Digital Insurance Tools

Is this the beginning of the end for traditional insurance models? To me, the following post published on LinkedIn recently is very insightful for three reasons. 1/ First, the post highlights that insurers *need* to explore additional distribution channels, on top of what already exists - brick & mortar shops, agents or brokers. And it lists online channels as a priority. This is the first time I read it so clearly from an incumbent. And it obviously makes sense to me as customers are increasingly relying on digital services, spending more time on their smartphone and eCommerce is surging. In that background, there is no specific reason insurance could be the only industry Worldwide to remain solely offline ! 2/ Then the post highlights the opportunity to rely on startups to deliver such a roadmap. In that specific case, the corporate relied on two complementary initiatives: acquisitions and minority investments. Whatever the means, this proves there is value in InsurTech startups. After years of startups raising crazy amounts claiming they would replace incumbents, followed by several years of hearing incumbents claiming "InsurTech doesn't work" it seems we've landed in a more balanced position where it's a matter a price, not a question of value added ! Yes, InsurTech startups, when done right, could benefit the insurance value chain ! 3/ Last but not least, this post - supporting the case for digitizing part of the insurance industry and the opportunity for historical players to leverage external solutions (i.e. startups) - was written by... an incumbent ! This is not a startup pitching its vision nor a VC building its investment thesis. This is one of the major players in its market: the health insurance space in France. Reading such a strong push for embracing digital solutions and paving the road to buying / partnering with InsurTech startups makes a lot of sense to me, as we've been investing in tech startups revamping the insurance industry for years. And beyond, this seems to me as a wake-up moment for the industry and I expect more to come in the near future as the InsurTech market matures and clear winners, or top players are emerging from the crowd. #insurance #insurtech #venturecapital

How can we catalyse the nessecary innovation to create true disruption in the GCC Insurance Sector! The UAE and KSA hold immense potential for insurtech disruption—driven by robust economies, rapid digitization, and supportive government visions such as UAE’s National Innovation Strategy and Saudi Vision 2030. Yet, the industry’s capital requirements, conservative culture, fragmented data landscape, and relatively low insurance penetration have thus far prevented #insurtech from truly taking off Here are some potential steps that governments, insurers, investors, and entrepreneurs can take to #accelerate insurtech #innovation and ultimately benefit customers: Evolve Regulatory Frameworks and Incentives 🔸 Expand #Regulatory #Sandboxes 🔸 Adopt Tiered #Capital Requirements for Insurtechs 🔸 Incentivize and/ or Mandate #Collaboration with Traditional Players Encourage and Educate the Investor Community 🔸 Dedicated Insurtech #Funds 🔸 Insurance-Focused #Accelerators & #Incubators Drive Digital Adoption and Data Infrastructure 🔸 Create Shared #Databases for Risk Profiling 🔸 Promote #DigitalIdentity and #eKYC Solutions Foster a Culture of Innovation in the Insurance Sector 🔸 Internal Innovation Labs 🔸 Upskill #Talent Improve Consumer Awareness and Engagement 🔸 Targeted Consumer Education 🔸 Behavior-Based Products and #Microinsurance Any thoughts 💭

