Partnering with Insurtechs
12 May 2021
Dear Reader,
Insurers across the world are adjusting to the new normal of the on-going pandemic, and as a result, there is massive acceleration in digital transformation efforts. For this purpose, Insurers and non-insurance companies alike are bringing on insurtech companies as strategic partners.
Gartner defines insurtechs as technology companies that are in their early stages of operation; that drive specific innovation across the insurance value chain by leveraging new technologies, user interfaces, business processes or business models; that leverage different forms of funding, including venture capital.
As per a CB Insights report, Funding to insurtech companies hit yearly and quarterly highs in 2020 and Q1‘21, respectively, signaling the confidence investors have in the future of the insurance tech market. In 2020, business relationships involving insurtech companies also hit a record high, coming in at over 650 partnerships for the year.
Companies such as Axa, Munich Re, and American Family are among the insurers with the most formal business relationships with insurtech companies. Recently, China-headquartered Leapstack, an AI-enabled InsurTech company specializing in healthcare, has announced a strategic plan to ink strategic partnerships with multiple Korean insurance companies as the company advances into the South Korean market.
Some Consumer-facing insurtech companies are partnering with other tech providers to improve their product offerings.For instance, auto insurtech Root provides additional benefits to policyholders via partnerships with road assistance app Agero and gas station location app GasBuddy. Home insurtech Hippo recently partnered with ADT and Handdii to improve the security and home repair services it offers policyholders. As these insurtech companies look to aggressively grow their customer bases, expect them to continue partnering with companies that offer complementary digital services.
The partnership between Galileo Platforms, a specialist blockchain technology platform for the insurance industry, and Amodo, a provider of insurance telematics technology and advisory services, including behaviour data analysis, will enable clients to benefit from their diverse experience and expertise in their respective areas of the insurance industry.
Primary core insurance software vendors like Duck Creek, Guidewire, and Unqork are also among the most active in partnering with insurtechs. These companies are incorporating complementary insurtech products to create a stickier experience for customers by tying these products to their core suites. Horizontal software providers like Microsoft and Salesforce and more mature insurtech platforms like Bold Penguin and Snapsheet have also actively formed partnerships to build out their insurance ecosystem capabilities.
We believe, as insurtech companies mature and build increasingly innovative solutions, expect to see insurers double down on successful partnerships and explore new ones.
Credits : Akhil Handa Aparna Anand
Popular Articles
Increased Interest Rates for Senior Citizen Savings Schemes, KVP, NSC & Post Office Time Deposits
Related Articles
-
Disclaimer
The contents of this article/infographic/picture/video are meant solely for information purposes and do not necessarily reflect the views of Bank of Baroda. The contents are generic in nature and for informational purposes only. It is not a substitute for specific advice in your own circumstances. Bank of Baroda and/ or its Affiliates and its subsidiaries make no representation as to the accuracy; completeness or reliability of any information contained herein or otherwise provided and hereby disclaim any liability with regard to the same. The information is subject to updation, completion, revision, verification and amendment and the same may change materially. The information is not intended for distribution or use by any person in any jurisdiction where such distribution or use would be contrary to law or regulation or would subject Bank of Baroda or its affiliates to any licensing or registration requirements. Bank of Baroda shall not be responsible for any direct/indirect loss or liability incurred by the reader for taking any financial decisions based on the contents and information mentioned. Please consult your financial advisor before making any financial decision.
Parking Payments
Dear Reader,
Increasing adoption of integrated automated solutions coupled with the advancements in wireless technologies are expected to drive the growth of smart parking market. Major technologies used for the deployment of efficient systems include sensing devices, machine-to-machine (M2M) communication, smart parking meters, data analytics, mobile apps for e-reservation of slots and online payments.
According to Brand Essence Research Report, Global Smart Parking Market was valued at USD 5.62 Billion in 2018 and expected to reach USD 12.83 Billion by 2025 with a CAGR of 12.5% over the forecast period.
