Monthly newsletter of Open and Embedded Insurance Observatory
Month of May 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 May 01 to May 31, 2024.
We hope you find these resources beneficial for your business.
Market Intelligence
Embedded Insurance Partnerships
May 28, 2024: International insurtech company bolttech has announced a partnership with HAVA.id, a leading B2B procurement firm in Indonesia. Through this collaboration, HAVA.id will integrate comprehensive device protection solutions into its procurement consultancy services, ensuring the safety of its clients' valuable technology inventory. Leveraging bolttech's expertise, HAVA.id will enhance its offerings for businesses ranging from small and medium-sized enterprises to large corporations. This partnership will provide access to a variety of tailored device protection plans, covering devices such as smartphones, tablets, and laptops against physical breakage or liquid damage. Additionally, the plans will include extended warranties, offering an extra 12 months of coverage beyond the manufacturer's warranty.
May 28, 2024: E-commerce retailer Beyond, the parent company of Bed Bath & Beyond, Overstock, and Zulily, has teamed up with Extend to provide customers with advanced shipping and product protection options. Extend Shipping Protection covers customers against loss, damage, and theft during delivery, while Extend Product Protection offers coverage for accidental damage and extends protection beyond the manufacturer's warranty. These services can now be added at checkout for online purchases on bedbathandbeyond.com. Extend will also soon be available to customers shopping on Overstock.com and Zulily.com, which Beyond acquired in March.
May 15, 2024: Vertical Insure, the embedded insurance provider for vertical SaaS platforms, has unveiled a new collaboration with Planning Pod, a top online software platform for event and venue management. This partnership targets the simplification of event planning by integrating embedded event liability insurance directly into the Planning Pod platform. With this alliance, Planning Pod users can seamlessly offer embedded event host liability insurance to their clients within the platform itself. This comprehensive policy caters to diverse event types, including weddings, receptions, business meetings, and parties, meeting the varied requirements of each event.
May 13, 2024: SunCar Technology Group, a leading innovator in cloud-based B2B auto services and e-insurance in China, has expanded its partnership with Beijing Houji Insurance Brokerage, a division of Xiaomi Corporation. This collaboration aims to revolutionize the insurance industry by deploying SunCar's intelligent insurance platform across 14 cities in China. By integrating advanced technology, including big data and AI, SunCar's platform seamlessly merges online and offline insurance services. This strategic alliance demonstrates SunCar's ability to scale and innovate within the insurance sector. Leveraging robust cloud infrastructure, the initiative enhances connections between insurance providers, intermediaries, and agents. SunCar's platform empowers users with innovative insurance solutions tailored to their needs, transforming the traditional insurance landscape. With this expanded partnership, SunCar and Beijing Houji are poised to drive significant advancements in the Chinese insurance market, catering to evolving customer demands and industry trends.
May 13, 2024: Sensible Weather, a leading provider of weather protection for travel and outdoor adventures, partners with Roamly, an API-enabled digital insurance platform, to introduce Weather Guarantees for travelers booking RVs through Outdoorsy. Known as "Roamly Weather by Sensible," this initiative ensures travelers' peace of mind by offering proactive reimbursements when weather disrupts their experiences. This collaboration, timed for unpredictable spring and summer conditions, integrates seamlessly into Outdoorsy's platform, allowing guests to safeguard their reservations with ease. Roamly, designed to enhance online marketplaces like Outdoorsy, introduces this innovative weather protection product alongside its suite of insurance offerings. With automated payouts triggered by weather conditions, travellers enjoy hassle-free reimbursement of up to 100% of their daily rate based on the forecast.
May 8, 2024: Through the exclusive partnership between METRO AG & ERGO Group AG for insuring technical devices, alongside the optional device protection available for purchase with items like washing machines or smartphones, METRO and ERGO have introduced a compulsory warranty extension for TV devices from Samsung & Hisense brands. This entails automatic insurance coverage upon purchase, known as embedded insurance, extending the legal warranty (2 years) by an additional 3 years, thus providing METRO customers with a total of 5 years of coverage. This achievement represents another crucial aspect of our collaboration, aiming to foster mutual growth. Distribution is limited to all participating METRO stores, exclusively catering to business owners.
