Mongolian Fintech Association

TOP 5 INSURTECHS

Jan 25, 2022

What is Insurtech?

Insurtech means Insurance technology. Insurtech is an insurance company that markets innovative services and products using various latest technologies such as AI (artificial intelligence), machine learning, and IoT (Internet of things) blockchain. As the banking industry drives into FinTech, InsurTechs are also changing the insurance industry. This article presents the top 5 Insurtech companies leading in the insurance industry.

1. Trov

Web: https://www.trov.com/

About

Trov is the world's leading insurance technology company based in the San Francisco Bay Area. The company pivoted to a business-to-business(B2B) model and shut down its direct-to-consumer(D2C) mobile insurance platform in 2019.

Fintech Model

Trov is launching a portfolio of end-to-end digital, white-labeled insurance products designed to deploy by financial organizations and insurers rapidly. White Label is an insurance core system for life and non-life insurance. And it supports insurance business processes such as product modeling offered through the sales path, premium calculation, and policy handling of claims. Including:

- Fleet Insurance- It's mobility insurance and offers transport services, delivery, and cargo insurance coverage.

- Trov platform is a cloud-based online digital locker where the information about property and possessions is stored and securely managed. It's a cloud-hosted piece of infrastructure supporting pricing, policy management, claims, and risk calculation to the second. It is an end-to-end solution to provide this unique service to consumers.

Key to success

A solution that can turn insurance services on and off when needed: Users can turn the product on and off whenever they want, a unique solution in the insurance industry.

Real-time monitoring of any risk: Any risk can be seen in time using customer data.

A modern, online platform: Trov is a platform that allows businesses to communicate with their customers without the limitations of online connectivity.

The company also provides analytics products to help identify risks, so businesses can take proactive measures to mitigate risks and improve security. Trov currently operates in 5 countries and brings a total of $114 million in funding.

2. ZhongAn

Web: https://www.zhongan.com/corporate/

About

ZhongAn was founded in 2013 by Jack Ma (Alibaba), Pony Ma (Tencent), and Mingzhe Ma (Ping An Insurance). It is the country's top insurance company, with about 42.7 billion insurance policies. And ZhongAn operates mainly in health, digital lifestyle, consumer finance, and auto ecosystems, providing personalized, customized, intelligent insurance products and risk management solutions.

Fintech Model

The company uses Big Data analytics to increase the ecosystems (Consumer finance, Health, Lifestyle consumption, Travel, and Auto of the business portfolio), keep product prices stable and transparent to consumers, maintain and improve product innovation, and thus modernize the whole insurance industry. And they use a central cloud-based system to optimize computational power and consider fluctuations in turnover. Thanks to intelligent underwriting and automated processing, it has achieved automation rates of 99% for policies underwriting and more than 95% of claims settlement. And the company stated that the use of artificial intelligence has significantly reduced the cost of customer service, the rate of interaction with online customers has reached 70%, and the number of online service personnel has decreased by 63.7% year-on-year.

ZhongAn partnered with and will be using Ethereum's Blockchain in their platform, most likely for the benefit of its smart contract, and will release its services on a Blockchain cloud platform known as Anlink.

Key to success

Customer-Centricity: Using the latest innovative technology to identify customer needs and develop products and services to meet changing needs.

Digital innovation: The company communicates with customers via ChatBots, which makes communication faster, more responsive, and accessible. Its main digital capabilities allow the company to settle claims immediately. In 2016, they partnered with Ethereum to establish Zhong An Technology, an incubator to study artificial intelligence, blockchain, and cloud computing.

The 5 Cs of the platform economy: Zhong An addresses all the primary pillars of a platform company—convenience, community, collaboration, curation, and connection.

In addition to utilizing new technological innovations in its services, Zhong An has also become a technology exporter to other insurance companies worldwide so that they can generate additional revenue of 112.4 million yuan. In the second half of 2018, they managed to attract $100 million in investment through the Vision Fund of Japan's SoftBank.

3. Lemonade

Web: https://www.lemonade.com

About

Based in New York City, Lemonade is an insurance technology company, handling insurance policies for homeowners and renters since 2015.

