Why is the demand increasing for technologically advanced insurance providers and InsurTech companies?
One of the key reasons is that we’ve moved well beyond InsurTech-as-disruptor-and-threat. Even in PwC’s 22nd Annual Global CEO Survey, far fewer industry executives said that they were concerned about the speed of technological change, changing consumer behavior or new market entrants.
Startups and legacy providers realized that they gain from combining the former’s technology with the latter’s customer knowledge, understanding of risks, and capital strength. Now, InsurTech is an ecosystem that brings together adjacent industries to provide an improved service of greater value to insurers and their customers.
In this article, we go through ten InsurTech companies which are poised to make an impact in 2023; this includes startups fulfilling a more recent need in the market, or more established players increasing their growth and taking new risks.
Despite difficult times, investors still appear to want to explore innovative operatives. This was indicated when UK insurtech startup Lukango raised £275,000 in its pre-seed round (as noted by InsurTech Magazine).
Lukango offers insurance services to micro businesses and sole professionals – an area of the market that looks set to be hit hard by the financial crisis. Lukango’s differentiation sees it uses data and smart algorithms to allow customers to flex and change the amount of protection needed as their businesses grow, putting small business owners in control of how much and when protection needs to be in place. Lukango’s unique proposition creates a partnership model many products lack.
Listed in the InsurTech100 (top 100 InsurTechs of 2022), Wakam is a European B2B and digital player which has been prolific in its partnership and product development in the past year, including usage-based public liability for gig economy platforms, behavioural motor insurance, cross-border cover for rented media equipment, and employee living expenses protection cover.
The company designs tailor-made, white-label insurance solutions covering a range of needs including: usage-based, traditional and parametric insurance, all of which can be seamlessly embedded via API. They currently work with over 400 partners from both insurance and non-insurance sectors and provide a wide range of digital products in six key areas including: mobility, home, travel & leisure, health & wellness, professional, and inclusive insurance.
As mentioned in our previous blog about the insurance trends of 2023, embedded insurance offerings are driving growth. According to a report by InsTech London, the embedded insurance market is forecast to grow to $722bn in gross written premiums (GWP) by 2030, more than six times its current size.
Their capabilities with embedded and usage-based insurance is just one reason why Irish startup Inaza is one of the Insurtech companies to watch in 2023.
Inaza is a Platform-as-a-Service for underwriting and distributing embedded and digital motor insurance solutions. The platform comes with Insurer hosted pricing, white labeled mobile application, APIs/SDKs helping insurers distribute digital insurance solutions. Inaza also has a partner program that gives seamless access to thousands of vehicles in need of personalized insurance solutions.
Another reason why Inaza is one to watch this year is due to being included among 13 startups joining the ninth batch of Plug and Play Insurtech Europe’s 3-month innovation program. This is a business development opportunity for growth-stage startups and scaleups, for which Plug and Play has the world’s largest innovation platform including mentorship and venture capital. InsurTech Europe Batch 9 EXPO, which follows the completion and graduation of the program, and aims to showcase the work between the startups and partners, will be held in-person on the 2nd of February 2023.
Insurance is getting more and more digital, however, digitisation can be a time-consuming, expensive and complicated process. EasySend helps banks and insurance companies to quickly convert manual process and PDFs into digital experiences. It offers a no-code digital transformation solution for any organization that needs to intake data and signatures from customers.
Easysend was selected for the “ITC DIA Europe Top 100 InsurTechs to watch in 2023” because they transform any customer data and signature intake process into an interactive experience, empowering organizations to streamline customer interactions, improve customer experience, and ensure data accuracy. By transforming front-end data collection into a comfortable experience for end-users, EasySend is empowering organizations to automate workflows and streamline customer interactions.
Insurely is another company listed in the InsurTech100 of 2022. They are based in Sweden, Denmark, and the UK, and dedicate themselves to creating win-win solutions for the insurance industry – through the power of open insurance. With the benefit of open data, Insurely help consumers better understand their insurance situation, and enable insurance companies and banks to create better products.
