UK Insurtech Neos was in the news last week for raising a £5M Series A round, led by Aviva Ventures with strategic partner Munich Re.
In this post we dig below the news headlines to understand the trends illustrated by what they are doing.
More than a random buzzword generator
At one level, one could view Neos as combining all the hottest buzzwords to unlock VC funding:
- IOT and connected home.
- AI via Chatbot.
Our belief is that the hype cycle and the reality cycle are disconnected. Yes, all the above are hot, hot, hot. Yes, all will fall into the slough of despond, because that is what happens to all overhyped trends. Yet all three have huge value – if applied properly to solve a real pain point. That is what we now turn our attention to.
A win/win/win proposition
Neos is creating a win/win/win proposition for:
- Homeowners. Brits love the expression “a stitch in time saves nine” meaning that paying attention to something small now – like a plumbing leak – will prevent an expensive disaster later.
- Service contractors. They will benefit from a flow of work to fix those things – like the plumber coming in to fix a leak.
- Insurance companies. They save on preventable expensive disaster claims and re-establish themselves as being central to their customer’s lives (not just a premium bill to be paid each month).
Look at this chatbot conversation to see something that will resonate with almost every homewner:
That makes IOT and connected home useful in a way that the oft-hyped milk buying fridge does not do. It also shows the use of AI Chatbots to deliver something useful; we believe that AI Chatbots will become as ubiquitous as websites and mobile apps, no longer a source of advantage, simply a must have item.
Now if only somebody could apply that same thinking to something even more precious than a home – the human body. Prevention is the back to the future of healthcare and health insurance and IOT sensors and AI Chatbot will be the key to this market as well.
UK innovation is alive and well
My home country has been down in the dumps since Brexit and goes to the polls today to decide who will lead the future of the country. Whatever direction the country goes in, innovation will be the key to jobs and prosperity. Neos shows that UK innovation is alive and well.
Join the debate;
Bernard Lunn is a Fintech thought-leader and deal-maker.
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