Monthly newsletter of Open and Embedded Insurance Observatory
Month of January 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 December 01 to December 31, 2023.
We hope you find these resources beneficial for your business.
Market Intelligence
Embedded Insurance Partnerships
Dec 01, 2023: Assurant, a leading global business services company that supports, protects, and connects major consumer purchases, announced a partnership with manufactured housing lending disruptor Zippy, making it the preferred insurance provider available on the Zippy platform. Zippy's digital loan platform, which went live in 2022, combines the power of technology and intuitive online design with banking best practices and unrivalled customer service to close loans in as little as five days. Assurant's streamlined quote process and system integration capabilities make it an obvious choice for buyers financing the purchase of a new or pre-owned manufactured home via the Zippy platform.
Dec 04, 2023: Duuo by Co-operators announced the launch of their first event insurance API integration with Univerus Sport & Recreation, a booking software platform owned by Univerus Inc. This partnership will allow Canadians to book recreational facilities and secure event insurance all through the Univerus Rec platform. The benefits of this integration also apply to facilities that use the Univerus Rec platform. They will be automatically added as an additional insured to purchased policies, ensuring that they receive confirmation of insurance as soon as their facility is booked. This partnership, which is now officially available as an add-on service for all Univerus Rec platform clients, combines Co-operators' over 75 years of insurance expertise with best-in-class technology to improve how users interact with the Univerus platform.
Dec 05, 2023: Mylo, the leading insurtech company, and Abenity, a leading perks and rewards platform for employer groups, associations, and affinity groups, have announced a new partnership to integrate Mylo's guided insurance shopping experience into the Abenity platform. This will allow Abenity's value-conscious members to find the best combination of coverage and price from leading insurance carriers for auto, home, renters, small group benefits, life, and health insurance. Mylo will offer guided insurance shopping to Abenity's four million customers, who are currently looking for the best value in products and services such as restaurants, entertainment, car rentals, fitness centres, childcare facilities, hotels, and more. According to BrightPlan's 2022 Wellness Barometer Survey, 54% of employees say financial wellness is their most desired benefit. To prioritise employee retention and attraction in 2024, many businesses are upgrading their employee rewards, including insurance options.
Dec 06, 2023: Cover Genius, the leading insurtech for embedded protection, and Catawiki, the leading online marketplace for special objects, have formed an exclusive partnership to safeguard the shipping of special objects. Cover Genius will provide embedded protection to Catawiki sellers directly within the online shipping process for both domestic and international shipments as part of this partnership. “Insuring collectibles or rare objects during shipment has been difficult and dependent on policies that differ widely from carrier to carrier, but together we have been able to make it a reality,” said Barney Pierce, interim Chief Business Officer, EMEA and APAC, at Cover Genius. “We are excited to be Catawiki’s insurtech partner and offer sellers peace of mind as they ship their, often, emotionally-charged special objects to their buyers – wherever they are.”
Dec 07, 2023: Cover Genius announced a partnership with Via.com, a fast-growing online travel company with a strong presence in India and Southeast Asia (SEA), to provide travellers with 'Cancel For Any Reason' (CFAR) protection. Via.com will introduce embedded CFAR travel protection in Indonesia through an integration with Cover Genius' award-winning global distribution platform, XCover. Momentive.ai research, commissioned by Cover Genius, found that consumers want convenient embedded protection offers, and 75% of Indonesian travellers prefer to buy travel insurance from their travel provider for their next trip. As a result, this collaboration with Via.com will provide CFAR protection to travellers at the price point they prefer, with benefits tailored to their needs.
Dec 07, 2023: ACKO General Insurance and PhonePe have partnered to offer a variety of inclusive car and bike insurance products directly to users via the PhonePe platform. This strategic partnership brings together ACKO's customer-centric approach and PhonePe's extensive distribution network, ensuring that insurance is a readily available financial option for PhonePe users. Furthermore, this partnership will see ACKO expand its product offerings to include health insurance and other lines in the coming years. ACKO's integration with PhonePe is facilitated by the cutting-edge partnership API stack, which is designed for modularity and smooth integration. This API stack is designed to enable quick and efficient collaborations with online distributors, ensuring that ACKO's personalised pricing, innovative SKUs, and consistent user experience are seamlessly delivered to all partners, with PhonePe being the first to benefit.
Dec 12, 2023: Upfort, a cyber security and insurance provider, has partnered with Arch Insurance. As part of the partnership, Upfort and Arch will collaborate with brokers to create group programmes that prioritise "broad insurance coverage, competitive pricing, embedded security solutions, and a seamless digital experience." The collaboration will concentrate on providing security tools to help cyber insurance programmes remain viable. The collaboration is expected to help insurance agents and brokers promote overall cyber resilience. “We’re excited to join forces with Arch Insurance to revolutionize how cyber insurance is bought and sold. By integrating our technology with Arch’s industry-leading insurance solutions, we’re accelerating the world’s journey toward cyber resilience. We are proud to be the partner of choice for Arch to expand its cyber offering.” – Josh Riley, managing director of Upfort.
