Curated slice of insurtech trends: Lloyds Lab, Climate & New Niches

Lloyd’s Lab announced the companies that join its ninth cohort in its ten-week program, from over 120 applications received. The selected teams won the adulation of an expert panel when presenting their ideas for insurance products and solutions for natural catastrophes, energy and construction. The selected solutions were geared towards new products that help the market understand customers’ risks better, respond even faster to incidents and provide enhanced services.

The selected teams include:

  • Kayna: Embedded insurance for SMB that uses real-time data from the platforms to build an accurate picture to provide more accurate insurance cover.
  • nPlan: A risk transfer product for construction delays, using AI to forecast and help prevent delay risk on construction megaprojects.
  • Altelium: Proprietary end-to-end battery insurtech platform driven by battery data analytics and expertise.
  • Innovatrix: cutting edge solutions for intangible risk transfer in life sciences sector to facilitate investment in R&D for the social good.
  • ARMD: ecosystem of products and services to maximise protection and minimise downtime for tradespeople, with better underwriting performance for insurers.
  • Yokahu: Protects banks and vulnerable borrowers from major events, covers costs of loan repayments rather than principal.
  • Anansi: Embedded goods in transit insurance for e-commerce businesses.
  • OTT Risk: Parametric BI insurance using footfall, card transactions, passenger volume and revenue.
  • Sola: Parametric insurance to cover the underinsurance protection gap after natural disasters, specifically tornados.

Parametric solution for climate insurance needs

Traditional insurance is beyond many of the world’s half-billion farmers and climate-exposed businesses that need financial protection from weather risks, due to a high-cost operating model designed for larger contracts. Hillridge Technology addresses the climate protection gap in agriculture and climate-exposed industries, overcomes inefficiencies and transparency gaps by combining weather data from the latest generation of satellites and distributed ledger technologies. Its platform generates a price in seconds and triggers automatic payout instructions during adverse weather. Hillridge is growing its footprint in Australia and New Zealand and expanding its weather insurance platform to southeast Asia.

Finding niches: Power Sports Insurance

Historically, motorcycle and power sports insurance were wrapped into traditional car insurance, with little difference between someone driving their car to work and somebody driving their motorcycle, snowmobile or e-bike during weekends. The latter need specialty products with different behaviors, warranting its own unique customer and claim experience, product design and coverage. Boundless Rider is an insurance company founded specifically to serve riders of motorcycles, e-bikes and power sport vehicles. Policies can be purchased from it directly or bundled with another carrier’s products or through manufacturers at point-of-sale.

Finding niches: Crime Insurance

According to US Department of Commerce, employee theft costs businesses $50bn annually, with costs rising at 15% per year. Counterpart, an AI-driven management liability Insurtech for small businesses, has launched a crime insurance product. It offers modern directors & officers, employment practices, excess and fiduciary products for small businesses. Their offering helps identify employee theft and social engineering perils by utilizing proprietary ML-based underwriting subsuming employee sentiment analysis and proactive risk mitigation guidelines.

Finding niches: AV & Robotics Insurance

Koop Technologies, specializing in autonomous vehicles (AV) and robotics risks, has launched an industry-first Robotics General Liability and Errors & Omissions insurance product. The coverage is designed for off-road AV and robotics developers, operators, and service providers. It provides bespoke ratings using a proprietary risk assessment methodology.

As I conclude my penultimate post in, the palpable excitement in the insurtech and broader insurance industry for a new world order is incessant. Change is slow to come and will surface regularly in the shape of surges and tides, but the simmering forces under the surface are bound to cause upheaval that will transcend the deterrents and transform business models, rules of engagement and ultimately, value paradigms.

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