Insurance industry is at a tipping point. Today technologies like Generative AI, Insurance API Standardisation, and Data Mesh are opening new possibilities. But the question remains, are we seizing the right opportunities or betting on the wrong tech just because it’s new? In reality choices any insurer make today will determine whether that company will lead the future or lag behind. Generative AI is more than just a shiny tool. It opens doors that traditional AI couldn't even approach, leveraging external data to automate complex processes like underwriting and claims. But is AI the answer to everything? If your goal is seamless data exchange with business partners, APIs might be the smarter, faster route. Insurance API Standardisation avoids the costly and error-prone process of AI-based data extraction, offering accuracy and speed. Think of it as building a frictionless ecosystem where data flows freely, enhancing both customer service and operational efficiency. And we should also not overlook the risks. With AI, the stakes are high. AI Governance and Cyber Protection are non-negotiable. Newly proposed EU AI Act and rising concerns over data poisoning mean that insurers must balance innovation with compliance and security. A single breach or misuse of AI could destroy the trust that insurance fundamentally relies on. What about the human element? While we race toward AI-driven efficiency, we must ask: are we losing the human touch in an industry built on trust? AI Democratisation offers a way to bring AI closer to the everyday employee, empowering teams across all levels. But without proper training and governance, even the best AI tools can lead to biased decisions, threatening fairness and transparency. Then there’s the Generative AI paradox. It’s powerful, but if we’re just using it to swap data, we might be backing the wrong horse. APIs offer a simpler, more cost-effective solution. Real game is about choosing the right tech for the right job, for example India’s UPI, which revolutionized digital payments in a country where aiming for digital economy was considered over ambitious. Could the insurance industry see similar disruption? Ultimately future of insurance won’t be defined by AI alone but by how we integrate the right technologies : Generative AI, API Standardisation, AI Governance, into a cohesive and ethical framework to build a completely functional ecosystem . And to achieve that insurers would need to answer this critical question : "Are We Backing the Right Horse in the Insurance Tech Race?" Refer attached report for detailed insights. ⬇ #InsuranceFuture #GenerativeAI #APIsInInsurance #AIethics #TechLeadership #InsuranceTransformation #Insurtech #CyberSecurity #LinkedIn

The Insurtech MGA Model of the Future: It's NOT All About Faster...Easier...Better Tech (Here's where most MGAs are getting it wrong) 👇 The MGA market is booming—and that’s both exciting and dangerous. Right now, venture-backed MGAs are competing to build the next big insuretech platform. They’re banking on advanced quoting systems, building great 'products' and backend efficiencies to win the market. But here’s the catch: all that fancy tech won’t save them. UNLESS...they have the right distribution strategy. My Prediction: In the next 3-5 years, many MGAs will fail. Why? Lack of focus on a winning distribution strategy and agent niche marketing, content creation and sales training support. The Opportunity: MGAs that focus on helping agents actually grow their books of business in the industry niches they serve will dominate the market. This means... 1) Creating industry niche-specific content and tools that help agents build trust, generate high quality leads, fill their sales pipeline, and drive revenue growth. INVEST in marketing, content creation and sales training to help them OWN and DOMINATE their niche. 2) Building world-class risk management programs to ensure favorable loss ratios and profitability. Give them the necessary resources and support they need to uncover problems and strategies to implement real solutions. 3) Focusing on underserved, niche markets instead of competing on speed and price. De-commoditize the market by providing industry niche expertise and a world-class client experience (for insureds). 4) Invest heavily in Producer sales and content creation training, providing resources, workshops, masterminds, and a dedicated community where everyone can collaborate and share insights, knowledge and experiences. My Two Cents... If you’re an MGA leader, now is the time to pivot. Stop chasing the tech race and start investing in the fundamentals: → Distribution: Teach agents how to market and sell your product. → Niche Focus: Build programs tailored to stable, relatively pandemic and recession-proof industries. → Risk Management: Control costs by proactively managing claims and loss ratios. → Producer Training: This is a no-brainer and self-explanatory (yet, very few are investing wisely here) Let's keep this conversation going and continue to push the limits of what's possible for the success and growth of this industry... What do you think the future holds for MGAs? Let’s discuss. Drop your thoughts in the comments!👇 #mga #insurance #insurtech #riskmanagement

Leaving money on the table when it comes to your commercial auto insurance? Because most proposals only show the vehicle value, and deductible, this is all that's looked at when reviewing your vehicle list. However, there's three lesser known factors that impact overall auto premiums. If you like acronyms, remember R.U.G. Radius: Different rating factors are applied if vehicles are driven less than 50, 50-200, or over 200 miles. Maybe your company has only a few vehicles that drive over 200 miles, make sure your not apply the "200 mile" code to all vehicles. Use: Three different classes of use are service, commercial or retail. If you're a contractor, then many of your vehicles should be classified as service, which is also the most favorable in terms of pricing. Commercial is used when a vehicle does the work - like hauling for income. Garaging Location: The zip code/city where your vehicle is parked has an impact on premiums. The biggest error I see when reviewing this information is that all vehicles are blanketed in one category, when they need to be customized for differences. If you're wondering where you can review this information, start with your actual policy. Many will include this by vehicle.