Dec 12, 2023: Otonomi, announced a strategic partnership with Zuru LatAm, a digital platform in Latin America that allows users to quote and contract for shipping insurance online. Zuru provides SMEs, logistics operators, and goods exporters with digitised cargo insurance coverage workflows and modern user interfaces. The partnership provides access to offshore delay policies underwritten by international underwriters through Otonomi's US-MGA programme. By collaborating, Otonomi and Zuru Latam hope to provide clients with comprehensive, easy-to-access, embedded parametric insurance options for international cargo operations.
Dec 12, 2023: Aer Lingus, an Irish flag carrier and member of the International Airlines Group (IAG), and Allianz Partners, a leading company in B2B2C insurance and travel solutions, have extended their partnership until March 2027 in 12 European and US markets. The partnership was originally started in March 2023. Aer Lingus will provide multi-risk travel insurance solutions from Allianz Partners to customers in twelve partnership markets across Europe and the United States, ensuring protection for all destinations. Benefits include trip cancellation, delay and interruption coverage, missed connections, medical benefits abroad, and baggage protection. Allianz Partners provides a 24/7 travel assistance hotline for insured customers.
Dec 13, 2023: Qover, which specialises in embedded insurance orchestration, has announced a partnership with luxury EV brand ZEEKR. This collaboration launches a tailored insurance programme for ZEEKR customers, beginning in the Netherlands. Customers can easily choose the level of coverage they need from three different insurance packages: Essential, Advanced, and Ultimate. The offering, which was first introduced in the Netherlands, is seamlessly integrated into the customer journey and demonstrates ZEEKR's commitment to providing peace of mind to its first European customers, who will receive their EV by the end of 2023.
Dec 14, 2023: Inntopia announced a partnership with Spot Insurance, an embedded insurance provider for active and travel businesses. Through this integration, resorts that use Inntopia Commerce to sell lodging, tickets, and activities will be able to offer Spot's products during the shopping and checkout processes. These products will make it easy for resort guests to add Spot insurance to their bookings, providing financial security in the event of an injury, trip cancellation, or date changes. This collaboration between Spot Insurance and Inntopia allows resorts to offer Spot's full suite of products to guests without requiring complex technology integrations.
New Releases and Launches
Dec 07, 2023: APOLLO Insurance, a Canadian digital insurance provider and a pioneer in the emerging embedded finance sector, announced that it has surpassed 1,000 embedded integrations. In 2019, APOLLO launched its digital platform, which began offering fully digital insurance products to Canadian consumers. Since then, APOLLO has worked with property management companies, proptechs, insurance brokers, and other organisations to integrate insurance into their existing workflows. For property managers, the insurance purchasing process is integrated directly into the leasing workflow.
Dec 13, 2023: Singlife, a Singaporean financial services company, has launched the second edition of its in-house accelerator programme, Singlife Connect. The accelerator's mission is to support and foster the growth of promising insurtech and emerging ecosystem companies. Singlife Connect 2.0 intends to fund up to ten startups, with a focus on co-creating and launching innovative embedded insurance solutions. Singlife Connect 2.0 builds on the success of its first edition, with plans to expand and launch co-curated and innovative solutions with participating startups.
Dec 18, 2023: The Green Insurer, a car insurance company dedicated to reducing drivers' environmental impact, has launched a new car insurance product "that rewards customers for driving responsibly." The Green Insurer calculates "a driver's carbon footprint by analysing driving data and fusing it with information about their vehicle." Cambridge Mobile Telematics (CMT) powers "the service with driving data captured from smartphone sensors, which is transformed into driving and sustainability insights using artificial intelligence." Drivers can assess the environmental impact of "every trip they take."
Dec 20, 2023: Conad, the large-scale retail operator has announced the launch of insurance services as part of the HeyConad digital ecosystem. Large-scale retail operators, in addition to telecommunications companies, are preparing to enter the insurance market. This is the case with Conad, which announced the gradual implementation of new services within the HeyConad digital ecosystem during the presentation of preliminary figures for 2023. In addition to online shopping and travel, culture, and leisure offerings, services for pet care, financial and insurance, and mobility will be added in 2024. The new services will be supported by a nearly two-billion-euro investment plan over three years, from 2023 to 2025.
Dec 20, 2023: JULO, a leading Indonesian peer-to-peer financial technology company, launched JULO Cares on December 15th, 2023, a first-of-its-kind insurance cover embedded within the core JULO digital credit solution. This benefit, launched as part of the JULO Cares platform, provides users with ongoing device protection when they use JULO digital credit. According to the Indonesia Financial Services Authority, the general insurance penetration rate in Indonesia is low at 2.75%, and the Indonesian government hopes to raise it to 3.2% by 2027. The primary reasons for low penetration are a lack of literacy and the affordability of insurance premiums.
