RPC Insurtech in brief April 2021
Welcome to the April edition from RPC of Insurtech in brief, providing you with a handful of snappy monthly updates from the industry.
1. German insurtech Wefox plans to launch risk prevention solution
German insurtech startup, Wefox, plans to launch a risk prevention product that uses data from smartphones, digital smart homes and other connected devices to alert users of impending danger, its founder and CEO Julian Teicke told Reuters.
The product, to be named Wefox Prevent will use data from smart devices to warn users of looming danger. For example, to alert drivers of poor road conditions or of leaving a window open at home when a storm is coming.
The product will use not utilise personal data to price Wefox's products, as other insurers sometimes do e.g. tracking the number of miles an insured drives to price their car insurance. “The data will only be used for risk prevention – and not for anything else,” Teicke told Reuters.
The product is expected to be launched next year and is being developed by a Paris based team recently hired from Samsung.
2. Inigo buys StarStone Managing Agency and Syndicate 1301
Inigo was launched by three ex-Hiscox bosses in November 2020 with $800 million in new capital from a consortium of global investors.
It has acquired StarStone Underwriting, the Lloyd’s managing agency, as well as the rights to operate Lloyd’s Syndicate 1301 from Enstar. Approval from the Prudential Regulatory Authority has been obtained.
Inigo was approved by Lloyd's to start underwriting on the Syndicate 1301 platform from January 2021. Since then the group has been able to capitalise on market conditions and set a stamp capacity of $400 million. The book will be split equally across both insurance and reinsurance.
3. Zego becomes UK's first insurtech unicorn after fundraising values the company at $1.1 billion
The London-based commercial motor insurance provider has become the UK's first insurtech unicorn after raising $150 million, valuing the company at $1.1 billion.
This funding round was led by DST Global and includes other new backers such as General Catalyst, whose founder and managing director, Joel Cutler joins Zego’s board. It brings total funding raised to more than $200m since its launch in 2016.
Zego says that it will use the funding to 'rapidly expand across Europe and beyond' as well as increasing the size of its workforce, and continuing to invest in technology.
4. Peach PI launches liability product for freelancers
Business insurer Peach Pi has launched its first commercial e-trade modular product via Acturis and aimed at freelancers and small professional businesses operating in the wellbeing and lifestyle sector, for example acupuncturists and reflexologists.
The product named Peach Pi for Professionals offers combinations of Professional Indemnity, Treatment Risk, Public and Product Liability, Employers Liability and Property insurance.
Peach Pi aims to offer its brokers partners the opportunity to provide their clients with a more tailored product to suit their needs without certain package cover that is not needed.
It also allows brokers trading on the Acturis platform access to Peach Pi's personal claims service.