- Over the past few years, insurers have lagged other sectors in implementing AI, leaving a gap for more tech-savvy firms to swoop in and disrupt the space.
- But as more insurtech companies emerge, it can be tough to sift through them and determine which firms will hold the most promise.
- Do you work in the financial services industry? Get business insights on the latest tech innovations, market trends, and your competitors with data-driven research.
Insurance has always been a valuable option for those looking to protect themselves from potential threats, and the pandemic has even further reenforced the importance of preparing for the unexpected. However, some customers have been deterred from enrolling in insurance coverage with traditional companies, due to barriers like complicated coverage options and unclear eligibility requirements.
Fortunately, tech-savvy insurance companies have disrupted the insurance industry, leveraging Artificial Intelligence (AI) and data science to offer an improved user experience at a more affordable price.
Insider Intelligence has put together a list of the top insurtech firms, which have shaken up the fintech space. We break down the features that have helped them stand out, and explore how other firms can leverage these insights to achieve success in this market.
Bought by Many
Bought by Many offers lifetime and accident-only cat and dog insurance, and was voted MoneyWise’s Most Trusted Pet Insurance Provider of 2019. They attribute their success to their customer-led model, which uses anonymized search data to identify shared customer needs unmet by competitors, and then personalizes products and experiences for their preferences.
Slice Labs is an on-demand insurance platform that has changed the way people buy insurance by using big data to assess customer risk on the spot whenever coverage is needed. For instance, they offer pay-per-use policy for Uber and Lyft drivers while they are on the job.
Shift Technology was founded in 2014, using innovative technology to solve the challenges facing the global insurance industry. Their AI-native SaaS solutions help insurers defeat fraud and automate claims. Users can focus on the most suspicious instances, and save time by avoiding false positive cases.
Launched in 2015, this UK-based company provides insurance on a car for only as long as the customer needs it, whether that’s an hour or a day. Cuvva is designed to be mobile first, and boasts that customers can get covered on a car through the app with only three clicks. They can buy a monthly subscription, but they also must purchase a premium ‘top up’ insurance via the Cuvva app and pay an hourly rate during the time the car is being driven.
Steppie, formerly known as WeSavvy, was designed to capture and agregate lifestyle data and provides insurance policy rewards for healthy behaviors such as walking, running, and bicycling. The company has transformed the traditional insurance model from one that compensates customers for harm or loss to one that is more focused on prevention.
Knip launched in 2014 as Europe’s first digital insurance broker, using technology and data analytics to offer supervised robo-advice to insurance consumers. It uses machine learning to better understand its customers and tailors on-demand products to their needs. The mobile insurance company now has offices in Switzerland, Germany, and Serbia.
Roost has disrupted the traditional property insurance with their smart home technology solutions. They started with a smart 9V battery to detect smoke, leaks and other issues in the home, and have most recently developed Protection360; a commercial SMB loss prevention service with 24/7 alert monitoring.
London-based Kasko is the first digital insurance platform to enable insurance companies and brokers to quickly bring new on-demand insurance products to market. It allows digital marketplaces and booking platforms to advertise relevent insurance products to their customers through a plugin or API.
Lemonade is ranked the No. 1 insurance company in the US by the App Store, Google Play, Supermoney, and Clearsurance. Rather than your provider pocketing customer premiums, this pee-to-peer (P2P) service takes a flat 20% fee off premiums to cover ongoing costs, and the rest goes to insuring customers. Lemonade encourages its users to be socially responsible, by donating any remaining funds after claims have been made to a charity of a group’s choosing.
Teambrella claims to be the first community insurance provider built on Bitcoin. Its users provide coverage to each other. When one person submits a claim within his or her team, the members reemberse the individual from the collective wallet. While Teambrella is specifically focused on collision deductibles and pet insurance, the company plans to expand their coverage in the near future.
Fitsense uses wearables data to help insurance companies personalize their health and life insurance packages for individuals. They have won over and retained customers through free guest trials, smart referral programs, and the integration and safekeeping of their data across various apps and devices.
Friendsurance launched in Germany in 2010 as one of the world’s first P2P insurance companies. It rewards small user groups with cash back bonuses at the end of the year if they remain claimless. Friendsurance has disrupted the insurance industry by making its search and purchasing experience more customer-focused, and has inspired other top insurtech companies to take a similar approach.
Cocoon offers a unique AI-powered all-in-one security system that uses infrasound motion detection to protect more rooms. It keeps people connected to what is happening within their homes through an easy-to-use app. They have partnered with Policy Castle to offer a 15% home insurance discount to their customers.
More to Learn
Interested in learning more about the Financial Services space? Here are some related reports that might interest you:
- The US Wealth Management Ecosystem, which outlines the key players, biggest shifts, and trends driving digital transformation in the $29.1 trillion industry.
- 5G and Financial Services, which covers how this new networking technology will enable better experiences for consumers and better data for banks.
- US Banking Channel Forecast, outlining how shifting consumer habits and the pandemic are reshaping banking usage and informing banks’ investments in branches, ATMs, call centers, and digital and mobile banking.
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