Monthly newsletter of Open and Embedded Insurance Observatory
Month of October 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 October 01- October 31, 2024.
We hope you find these resources beneficial for your business.
Market Intelligence
Embedded Insurance Partnerships
Oct 02, 2024: Vertical Insure, an embedded insurance startup, has partnered with Kasa Living, a hotel and apartment management platform. The partnership incorporates travel insurance directly into Kasa's booking system, offering guests built-in trip protection. Kasa, founded in 2016, collaborates with real estate owners to convert multifamily units and boutique hotels into managed accommodations. Kasa owns and operates over 80 properties in over 40 cities, with backing from institutions such as Starwood Capital and Brookfield. The team includes professionals with backgrounds in real estate, hospitality, and technology from companies such as Apollo, Airbnb, and Goldman Sachs.
Oct 15, 2024: APOLLO Insurance, a Canadian digital insurance provider and market leader in embedded insurance solutions, has partnered with RentFund, a proptech company that provides renters with an innovative and accessible path to home ownership. Since its launch in 2019, APOLLO has transformed the digital insurance landscape by providing fully online insurance solutions that integrate seamlessly into daily workflows. With this new partnership, APOLLO expands its offerings for Canadian renters, providing an additional path to financial security and home ownership.
Oct 22, 2024: Tune Protect, in collaboration with bolttech, has launched AirAsia Travel Insurance for Hong Kong customers flying with AirAsia Berhad. The insurance is available for purchase on AirAsia's website, app, or Tune Protect AirAsia website, with two options: the Lite Comprehensive Plan and the Plus Comprehensive Plan. Both plans include coverage for personal injuries, trip cancellations, baggage, and flight delays, as well as 24-hour global travel assistance. One standout feature of the insurance is the On-Time Guarantee, which provides a payout if customers are delayed by at least two hours from their original or rescheduled departure time. This launch is part of Tune Protect's broader regional expansion strategy, with the collaboration with bolttech aimed at meeting the changing needs of Hong Kong travellers.
Oct 28, 2024: VSure Tech Sdn Bhd (VSure), one of Malaysia's leading fintech companies, has recently signed a collaboration agreement with Coded Solution, a Hong Kong-based IT services and solutions company, to improve protection solutions using innovative Insurtech and Web3 technologies. The partnership intends to incorporate on-demand and embedded insurance solutions into new and existing partner platforms throughout the region, potentially reaching over 100 million users. It will also work on developing a digital asset protection solution in collaboration with V Systems' Web3 Digital Asset Custodian Platform, which is specifically designed for financial and corporate clients.
Oct 28, 2024: Open Insurance, a leading provider of embedded insurance solutions, is pleased to announce a partnership with CUPRA Australia, the Spanish-based performance subsidiary of Volkswagen Group Australia, to provide a fully integrated car insurance experience to CUPRA clients across the country. The groundbreaking collaboration combines CUPRA's commitment to providing a new digital-led car-buying experience with Open Insurance's expertise in embedded insurance. The partnership aims to transform the way CUPRA customers protect their vehicles by seamlessly incorporating personalised, competitive car insurance options into the CUPRA Australia purchasing process.
Oct 29, 2024: Addept Insurance Services has announced an exclusive distribution agreement with Title Guardian, a digital property and identity monitoring tool that protects landlords from fraud. According to the partnership, Addept will include Title Guardian in its portfolio of landlord ancillary insurance products. Title Guardian provides 24-hour monitoring using a combination of online and offline data sources, alerting landlords when their registered property is listed for sale, rented, mortgaged, registered against a company, or any title changes are filed with HM Land Registry.
New Releases and Launches
Oct 02, 2024: XN Worldwide Insurance, a leading MGA specialising in international mobility in Canada and a subsidiary of the France-based Henner Group, has chosen CoverGo, the leading global next-gen insurance platform for health, life, and property and casualty, to launch a groundbreaking greenfield health insurance IPMI (International Private Medical Insurance) MGA focused on international markets in Europe, Asia, and Africa. By implementing CoverGo's end-to-end core health insurance platform in 8 months, XN will be able to quickly establish a market presence while operating fully digitally and efficiently. This strategic move is expected to reduce time-to-market, increase conversion rates, provide a superior customer experience, and drive portfolio profitability, all while lowering operational costs.
Oct 07, 2024: Lockton, the world's largest privately owned insurance broking, has announced the launch of Lockton Pulse, a groundbreaking digital insurance offering for Australian SMEs and individuals. The moves are in response to an increasing demand for faster, more convenient insurance services tailored to small businesses and individuals. As traditional insurance systems struggle with antiquated processes, Lockton seeks to provide a more agile solution that addresses changing risks and customer demands. Customers can now easily obtain quotes and purchase insurance online from anywhere. It uses Kanopi's market-leading InsurTech technology to provide a simple, user-friendly risk management process.