May 7, 2024: GCash and Oona Insurance Philippines have forged a partnership to benefit Filipino travellers. Through this collaboration, Oona Insurance's innovative product, the Smart Flight Delay Insurance, will be accessible via the GCash app's GInsure Marketplace. This insurance offers travellers access to airport lounges if their flight is delayed by at least 60 minutes. Acquiring this coverage is hassle-free, as passengers can obtain it at least two hours before their scheduled flights with just a few taps on the GCash app. This new offering alleviates the discomfort of delayed flights for Filipino travellers, enhancing their travel experience with added convenience and reduced stress.
May 7, 2024: Flock, an insurtech company, has partnered with the Acorn Group to introduce a novel taxi fleet insurance product aimed at significantly boosting safety and reducing risks for clients. This joint effort targets medium and large taxi fleets, utilizing vehicle telemetry data to promote and reward safer driving practices. The intended market comprises public hire fleets, including both black cab and PCO (private hire) fleets. The collaboration emphasizes the use of real-time telemetry data to enhance driver safety and offer premium incentives for improved driving behaviour. This approach ultimately leads to a safer and more cost-effective fleet over time. Flock and Acorn will concentrate on public hire fleets, such as black cab fleets, as well as PHV (private hire) fleets. All customers will receive complimentary access to a comprehensive fleet safety dashboard, providing insights at both driver and trip levels, along with regular in-person safety assessments conducted by Flock.
May 2, 2024: GX Bank Berhad (GXBank), Zurich General Insurance Malaysia Berhad, and Zurich Life Insurance Malaysia Berhad have jointly announced a 10-year exclusive bancassurance tripartite partnership aimed at developing micro protection products for underserved Malaysians. Utilizing intuitive technology and data-driven insights, GXBank will identify customer pain points and collaborate with Zurich Malaysia to innovate digital insurance products that are straightforward, user-friendly, and cost-effective. The inaugural product, slated for introduction by GXBank and Zurich Malaysia in the third quarter of the year, seeks to safeguard underserved individuals from unauthorized transactions resulting from cybercrime and electronic scam messages.
May 2, 2024: Insurtech company bolttech, in collaboration with Taiwan electronics retailer TK3C, has introduced the BoKoo Plus Extended Warranty program in approximately 300 TK3C retail outlets. This marks TK3C's inaugural venture into offering such a program for smartphones and tablets. Available for newly purchased smartphones and tablets, the BoKoo Plus Extended Warranty program ensures added convenience with door-to-door (D2D) pick-up and delivery repair service during the specified warranty period. Moreover, it extends the warranty coverage by an additional 12 months, providing unlimited D2D service at no extra cost. With premiums starting as low as NT$690, the program also features a like-for-like replacement service, allowing customers to receive a new device as a replacement for their damaged one. Furthermore, all repaired and replaced devices are accompanied by a three-month warranty on the repaired product.
May 2, 2024: Arta partners with Chubb to launch embedded valuables insurance, expanding its consumer offerings beyond typical homeowners policies. The insurance, designed for high-value goods and collectibles sold through Arta's e-commerce platform, covers art, antiques, trading cards, luxury items, and jewellery. Underwritten by Chubb, the digital insurance can be purchased seamlessly at the point of sale. Arta, having safeguarded over $500 million in collectibles during transit, now extends protection against damage, theft, and loss post-delivery. Collectors can easily manage coverage for additional items in one place. This announcement accompanies Arta's growth, with new clients like Heritage Auctions and upcoming checkout products.
May 2, 2024: Igloo, Westwood Insurance Agency, specializing in personal lines insurance for the homebuilding sector, has announced a strategic collaboration with Landsea Homes, a publicly-traded residential homebuilder. Through this partnership, Landsea Homes will provide home insurance to customers via Landsea Insurance Agency, utilizing Westwood’s technology platform. This initiative improves the insurance purchasing process by integrating insurance options early in the home-buying journey. With expertise in securing insurance for new construction homes, Westwood collaborates with over half of the top 40 US homebuilders, covering 99 percent of the communities they build. Renowned for its efficiency, Westwood offers quick and straightforward home insurance experiences, with personalized quotes available within 24 hours and policies secured online within minutes of signing a contract.
