RPC Insurtech in brief - November 2022
Welcome to the November 2022 edition of Insurtech in Brief - a selection of the latest insurtech news and developments from across the globe.Amazon Partners with Ageas, Co-op and LV=
Amazon has partnered with Ageas, Co-op and LV= launching the Amazon Insurance Store offering home and contents insurance to select UK customers.
The online store allows customers to compare quotes and purchase insurance directly without leaving Amazon's website. Customers can rate the providers' policies and view key metrics such as claims acceptance rates.
Amazon is in discussions with other insurers in the UK market and is looking to add more insurance companies to the store in early 2023.
Whilst a price comparison site is not a new innovation, the entry of a tech and retail giant into the UK insurance market in this way is a very significant development.
The launch coincides with an announcement by the FCA that it will be conducting a review of the impact of 'big tech' on the financial services industry. One of its main concerns is the implications for competition in the financial markets. However, the regulator noted the growing presence of 'big tech' in financial services can have positive effects on innovation and pricing.
Tokio Marine Backs Bolttech
Bolttech commenced its series B funding round led by Japanese insurance firm Tokio Marine which is set to invest $50 million into the insurtech. The investment will take Bolttech's valuation to $1.5 billion.
The series B investment follows an impressive series A fundraising from Bolttech in July 2021 where it raised $180 million in the largest series A investment round on record. We reported on this in our July 2021 edition of Insurtech in Brief.
Bolttech is a global insurance exchange. Its embedded insurance platform connects insurers, distributors and customers to make it easier to buy and sell insurance and protection products.
The proceeds will be used to fund the further global expansion of Bolttech. The partnership with Tokio Marine as a strategic investor will increase the insurtech’s distribution strength, product innovation, and balance-sheet capacity.
The deal demonstrates that investors will continue to back insurtech companies with resilient business models and innovative technology despite difficult investment conditions insurtechs and the tech industry in general is facing.
YuLife Announces US Launch
Life insurer YuLife continues to attract investment and has launched in the United States after completing several rounds of funding.
We have reported on YuLife's impressive growth in our July 2022 edition of Insurtech in Brief. Its topical proposition (which allows customers to use the company's app to log their own wellness activities and earn rewards) has been popular and attracted further interest taking its total investment to $206 million. Its investor base is diverse and includes asset management giant T.Rowe Price Associates, Creandum and Target Global.
Ondo Renews LeakBot Contract with Hiscox
Ondo InsurTech PLC announced it has renewed its partnership with Hiscox for LeakBot.
There has been a significant increase in claims from water damage over the past few years in the UK insurance market. Leakbot's technology aims to combat this by detecting hidden leaks early so they can be dealt with before causing bigger issues and larger claims.
If you have a leak, it will continually draw colder water from outside into your home, creating a consistent drop in temperature. Leakbot's patented technology measures air and pipe temperatures and alerts customers to prolonged temperature drops.
Hiscox was the first UK insurer to partner with LeakBot and offer a free detector as part of their buildings cover. Independent research by Consumer Intelligence found that insurers save 70% in water damage claims by introducing LeakBot.