Oct 08, 2024: MoneyHero Limited, a leading personal finance and digital insurance broking platform in Greater Southeast Asia, has announced the launch of a new car insurance platform through a strategic partnership with bolttech, a global leader in insurtech. This collaboration will improve MoneyHero's consumer experience for car insurance by incorporating bolttech's cutting-edge insurance exchange technology into the MoneyHero platform. The enhanced marketplace is now operational in Hong Kong, with rollouts planned for Singapore in Q4 2024 and the Philippines by the end of Q1 2025. MoneyHero's position as a regional digital insurance leader is strengthened by this strategic partnership, which combines its expertise in financial product comparison and conversion optimisation with bolttech's innovative insurance capabilities. The new car insurance platform will provide consumers with improved insights, expanded options, and a more seamless purchasing experience, setting a new standard for the industry.
Oct 08, 2024: Polly, the leading embedded insurance marketplace, has announced a strategic partnership with TruStage, a financially strong insurance, investment, and technology provider with over 85 years of experience serving over 3,500 credit unions and their members in the United States. Polly's advanced insurance platform and carrier partnerships will enable members to obtain instant online quotes, compare insurance options from available carriers, and select the best carrier for their needs and budgets, all made possible by Polly's technology and award-winning insurance agents. Members can interact with live insurance agents or use a completely digital quoting process, providing flexibility and accessibility.
Oct 10, 2024: Grye has led efforts for four years to encourage collaboration on insurance innovation and InsurTech across the continent's ecosystem players. Grye is now excited to announce the launch of the IBS Insurance Innovation Roundtable in partnership with MyCover.ai, Nigeria's leading InsurTech company driving embedded insurance offerings across multiple sectors. The IBS Roundtable is an exclusive quarterly event that brings together key players in Africa's insurance ecosystem, including InsurTech pioneers, insurers, reinsurers, brokers, investors, and regulators. This gathering aims to foster critical discussions on emerging trends, exchange valuable insights, and collaborate on forward-thinking solutions to accelerate insurance penetration and promote financial inclusion in Africa, with a particular emphasis on Nigeria. This platform will allow stakeholders to explore ways to drive innovation and improve the industry's impact on underserved communities.
Oct 15, 2024: Tint, a leading embedded insurance platform, has announced transformative growth in three core verticals: mobility, home-sharing, and transportation and logistics, by providing relevant embedded insurance options that meet market demand. Tint is a pioneer in embedded insurance and protection, having collaborated with world-class startups such as Deel, uShip, and Neighbour over the last six years to protect hundreds of thousands of customers and generate tens of millions of dollars in premiums.
Oct 29, 2024: Openkoda has announced the release of Openkoda 2.0, an open-source enterprise platform for developing modern insurance applications powered by Generative AI and pre-built application templates to speed up the adoption of new insurance products and distribution channels. Openkoda 2.0 includes new application templates for embedded insurance, risk assessment, and policy/claims management solutions. The new Reporting AI feature allows decision makers to extract actionable insights from their business data using natural language. This eliminates the need for additional reporting tools and manual database queries.
Oct 29, 2024: Best Insurance customers can now purchase insurance through WhatsApp thanks to the launch of a new AI-powered service. This innovative new offering enables customers to manage their insurance journey at their own pace, with no pressure or long phone calls. Users can receive quotes, ask questions, and complete their purchases all within WhatsApp. ASU (Accident, Sickness, Unemployment) insurance will be the first product available through WhatsApp, with plans to expand to other lines such as life and critical illness insurance, as well as general insurance products like pet and gadget insurance.
Oct 30, 2024: Bindable, the InsurTech leader in alternative distribution technology and services, has launched an exclusive offering for businesses and individuals seeking a simple point of entry into property and casualty (P&C) insurance sales. Credit unions and banks, fintechs, wealth management firms, lenders and servicers, home ecosystems, auto dealerships, life and health insurance brokers, former captive agents, and even individual entrepreneurs can now offer protection products directly to consumers thanks to Bindable's flexible approach to white-label embedded insurance programs. According to Bindable's data, starting a new insurance agency from scratch can cost up to 2.3 times more. Bindable's ready-made virtual agency solution enables the quick launch of an expertly guided insurance program, providing the necessary infrastructure and tools for accelerated success. By partnering with Bindable, businesses can avoid common barriers to starting a new P&C agency while also benefiting from a flexible revenue source that drives customer acquisition, increases retention, and provides a significant competitive advantage.
Oct 30, 2024: bolt announced a collaboration with Salesforce to launch bolt for Salesforce on Salesforce AppExchange, the premier enterprise marketplace for partner apps and experts. The collaboration seeks to automate and streamline the time-consuming insurance quoting process, allowing brokers, agents, and account managers to provide more personalised client experiences. The integration enables FSC customers to quickly compare insurance quotes from multiple carriers, assisting agents, brokers, and account managers in identifying the insurance policies that best suit their clients' needs. FSC customers can instantly access a wide range of products from bolt's platform, including standard, speciality, and non-standard carriers, providing them with more options, tailored insurance solutions, and faster, more accurate quotes—all from a single location.