New Releases and Launches
May 28, 2024: Embri, an innovative embedded insurtech platform, has launched ground breaking integrated insurance solutions tailored for the high-end luxury retail sector. Its platform aims to transform how luxury retailers provide insurance to their clients by integrating insurance offerings directly into the purchasing process, both online and in-store. This ensures customers receive immediate coverage at the point of purchase, eliminating the need to leave the store or their homes unprotected. Embri enhances customer experience while creating new revenue streams for retailers by providing seamless, relevant, and secure insurance solutions.
May 6, 2024: Wakam, a B2B2C insurance company, has received authorization from both the Financial Conduct Authority (FCA) and the Prudential Regulation Authority (PRA) to commence operations in the UK. This approval allows Wakam to function as a licensed and regulated insurer in the UK under its newly established subsidiary, Wakam UK Limited. The establishment of Wakam UK signifies the company's significant presence in Europe, particularly in deploying white-label insurance products via its B2B2C channels, targeting managing general agents (MGAs), embedded insurance, and insurtech solutions. The launch of Wakam UK underscores the company's commitment to the UK market, which generates an annual gross written premium of approximately GBP 500 million. These regulatory approvals empower Wakam to enhance its offerings for its existing customer base throughout the UK. It forms a key part of the company's broader strategy aimed at fortifying its technical infrastructure and streamlining processes to support future expansion and success.
May 2, 2024: Open, an embedded insurance partner, has launched a fresh travel insurance product featuring the 'smart flight delay' function. This feature automatically grants lounge passes to customers and up to four companions for flights delayed by over an hour. Additionally, the new offering integrates existing features from Open, such as the company's instant claims technology.
May 28, 2024: After launching Fair Car Insurance in Sweden last November, European telematics company ABAX is now extending its coverage to Norway. Fair uses "extensive analysis and data" to optimize "the most equitable insurance premiums" for company vehicle fleets. ABAX reports that its Norwegian customers have over 200,000 connected vehicles. Fair leverages predictive risk insights generated in collaboration with Greater Than. For insurance solutions, Fair has partnered with Eir, which offers embedded insurance for distributors.
May 25, 2024: The Verona water company has launched a new insurance policy to protect homeowners from hidden water leaks. This initiative aims to provide coverage for damages caused by undetected leaks, which are not typically covered by standard home insurance policies. The policy, offered in collaboration with an insurance company, covers the costs of repairs and damage caused by leaks in pipes, fixtures, or appliances within the home. It also includes coverage for damage to walls, floors, and other structures. Homeowners can opt for different coverage levels based on their needs and the size of their property, with premiums starting at €59 per year. This innovative insurance solution addresses a common issue faced by homeowners and offers peace of mind knowing that potential water damage is covered.
Investments and Funding Rounds
May 28, 2024: APOLLO, a Canadian digital insurance provider and leading innovator in the embedded finance sector, has announced the launch of FinShore, a wholly owned buy-now-pay-later subsidiary, following a CAD $18.5 million investment. FinShore offers a fully embedded monthly payment option to over 100,000 Canadians insured through APOLLO. This new service enables Canadians, especially renters, to utilize a buy-now-pay-later option for their insurance premiums. Additionally, FinShore will benefit APOLLO's network of insurance broker partners who use the APOLLO platform to conduct insurance transactions for their clients.
May 15, 2024: Cover Genius, a leading insurtech for embedded protection, announced an $80 million Series E funding round led by Spark Capital, with participation from Dawn Capital, King River Capital, and G Squared. Despite the tech funding slowdown, this follows a year of significant growth for Cover Genius and its global distribution platform, XCover. The new funds will accelerate growth and investment in advanced technology, including AI claims handling and expanded digital insurance distribution solutions. These enhancements will support partnerships and the development of innovative protection products like Cancel For Any Reason (CFAR), Delay Valet, and Protection Pocket.