Open insurance requires carriers to open their data resources to other organizations and to share and consume data and services from many sources and across lots of industries. This allows insurers to create new value propositions, generate fresh revenue streams, and deepen their relationships with customers.
Companjon is a European InsurTech that offers embedded insurance that is 100% digital, end-to-end and hassle-free. Their B2B business model allows Companjon to partner with digital and traditional businesses across Europe such as online booking platforms and travel agencies, fintechs, neobanks, and mobility providers to bring fast, flexible, and fully automated insurance to their customers.
Companjon were selected for the ITC DIA Europe Top 100 because of the strength of their embedded insurance capabilities. They cater for several industries, like fintechs and online travel agents who embed relevant insurance solutions in their customer journey. Think of Flight Delay Insurance which is not new, but Companjon makes it an instant add-on.
InsurTech Magazine listed Coalition as one of the top InsurTech unicorns of 2022 (valued at US$1 billion or more).
Founded in 2017, Coalition combines comprehensive insurance coverage with preventative cybersecurity tools, access to digital forensics, and incident response to help organisations identify, mitigate and insure against all types of digital risk. The InsurTech unicorn boasts 500 employees and serves more than 160,000 customers worldwide.
Thanks to licences that allow it to operate in all 50 US states, the San Francisco-based firm can offer insurance policies through its own admitted insurance carrier, protecting against cyber risk, technology errors and omissions, and other executive risks.
Operating across the UK, US, Canada, Chile, and Australia, INSTANDA is a 100% Cloud-based platform specifically designed for the P&C, L&H and Group Protection Insurance markets. The company was born from a frustration of how legacy systems were holding back insurance productivity.
INSTANDA was included in the InsurTech100 of 2022 because it currently work with insurers, brokers and MGAs across 18+ countries to help address their legacy transformation issues, giving them the freedom and flexibility to innovate rapidly and address new markets in weeks instead of months.
Mendix, a Siemens business, was selected for the ITC DIA Europe Top 100 because with their low-code solution, they can speed up development while keeping flexibility.
They aim to be the engine of the enterprise digital landscape. Its low-code platform and ecosystem integrates technology to support solutions that boost engagement, streamline operations, and relieve IT logjams. The platform is cloud-native, open, extensible, agile, and proven. Mendix’ enterprise low-code platform has been adopted by more than 4,000 companies in 46 countries.
Now a standalone division of Swiss Re, iptiQ is a white-labelling digital B2B2C platform of P&C and life and health insurance. It provides partners with digital end-to-end processes, and rapid product development and distribution. This includes sales and optimisation tools, customer servicing, data-driven underwriting and behavioural science applications.
IptiQ were included in the InsurTech100 of 2022 because of their outstanding growth trajectory, which has particularly been enhanced due to new partnerships and acquisitions. They have over 50 distribution partners, are active in over 10 countries in Europe, Australia, and the US, and have over 750 employees. Notable partners include Ikea (who together launched HEMSÄKER, an accessible home insurance product embedded on the retailer’s website) and LifeSecure Insurance Company, creating a final expense and term life insurance product.
Of course, it would be remiss of us not to mention Imburse in the context of InsurTechs to watch this year.
Payments is mission critical, however, insurers often don’t have the in-house payment expertise to navigate the payments world. Imburse was included in the ITC DIA Europe Top 100 InsurTechs to watch in 2023 because we provide access to any payment provider and technology around the globe, enabling insurers to give customers what they want for both collections and payouts.
In addition to this, Imburse has recently been acquired by Duck Creek Technologies, the intelligent solutions provider defining the future of property and casualty (P&C) insurance. As part of Duck Creek, Imburse will continue to serve its existing client base and markets, while accelerating expansion plans for new clients across Europe and into North America and Asia-Pacific.
“Being part of Duck Creek will further accelerate our mission to simplify how businesses around the world access the global payments ecosystem,” said Oliver Werneyer, CEO of Imburse.
Our team is always ready to help. If you want to know more about how Imburse can support your organization, please contact us.