The next wave of insurtech exits is (finally) here!! 🚀 🤝 NEXT Insurance — acquired by ERGO/Munich Re ($2.6B) 📈 Slide — IPO (priced at $2.6B, raised $408M). 📈 📝 Neptune Flood — S-1 filed (priced at $2.76B, raised $368M) 📝Ethos — S-1 filed (pricing TBD) And the “class of 2020–2021” looks stronger: 💪 Lemonade: improving loss ratios + scaling with healthier cash dynamics 📊 Root: underwriting profitability with sub-100 combined ratio in recent quarters 📝 Hippo: loss ratio down, first positive operating income We've learned some hard lessons since the 2020–2021 ‘growth at all costs’ era: ✅ Quality of risk matters ✅ CAC discipline matters ✅ Unit economics matter ✅ A real path to profitability matters However, core opportunity remains: huge markets, messy legacy operations, and customer experiences that don’t match how digital-first consumers want to buy. Yes, life insurance saw some of the hardest hits- Assurance IQ, Health IQ, iptiQ- fueled by unprofitable growth, upside down unit economics, rate volatility, and distribution hurdles. But the $3T industry opportunity hasn’t shrunk, it’s grown, and the writing is on the wall for transformation. 📉 Coverage down: U.S. household ownership fell from 77% (1989) to 60% (2013); only ~51% of adults report owning life insurance in 2024. 🛒 Digital preference: Since 2023, consumers say they prefer to shop & buy online. 🧓 Distribution crunch: 20–40% of life agents are within 10 years of retirement; the avg independent agent is ~62. 🔁 Channel shift: Independent/digital channels keep gaining share Today’s consumer is digital-first, education-seeking, convenience-driven and their trust lives online, not over the kitchen table. How are we serving them amid volatility, rate moves, inflation, and massive wealth transfer? At Amplify, founded in 2020, we’ve ridden the highs and lows, and we believe there’s never been a better moment to pay attention to insurance and insurtech. The shakeout left a mature cohort of real businesses powered by modern tech and AI. Let’s get ready for the next wave of insurtechs. This one’s going to be the best yet. 🌊✨ #insurtech #insurance #lifeinsurance #innovation #fintech #digitaltransformation

Composite Rating in Guidewire #Policycenter Composite Rating in Commercial Auto insurance is a method used to simplify premium calculation for fleets. Instead of rating each vehicle individually (based on its specific characteristics and usage), a single average rate is applied across all vehicles. This helps streamline pricing for businesses with many vehicles and can offer consistency and easier renewals. ⸻ Definition: #Composite rating means applying a flat (composite) rate per vehicle, often based on the fleet’s overall loss experience, vehicle types, and driver profiles, rather than rating each unit separately. ⸻ When is Composite Rating Used? • For fleets (typically 5 or more vehicles, but threshold varies by insurer) • When the insured prefers predictability in premium • In commercial auto policies where vehicles are similar in use/type • Usually offered for larger accounts or renewals with stable history ⸻ How is Composite Rating Calculated? Here’s a simplified step-by-step: 1. Determine total manual premium using standard rating methods: • Calculate premiums for each vehicle using individual factors (vehicle type, use, radius, territory, driver, etc.) • Sum all premiums to get the total manual premium. 2. Divide by total number of vehicles: • This gives the composite rate per vehicle. \text{Composite Rate} = \frac{\text{Total Manual Premium}}{\text{Number of Vehicles}} 3. Apply that composite rate to each vehicle going forward (even if vehicle types change slightly). ⸻ At Renewal: • Underwriters often review the loss history, vehicle changes, or driver data • If loss experience is favorable, the composite rate might remain the same or reduce • If there’s poor loss experience, the rate may increase ⸻ Advantages: • Easier to manage large fleets • Predictable premium • Encourages clean loss records for better future rates • Reduces administrative load during endorsements or midterm changes ⸻ Limitations: • May not be available for all risks (e.g., high-risk fleets) • Insurers may require a minimum fleet size • Not suitable when vehicles vary widely in type or usage

