critical illness coverage, and guaranteed over-50s life insurance. This partnership aims to improve the customer experience by incorporating Aviva's insurance products into NatWest's digital banking platforms.
News Releases and Launches
Nov 04, 2024: Stere, Inc., a leading insurtech platform, and EPIC Insurance Brokers & Consultants (EPIC), a top-ranked property/casualty and employee benefits insurance broker, have formed a strategic alliance to offer small businesses a more streamlined, digital insurance experience. This collaboration combines Stere's proprietary API platform for embedded insurance with EPIC's expertise in risk management and insurance solutions to provide a comprehensive suite of insurance products tailored to the specific needs of small businesses. Stere and EPIC hope to improve the overall customer experience by incorporating insurance directly into the customer journey. The partnership will focus on providing a streamlined digital experience for small businesses, allowing them to easily quote, purchase, and manage their insurance policies online. Stere's innovative platform will streamline the entire insurance process, reducing friction and saving businesses significant time and resources.
Nov 05, 2024: Swiss Re has agreed to sell iptiQ's European P&C business to Allianz Direct, as part of its strategic withdrawal from iptiQ. Allianz Direct, Allianz Group's pan-European online insurer, will acquire the risk carrier based in Luxembourg (iptiQ EMEA P&C S.A.), over 100 employees currently working in Switzerland, Germany, Spain, the Netherlands, and Italy, as well as all distribution agreements. iptiQ is a digital insurer that collaborates with other insurers, brokers, banks, and consumer brands to provide innovative P&C, life, and health insurance products to end-customers (B2B2C). Earlier this year, Swiss Re announced its intention to exit iptiQ after concluding that, in a strategic context, it was not the best long-term owner of the business.
Nov 06, 2024: Novo AI has joined forces with discovermarket, a leading embedded insurance platform, to transform the future of digital insurance. This new partnership seeks to improve the efficiency and accessibility of embedded insurance offerings. This is a product that seamlessly integrates insurance products into the purchasing process of non-insurance items in real time, allowing consumers to receive protection while shopping. The insurance policies are tailored to their specific needs and are significantly less expensive than traditional offerings. With technological advancements, embedded insurance is making low-value items insurable at a lower cost, democratising the insurance landscape.
Nov 07, 2024: MIC Global, an embedded microinsurance provider, has partnered with insurtech company VOOM Insurance to provide reinsurance for ride-sharing businesses in the United States. The collaboration aims to revolutionise ride-sharing insurance by providing low-cost, usage-based coverage options. VOOM Insurance specialises in usage-based insurance offerings and provides customised solutions for new mobility markets in the United States. The collaboration between MIC Global and VOOM Insurance will help the latter improve its ability to cater to gig economy drivers with a product that is specifically tailored to their needs, providing protection and potential savings.
Nov 08, 2024: Sure, in collaboration with Checkout.com, is enhancing the digital experience for consumers seeking insurance products by improving payment performance. Sure will use this partnership to transform its digital payments strategy and help its Fortune 500 partners grow in the digital economy. As a rapidly growing insurtech company, Sure collaborates with brands and carriers to reduce the cost and complexity of launching digital insurance programs. Sure's mission is to digitally transform insurance purchasing and management, strengthening the relationship between disruptive providers and savvy consumers. As a result of its partnership with Checkout.com, Sure will be able to accept credit and debit card payments, as well as manage recurring monthly payments directly and on behalf of its customers.
Nov 18, 2024: Mercedes-Benz Insurance Services UK is launching a new digital platform for car insurance subscribers. Mercedes-Benz stated that the new technology will provide customers with a "fully flexible" experience, including a monthly rolling subscription policy with no penalties or transaction fees if they change car ownership or driving habits. Wrisk provides the platform, describing it as the only independent embedded insurance technology platform dedicated to the global automotive OEM sector. Existing Mercedes-Benz insurance customers are already migrating to the new platform. The company also announced that it will launch a five-day first cover offer for Mercedes-Benz and smart car customers at the point of purchase via the platform.
Nov 25, 2024: Embri, a leading embedded insurance platform, announced the expansion of its product line to include embedded bike and high-end tech insurance. These new additions build on Embri's existing embedded insurance solutions for luxury watches and high-value jewellery, making it easier than ever for retailers to launch insurance offerings to protect customers' valuable possessions at the point of purchase. Surprisingly, global data platform Statista discovered that the number of bicycle thefts in England and Wales was 66,960 in 2023/24, compared to 77,170 the previous reporting year. This increase emphasises the rising risk for high-value and high-tech items, where embedded insurance can provide immediate coverage and peace of mind. The addition of embedded bike and high-end tech insurance comes at a critical time, with the UK luxury market expected to exceed £20 billion by 2028. Many luxury items, such as watches and jewellery, are uninsured at the point of sale, making them especially vulnerable. Watchfinder & Co. recently revealed that a staggering £1.5 billion worth of luxury watches were stolen in the UK, underscoring the need for security that can be seamlessly integrated into the purchase experience.
Nov 28, 2024: Mayer has unlocked new revenue stream and increased customer trust. There has been an incredible momentum across all Mayer physical retail stores, thanks to Anycover. Mayer chose to collaborate with Anycover for several strategic reasons, such as omnichannel integration, increasing customer confidence and satisfaction, and zero-cost implementation. Since launching the extended warranty program, Mayer has seen a significant increase in online warranty attachment rates. Through this collaboration, Anycover has helped Mayer strengthen its commitment to customer satisfaction by providing strong product protection that meets the brand's high standards. This collaboration has not only increased customer trust but also strengthened brand loyalty.
