May 17, 2020

The rise of insurtech: a new dawn for the insurance industry

Fintech
Startups
Laura Mullan
4 min
Gigabit dives deep into the disruptive world of insurtech and examines some of the up-and-coming firms set to change the way insurers do business forever.
Gigabit dives deep into the disruptive world of insurtech and examines some of the up-and-coming firms set to change the way insurers do business foreve...

Gigabit dives deep into the disruptive world of insurtech and examines some of the up-and-coming firms set to change the way insurers do business forever.

At least 86% of insurers think their revenues will be at risk from future technological disruption and perhaps nothing demonstrates this better than the rise of game-changing insurtechs. It’s clear that the insurance industry is now on the brink of change. Whilst some traditional insurers are more than 300 years old, many fledgling insurtechs may be less than 300 days old and this clash of old and new is producing massive benefits. Just as the advent of fintechs shook up the financial sector, there is growing recognition that the insurance industry will benefit greatly from the surge of innovation brought by insurtech firms. People are putting their money behind these disruptors too: investment in the insurtech industry doubled between 2017 and 2018, according to FinTech Global. Speaking at Gartner Symposium/ITxpo in Australia last year, Juergen Weiss, managing vice president at Gartner, outlined how insurance CIOs could learn a lot from insurtechs. “Insurance CIOs need to expand their market insight concerning the innovation and disruption potential of insurtechs,” he said. “Start by identifying the areas where insurtechs could add value; then evaluate potential collaboration or investment opportunities.”

Incumbent insurance companies are beginning to cop on to the merits of insurtechs. In fact, Accenture’s Technology Vision 2016 revealed that 44% of insurers across the world intend to pursue digital initiatives with startups from the insurance industry over the next two years. Offering more personalisation and greater speed and efficiency of services, insurtechs are using artificial intelligence (AI) machine learning, the Internet of Things (IoT) and other tools to reimagine the way insurers do business. Using this years' Post Insurtech 100 rankings, Gigabit takes a look at some of the top insurtech firms you should watch out for.

Shift Technology

Shift Technology has made a name for itself by providing AI-native solutions for the global insurance industry. The Parisian firm offers a Software-as-a-Service (SaaS) that uses data science to detect networks of fraudsters in insurance. With a team of around 90 developers, data scientists and project managers, Shift Technology is headquartered in Paris, France. Its sister offices are located in Singapore, London, Madrid, Zurich and Hong Kong. The company gained the 5th spot on the Post Insurtech ranking.

Insurance CIOs need to expand their market insight concerning the innovation and disruption potential of insurtechs. Start by identifying the areas where insurtechs could add value; then evaluate potential collaboration or investment opportunities” - Juergen Weiss, managing vice president at Gartner

Lemonade

Gained the 4th spot on the Post Insurtech ranking, Lemonade claims to be the “world’s first open source insurance policy”. Headquartered in New York City, US, Lemonade offers homeowners and renters insurance powered by artificial intelligence and behavioural economics. In 2016, the firm claimed to set a world record for the fastest claim handled at three seconds. Lemonade is certified B-Corp — a for-profit business dedicated to making a positive impact on society, workers, the community and the environment — and so it takes a flat fee.

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Oscar Health

Aiming to be a health insurance company centred around the patient, Oscar Health has over 700 employees serving around 350,000 individual members and small businesses. The American firm offers insurance services in nine US States: New York, New Jersey, California, Texas, Ohio, Tennessee, Arizona, Michigan, and Florida. Gaining the 3rd spot on the ranking, Oscar Health points out how it has “the highest mobile engagement of any insurer” with 43% of its members’ first visits to the doctor being routed through its technology and customer service teams.

Acko General Insurance

With investors including Amazon, SAIF Partners, Accel Partners and Catamaran Ventures, Acko General Insurance is digital insurance firm based in India. The company raised a total of $42mn in funding and earned the 2nd spot on the Post Insurtech 100 ranking. The Mumbai-based startup was founded in 2017 by Varun Dua. 

ZhongAn

Touting itself as “China’s first complete online insurance company”, ZhongAn has claimed the top spot on the Post Insurtech leaderboard. The company’s CEO is Jin “Jeffrey Chen” but it was initially cofounded by some of the country’s most renowned business magnates including Alibaba’s Jack Ma, Tencent’s Pony Ma and Ping An Insurance’s Mingzhe Ma. In 2017, the Chinese insurer raised $1.5bn in its IPO in what the Financial Times described as “the world’s first insurtech public offering.”

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Jul 7, 2021

ServiceNow pumps millions into EU service compliance

ServiceNow
Compliance
EU
Schrems II
2 min
ServiceNow
ServiceNow has announced a multimillion euro investment in EU services, providing customers even greater trust, choice, and control over their data

ServiceNow, the digital workflow company, has announced a multimillion euro investment to help EU customers meet compliance requirements.

The legal, technical and organisational safeguards will help companies to comply with the the Schrems II judgment and European Data Protection Board (EDPB) Recommendations issued in June 2021.

ServiceNow’s investment means all EU-hosted data will be exclusively handled within the EU, and the cloud-hosted digital workflow provider claims its solution will come “without impact on current delivery and service”.

ServiceNow upgrade: free of charge

There will be no cost for current customers to opt in to the data compliance solution, even though ServiceNow is investing an unspecified multimillion euro sum and hiring more than 80 new staff across the bloc.

Mark Cockerill, vice president legal, EMEA and global head of privacy at ServiceNow, said: “With any regulation change, cloud services companies have a choice. They can adopt a ‘wait and see’ approach or get proactive and help customers and partners innovate. At ServiceNow we are on the front foot, continually investing in our customers, allowing them to operate with the highest level of choice and control over their EU data.

ServiceNow upgrade: ‘peace of mind’

“Our new EU-centric service delivery model will give our current customers and partners peace of mind. For customers and partners operating in highly regulated industries, or in the public sector, or those that have yet to make the switch to the cloud, this model gives them certainty and simplicity when selecting the cloud service that best suits their needs.”

Carla Arend, lead analyst, cloud in europe for IDC, said, “The Schrems II ruling has led European organizations to revisit their cloud-related data protection policies and processes when it comes to international data transfers through cloud services.

“Contractual, privacy, and security safeguards and the assurance that data will be kept and handled in the EU help European organizations to comply with European data protection laws while taking advantage of global cloud platforms. Vendors, such as ServiceNow, that invest to support their customers in response to this ruling are providing essential choice to their customers.”

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