The world of insurance is changing, shifting away from the top-down approach and towards a consumer-led process. Today, customers are accustomed to searching for and accessing information online. This is across various devices and different channels. This means insurance firms have had to adapt, in terms of adopting digital transformation strategies, and the consumer focus towards the multi-channel experience has opened the space for insurtech startups.
Some insurtech startups are working with major insurance players, whereas others see the insurance industry is ripe for innovation and disruption. These insurtech startups are exploring new avenues, ones that large insurance firms have less incentive to exploit, such as customized policies, social insurance, and analyzing streams of data to alter price premiums according to individual consumer behavior.
We look at three emerging insurtech startups.
LeapLife
Leaplife is an insuretech company based in San Francisco, founded by venture funded serial entrepreneurs. LeapLife offers personalized insurance based on behavioral data modelling, providing quotes and insurance packages, acting a a digital insurance broker. LeapLife works with companies like MetLife, Phoenix and Legal & General, offering life insurance starting at $13 a month.
This is the type of start-up dedicated to reinventing the way people buy insurance, how insurers manage risk, and bringing in solutions for new needs.
Cystellar
Cystellar is a cloud-based big data analytics platform. The aim of the data collection and analysis is to develop data-driven decision making, and to support other companies operating in the insurance sector. The platform enables predictive analytics, with the data focus being on helping insurers and their clients avoid damaging events in the agriculture and food sectors.
Data is drawn from satellite imagery and the Internet of Things, plus drone-based surveillance. The platform integrates these various strands of information, an deploys artificial intelligence to assist with the analysis of the complex data. As an example, IoT Sweden and CyStellar recently joined forces to offer Internet of Things and remote sensing solutions for precision agriculture, providing insurance solutions for farmers.
Simple Disability Insurance
As an example of a niche insutech firm, Simple Disability Insurance, through its Simple360 platform, deploys technology to produce disruption in the disability insurance market. Simple360 is a straight-through processing platform designed specifically to remove friction and complexity from the disability insurance sales process.
The company has integrated big data analytics, precision marketing, a simplified product, and automated underwriting. The digital process moves away from paper-intensive systems and speeds up the time required for those with a registered disability to gain insurance.