Investments and Funding Rounds
Oct 01, 2024: Rey, an Indonesian insurtech startup, has secured an additional $3.5 million in seed funding from new investors CyberAgent Capital, Arthazen Capital, and PT Gametraco Tunggal. The company plans to use the new funds to transform health protection into an end-to-end health service model. The vision will be realised by launching health memberships for individuals and groups that provide comprehensive health solutions in a single subscription, according to the company's statement.
Oct 15, 2024: France's first cyber insurtech firm Stoïk has secured €25 million in Series B funding. The round was led by French venture capital firm Alven (which recently backed Kestra and Supercede), with existing investors including Andreessen Horowitz, Munich Re Ventures, Opera Tech Ventures, and Anthemis. The latest round follows the €10 million funding raised last year and the €11 million investment made in 2022.
Oct 16, 2024: INSHUR, the multi-award-winning global embedded insurance provider for the on-demand economy, has raised US $19 million in its most recent funding round to Scale Operations Across the US and Build Global Momentum. Viola Growth led the round, with participation from MS&AD Ventures and existing investors. It brings INSHUR's total funding to USD $78.5 million, a significant achievement in an era when global technology investment is increasingly focused on strategic growth, profitability, and strong market positioning. Natalie Refuah, General Partner at Viola Growth, will also join INSHUR's board of directors as Chairperson, bringing extensive experience assisting visionary founders and entrepreneurs in building and scaling significant global category leaders.
Oct 25, 2024: Inspectify, a Seattle-based property inspection and underwriting platform, raised $5.26 million in a round led by Munich Re Ventures. According to InsurTech Insights, this recent capital injection has made Munich Re Ventures the largest external shareholder in Inspectify, with its managing director, Matt McElhattan, joining the board of directors. Previous partner Hartford Steam Boiler provided additional support, highlighting Inspectify's strong industry partnerships. The newly raised funds will be used to further develop Inspectify's proprietary software, expand its offerings, and reach out to new clients via Hartford Steam Boiler. One of its most recent additions, an Inspection Warranty, is particularly noteworthy because it is the first embedded warranty service in property inspections, providing homeowners with added security and assurance regarding property assessments.
Hand-picked embedded insurance insights and news which are worth reading
By 2029, the embedded insurance industry is projected to be worth over $700 billion…
#Embedded insurance #growth #billions
In terms of gross written premiums, the Embedded Insurance Market is expected to grow from USD 156.06 billion in 2024 to USD 703.44 billion by 2029, at a CAGR of 35.14% over the forecast period. Companies such as Lemonade, Metromile, Slice, Hippo, and Root Insurance dominate the competitive landscape. This report also discusses embedded insurance market trends, how rising life insurance premiums are driving the market, and how the embedded insurance market is expanding in Asia.
Q3 Polly Embedded Auto Insurance Report: Rates Stabilise in 2024…
#Embedded insurance #auto insurance
Polly, the leading embedded auto insurance platform, has released the Q3 2024 Embedded Auto Insurance Report. The findings show that after several years of rapid rate increases, auto insurance rates levelled off in 2024. This price stability is both good news for consumers and a business opportunity for dealerships. An analysis of over 400,000 insurance quotes revealed that the average monthly insurance quote in Q3 of this year was $199, 0.4% lower than the previous quarter, indicating a stabilisation in the rise of insurance premiums. While insurance costs remain historically high, the plateau provides some relief for consumers. The report also states that dealerships that provided embedded insurance quotes saw an average of 18% higher back-end gross profits than those that did not in Q3. This represents a significant untapped revenue opportunity for auto dealerships, as back-end gross now accounts for 59% of total vehicle sales gross profit.
Duuo by Co‑operators launches embedded insurance report: new growth opportunities for Canadian brands…
#Embedded insurance #opportunities #Canada
This new study delves into the concept of embedded insurance and demonstrates how non-insurance brands can get involved. Key findings throughout the report demonstrate that embedded insurance has the potential to open up new growth channels for Canadian brands that incorporate insurance into their overall value proposition. The report, which focusses on the home and auto industries, investigates Canadians' rising expectations of their favourite brands, including their desire for additional rewards and services. It also demonstrates Canadians' willingness to try new insurance options from trusted brands. Whether an organisation develops its own insurance brand or uses the brand of an insurance partner, the report emphasises that Canadians must be confident that they will be supported.
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, bolttech, CDL, Datafolio, Dai-Ichi Life International, Element, Embri, Epoq, EY, Fit2You, Generali, Guardrisk, Habit, HDI Embedded, Insurely, L’Amie, Marsh, Meiji Yasuda, Metlife, Munich Re, Net Insurance, Otonomi, Quotall, Reale Mutua, SAS, Simply Business, 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.