Dec 22, 2023: Sumitomo Life Insurance Company (Sumitomo Life) has agreed to acquire all of TPG's shares in Singapore digital insurer Singlife, which currently owns about 35% of the insurtech firm. Sumitomo Life intends to expand its investment by extending offers to purchase shares from Singlife's remaining shareholders. If these offers are fully accepted, Sumitomo Life will own 100% of Singlife, valuing the company at S$4.6 billion. This valuation places the transaction among the largest insurance deals in Southeast Asia.
Investments and Funding Rounds
Dec 04, 2023: Igloo, an insurtech company, has closed a Pre-Series C funding round worth $36 million. The global investment firm Eurazeo, through its insurtech fund backed by the insurer BNP Paribas Cardif, led the investment. The company's valuation has increased by 50 percent as it gains significant business momentum in 2023 and approaches profitability in 2024.
Dec 13, 2023: Guardz, a cybersecurity innovator known for its distinct approach to protecting small businesses, has raised $18 million in a Series A funding round. The round was led by Glilot+, Glilot Capital Partners' early growth fund, with participation from existing investors Hanaco Ventures, iAngels, and GKFF Ventures. They were joined by new investors, ClearSky. This achievement follows Guardz's initial $10 million seed funding, bringing their total funding to date to $28 million.
Hand-picked embedded insurance insights and news which are worth reading
Benefits and Gains of embedded insurance in 2024…
#Embedded insurance #benefits
According to Statista, 45% of respondents felt comfortable taking out an insurance policy from a non-insurance company when making a large purchase. With this, there is a growing trend of purchasing insurance as part of a commercial transaction for another product, which is commonly referred to as embedded insurance. Retail, healthcare, and real estate industries have all successfully integrated external insurance products into their own proprietary services using Open APIs, which are publicly available code designed to facilitate communication between software applications. Insurance operates in a competitive environment. Only companies that can adapt to change will survive. With embedded insurance opening up new worlds of opportunity, it is time for established insurance companies to break with tradition, embrace technology, and evolve their offerings. Customization, Customer Retention, Portfolio diversification, Market expansion, Limiting risk are the five benefits of implementing an embedded insurance model in 2024.
Embedded insurance: Some steps that carriers can take to ensure success in converting consumer interest into sales…
#Embedded insurance #carriers #success #sales
Improve the customer journey and user experience throughout all touchpoints.
Use digital marketing strategies to successfully target and attract potential customers.
Invest in data analytics and AI-powered solutions to provide personalised offerings while streamlining the quoting and purchasing processes.
To increase reach and engagement, take a multi-channel approach. Make sure your customer service team is prepared to answer any questions or concerns from prospective customers.
Invest in personalised experiences throughout the customer journey, including marketing automation, web analytics, and email marketing.
Create a successful customer experience strategy that not only increases sales but also fosters loyalty and brand advocacy.
Create a customer-centric culture by empowering your team to provide exceptional service at all touchpoints. Implement omnichannel capabilities to ensure consistent messaging across all platforms
Several distinct challenges that InsurTech and embedded insurance companies encounter when operating in developing regions of the insurance sector…
#Embedded insurance #Insurtech #challenges
Financial Literacy: Many people lack basic insurance knowledge; InsurTechs must educate to build trust
Infrastructure gaps: InsurTech outreach and service delivery are hampered by a lack of reliable internet and mobile network connectivity.
Regulatory Complexity: As regulations evolve and become more complex, InsurTech operations must maintain compliance awareness.
Cultural Sensitivity: InsurTechs must tailor their products to meet local needs and preferences while respecting cultural differences.
2023 Open and Embedded Insurance White Papers
In 2023, we published five white papers in collaboration with Generali, Wakam, Sapiens, Fit2You and SAS.
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.
Plenary meeting London 2024
We are delighted to announce our first 2024 plenary meeting, that will take place in London on the 19th of March. Our partner for this plenary meeting is Amazon Web Services. A snippet of the companies speaking: AWS, Superscript, Open, Qover, Wefox, Wolt, FinTLV, Wakam, Generali, WillisTowersWatson, Net Insurance. This is an opportunity for the industry to gather in person, network, and take part in a series of keynote speeches and panel discussions on the most relevant topics of the embedded and open insurance domains.
Register your interest here ⇩
The Open & Embedded Insurance Observatory is supported by: ABI Global Health, Admiral, Ageas, AWS, baoba, bolttech, Chubb, Companjon, Element, Fit2You, Gallagher, Generali, Hiscox, Insurely, Intesa Sanpaolo Vita, L’AMIE, Meiji Yasuda, MetLife, Mia Platform, Munich Re, Net Insurance, Open, Otonomi, Pattern, Qover, Reale Mutua, SAS, Superscript, Swiss Re, Wakam, Wefox, WillisTowersWatson, Yolo, ZA Tech, Zurich.
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.
Excellent overview of deals and white papers in the rapidly expanding field of embedded insurance. Nicely done.