Why will specialized lines define the future of insurtech in Latin America? Let's break it down. After analyzing the insurtech landscape across the region, a clear pattern emerges. While the first wave focused on digitizing traditional insurance models through broad-based platforms, the real innovation and opportunity for value creation lies in specialized insurance lines. This transition is already showing results. Health insurance platforms like Alice and Sami proved that combining digital services with insurance coverage could achieve rapid scale. Auto insurance followed, with companies like Justos and Momento reimagining risk assessment through technology. But these were just the beginning. The most compelling opportunities lie in three key areas. First, highly specialized providers are demonstrating unprecedented market penetration - take Pitzi's dominance in mobile phone insurance or Akad Seguros's focused approach to cyclist and property coverage. Second, the B2B2C segment is transforming how insurance is distributed, with 180 Seguros enabling companies to embed specialized insurance products into their digital offerings. Third, and most exciting, are the untapped specialized segments. Agriculture insurance presents a massive opportunity given Latin America's agricultural importance. E-commerce insurance could scale alongside the region's digital commerce boom, and cyber insurance becomes increasingly critical as businesses digitize. I dive deeper into these opportunities and share specific predictions in my latest article. Which specialized insurance segments do you see emerging in Latin America? #LatAm #Fintech #Insurtech #VentureCapital #Innovation

Recent conversations with clients and analysts really illuminated the growth of insurance #data platforms - either inhouse, or within core, and core-adjacent, software providers, or via API (as we do at Fenris Digital). Adopting an AI-first approach is better when the underlying data is accurate, accessible, and injected in real time into workflows and ML algorithms. Sourcing applicable and permissible third party data bring immense lift to results, be it at quote, renewal, or while servicing the account. This purpose built approach to data and AI directly empowers carriers, brokers, and agencies to make better and more timely decisions. But it also promotes development of a data-driven culture that prepares organizations for long-term success. In all things AI, keep in mind the guiding principles of transparent, understandable, and fair, and set the course for better customer experiences. #insurtech #propertyandcasualty #earlyriskassessment #machinelearning

AI and regulation are shaping the Insurtech landscape in 2025 and if you’re hiring or raising, you can’t afford to ignore either or just focus on one! Insurtech funding rebounded in Q1 and Q2 this year, but investors are zeroing in on AI-native roadmaps. The bar is high and they want to see traction, defensible tech, and a clear AI moat. On the policy side, the mood has shifted from loose principles to hard proof. Nearly half of U.S. states have adopted the NAIC’s Model AI Bulletin, which means insurers and their vendors are expected to have written governance programs and auditable AI controls. Colorado’s rules on algorithmic decision making are already influencing carriers nationwide. Globally, the EU AI Act is now in motion. Many global insurers will align to the strictest standard to simplify operations which means even U.S. only players will feel the ripple effects. 👉🏼 What this means for hiring: Demand is growing for AI governance leads, model risk specialists, ML platform engineers, and hybrid actuary/ML talent. Designers and PMs who can make AI decisions explainable will stand out. 👉🏼 What this means for fundraising: Show a compliance-ready AI pipeline, not just model accuracy. Prove you can scale across geographies and regulatory regimes. Partnerships move faster when you walk in with governance already baked in. Basically in 2025, AI is the growth engine but policy is the gatekeeper and always will be! The companies that hire for both will be the ones still standing in the years to come and attract the better talent on the market! #insurtech #funding #naic #ai #startups #scaling