In recent years, parking payments has drawn the attention of many FinTechs and digital payment solution providers. In India, National Payments Corporation of India (NPCI) has introduced an interoperable system so that FASTags can be used to pay parking fees at malls, airports and other private parking lots across key metros - Delhi, Mumbai, Chennai, and Bengaluru.
Such payments will be contactless, which assumes significance in the wake of Corona virus pandemic. The NETC FASTag solution will work both as post-paid and pre-paid solutions for securing parking at a parking plaza. There will be no additional cost to customers with respect to the parking fee, other than the one-time purchase cost of the tag. There will also be dedicated FASTag lanes.
In the US, Passport, a transportation software company supports the management of vehicle interactions with streets and sidewalks, through its robust digital parking payment technology. Passport supports over 1,000 clients of all sizes in North America and has processed more than $2B mobility transactions to date.
Similarly, ParkMobile is another leading provider of smart parking and mobility solutions in North America, using a contactless approach to help people easily find, reserve and pay for parking on their mobile devices.
Last month, Google announced entering into an advanced partnership with both Passport and ParkMobile. The parking payment feature can be availed in over 400 US cities, including Boston, Chicago, Houston, Los Angeles, New York and Washington DC.
Simply tap on the 'Pay for Parking' button that appears as you near your destination. Then enter your meter number, the amount of time you want to park for, and tap 'Pay'. The payment will be processed through Google Pay application.
Google Maps, along with Passport, is in the process of expanding the ability to pay for transit fares for "over 80 transit agencies" around the world, allowing the users to plan their trips, buy tickets and start riding without needing to toggle between multiple apps.
We believe that the increased interest around the parking payment technology will provide an opportunity for IoT and mobility players to up their game and significantly increase revenue generation, to get back on track in the wake of the pandemic.
Credits : Akhil Handa,Aparna Anand
RegTech
Dear Reader,
RegTech is the management of regulatory processes within the financial industry through technology. Regtech automates regulatory processes and ensures compliance with regulations. It uses technology to support the ongoing monitoring of regulations and facilitates necessary reporting. Regtech also creates transparency and consistency, as well as substantially increases the quality of risk management and compliance. Another advantage is greater security arising from the continuous monitoring of processes.
Banks and financial companies have to act in accordance with many regulatory requirements. The UK-based startup REGnosys offers a regulatory technology compliance platform, called Rosetta. It aims at facilitating the implementation of the Common Domain Model (CDM) for financial sector players with programmatically enforced compliance mechanisms. The solution saves costs and risks based on a specific rule-based operational lifecycle design.
Canadian startup Mind Bridge creates a financial data analytics platform for auditing, based on AI and machine learning. It leverages accounting data and incorporates domain expertise to detect mistakes and anomalies, spot potential risks and investigate specific cases with built-in natural language processing (NLP) search to help banks and financial institutions resolve issues encountered during regulatory compliance.
Singapore-based startup Dathena utilizes AI to arrange a suite of regulatory data safeguarding tools for the financial, healthcare, travel and retail industries. This suite allows enterprises to organize their data repositories, manage secure access to files, classify data by importance and confidentiality, automate data protection policies implementation and ensure data security.
Banks and financial organizations are obliged to cope with government norms and to regularly create and submit corresponding regulatory reports. Israeli startup Cappitech provides a regulatory reporting platform, Capptivate, for FinTechs. The solution automates data transfer, as well as report creation and submission. Besides, it validates given information and reformats it in accordance with regulatory requirements, monitors the reporting status and provides feedback on past reports.
Chile-based startup Ceptinel has developed a real-time regulatory monitoring system for financial companies. As government laws, regulations and procedures tend to change over time, established companies and FinTechs alike need to stay aware of any pending requirements, modifications in norms, or new state guidelines related to their business. It applies machine learning and complex event processing algorithms to treat large amounts of data coming from various sources to ensure compliance with new regulatory requirements.
Regtech increases effectiveness, efficiency, security and transparency for all market participants, enabling them to focus on their core competence, safe in the knowledge that they are operating in accordance with the legal and regulatory requirements.
Credits : Akhil Handa,Manisha Gawle