Nov 30, 2024: SquareTrade, an Allstate Corporation subsidiary, has expanded its partnership with Reebelo, a marketplace for refurbished technology and sustainable lifestyle products. Canadian Reebelo customers can now protect their purchases with ReebeloCare, powered by Allstate Protection Plans.
Investments and Funding Rounds
Nov 20, 2024: Bolttech announced the closing of a USD50 million venture debt facility with HSBC. The facility will support Bolttech's future strategic growth initiatives, such as market expansion and the pursuit of opportunities to strengthen its technology and product capabilities while increasing operational flexibility. The multi-year bespoke credit facility is designed for flexible utilisation, allowing bolttech to capitalise on the rapidly expanding global embedded insurance market. HSBC is the transaction's sole lender.
Nov 21, 2024: Zopper, an insurtech startup, announced that it has raised $25 million in Series D funding led by Elevation Capital and Dharana Capital. Blume Ventures, an existing investor, participated in the round as well. Zopper, which is also backed by Creaegis, Bessemer Venture Partners, and ICICI Venture, will use the new funds to expand its digital technology infrastructure, specifically its insurance distribution platform. The company will also expand its data science, engineering, and Artificial Intelligence and Machine Learning (AI/ML) capabilities. The funds will also help the firm expand its current bancassurance offerings and improve its post-sales and servicing capabilities for Zopper's device and appliance protection businesses, according to a statement.
Nov 28, 2024: Zurich has made a strategic investment in Onsi to establish a long-term partnership in the employee benefits market. This investment enables Zurich to combine its extensive expertise, global presence, and diverse employee benefit offerings with Onsi's innovative platform capabilities. Together, they hope to shift employee benefits from traditional protection to a more personalised experience that meets the needs of a changing workforce. The collaboration will allow Zurich to implement a digital and human-first approach to employee benefits for its customers and partners. This will give the workforce access to tailored products and services that will enable them to improve their financial security and personal resilience.
Hand-picked embedded insurance insights and news which are worth reading
Asia leads in embedded insurance, expected to reach $170 billion by 2030…
#Embedded insurance #growth #billions #Asia
Asia is driving the adoption of embedded insurance, particularly in non-life sectors, with the market expected to reach $170 billion by 2030. As the world's population ages, wealth shifts to Generation X and retirees, creating opportunities for growth. Insurers are expected to meet the growing demand for retirement solutions, with the "silver" population expected to double by 2050. In Asia, innovations such as integrated digital services are boosting customer engagement, with China leading the way.
Forrester’s recently released research report Predictions 2025…
#Embedded insurance #forecast #2025
According to Forrester's recently released research report Predictions 2025: Insurance, insurers will continue to pass on higher costs associated with rising claims expenses to customers next year. Despite increased budgets, the continued demand for technology and product innovation will be ineffective. AI adoption will be subordinate to other business priorities. Insurers will increasingly rely on embedded and usage-based products to drive revenue growth and enhance customer experience.
Embedded Insurance: A Transformative Force…
#Embedded insurance #disruptor #transformative force
Embedded insurance has the potential to disrupt both insurance distribution and product, as well as help close the "protection gap"--the 50% of all economic losses that are not insured. Accenture defines embedded insurance as any insurance that can be purchased as part of the commercial transaction for another product or service. That covers a huge playing field. Embedded insurance is not new. Purchasing life insurance at the airport prior to flight departure was "version 1.0" of embedded—a model that proved to be extremely profitable. Another evolving embedded model is auto insurance sold at the point of sale alongside a car purchase or lease. Again, not a new concept, but one that has sparked renewed interest with recent insurer/car brand alliances. Such household purchases are significant life change events, with the opportunity to switch insurers, necessitating constant attention. The embedded insurance market is large and expanding. The embedded insurance market is expected to grow from $156.06 billion in gross written premiums in 2024 to more than $700 billion by 2029, at a 35% CAGR.
Open and Embedded Insurance White Papers
We have published six white papers in collaboration with ELEMENT, SAS, Fit2You, Sapiens, Wakam, and Generali.
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 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 their data.
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 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 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 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.
Reports by the Observatory
Our latest report, "Embedding Insurance in Digital Platforms and Marketplaces”. This report, developed in collaboration with Marsh and Sure, explores the growing importance of embedded insurance in the digital economy. It delves into how platforms and marketplaces can leverage innovative insurance solutions to mitigate risks, enhance customer trust, and fuel business growth. With case studies, market insights, and real-world examples, this report offers a strategic roadmap for businesses looking to capitalize on the emerging opportunities in the platform economy.
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.
ITC London x The Open and Embedded Insurance Observatory
We are delighted to collaborate with ITC London on January 27–28, 2025. If you are interested in attending, you can use the discount code OEIO10 to get 10% off ticket prices.
2025 London Plenary Meeting
The Open & Embedded Insurance Observatory will hold its first plenary meeting of 2025 on March 18 in London. More information will be shared in the following months.
The Open & Embedded Insurance Observatory is supported by: Admiral, Ageas, AXA, bolttech, CDL, Datafolio, Dai-Ichi Life International, Element, Embri, Epoq, EY, Fit2You, Generali, Guardrisk, Habit, HDI Embedded, Insurely, Jaguar Land Rover, L’Amie, Marsh, Meiji Yasuda, Metlife, Munich Re, Net Insurance, Otonomi, Quotall, Reale Mutua, SAS, Simply Business, Stripe, Sure, Swiss Re, Tokio Marine, Travelers, 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 Aashima Malik Research Analyst at the Observatory.