Like many industries, insurance is transforming as new technologies emerge. These new products that fall under the umbrella of ‘insurtech’, offer a raft of unique solutions for consumers, innovators and incumbent brands.
Three Interesting B2B Insurtech Start-ups
While many of the newly introduced products are in the B2C sector, there are also plenty of B2B solutions that offer great value to businesses – both those within the insurance sector and those that rely on insurance to do business.
First Up: What is Insurtech?
Insurtech (insurance technology) is the name given to technologies in the insurance space. These products promise to change the way insurance works. They offer multiple solutions, including those that make it easier for insurance providers to create and release products, and those that improve the way customers can access the insurance.
Much like fintech, companies within the space are making use of technological advances, including AI, machine learning, big data and cloud-based computing to create new products. Here is a look at three interesting B2B insurtech companies.
Founders: Flemming Bengtsen founded Nimbla in 2016 and is still working as the CEO.
Funding: Nimbla has raised $120,000 in funding over two seed rounds, according to Crunchbase.
Online Reviews: Nimbla has a five-star rating on SmartMoneyPeople based on four reviews, and a 4.6-star rating on FitSmallBusiness based on 69 reviews.
Value Proposition: At Red Flag Alert, we often write about how devastating bad debt can be to SMEs. It’s also a widespread phenomenon, with between 2,500 and 4,000 businesses having to write off payments due to bad debt every week.
Nimbla helps solve this problem by allowing businesses to buy insurance to protect against non-payment in the event of insolvency.
The service uses risk modelling tools to predict the chance of non-payment of invoices, making it quick and easy for Nimbla to analyse invoices and provide a suitable price for the level of risk. Part of the benefit of the service is how flexible it is. Companies can use Nimbla to get cover for a one-off invoice, all their invoices, or anything in-between.
In the event of a non-payment, Nimbla will pay out or arrange a debt collecting service where required.
Founders: Tim Hardcastle founded Instanda in 2012.
Funding: Instanda has raised $1 million over three rounds, according to Crunchbase.
Online Reviews: Instanda has a 4-star rating based on two reviews on Capterra, and a five-star rating from one review on G2.
Value Proposition: Instanda is a software product built for insurers that helps them develop and launch insurance products.
The software is easy to use, thanks to its drag-and-drop app builder. The company says that building in this way makes it quicker and cheaper for insurers to release new products. This can help them strengthen their existing product portfolios and enter new markets, as well as react to market demands.
Instanda is used by some huge names in the insurance business, including AXA and Zurich. The company says that since its inception, insurers have used the platform to create 2,481 products across over 40 clients and 12 countries.
Founders: Risto Rossar founded Insly in 2000.
Funding: Insly has raised €3.2 million over three rounds of funding, according to Crunchbase.
Online Reviews: Insly has a five-star rating on Capterra from 16 reviews.
Value Proposition: Insly has two products. The first is a cloud-based insurance platform for brokers and agents. The product is essentially a CRM with dedicated features to help its target audience. These features include those that allow brokers to search for and manage client policies, automated invoicing and payments, and in-depth reporting data.
The second is an underwriter solution for MGAs and insurers that allows them to build products, calculate premiums, and manage their policies.
As both products are cloud-based, professionals can access the data anywhere, and it’s updated in real time.
The platform is by far the oldest on this list. Over 5,496 brokers use its product aimed at brokers and agents in 52 countries. The service says it has helped generate over 1.5 million policies since its inception.
The Importance of Data to Insurtech
At Red Flag Alert we are particularly interested in the way these companies use data.
Data has always been at the heart of the insurance industry, and the winners in insurtech will likely need strong data to enhance their value proposition – that may mean using data to price premiums, enhance their platform or deliver many possible innovations. We will be watching with interest.
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