Fintech Model

Lemonade's peer-to-peer is based on small groups of policyholders who pay premiums into a claims pool. In other words, users will pool their home and apartment insurance premiums with other homeowners or tenants (users) to create savings, and if a user in that circle files a claim later, they will pay it from that savings. Once a year, Lemonade calculates the unclaimed premium and gives it back to the charities its community members choose. It is called the Lemonade Giveback.

The company is technologically based on behavioral economics and artificial intelligence and conducts claims settlement and policy underwriting through automated chatbots. By doing so, it has allowed its customers to stay away from traditional paperwork, any hierarchy, and bureaucracy. A few years ago, the company set a world record in the insurtech industry by settling insurance claims in three seconds.

Key to success

Customers can access all of Lemonade's services through the mobile app or register online, and by automating the claims process, filing claims and receiving reimbursements are quick and easy.

Additional services: Lemonade's Zero Everything policy is ideal for consumers who want to make insurance for small items. Lemonade customers will no longer need to pay deductibles and have their rates increased when filing claims. For example, if a user's $350 tablet is damaged, other insurance services will pay $250 with a $100 deductible, but with Lemonade's service, the user can receive the complete $350.

Customers can also increase insurance coverage for their valuables (artwork, jewelry, bikes, musical instruments). For example, the standard coverage limit for jewelry is $1,500, up to $50,000 with Lemonade.

4. Neos

Web: https://neos.co.uk/

About

Neos, a London-based start-up founded in 2016, offers smart-home insurance using the latest technologies, such as the Internet of Things or smart home insurance (a service with insurance premiums for real estate owners and homeowners using innovative technology).

Fintech Model

Neos also offers home security features that alert homeowners to potential fires, water leaks, and other incidents like vandalism. The service includes home security cameras, smoke detectors, and other smart sensors. Customers can control all appliances via the Neos app, designed to alert you to potential problem areas, such as the open front door or a kitchen sink leaking.

Neos is Cloud computing (the delivery of computing services—including servers, storage, databases, networking, software, analytics, and intelligence—over the Internet(the cloud) to offer faster innovation, flexible resources, and economies of scale.) and Big data(vast amounts of data) technologies. It develops and implements scalable and flexible data solutions that create tangible data assets to meet the diverse needs of process automation, business intelligence, and advanced analytics.

Key to success

The company continues to offer innovative solutions in the insurance industry, and its primary goal is to provide peace of mind to its customers. In addition to protecting home security by offering a variety of innovative services, including:

Repair Cash Benefit: Neos will pay up to £1,000 to the policyholder for repairs in an accident.

Bicycle Insurance: A service for bicycles with coverage from £1,000 to £25,000.

Greens and Gardens Insurance: Customers can make insurance for their gardens for up to £5,000.

The company was ranked 6th in the Insurtech 100 list published online by the British website Post. With an investment of 6 million pounds, it attracted the best international insurance businesses and acquired a majority stake.

5. Metromile

Web: https://www.metromile.com

About

Metromile is undoubtedly one of the best insurtech companies. Founded in 2011 in San Francisco, the company has become one of the leading auto insurance providers.

Fintech Model

Metromile makes auto insurance easier and more user-friendly by using machine learning (a method of analyzing data that automates the creation of analytical models) and data science to track claims and expedite settlement. Users can use the company's app to get services such as monthly vehicle mileage, street alerts, fuel monitors, and 24/7 advisors. This application also tracks the vehicle's location and helps locate the car when it is stolen.

The company's business model requires customers to pay a monthly fee and a pay-per-mile fee and considers several factors in the basic scheme, including the driver's age, credit history, vehicle type, driver history, and previous insurance coverage.

Key to success

Fast service for customer satisfaction: For example, if an accident occurs, customers can file a claim online or through a mobile app, and instead of waiting for days, Metromile's service time will be within hours.

Carbon emissions reduction policy: Metromile continues to fight climate change and reduce carbon emissions and has launched a pay-per-mile insurance model to encourage consumers to drive as little as possible and instead lead active lifestyles such as walking and cycling.

In addition, this pay-per-mile model allows consumers to pay only for the miles they drive, rather than other types of insurance requiring a standard premium even when they're not going. According to the company, customers with Metromile car insurance save an average of $741 per year. Users can also contact the car repair shop and make an order through the Metromile application.