May 7, 2024: Eleos secured €3.75 million in venture capital, led by Fuel Ventures and Indico Capital. Established in 2022, it's the UK's sole provider of fully digital life insurance and income protection. Eleos addresses industry gaps by emphasizing financial protection importance and delivering digital solutions. Through partnerships with financial brands, it simplifies consumer access to essential protections with its proprietary B2B2C solution. This enables seamless integration with no added costs, offering partners new revenue streams and enhanced customer retention under Eleos's FCA authorization. Current partners include Loqbox, CreditLadder, CreditSpring, and Updraft. Ancillary benefits like 24/7 remote GP service and cashback schemes augment customer attraction and retention, reflecting Eleos's commitment to added value.
Hand-picked embedded insurance insights and news which are worth reading
PwC Forecasts Embedded Insurance to Reach $35 Billion, Transforming Australia's Insurance Landscape by 2033…
#EmbeddedInsurance #Insurtech #DigitalTransformation #InsuranceInnovation #MarketForecast
According to PwC's forecast, embedded insurance is poised to reach $35 billion, constituting 18% of Australia's gross written premium (GWP) by 2033. Through data-sharing agreements within embedded insurance partnerships, insurers can provide tailored products and streamline claims processes. Moreover, businesses can leverage the association with non-insurance brands for added value. Integration into loyalty or membership programs through subscription payment models offers insurers additional avenues for reaching customers. Over the forecast period, the segment is anticipated to experience a compound annual growth rate of 34%, in stark contrast to the expected 4% growth rate for traditional insurance channels. Furthermore, projections indicate that embedded finance could constitute A$35.3 billion, or 18% of Australia's total insurance market valued at A$210 billion in Gross Written Premiums (GWP) by 2033, marking a remarkable 1,370% increase from the estimated A$2.4 billion in GWP in 2024.
Global Insurtech Funding Hits Four-Year Low in Q1 2024 Despite Surge in Early-Stage Investments…
#InsurtechFunding #StartupGrowth #InvestmentTrends #EarlyStageFunding #TechFinance
Global insurtech funding fell to $912.25 million in the first quarter of 2024, reaching its lowest point since Q1 2020, according to a report by Gallagher Re. Although the number of deals increased slightly from 100 in Q4 to 107 in Q1, the overall funding decline was primarily due to the lack of deals exceeding $100 million for the first time since Q3 2017. Despite the overall decline, early-stage insurtech funding rose by 26.5% in Q1 compared to Q4 2023, defying the broader trend. In contrast, life and health (L&H) insurtech funding saw a slight decrease of 4.7%, dropping to $306.67 million.
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
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 their data.
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.
Highlights from Our Recent Events in Singapore
Last week, we had the pleasure of hosting our first Asia plenary meeting and a workshop in the vibrant Singapore, both focusing on embedded insurance. We're thrilled to share that both events were a resounding success!
Our Plenary Meeting brought together industry leaders and experts, fostering engaging discussions and providing valuable insights into the future of embedded insurance. The collaborative atmosphere was palpable, with participants exchanging ideas and exploring innovative solutions. The format encouraged networking, and many meaningful connections were made. A huge thank you to ZA Tech for their invaluable support in organizing the Plenary Meeting.
The day after we co-organized, with the support of ITC Asia, a workshop offering hands-on sessions that allowed attendees to dive deep into practical applications and strategies. A final Q&A session encouraged interactions with the attendees, which let us further explore the topic.
We are grateful to everyone who attended and contributed to these events.
Check out the highlights captured in these photos below!
Stay tuned for more updates and future events!
The Open & Embedded Insurance Observatory is supported by: Abi, Admiral, Ageas, bolttech, CDL, Datafolio, Dai-Ichi Life International, Element, Epoq, Fit2You, EY, Generali, Habit, HDI Embedded, Insurely, Marsh, Meiji Yasuda, Metlife, Munich Re, Net Insurance, Open, Otonomi, Quotall, Reale Mutua, SAS, 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 Chi Tran Research Analyst at the Observatory.